Saikia, J. - (1.) This plaintiffs appeal by special leave is from the appellate judgment of the Madhya Pradesh High Court dismissing the appeal upholding the judgment of the trial Court dismissing the plaintiffs suit on the ground of limitaiton.
(2.) A registered firm Rai Saheb Nandkishore Rai Saheb Jugalkishore (Appellants) was allotted contracts for manufacture and sale of liquor for the calendar year 1959 and for the subsequent period from 1-1-1960 to 31-3-1961 for Rs.2,56,200.00 and Rs.4,71, 960.00, respectively, by the Government of Madhya Pradesh who also charged 71/2 percent over the auction money as mahua and fuel cess. As writ petitions challenging the Government's right to charge this 71/2 per cent were pending in the Madhya Pradesh High Court, the Government announced that it would continue to charge it and the question of stopping it was under consideration of the Government whose decision would be. binding on the contractors. The firm (appellants) thus paid for the above contracts a total extra sum of Rs. 54,606.00/-.
(3.) On 17-10-1961 the Under Secretary to Government, M. P., Forest Department,' Bhopal wrote the following letter No.10 130X/ 61 (Exhibit D-23) to the Chief Conservator of Forests, Madhya Pradesh, Rewa: "Subject:Levy of cess on liquor contractors. Under former M. P. Government (Forest Department) memo No. 4595-CR-73-XI dated 25th July, 1953, a royalty at 71/2 per cent of the license fee for liquor shops was imposed on liquor contractors to cover-the value of mahua and fuel extracted from the reserved or protected forests by the contractors for their still. 2. The M. P. High Court has since decided that the levy of the aforesaid cess is illegal and the cess cannot be recovered from the liquor contractors. In pursuance of this decision, Government desires that all processes whenever issued or proceedings instituted against liquor contractors for recovery of the mahua or fuel cess should forthwith be withdrawn and no revenue recovery certificates should be issued in respect of this cess. 3. Simultaneously no free supply of mahua or fuel should be permitted by virtue of the imposition mentioned above. Immediate compliance is requested. No.........X/61 Dt. Bhopal the 61 Copy forwarded for immediate compliance to: 1. Conservator of Forests, Bilaspur. 2. All Divisional Forest Officers, Bilaspur Circle. 3. Copy to C.F. Raipur Circle for similar auction in this cess levied in any division of his Circle." ;