IN THE SUPREME COURT OF INDIA
District Board, Shahabad and others
Fathima Beevi, J.
1. The appellant M/s. Dehri Rohtas Light Railway Company Limited carried on business of running a light railway between Dehri-on-Sone to Tiura Pipradhih in the district of Rohtas, Bihar. The railway line for the said light railway was laid over 67 kilometeRs. The area covered was 413.55 acres owned and/or used by the company as a lessee. The appellant was liable to pay cess to the District Board under Section 5 of the Bengal Cess Act IX of 1880.
2. An unregistered agreement was entered into between the appellant and the District Board of Shahabad, (now Bhojpur) on 7.8.1953. Thereby it was agreed that the company will pay a fixed sum of Rs. 10,000 per annum towards cess in respect of the railway under the Bengal Cess Act IX of 1880 irrespective of the profits or losses made by the company in its railway business. The company paid the cess as per the agreement dated 7.8.1953 for the period from 1953-54 to 1966-1967.
3. On 27.10.1967, the Collector made a demand of Rs. 9.86,809.33 paise from the appellant intimating therein that State was not bound by the unregistered agreement dated 7.8.1953. The company instituted suit No. 60 of 1968 before the court of Third Additional Sub Judge, Sasaram, to enforce the agreement and to restrain the respondents from making any demand in excess of Rs. 10,000 per annum. The suit was dismissed by the judgment dated 13.9.1971. The first appeal No. 1242 of 1971 filed before the High Court against that decision was also dismissed by the judgment dated 23.5.1980. Civil Appeal No. 3249 of 1983 is directed against this judgment of the High Court.
4. In the meantime the demand for the cess was raised against the company for the years 1967-1968 to 1971-1972. This demand was challenged by the company before the High Court by filing writ petition No. 1372 of 1974. The High Court by judgment dated 30.3.1979 quashed the notice of demand
Buy this document