High CourtDivision BenchAppeal dismissed with costs.

Forest Officer v. Mool Chand Sarougi Jain

Case / Petition Number:Civil Appeal No. 595 of 1967
Neutral Citation:1971 SCR 300

Case Details & Bench

Court
High Court
Hon'ble Judges
  • J. C. Shah
  • K. S. Hegde
  • A. N. Grover
Judgment Date
1971-01-06
Court Decision / Holding
The appeal must fail. The Court held that Rule 10 does not apply to recovery of the amount alleged to be due for failure to carry out the obligations of the tender under the Assam Forest Regulation 1891. It also held that, even if stone were considered, Rule 10 does not create a monetary liability, and that the lease-regulation framework does not render the claimed sum recoverable as an arrear of land revenue. The High Court’s decision quashing the recovery was affirmed, and the appeal was dismissed with costs.
Final Disposition
Appeal dismissed with costs.

Parties to the Case

Appellants / Petitioners

  • Forest Officer

Respondents

  • Mool Chand Sarougi Jain

Legal Representation & Advocates

Counsels for Petitioners

  • • Naunit Lal

Counsels for Respondents

  • • D. N. Mukherjee

Case Synopsis & Summary

The Divisional Forest Officer, Kamrup Division, Assam, invited tenders for monopoly rights to quarry stone from Harengi Stone Quarry Mahal for the period July 1, 1963 to June 30, 1964. The respondent, Mool Chand Sarougi Jain, submitted a tender for the minimum quantity of 1,25,000 cubic feet at Rs. 5.25 per rupee of royalty, with a total bid of Rs. 31,250. The tender was accepted and intimation of acceptance was issued on July 13, 1963. An appeal by Baputi Ram, a member of a Scheduled Tribe, obtained a stay from the Government, but after about three months the stay was vacated and the appeal was dismissed for non-prosecution; the respondent declined to accept settlement of the quarry. Fresh tenders were invited and on January 10, 1964 a settlement was made for a minimum quantity of 50,000 cubic feet from January 25 to June 30, 1964 for Rs. 10,000. The Divisional Forest Officer then sought to recover Rs. 31,250 as arrears of land revenue under Section 75 of the Assam Forest Regulation VII of 1891. The High Court quashed the recovery, holding the amount not recoverable under the Regulation, and the State appealed with a certificate. The case centers on whether the amount is recoverable under Section 75 or Rule 10 (rules under the Regulation) and whether stone qualifies as forest produce. The Supreme Court ultimately held that Rule 10 does not apply to recovery of the amount and that the recovery argument fails; the appeal is dismissed.

Provisions of Law Cited

Section 75 of the Assam Forest Regulation VII of 1891Rule 10 of the rules made under the Assam Forest Regulation VII of 1891

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that Section 75 contemplates recovery of money payable under the Regulation or its rules, and that upon failure to carry out tender obligations, the amount could be recovered as an arrear of land revenue under Rule 10, which operates under the Regulation to govern such recoveries and to regulate leasing of certain forest produce. They contended that the tender breach and the amount due arise within the scheme of the Regulation and its rules, and that Rule 10 supports recoverability as an arrear of land revenue.

Contentions of Respondents

The respondents contended that Section 75 does not apply to the present context and that Rule 10 cannot create a monetary liability for failure to fulfill tender obligations. They argued that stone is not forest produce within the meaning of the Act, and even if Rule 10 is applicable, it does not give rise to a monetary liability; the amount claimed is not due under the Regulation or under its rules, and the High Court correctly quashed the recovery.

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Extracted Judgment Text

Exact text extracted from official judgment records.

