Judgement

Appeal (No. 24 of 1937) from a decree of the High Court (February 7, 1936) which reversed a decree of the Subordinate Judge of Arrah (March 7, 1935).

The main question for determination in this appeal involved the interpretation of a clause in each of two leases, dated April 1, 1928, granted by Government to the respondent company. By one of the leases the Government leased to the company for twenty years the right to quarry limestone and manufacture lime in an area known as Lower Murli Hill. The second lease was of the land in Upper Murli Hill together with the right to quarry and extract limestone and manufacture lime. The company had to pay to Government royalties on the limestone and lime at rates stated in the leases. In both leases there was a clause prohibiting, without the previous assent of the Board of Revenue, the assignment of the lease, or the transfer of any right or interest acquired thereunder, or the underletting of the whole or any portion of the premises comprised in the lease. The penalty prescribed for the infraction of any of the conditions in that clause was forfeiture of the lease.

In January, 1933, the company went into voluntary liquidation. By a