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Issues Involved:
1. Validity of the monopoly contract post-Constitution. 2. Right of the State to recover money under the monopoly contract. 3. Applicability of Article 62 of the Indian Limitation Act, 1908. 4. Applicability of Article 96 of the Indian Limitation Act, 1908. 5. Whether the suit was barred by limitation. Detailed Analysis: 1. Validity of the Monopoly Contract Post-Constitution: The plaintiff contended that the monopoly contract for plying passengers and goods motor service became "unlawful and null and void" after the Constitution came into force on 26th January 1950. The trial court agreed, holding that the monopoly contract could not survive post-Constitution and thus became null and void from that date. Consequently, the State had no authority to recover any money under the contract post-26th January 1950. 2. Right of the State to Recover Money Under the Monopoly Contract: The plaintiff argued that the State had no right to recover money after the Constitution came into force, as the contract had become void. The State, however, contended that the plaintiff enjoyed the benefits of the monopoly contract until 31st March 1951 and thus was not entitled to a refund. The trial court found that the State had no power to realize any tax without the authority of law post-26th January 1950, rendering the recovery of money by the State from the plaintiff illegal. 3. Applicability of Article 62 of the Indian Limitation Act, 1908: The principal issue was whether the suit was governed by Article 62, which pertains to suits for money payable by the defendant to the plaintiff for money received by the defendant for the plaintiff's use. The trial court applied Article 62 and dismissed the suit as barred by limitation, as it was brought beyond the prescribed three-year period. The High Court upheld this view, stating that the payments made by the plaintiff from 26th January 1950 to 31st March 1951 were not in fulfillment of a subsisting contract, as the contract had become void. Thus, the money received by the State was for the plaintiff's use, and Article 62 was applicable. 4. Applicability of Article 96 of the Indian Limitation Act, 1908: The plaintiff's counsel argued that the suit should be governed by Article 96, which covers suits for relief on the ground of mistake. The High Court rejected this argument, noting that the plaintiff's case was not founded on the plea of mistake. The plaint did not mention that the payments were made under a mistake, nor was any issue raised on this point during the trial. Additionally, the court found no evidence to support the claim that the mistake became known to the plaintiff on 11th February 1954 when the statutory notice was given. 5. Whether the Suit was Barred by Limitation: The High Court concluded that the suit was barred by limitation under Article 62. The payments in question were made well before 31st March 1951, and the suit was filed on 24th January 1956, beyond the three-year limitation period. The court also dismissed the plaintiff's argument that the payments were made under a mistake, as the plaint was silent on this point and no issue was raised during the trial. Furthermore, the court noted that the plaintiff should have discovered the mistake soon after 31st March 1951, making the suit clearly barred by time. Conclusion: The High Court upheld the trial court's decision, dismissing the plaintiff's suit on the ground of limitation. The court found that the monopoly contract became void post-Constitution, and the State had no authority to recover money under the void contract. The suit was governed by Article 62 of the Indian Limitation Act, 1908, and was barred by limitation as it was filed beyond the prescribed three-year period. The argument for applying Article 96 was rejected, as the case was not founded on the plea of mistake. The appeal was dismissed, and no order as to costs was made.
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