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Issues:
1. Government's revision of royalty for the periods 1959-62 and 1962-65. 2. Interpretation of the terms of the agreement dated 7-4-56. 3. Enforceability of contractual terms through a writ of mandamus. 4. Allegations of gross injustice and hardship due to delayed revision of rates. 5. Applicability of Clause 34 of the agreement regarding recovery of dues. 6. Jurisdiction of the Court under Article 226 of the Constitution for contractual disputes. Analysis: 1. The judgment deals with an application under Article 226 challenging the revision of royalties by the State Government for the periods 1959-62 and 1962-65. The petitioner, a limited company, owned a factory in Assam and had a lease agreement with the Government regarding the extraction of timber from forest reserves. The Government revised the royalty rates, leading to a dispute over the timing and authority of such revisions. 2. The interpretation of the terms of the agreement dated 7-4-56 was crucial in determining the legality of the Government's actions. The petitioner argued that the agreement had statutory force and could be enforced through a writ of mandamus. However, the Court held that the agreement was a legal contract, not a statutory one, and disputes under it were subject to the decision of the Government of Assam as per Clause 46 of the agreement. 3. The Court emphasized that Article 226 of the Constitution could not be invoked for the enforcement of contractual terms, even if one party was the Government. The petitioner's contention of hardship and injustice due to delayed rate revisions was deemed to be an issue for the Government to address, not the Court. The Court's role was limited to administering the law within established principles. 4. Regarding the applicability of Clause 34 of the agreement for the recovery of dues, the Court clarified that this provision did not make the Assam Land and Revenue Regulation automatically applicable. The method of recovery specified in the agreement was enforceable as a contractual term, without additional legal implications. 5. The judgment concluded that the petitioner's rights under the law were not violated, but the dispute centered on contractual obligations. Citing a Supreme Court decision, the Court reiterated that duties arising from a contract with a public servant could not be enforced through a writ under Article 226. As a result, the petition was dismissed, with each party bearing their own costs. 6. In agreement with the Chief Justice, the judgment discharged the rule nisi and vacated the stay orders, affirming the dismissal of the petition due to its lack of merit. The Court's decision underscored the limitations of invoking Article 226 for contractual disputes and the need for parties to resolve such matters through contractual mechanisms rather than seeking judicial intervention.
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