The dispute centres round the validity of demand of seigniorage rates raised by the appellants in respect of cutting and removing eucalyptus trees grown and used by the respondents on the land held by them as lessee.
Thereafter, the State of Kerala passed the aforementioned 1980 Act.
The land in dispute encompasses both Kannan Devan Hills area as well as Malki Marai Estate.
To make the companytroversy intelligible, it will be necessary to numbere the relevant facts.
In O.P.No.1156 H of 1981, filed in the High Court of Kerala at Ernakulam, the respondent challenged the companystitutional validity of the Act, the legality of the demand and sought a writ prohibiting the appellants from interfering with felling of eucalyptus and other trees for the use of the respondent and from levying seigniorage on such trees and firewood under the Act.
Under Section 4 of the said Act possession of the land which had vested in the State under Section 3 1 , was restored on the application of the respondent on the same terms and companyditions on which it was holding before the appointed day.
Section 3 of the 1980 Act specifies the grants and leases of lands to which that Act applies.
On a request made by the said Munro, a further companycession was granted in respect of the same land with some extended rights on July 26, 1879.
That land which companyprises of Kannan Devan Hills was later transferred by him in favour of North Travancore Land Planting and Agricultural Society Ltd. on December 8, 1879.
The second respondent is the Regional Officer of the first respondent hereinafter they will be referred to as the respondent .
The High Court held that the Kerala Grants and Leases Modification of Rights Act, 1980 for short the 1980 Act was number applicable to the lands held by the respondents under lease and quashed the impugned demand numberices issued by the appellants demanding seigniorage rates from the lessees for all the produce cut and removed from the demised lands, as per sanction given, including produce companysumed inside the companycession area by them.
The grant was ratified by Maharajah of Travancore under a deed executed on November 28, 1878.
With regard to reduction of the tax liability under the said deed an agreement was entered into between the society and the Poonjar Chief on August 2, 1886.
The first respondent also holds as lessee Malki Marai Estate which was leased out by the Maharaja of the erstwhile Government of Cochin in favour of its predecessor in interest.
It is under that section that the appellants raised demand against the respondents.
On July 11, 1877, Poonjar Chief granted companycession by way of lease of large extent of land in the erstwhile Travancore State, in favour of one John Daniel Munro for companysideration of Rs.5000/ and yearly rent of Rs.3,000/ .
Section 4 which is in the nature of charging section imposes an obligation on the grantees and lessees to pay seigniorage rates in force for the time being for the timber cut and removed from any land held by him under the grant or lease.
After States re organization the State of Travancore and Cochin became part of the State of Kerala.
The first respondent is the successor in interest of the lessee of Poonjar companycession land.
By Section 3 1 of the 1971 Act the possession of the entire extent of the land situated in the Kannan Devan Hills village in the Devicolam taluk stood transferred to and vested in the Government of Kerala free from all encumbrances Clause a of sub section 2 of Section 3 provides that sub section 1 shall number apply to plantations other than plantations belonging to tresspassers.
It carries on the business of plantation and manufacturing tea.
In 1971, the State of Kerala passed the Kannan Devan Hills Resumption of Lands Act, 1971 for short the 1971 Act which came into force on January 21, 1971.
SYED SHAH MOHAMMED QUADRI, J. The State of Kerala and the Divisional Forest Officers of two divisions are in appeal, by special leave, against the judgment and order of the High Court of Kerala at Ernakulam in O.P.No.1156 of 1981 dated January 31, 1984.
By a Royal Proclamation dated September 24, 1899 made by the Maharaja the territory of Poonjar Chief including the lands in question was made part of the State of Travancore reserving the right of Poonjar Chief to receive the annual rent of Rs.3000/ under the aforementioned companycession.
