Rajasthan High Court
Modi & Chhangani, JJ.
M/s Tiwari Jhumerlal Swarooplal - Appellant
Versus
State of Rajasthan - Respondents
D.B. Civil Writ Petition No. 447 of 1963
Decided On : February 24, 1964
2. The petitioner is a registered partnership firm carrying on the sand stone mining business in the Tehsil Bayana and Roopbas in District Bharatpur. The firms constitution had changed from time to time but since April, 1958, it has been a firm consisting of four partners. However, in spite of the change in the constitution of the firm the firm has been maintaining the continuity of the business. In the year 1943 the firm was granted the mining lease of the area containing sand stone in Tehsil Bayana and Roopbas of the then Bharatpur State for a period of 10 years, the dead rent ranging from Rs. 72,000/- to Rs. 80,000/- per annum. On the expiry of the period of 10 years the lease was renewed by the Government of Rajasthan—successor State of the then Bharatpur State—for a period of another 8 years on the dead rent of Rs. 1,00,000/- per annum. This period of 8 years for which the lease was renewed expired on 30th April, 1961. The petitioner firm applied for the renewal of the lease. The Government of Rajasthan did not grant a renewal of the lease but granted a fresh lease for 30 sq. miles area in three blocks of 10 sq. miles each on a dead rent of Rs. 2,00,000/- per annum for a period of 5 years with effect from 1st May, 1961 to 30th April, 1966, under Government orders dated 30th May, 1961 (Annexure A). It may be conveniently pointed out here that the order of the Government clearly contemplated the execution of proper agreement of lease and provided "that the order sanctioning lease shall stand revoked without notice if the grantee did not execute a proper agreement within two months from the date of the issue of the order."
3. After stating the facts referred to above, the petitioner made averments–
(a) Of its having "invested lacs of rupees in the development and installation of the machinery and the office etc. on these mines;
(b) the petitioners excavated stone worth lacks of rupees lying on the spot;
(c) mining work remaining closed during rainy season;
(d) the petitioner having made representation to the Government for the reduction of the dead rent and royalty and the rejection of the representation by the Government ;
(e) the Government having despatched a 30 days notice to the petitioner requiring him to execute the lease agreement as well as to pay all Government dues upto date with interest failing which the lease would be cancelled ;
(f) the Government having despatched a further notice dated 4th July, 1963, requiring the firm to clear Government dues and to execute the lease agreement and to erect permanent boundary pillars on the boundary of the area of 30 miles within a week, and threatening cancellation of the lease in default ; and
(g) lack of service of both these notices on the petitioner and the petitioner having "had no occasion to remedy or comply with them" and then proceed to state ""that the Assistant Secretary to the Government of Rajasthan by his order dated 6th August, 1963, informed the petitioner-firm that as the petitioner-firm had failed (i) to execute the lease agreement, (ii) to pay the Government dues on account of dead rent and interest for late payments, and (iii) to erect permanent pillars on the corners of this lease area of 30 Sq. miles in spite of the issue of notices to the petitioners firm under Rules 17(21) and 1 7(22) of the
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