JUDGMENT

KRISHNA IYER, J.:—A forest contractor - the appellant - who had allegedly excess felled trees beyond the permitted number under two contracts entered into by him with the State of Andhra Pradesh, was directed by the Conservator of Forests - the first respondent - to suffer two levies. One item represented the loss sustained by the State on account of the illicit cutting and the other was a penalty imposed under Rule 29 of the Forest Contract Rules (for short, the rules) issued in exercise of the powers conferred under Sections 44 and 79 of the Hyderabad Forest Act, 1355F (for short, the Act).

2. The factual story out of which the legal controversy springs may be narrated in simple terms. Admittedly, the appellant was granted two forest contracts to fell and remove a specific number of trees from government forest, in accordance with the Act and the Rules. The Contracts were of two years duration ending with 31st December 1960. It was found by the Forest Officers that the appellant contractor had felled 783 more trees and so he was given a notice calling for his explanation about this detected breach of condition.

3. In C. A. 814 of 1968 such notice was issued on 25-6-1960 b