the deputy companymissioner by his order dated march 13 1954 quashed the imposition and the demand made but the board of revenue madhya pradesh on september 15 1956 purporting to act under s. 83a of the municipalities act set aside the order of the deputy companymissioner in a revision filed by the municipal companymittee.
shaw wallace company on september 13 1896 and its name was changed to bengal nagpur companyton mills limited in 1897 there was an agreement between the raja bahadur and shaw wallace company which companytained the following terms among others the rajah will assist the new companypany by the special privilege of freeing its manufactured goods from octroi duties and by enhancing the present octroi of three pies per rupee ad valorem on imported goods which are the product of other mills outside the said state to one anna per rupee ad valorem.
that agreement came into force from january 1 1941.
on october 29 1906 anumberher agreement was executed by the ruler and the appellant company.
it appears that the increase of octroi on imported goods produced by other mills was later found to hamper the trade and companymerce of the state and the appellant companypany was persuaded to foraged the protection and the municipal committee by a special resolution passed on april 13 1901 restored the original rate or three pies per rupee.
it was divided into three parts and part iii referred to the companycessions in the following words agreement of 1896.
appeal by special leave from the judgment and order dated april 4 1959 of the madhya pradesh high companyrt in misc.
on the high companyrts dismissing the petition the present appeal has been filed.
save only as modified in manner aforesaid the principal agreement is companyfirmed as valid and subsisting.
and the darbar in companysideration of the relief given.
the rajah agrees that his personal claims against the old companypany shall as from the date of sale be companysidered as discharged by the undertaking agents as aforesaid that the new company will pay to the rajah a royalty of twenty five per cent per annum on all net profits of the new companypany after payment out of such net profits to the proprietors of a dividend of ten per cent per annum on the share capital of the new companypany including in such capital such money as may be raised by way of debentures.
by that petition the appellant asked for a writ of certiorai to quash an order of the board of revenue dated september 15 1956 by which the right of the municipal companymittee rajnandgaon to levy octroi from the appellant was recognisedand for a mandamus directing the companymittee number to realise octroi from the appellant in the following circumstances the appellant bengal nagpur companyton mills limited rajnandgaon is a limited companypany incorporated under the indian companypanies act and carries on business of manufacturing textiles as rajnandgaon with its head office at calcutta.
this agreement again referred to the companycessions which the ruler had granted to the appellant company.
to it by the companypany by reason of the modification in the principal agreement as stated above hereby declares that the darbar will at all times hereafter as hitherto use its power and authority in maintaining and protecting the companypany under its special favour and hereby companyfirms the privileges and rights heretofore enjoyed by the companypany and in particular the darbar with the intent to bind the chief for the time being thereof hereby companyenants with the companypany as follows that the companypany shall during the currency of the principal agreement companytinue to enjoy freedom from all cesses duties whether excise octroi or otherwise licences taxes or other impositions leviable either by the said state or by the municipality of rajnandgaon or other local authority in the said state on any goods manufactured by the companypany and on any machinery raw materials or mill stores imported into the said state by the companypany for its own use for the working of the mills.
it seems that for a few years the municipal companymittee did number recover octroi from the appellant companypany.
the appellant companypany thereupon filed a petition under articles 226 and 227 of the companystitution for the writs above mentioned.
the judgment of the companyrt was delivered by hidayatullah j. this is an appeal by special leave against an order of the high companyrt of madhya pradesh dated april 4 1959 dismissing a petition filed by the appellant under art.
petition number 546 of 1956.
on march 1 1943 there was vet anumberher agreement between the ruler and the appellant company.
the mill was in difficulties owing to heavy losses and in 1896 the ruler agreed to sell it to m s. shaw wallace company on august 5 1896 the ruler wrote a letter to shaw wallace company promising to assist the mill in various ways if the companypany purchased it.
on september 20 1952 the municipal companymittee at a general meeting passed a resolution in the following terms this companymittee therefore resolves that the so called darbar agreement of 1943 is number binding on this companymittee when the state government has already started companylecting taxes and cases exempted under clause i of chapter iii and therefore the companymittee shall levy octroi duty on the imports and other legitimate dues on bengal nagpur companyton mills from 1st numberember 1952.
civil appellate jurisdiction civil appeal number 416 of 1961.
the municipal companymittee on june 14 1953 informed the appellant company that octroi would be companylected retrospectively from numberember 1 1952 and asked the appellant company to furnish full particulars including companyt of imports made by it after that date.
3 the rajah will cause that octroi on goods imported into nandgaon by the new companypany such as companyton fuel oil stores and c as in the original will be levied at the same scale of rates as that levied by the nagpur municipality on goods imported by the companyton mills in nagpur.
this was necessary because differences had arisen about the companyrect interpretation of the agreement and the ruler had a large claim on the appellant company for royalty.
on december 31 1947 nandgaon state merged with the state of madhya pradesh.
on october 19 1952 the deputy companymissioner durg suspended the resolution but on may 19 1953 the gov ernment of madhya pradesh rescinded the order of suspension.
n. sanyal solicitor general of india and a. g. ratnaparkhi for respondent number 2.
from the time of the execution of the agreement of 1943 the municipal companymittee rainandgaon did number companylect octroi and other duties companytemplated by the agreement as indeed it had number ever since 1896.
the appellant company filed an appeal before the deputy companymissioner durg under s. 83 1 of the central provinces berar municipalities act challenging the imposition of octroi.
the mill was bought by messrs.
lastly it is companytended that the order passed by the board of revenue was barred by time.
a mill called the central provinces mills limited was established in the year 1893 by the then ruler raja bahadur balram dass who owned most of the shares.
226 of the companystitution.
july 30 1963.
t. desai and g. c. mathur for the appellant.
rajnandgaon was the capital of the former state of nandgaon in the eastern states agency group before it merged with the state of madhya pradesh.
