BHANDARI, C.J. - (1.) THESE two cross -appeals arise out of a suit filed by the Bundi Electric Supply Co. Ltd. against the State of Rajasthan in the Court of Senior Civil Judge, Bundi, on 4th September, 1957.
(2.) BRIEFLY the allegations of the plaintiff, as stated in the plaint, are that an agreement was executed between the plaintiff and the Government of the former Bundi State on 9th October, 1945. It is Ex. 1 on the record. Under this agreement, the plaintiff agreed to erect an underground line of about five miles to supply electric energy to Phoolsagar palace and also to maintain the same at its expense for a period of fifteen years on the terms and conditions set out in Ex. 1. The main terms and conditions are given below: - - 'The extension of the underground line will be completed within a period of three months. No sooner the line is energised by the company, the State will take connections at Phoolsagar and the State may take connections for testing water of a few wells for the purpose of supply of water to the city, if so desired. The Company will be entitled during the continuation of this agreement to supply electric energy from the extension for all purposes to the public as well. Energy will be supplied by the company to the State and the public from this extension on the same terms and rates as are prevalent in the Bundi City. The State agrees to guarantee a minimum consumption of at least Rs. 250/ -per month from the date the line is energised. The minimum consumption of current for Rs. 250/ - as referred above can be consumed by His Highness and Royal family either at Phool Sagar or at proposed palace singly or jointly and will continue to pay so long as the Bundi Electric Licence, 1936, remains in force. Apart from this minimum consumption the State further agrees to pay as rent Rs. 6,000/ - in lump sum for the length of a line erected from Power House to Phoolsagar. The amount of Rs. 6,000/ -will be paid in advance yearly for the period of 15 years commencing from the date the line is energised, and will be paid without break. After the expiry of 15 years, no hire will be paid to the company. The company undertakes to maintain the line at their own expenses so long as the Bundi Electric Licence, 1936 remains in force or is extended for a further period.' In pursuance of the aforesaid agreement, the plaintiff laid down an electric line from Power House, Bundi, to Phoolsagar at its own expense. The Government of Bundi accordingly paid a sum of Rs. 6,000 in advance. On the merger of the Bundi State into the State of Rajasthan in 1948, the State of Rajasthan did not pay the agreed yearly amount. The plaintiff stated that the State of Rajasthan became the successor of the Government of the former State of Bundi under Article 295 of the Constitution of India and as such it was liable to discharge the liabilities of the latter. After a good deal of correspondence, the defendant Government paid a sum of Rs. 6,000/ -. The plaintiff claimed in this suit Rs. 48,000/ - as rent and Rs. 11,880/ - by way of interest, in all Rs. 59,880/ -. The defendant contested the suit. It admitted the execution of the agreement (Ex. 1) and also the fact that electricity was supplied to Phoolsagar palace through underground cable. The defendant also admitted that Rs. 6,000/ - relating to Phoolsagar cable hire bill of 26th March, 1948, were adjusted towards the amount which the plaintiff owed to the defendant. It denied that the Government of Rajasthan was the successor -in -law of the former Government of the State of Bundi. It also stated that the liability for which the suit was filed neither pertained to the public nor to the State and the plaintiff was also informed that since the line in question was not catering for any purpose other than the Phoolsagar estate, which is the personal property of the Maharaja of Bundi, the Government of Rajasthan was not liable to pay any amount under the agreement. The defendant also pleaded that the suit of the plaintiff was barred by limitation. Several other pleas were taken which need not be mentioned here as they are not material for purposes of deciding this appeal. The trial Court, however, decreed the suit of the plaintiff to the extent of Rs. 24,000/ - with costs and dismissed the remaining claim. Both the parties have filed appeals in this Court. The appeal filed by the State of Rajasthan is No. 31 of 1959 and the appeal filed by the Bundi Electric Supply Co. Ltd., Bundi, is No. 33 of 1959. Both the appeals are, therefore, disposed of by this single judgment. Two arguments have been addressed by the learned counsel for the defendant in support of its appeal. The first argument is that the defendant was in no way liable to pay any amount to the plainiff under the agreement (Ex. 1) as the agreement was executed by the former Bundi State of which the defendant was not a successor in the eye of law and thus it is not liable to discharge the liability of that State arising under the agreement. It is further contended that under Ex. 1 no benefit was conferred on the public and the electric line was laid down only to supply electric energy to the Phoolsagar palace of the former ruler of the Bundi State. The defendant, therefore, cannot be held liable for anything done by the plaintiff exclusively for the benefit of the former ruler of the State of Bundi. It has been further pointed out that the Phoolsagar palace has become the personal property of the former ruler of the Bundi State since 24 -8 -49. The last argument is that the plaintiff's suit is barred by limitation so far as the amount of Rs. 6,000/ - out of the decretal amount of Rs. 24,000/ - is concerned.
(3.) THE argument addressed on behalf of the plaintiff in its appeal is that the trial Court was wrong in holding that the plaintiff's suit for the recovery of Rs. 48,000/ - and interest thereon was barred by limitation to the extent of Rs. 24,000/ -.;