Judgment

SHAH, J.: Kanpur Sugar Works Ltd. a public limited Company is engaged in the business of manufacturing sugar in village Marhowrah, District Saran, in the State of Bihar. Prior to 1956 it possessed a considerable zamindari property. Under a notification issued in exercise of the power under the Bihar land Reforms Act 30 of 1950 the entire zamindari vested in the State with effect from January 1, 1956. But by the provisions of the Act homestead lands and lands of the factory remained in the occupation of the Company. The Circle Officer commenced a rent assessment proceeding under the Bihar Land Reforms Act for determining the rent payable by the Company. The Company claimed to classify lands in its occupation under three heads : (i) 12 bighas 9 kathas 7 dhurs on which the factory buildings stood, and on that account assessable to rent under S. 7 of the Bihar Land Reforms Act, 1950; (ii) 50 bighas 3 kathas 13 dhurs of cultivable land under Khas cultivation of the Company liable to assessment of rent under S. 6 of the Act; and (iii) 71 bighas 2 kathas 12 dhurs as homestead land not liable to assessment under sub-s. (1) of S. 5 of the Act.

2. By order dated February 10, 1961 the