ASSOCIATED CEMENT CO LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BRIEF facts of the case are that on 1. 12. 1913. a lease was executed for 30 years between the predecessor of the petitioner company and the erstwhile ruler of Bundi State for mining lime stone in the area measuring 101 sq. miles. Part II of the lease confers rights and privileges on the predecessor of the petitioner company. Clause 3 of Part II of the lease deed is reproduced hereunder:- &nbsp&nbsp&nbsp&nbsp&nbsp" 3. Liberty and power to appropriate and use for any purpose connected with the said mines and quarries the water upon or within any of the said lands and to collect and impound the came in ponds reservoirs or otherwise for the purpose of working the said mines and quarries but so that in the exercise of this privilege the Lessees shall not deprive only lands villages houses or watering places for cattle of a reasonable quantity of water as before accustomed and do not in any way foul impregnate or otherwise deteriorate any springs or streams of water so as to render them useless or unprofitable. "

(2.) IN the year 1913-14, the petitioner established cement factory in the said area and constructed a dam at Sakhoda village in the year 1923-24. IN the year 1931, another dam was constructed across the river mez and sanction for construction of the aforesaid dam was accorded by the erstwhile ruler of Bundi State vide letter No. 1048 of 1930-31.

(3.) THE controversy arise when in the month of September, 1974, the Audit Officer, Accountant General's Office objected that the petitioner company is liable to assessment for raw water charges from 1. 11. 1956, the date of enforcement of the Rajasthan Land Revenue Act, 1956. THE said audit objection was forwarded to the petitioner company by the local Tehsildar by letter dated 17. 9. 1974.