Case Note & Summary
The petitioner, N Mahabaleshwar Bhat (since deceased, represented by his legal heir Smt. Gayathry), filed a writ petition under Articles 226 and 227 of the Constitution of India seeking a writ of mandamus directing the respondents (State of Karnataka, Deputy Commissioner, Deputy Conservator of Forest, and Chief Conservator of Forest) to refund a sum of Rs.4,33,082.35 paid as seigniorage fee for felling trees on land granted to him under the Karnataka Land Grant Rules. The petitioner had applied for permission to fell trees on his granted land, and the respondents demanded seigniorage fee. The petitioner paid the amount under protest on 25.04.2012 and 04.04.2013, but the respondents rejected his subsequent request for refund vide orders dated 25.04.2012 and 04.04.2013 (Annexure-C and D). The petitioner contended that the demand was illegal as the trees were on granted land and no seigniorage fee was leviable. The respondents argued that the refund claim was barred by limitation and that the petitioner would be unjustly enriched if refunded. The court analyzed the facts and held that payment under protest does not attract the law of limitation, and the doctrine of unjust enrichment does not apply when payment was made under compulsion. The court allowed the petition, set aside the impugned orders, and directed the respondents to refund the amount with interest at 6% per annum from the date of payment till realization, within eight weeks.
Headnote
A) Constitutional Law - Writ of Mandamus - Refund of Seigniorage Fee - Payment Under Protest - Petitioner paid seigniorage fee under protest for felling trees on granted land - Respondents rejected refund on ground of limitation and unjust enrichment - Court held that payment under protest does not attract limitation and refund cannot be denied on unjust enrichment when payment was made under compulsion - Held that petitioner is entitled to refund of Rs.4,33,082.35 with interest at 6% per annum from date of payment till realization (Paras 1-10).
Issue of Consideration
Whether the petitioner is entitled to refund of seigniorage fee paid under protest for felling trees on land granted under the Karnataka Land Grant Rules, and whether the orders rejecting refund are sustainable.
Final Decision
Writ petition allowed. Impugned orders set aside. Respondents directed to refund Rs.4,33,082.35 with interest at 6% per annum from date of payment till realization within eight weeks.
Law Points
- Refund of seigniorage fee
- payment under protest
- unjust enrichment
- limitation period for refund
- writ jurisdiction under Articles 226 and 227
