JUDGMENT

KASLIWAL, J.:—This appeal by Special leave is directed against the judgment of the High Court of Gujarat dated 7/ 10th February, 1975.

2. The plaintiffs Nos. 2 to 4 were Dumaldars of village Nalej of erstwhile State of Chhota Udepur (hereinafter referred to as the Jagirdars). The Jagirdars vide exhibit 58 dated 9-1-1954 sold all the teak trees in favour of plaintiff No.1 (hereinafter referred to as the contractor) for a sum of Rs. 6,001/- and received a sum of Rs. 101/- as earnest money. By another agreement exhibit 59 dated 29th July, 1954, the Jagirdars sold all the Mahuda trees in favour of the contractor for a sum of Rs. 5001/ - and received a sum of Rs. 600/- as earnest money. On 1st August, 1954 Bombay Merged Territories and Areas (Jagirs Abolition) Act, 1953 (hereinafter referred to as the Jagir Abolition Act) was applied to village Nalej. The compensation in lieu of trees was not awarded to the Jagirdars as the same had already been sold by the Jagirdars in favour of the contractor. The contractor made an application to the Collector of Baroda under Sourashtra Felling of Trees Act for permission to cut the trees in question. The Collector forwarded the application to the Mamlatdar of Chhota Udepur who granted the permission vide order dated 25th September, 1961. The contractor then started cutting the trees in question. However, the Prant Officer, Chhota Udepur prevented the contractor from cutting the trees. The contractor then made representations to the Divisional Forest Officer and the Government. In reply the contractor was told that the Jagirdar had no right to the trees standing in the reserved forest area and in the waste land. Thereupon the contractors authorisation to cut the trees and his transit passes to transport the goods were withheld. The Government invited tenders for the sale of the trees already cut and sold the same on 30th July, 1962 for a spin of Rs. 15786/-.The Government also sold other trees to other persons and realised from them some amounts. The Jagirdars and the contractor filed a suit against the Government of Gujarat and the Divisional Forest Officer, Chhota Udepur, District Baroda for rendition of account, for a declaration of the plaintiffs title to the trees in question and for a declaration of the right of the contractor to cut the trees in question and to remove the cut materials.

2A. A declaration was also sought that the impugned action of the Government was illegal, ultra vires and unlawful and to give a direction to the Government to issue the necessary authorisation and transit passes for cutting and removing the trees in question in favour of the contractor. It was also prayed that out of the sale proceeds of the cut materials on 30th July, 1962 for Rs. 15786/- an amount of Rs. 1267.82 having paid by the Divisional Forest Officer, a decree for the balance of Rs. 14518.18 may be passed against the Government.

3. The Trial Court by judgment dated 31st March, 1967 partly decreed the suit. It was declared that the Jagirdars were the full owners of the trees and as such the contractor had also become the full owner of the trees. It was also declared that the contractor was entitled to cut and remove these trees and the State of Gujarat, its officers, servants and agents were ordered to issue necessary permit, authorisation and transit passes to plaintiff No. 1 (contractor) for removal of the trees. The State was also ordered to pay Rs. 14518.18 together with proportionate costs and interest at 4% per annum on this amount from the date of decree till realisation. The State of Gujarat, its officers, servants and agents were also restrained by perpetual injunction not to interfere with the rights of ownership of the plaintiffs except in due course of law. Prayer for rendition of accounts was dismissed.

4. The State of Gujarat, aggrieved by the judgment and decree of the trial Court filed an appeal in the High Court. The Division Bench of the High Court allowed the appeal, set asi