YASH PAL GARG AND CO. Vs. THE CHIEF CONSERVATOR OF FORESTS AND ORS.

JUDGEMENT

(1.) THE Petitioner -firm, which has got its Head Office at Sarahan in District Sirmur are carrying on the business and trade of forest lessees. Respondent 1, i.e. the Chief Conservator of Forests, Himachal Pradesh, issued a notice, Annexure P. 1 on 5th August, 1974 for the auction of forest in Chopal Division, bearing lot No. 13/74 -75, consisting of 594 trees, details of which are given in the notice, Annexure P. 1. This auction was to take place on 8th and 9th September, 1974. The Petitioner's firm gave a successful bid for the aforementioned lot for a sum of Rs. 44,000/ - One -fourth of the bid money was deposited by the Petitioner and thereafter an agreement was executed between the parties. Under Clause 29(a) of the lease deed, Annexure P. 3, it is provided as under:

(2.) THE first preliminary objection raised by the Respondents is that the Excise and Taxation Commissioner, Himachal Pradesh, who required the Forest Department to realise and deposit sales tax on trees, is a necessary party. Here, in the instant case, the agreement on the basis of which the trees are sold was entered into between the Respondents and the Petitioner. The sales tax is also demanded from the Petitioner by the Forest Department itself and it may be a different thing that the demand on the Forest Department for realisation of the tax from the purchaser is made by the Excise and Taxation Commissioner, but thereby the Excise and Taxation Commissioner cannot be said to be a necessary party as it has not made any demand on the Petitioner for the payment of the sales tax.

(3.) CLAUSE 32 of the agreement, to which reference is made by the Petitioner, reads as under: