( 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 having lapsed. In pursuance of the provisions of the 1947 Act the Maharao of Kutch executed an instrument of accession on 4th May 1948 ceding to the Dominion of India and followed it up by an agreement called The Kutch Merger Agreement executed on 1st June 1948 whereunder he conceded to the Dominion Government full and exclusive authority jurisdiction and power for and in relation to his State and agreed to transfer the administration of the State to the Dominion Government. Consequently the Central Government came to enjoy absolute exclusive and plenary authority jurisdiction and power over the territories of the erstwhile Indian State of Kutch the Maharao who was the sovereign ruler of Kutch having ceded his State to the Dominion of India on the latters assurance to respect the Rulers personal rights privileges and dignities and to pay an annual privy purse Thus all properties of the Indian State of Kutch vested absolutely in the Central Government.

( 3 ) AFTER the execution of the Instrument of Accession and the Merger Agreement the Port of Kandla was under the administration of the Chief Commissioner of the Province. On 26th January 1950 when the Constitution was given to the people of India Kutch became a part C State. On 31st January 1950 the Central Government in exercise of powers conferred by cl. (a) of sub-sec. (1) of sec. 4 of the Indian Ports Act 1908 (1908 Act) extended the provisions of the said Act to the Port of Kandla with effect from 1st April 1950 In the said notification the limits of the Port of Kandla were defined. On 9th February 1953 the Union of India directed the Chief Commissioner of Kutch to transfer 346. 5 sq. miles of land to the Port Authorities. By a subsequent notification dated 29th March 1955 issued by the Central Government in exercise of powers conferred by sub-sec. (8) of sec. 3 of the 1908 Act the Port of Kandla was declared a Major Port with effect from 8th April 1955 The Constitution of India was amended by the Constitution (Seventh Amendment) Act 1956 By the said amendment the First Schedule to the Constitution was also amended and with regard to the territories comprising the State of Bombay by sub-sec. (1) of sec. 8 of the States Reorganisation Act 1956 the territories of the existing State of Kutch became part of the newly formed Part A State of Bombay. After the bigger bilingual State of Bombay thus came into existence from 1st November 1956 the State was bifurcated on 1st May 1960 into the State of Maharashtra and the State of Gujarat and the Port of Kandla fell within the territories comprising the State of Gujarat. The Major Port Trusts Act 1963 (1963 Act) was given force from 29 February 1964 and since the Port of Kandla had already been declared to be a Major Port with effect from 8th April 1955 the prov