298 DIVL. FOREST OFFICER _v._ MOOL CHAND SAROUGI JAIN _)pnuary_ 6, 1971 A (J. C. SHAH, C.J., K. S. HEGDE AND A. N. GROVER, JJ.] B _Assant Forest Regulation_ _VII_ _of_ 1891. _Rules made_ _under-Rule_ 10 _scope of._ ' The Divisional Forest Officer Kamrup Division Assam invited tenders for the jlllrchase of m,onopoly rights to quarry stone for the period July 1, 1963 to June 30, 1964. The tender submitted by the respondent was accepted and for the mihimum quantity of 1,25,000 c.ft. of stone allotted to the res- C pondent he was to pay R$. 31,250/-. On appeal being filed against the order accepting the tender the Government of_Assam granted stay of the order. When three months later the appeal v.•as dismiss'cd for non.prosecution the respondent declined to accept settlement of the quarry. Thereafter tenders had to be invited again and it was only on January 10, 1964 that 'l settlement was made for a minimum quantity of 5000 c.ft. for'the period from January 25, 1964 to June 30, 1964 for Rs. 10,000. • The Divisional Forest Officer then sought to recover the amount of Rs. 31,250/- for .which D the tender of the respondent was accepted as arrears of ]and revenue in the manner provided by s. 75 of the Assam Forest Regulation VII of 1891. The iespondent moved a petition in the High Court for an order quashing the proceeding for recovery of the amount demanded. The High Court allo\ved the petition holding that the amoun' claimed was not recoverable under the aforesaid Regulation. The State of Assam appealed to this Court \Vith certificate. -It w~s conceded that the amount was not recoverable undef- s. 75 of the Regulation but reliance was placed on Rule ·10 of the E rules made under the Regulation. HELD : The appeal must fail. Rule 10 docs not a!Sply to recovery of the amount alleged to be clue for failure to carry out the obligations of tho tender by proceeding~ under the Assam Forest Regulation 1891. It is again difficult to hold that 'stone' is forest produce within the meaning of the Act. In any event the Rule poes not give rise to any liability to pay a sum of money. It merely imposes a limitation upon the power of the officers of the Forest Department to grant leases in respect of certain forest produce. The lease may not be granted except in accordance with the general or special order of the conservator who alone is empowered to authorise a sale in respect of such a lease. [300 E-F] CIVIL APPELLATE JURISDICTION _:_ Civil Appeal No. 595 of 1967. Appeal from the judgment and order dated July 28, 1966, of the Assam and Nagaland High Court in Civil Rule No. 242 of 1964. _Naunit Lal._ for the appellants. _D. N._ _Mukherjee,_ for the respondent. F G H A B # c D E F G H FOREST OFFICER _v._ MOOL CHAND _(Shah,_ C.J.) 29!!· The Judgment of the Court was' delivered by Shah, C.J. The Divisional Forest Officer, Kamrup· Division,. Assam invited tenders for the purchase of monopoly rights to quarry stone from certain areas, including Harengi Stone Quarry #### Mahal, for the period July 1, 1963 fo June 30, ! 964. Moo! Chand Sarougi-hereinafter called 'th.e .respondent' submitted a tender accompanied by. the requisite deposit of Rs. 100/- as earnest money, and offered the rate of RS. 5.25 per rupee of royalty. The tender, submitted by the respondent was accepted and for the minimum quantity of 1,25,000 c. ft. of &tone allotted to the respon### dent out of the quarry he was to pay Rs. 31,250/-. Intimation of acceptance of the tender W?' <!iven to the respondent on July 13, 1963. One Baputi Ram, a member of a scheduled tribe, appealed against the order of the Divisional Forest Officer accepting the tender, to the Government of Assam and obtained a stay order. After about three months he declined to prosecute the appeal and his appeal was dismissed. The, respondent then declined to· accept the sett~ment of the quarry. The Divisional Forest Officer invited fresh tenders. The offers· made were not however accepted and tenders were invited again. c- On January!O, 1964 a settlement was made for a mini mum quantity of 50,000 c. ft. for the period fro1,11 January 25, 1964 fo June 30, 1964 for Rs. 10,000/ The Divisional Forest Officer, thereafter, sought to recover #### the amount of Rs. 31,250/ - for which the tender of the responl dent was accepted aa arrears of land .revenue in the manner pro- . vided bys. 75 of the Assam Forest Regulation VII of 1891. The respondent then moved a petition in the High Court of Assam for· an orde.r quashing the proceeding for recovery of the amount demanded. The High Court held that the amount claimed was not recoverable under the provisions of the Assam Forest Regula tion. VII of 1891 and passed an order quashing the proceeding for recovery and issued a _mandamus·_ to the Divisional Forest Officer, Kamrup Division not to proceed with the recovery. The State of Assam has appealed to this Court with certificate granted by the High Court. #### Section 75 of the Assam Forest Regulation VII of 1891 pro vides: "All money, other than fines, payable to Crown under this Regulation, or under any rule made thereunder, or on account of the pi:ice of any forest produce, or of expenses incurred in the execution of t.1tis Regulation ~00 SUPREME COURT REPORTS [1971 J3 s.c.R. in respect of any forest produce, may, if not paid when due, be recovered under the law for the time being in force lll; if it wer>~ an arrear of land revenue." The amount claimed to be due from the respondent is not on account of the price of any forest produce, or of expenses incurred in the execution, for recovery of any forest produce. The amount is also not due in the e11:ecution of the Regulation. So far there is common ground. It was claimed, however, that the amount w~ due under rule 10 promulgated in exercise of power under the 'Regulation and o_n that account it was recoverable as an arrear of land revnue. Rule 10 provides : "No lease for any . fixed period giving the right of removing India rubber, cane, _kutcha_ or cutch, . lac, agar, ivory, or any other forests produce shall be given otherwise than in accordance with the genral or special orders of the Conservator who is empowered to authorise sales in respect of such leases, by auction, tender or any other method at such rates as he may decide in his discretion." The Rule in our judgment does not apply to recovery of the amount alleged to be due for failure t,o ~arry out the obligations of the tender by proceedings under the Assam Forest Regulation 1891. It is again difficult to hold that stone is forest produce within the meaning of the Act. In any event the Rule does not give rise to any liability to pay a sum of money. It merely imposes a limitation upon the power of the officers of the. Forest Department to grant leases in respect of certain forest produce. The lease may not be granted except in accordance with the general or special orders of the Conservator who alone is empower#### ed to authorise a sale in respect of such a lease. It is a rule relating to the exercise of power to grant leases. The High Court was, in our judpnent, right in observing th!t the amount of damages for breach of the terms of the sale notice is not an amount due under the Regulation, or rule 10 made thereunder. / The appeal accordingly fails and is dismissed with costs. G.C. _Appeal dismissea._ _, A B ## c D E F G