M.L. SHRIMAL, J.—This appeal is directed against the order dated January 11, 1980, of learned District Judge, Jaipur City, Jaipur, whereby he dismissed the injunction application, filed under Order 39 Rules 1 and 2 read with Section 151, Code of Civil Procedure, 1908, in civil original suit No. 16 of 1979.

2. Shorn of unnecessary details, the brief facts, for the decision of this appeal are that the appellant is a public limited company, registered under the Indian Companies Act, 1913 The predecessor-in-interest of the Company obtained a mining lease on December 1,1913, for a period of 30 years in the erstwhile State of Bundi with a provision for further renewal, It established a factory and commenced production of cement in the year 1917. The predecessor--in-title transferred its right, title and interest to the appellant in the year 1937. The lease was renewed for a period of 30 years on August 1, 1943. On March 17, 1969, the Controller of Mines and Leases modified the terms of the lease, whereby the lease-area was reduced from 101 Sq. Miles to 20.5 Sq. Miles and thereafter the lease was renewed for a further period of 20 years from August 1, 1973 to July 31, 1993.

3. After the establishment of the factory the Company developed the factory area by providing other civic amenities, which would normally have been provided by local authorities or municipalities.

4. After the formation of the State of Rajasthan the Government issued a Notification, dated December 5, 1951, fixing the limits of the Lakheri Municipal Board. The limits so fixed included area of the mining lease as well as the factory owned by the appellant. The appellant made certain representations and the State Government agreed to exclude the factory area as well as the area included by mines from Lakheri Municipal limits. A bilateral agreement (Ex. 5) was executed on January 24, 1957, between the Governor of Rajasthan and the appellant. The relevant terms and conditions read as under:—

"1. The excluded areas shall not be included in and shall be kept excluded from (if already so included), in the limits of the Lakheri Municipality or any other Municipality or Village Panchayat or a like body set up or to be set up by the Government, for the unexpired period of the said lease.

2. The Government recognise the rights or way of the Company over the roadway or Railway siding leading to the factory from the Lakheri Railway Station hitherto enjoyed by the Company as access to the factory site from the Railway Station and from the Railway Station to the factory and the right of the Company to use the Roadway and Railway siding will not be disturbed nor be subject to any taxation.

3. In consideration of the above, the Company agree and undertake to pay to the Lakheri Municipality a sum of Rs. 10,000/- every year during the subsistence of the said Lease hereinabove recited or any renewal thereof."

A supplementary agreement, dated March 14, 1958. was also executed between the parties, whereby the respondent No. 1 agreed to exclude certain areas, which had not been excluded by its previous Notification dated August 2, 1957.

5. The Government of Rajasthan vide Notification No. F. 5(125)LSG/63 /31156-65, dated May 20, 1975, published in Rajasthan Gazette dated June 5, 1975, declared its intention to include the area mentioned therein in Lakheri Municipality and also invited objections to the said proposal. Inspite of the objections submitted by the appellant, the respondent No. 1 issued a declaration, dated December 17, 1975, under Section 4 (1) of the Rajasthan Municipalities Act, 1959 (hereinafter to be called as the Act), in the Rajasthan Gazette dated December 25, 1975, fixing the limits of the Lakheri Municipal Board, which included the factory area of the Company. After the publication of the said Notification, respondent No 2 levied and recovered octroi on the goods brought within the Municipal limits by the appellant Company. Various regulations and restrictions provided under

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