Judgment

SIKRI, J. :- This appeal by special leave is directed against the judgment and decree of the Madhya Pradesh High Court allowing the appeal of the State of Madhya Pradesh and dismissing the suit brought by the appellant, Badri Prasad - hereinafter referred to as the plaintiff.

2. The relevant facts for determining the points raised before us are these. On December 27, 1950, a contract was entered into between Kumar Bharat Shah, minor, though his guardian, and the plaintiff, in respect of forests in Mouza Sunderpani Jagir. The terms were reduced to writing and an agreement was signed on January 21, 1951. It is necessary to reproduce the agreement in extenso as it would be necessary to interpret it carefully.

"Deed of agreement executed by Shri Kumar Bharat Shah minor, guardian Shrimati Rani Umarkuar Sahiba, Jagirdar of Mouza Sunderpani.

Conditions of contract, area, forest, Mouza Sunderpani.

1. Out of the area of 1704.46 acres of Mouza Sunderpani Jagir contract of all the teak trees of more than 12 inches girth standing in the 1000 acres of the forest of big trees and excluding those teak trees which have girth upon 12 inches is given to contractor Badri Prasad Moolchand firm of Timarni for a sum of Rs. 17,000/- seventeen thousand rupees on payment of the amount in a lump sum.

2. In respect of the teak trees mentioned in paragraph No. 1 contractor Shri Badri Prasad deposited with me the total amount of Rs. 17,000/- seventeen thousand rupees, as under :-

Rs. 6,000/-, six thousand rupees on 27-12-50.

Rs. 11,000/- eleven thousand rupees on 21-1-51.

Receipts have been passed for depositing the above amount.

3. The transfer of the forest shall not be done without consent of the owner. The contractor shall have to pay Rs. 100/-, one hundred rupees, for transfer.

4. For the proper execution of work of the forest the felling of the forest shall have to be done from one side. Excluding the teak trees upon the girth of 12 inches the cutting of those teak trees which are above that girth shall have to be serially done.

5. After felling, the stumps of teak trees should be 3 inches high from the ground and slanting so as to drain the water off .It shall be necessary to prepare the stumps within a week. Till the stumps are passed the wood cannot be removed. Only the pairing can be done. The coupe guard shall make a hammer mark of passing on the stump and end of the paired wood.

6. The contractor shall have to get the transit of goods done by the coupe guard. The contractor shall have to do the transit of goods through the licence book and submit other monthly accounts. Without licence no goods shall be transported out of the forest.

7. The contractor shall have to take care of the teak trees of 12 inches girth standing in the forest. If damage is caused proper penalty shall be charged.

8. The contractor can appoint an agent with permission.

9. The contractor shall have to deposit Rs. 100/-, one hundred rupees for properly preparing the stumps of the teak trees of the forest before starting the work. This amount shall be returned on completion of the work if the stumps are properly prepared otherwise the expenses which may be incurred shall be deducted.

10. The contractor shall be responsible for any damage caused to the forest by the contractor or his agent and he shall have to pay the penalty.

11. The period of the contract shall be 3 years, i.e., from 27-12-50 to 27-12-1953.

Hence the agreement in execution and the same is genuine. The contractor and the owner of the forest shall be bound by this."

On January 22, 1951, the Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 (Madhya Pradesh Act 1 of 1951) - hereinafter referred to as the Act - received the assent of the President and was published in the Gazette on January 26, 1951. The plaintiff started working under the contract in March, 1951. In March 31, 1951, a notification was issued vesting the estates in the State and the State Government prohibited the plaintiff fro