M/S. DHANSIRI SAW MILLS PVT. LTD. Vs. THE STATE OF ASSAM & OTHERS

JUDGEMENT

(1.) The petitioner company herein impugns the decision of the Karbi Anglong District Council cancelling its Dhansiri Reserved Forest Lease.

(2.) The petitioner Company was granted a lease in respect of Compartments 3, 4, 9, 10, 11, 12, 13 and 14 of the Dhansiri Reserved Forest by the authorities of the Karbi Anglong District Council (shortly, the District Council) for a period of one year with effect from 1.6.77, later extended to 31.5.79. As the petitioner Company had to incur heavy unforeseen operation expenditure it could not profitably operate all the compartments; and, on its representation, it was granted an extension, but only in respect of Compartments No. 9, 10, 11 and 12 for a period of two years from 1.9.80 to 31.8.82 subject to its payment of all outstanding dues. On a further representation by the petitioner Company dated 22.10.80 before the Chief Executive Member of the District Council praying for reconsideration as to payment of all outstanding dues in instalments, by order in letter dated 5.1.81, the petitioner Company was allowed to deposit Rs. 10,000.00 as first kist of arrear and the remaining amount in one instalment during the operation of its lease. Acting upon the said order the petitioner company deposited Rs. 10,000.00 but complains that it was not allowed to execute the agreement and to operate the lease, and, on the other hand, it was served with notices directing it to deposit all the outstanding dues in one instalment; and by letter dated 28.4.81 it was informed about the decision of the District Council requiring it to deposit all the outstanding dues within 15 days failing which the lease was ordered to be cancelled. Despite a further representation dated 12.5.81, without giving the petitioner company any opportunity to show cause or to explain its case, the District Council by the impugned order dated 4.6.81 cancelled the petitioner's lease. Hence this petition.

(3.) Mr. J.P. Bhattacharjee, the learned counsel appearing for the petitioner, inter alia, submits that the District Council having directed by order dated 5.1.81 the petitioner company to pay Rs. 10,000.00 as first instalment of the outstanding dues and to pay the balance thereafter during the working of the lease, and the petitioner Company having acted in terms of the same order by paying Rs. 10,000.00, the District Council was estopped, in law, from adopting any other course of action to the prejudice of the petitioner Company, and the impugned orders dated 28.4.81 and 4.6.81 in revocation of its earlier order dated 5.1.81, are completely without jurisdiction; and that the impugned orders dated 28.4.81 and 4.6.81 having been passed without affording the petitioner Company any opportunity of explaining and/or showing cause, the said orders are violative of the principles of natural justice.