( 1 ) THESE two Letters Patent Appeals one by the State of Gujarat and the other by the Gandhidham Municipality are directed against the judgment of our learned brother S. H. Sheth J. in a writ petition brought under Article 226 of the Constitution of India being Special Civil Application No. 748/74 by the Board of Trustees of the Port of Kandla (hereinafter called the Board) challenging the right of the State Govern- ment to recover non-agricultural assessment in the sum of Rs. 56 6 400 for the revenue years 1963-64 to 1970-71 in respect of lands vesting in the Board by virtue of cl. (a) of suh-sec. (1) of sec. 29 of the Major Port Trusts Act (Act XXXIII of 1963 ). Questions of some complexity arise in these appeals and they shall have to be determined in the light of the material facts set out hereunder:

( 2 ) THE Maharao of Kutch was the ruler of the Indian State of Kutch. He conceived of the idea of developing a port at Kandla and translated it into action some time in 1931 or thereabouts. On the coming into force of the Indian Independence Act 1947 (1947 Act) Kutch became a sovereign State with effect from 15th August 1947 the suzerainty of the British Crown havi