Law: Colonization of Government Lands (Punjab) Act (II of 1912)

Section: 28

P L D 1957 W. P. (Rev.) 58         Colonization of Government Lands (Punjab) Act (II of 1912)------   -----S. 28-Demand of royalty by Government, if unilateral action on part of Government, is not enforceable under Act--- Royalty Payable under Act amounts to penalty for purposes of recovery as arrears of land revenue under S. 28.     ORDER   H. A. MAJID.-----The dispute in the present case relates to substantial royalty which the Provincial Government has demanded from the respondent company for converting a large area of land, which was meant for agricultural purposes, into a Textile Mill. This amount of royalty has not been collected so far. The Collector proceeded under section 28 of the Colonization of Government Lands (Punjab) Act, 1912. But the respondent company appealed to the Commissioner and he gave a decision to the effect that the provisions of section 28 of the said Act could not be used for recovering this amount of royalty. The Commissioner proceeded to say as far as I can judge that in fact no royalty could be claimed by Govern ment in respect of such conversion.   As regards the main decision of the Commissioner, I find that there is little scope for altering it. The demand of royalty at present is a unilateral action on the part of Government. It cannot, therefore, be said that the royalty has been proved to be due under the said Act.   The Commissioner's second decision is of doubtful validity. The proprietorship obtained by the predecessor-in-interest of the respondent company was conferred on him by means of a sale deed which included a number of clauses. One of those clauses required that the land should be used for…