BACHCHOLAL GANGAPRASAD Vs. UNITED STATE OF GWALIOR, INDORE, MALWA (MADHYA BHARAT)

JUDGEMENT

(1.) THIS is a Plaintiff's first appeal. His suit for permanent injunction and for refund of customs duty, said to have been illegally recovered from him by the erstwhile State of Madhya Bharat, was dismissed by the trial Court.

(2.) THE facts giving rise to the present suit are not much in dispute. Prior to the integration of the princely States in Central India into a single unit known as Madhya Bharat there were twenty -two different States who ruled their respective territories practically as sovereign in all internal matters. The State of Jaora was one of such States. Nawab of Jaora and also his Government were anxious to stimulate industries in the State of Jaora. Plaintiff, who happened to be an industrialist resident in Jaora, submitted a petition on 12 -8 -1945 to the Chief Minister of Jaora and therein proposed to set up an oil mill in the town of Jaora in case he was granted certain concessions in the shape of exemptions from customs duty for certain articles required for construction and working of the mill, for the manufacture of its products or for export of its products and bye -products and from Municipal taxes on all building materials needed for the concern. There were other terms therein with which we are not concerned. At the end of negotiations the Government agreed to grant certain concessions. These were incorporated in a document Ex. P -2 entitled as 'Conditions for Establishment of an Oil Mill in Jaora' and by order dated 24 -2 -1946 under the signature of Chief Minister of Jaora sanction was accorded for establishment of an Oil Mill on these terms and conditions. The Plaintiff set up an Oil Mill accordingly and until the formation of Madhya Bharat these terms and conditions had been adhered to by the State of Jaora.

(3.) AFTER the period of one year, all vegetable oil and oil -cake shall respectively be subject to an export duty at the rate of annas 4 and anna 1 per Bengal maund provided that no exports will be made unless local requirements are fully met. On 22 -4 -1948 the States of Indore, Gwalior and some of the Central Indian States entered into Covenant for merger of their States into a single unit with a provision for joining by other adjoining States at a later date. The State of Jaora joined this union shortly known as Madhya Bharat some time in August 1948. Article VI(1) of the Covenant provided for making over the administration of their respective States to a single head called Raj Pramukh and further provided inter alia that thereupon: (