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Issues Involved:
1. Maintainability of the suit. 2. Construction of Section 79(iii) of the Madras Local Boards Act. 3. Interpretation of the term "annual rent value" in Section 79(iii). 4. Finality of the Board of Revenue's decision under Section 86 of the Local Boards Act. 5. Applicability of Section 228 of the Local Boards Act. Detailed Analysis: 1. Maintainability of the Suit: The respondent (Government) argued that the suit was not maintainable based on Section 86 of the Local Boards Act, which declares the finality of the Board of Revenue's decision, and the general principle that statutory remedies exclude ordinary court jurisdiction. The court, however, held that Section 228 of the Local Boards Act contemplates a remedy in the Civil Court, and there is no reason why such a remedy should be restricted to cases not falling under Section 86. The court emphasized that unless a statute explicitly or by necessary implication bars the jurisdiction of Civil Courts, the ordinary courts are bound to entertain cases where a person's liberty or property is interfered with under statutory powers. 2. Construction of Section 79(iii) of the Madras Local Boards Act: The court addressed the interpretation of Section 79(iii), which deals with the annual rent value for calculating cess on lands. The appellant contended that the annual rent value should be based on the assessment fixed at the permanent settlement or the prevailing rates of rent paid by occupancy ryots for similar lands. The court rejected this, stating that there is no reason to refer back to the rates fixed at the time of the permanent settlement. Instead, the current prevailing rates must be the basis of calculation. 3. Interpretation of "Annual Rent Value": The appellant argued that "annual rent value" should refer to the Government assessment, not the rental. The court disagreed, stating that the term "annual" indicates that the cess is only leviable on the yearly rent and not on a larger sum payable for a longer period. The court also noted that the inclusion of water rates in the calculation of cess for pannai lands leased out by the landholder is difficult to justify, as it leads to an anomaly where the landholder would be liable to a different rate of cess depending on whether they cultivate the lands themselves or lease them out. 4. Finality of the Board of Revenue's Decision: The respondent argued that under Section 86, the decision of the Board of Revenue is final, precluding civil suits. The court clarified that while a statute may attach finality to particular orders, this does not necessarily oust the jurisdiction of Civil Courts. The court referred to the Privy Council decision in Secretary of State for India v. Srimati Fahamidunnissa Begum, which emphasized that the general scheme of the legislation determines whether Civil Court jurisdiction is ousted. 5. Applicability of Section 228 of the Local Boards Act: Section 228 was argued to bar civil suits except where formalities prescribed by the statute were not observed. The court disagreed, stating that the omission to observe formalities may sometimes afford a basis for a civil suit, but there is no reason to restrict Section 228 to such cases. The court emphasized that the real question is whether the provisions of the Act have been complied with in substance and effect. Conclusion: The court concluded that the suit was maintainable and agreed with the lower court's interpretation of Section 79(iii) of the Madras Local Boards Act. The appeal was dismissed with costs, and the memorandum of cross objections was also dismissed with costs. The court highlighted the need for legislative clarity to avoid anomalies in the application of cess rates on pannai lands.
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