Judgment

SHELAT, J. :- By an Indenture of Lease, dated January 12, 1944 made between the then Ruler or Korea State of the one part referred to as the lessor therein, and Sir Maneckji B. Dadabhoy referred to as the lessee, of the other part, the lessor granted to the lessee for a term of 30 years, in consideration of payment of rents and royalties therein mentioned, a mining lease of an area measuring 5.25 sq. miles delineated on the plan annexed thereto, with liberties, powers and privileges and on terms and conditions therein set out. By Clause (2) of that Indenture, the lessee agreed to pay during the subsistence of the lease royalties at the rates and on dates set out therein. The rates of royalty varied from 5 to 25 according to the price of coal per ton extracted from the leased area, that is to say, from 4 ans. per ton if the price was Rupees 5/- per ton to 25 of the price per ton at the pit s head if that price was Rupees 20/- or more.

2. On the merger of the Korea State with Madhya Pradesh, into the events of which it is not necessary for the purposes of this appeal to go, the leased area became subject to the provisions of the Mines and Minerals (Regulation and Developmen