Honble RATHORE, J.—Brief facts of the case are that on 1.12.1913. a lease was executed for 30 years between the predecessor of the petitioner company and the erstwhile ruler of Bundi State for mining lime stone in the area measuring 101 sq. miles. Part II of the lease confers rights and privileges on the predecessor of the petitioner company. Clause 3 of Part II of the lease deed is reproduced hereunder:—

"3. Liberty and power to appropriate and use for any purpose connected with the said mines and quarries the water upon or within any of the said lands and to collect and impound the came in ponds reservoirs or otherwise for the purpose of working the said mines and quarries but so that in the exercise of this privilege the Lessees shall not deprive only lands villages houses or watering places for cattle of a reasonable quantity of water as before accustomed and do not in any way foul impregnate or otherwise deteriorate any springs or streams of water so as to render them useless or unprofitable."

(2). In the year 1913-14, the petitioner established cement factory in the said area and constructed a dam at Sakhoda village in the year 1923-24. In the year 1931, another dam was constructed across the river mez and sanction for construction of the aforesaid dam was accorded by the erstwhile ruler of Bundi State vide letter No. 1048 of 1930-31.

(3). The said lease was renewed on 28.7.1943 from time to time with the same rights and privilege including the right to use water. On 21.10.1956 and 23.11.1956, agreement was entered into between the petitioner company and the Government of Rajasthan to acquire the lands for the company for the purposes of construction of additional pipelines and increase in height of the said dam by the petitioner.

(4). On 17.3.1959, Controller of Mining Leases/Government of India, modified the existing lease of 1.18.1943 by his order passed under Rule 6 of the Mining Lease (Modification of Terms) Rules, 1956. The area of the said lease was reduced to 20.5 sq. miles and the period of renewal was reduced to 20 years. In the order, it was clarified that royalty shall be payable in accordance with Section 9 of Mines & Minerals (Regulation & Development) Act, 1957.

(5). Clause 2(iv) of the order is reproduced hereunder:—

"Except for the modifications made by this order, the lease shall be subject to the rules made or deemed to have been made under Section 13 and 18 of the Mines & Minerals (Regulation & Development) Act, 1957.

(6). In the year 1975, the lease was renewed as per Model Form K of Mining Lease provided under Rule 31 of the Mineral Concession Rules, 1960 made under Mines & Minerals (Regulation and Development) Act, 1957 pursuant to the declaration made by the Central Government under list 1 Schedule 7 of the Constitution of India.

(7). The controversy arise when in the month of September, 1974, the Audit Officer, Accountant Generals Office objected that the petitioner company is liable to assessment for raw water charges from 1.11.1956, the date of enforcement of the Rajasthan Land Revenue Act, 1956. The said audit objection was forwarded to the petitioner company by the local Tehsildar by letter dated 17.9.1974.

(8). The main grievance of the petitioner is that since the petitioner company is free to take the water and as per the agreement only surface rent is to be recovered till the right to use water under the agreement subsist and there is no provision to apply the provisions of subsequent Acts.

(9). Vide letter dated 9.10.1975, the Collector, Bundi observed that it is clear from the report given by the Tehsildar that the ACC Lakheri is using water under the agreement with Bundi State and has constructed the dam itself for use of water. Therefore before levying water charges, the agreement made by Bundi State is to be cancelled by the Government and then only the provisions of the Land Revenue Act can be enforced and the company can pay the water charges easily. Even then if levying of water charges is

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