Case Note & Summary
The petitioner, N Mahabaleshwar Bhat (since deceased, represented by 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, 1969. The petitioner had applied for permission to fell trees on his granted land, and the respondents demanded seigniorage fee, which the petitioner paid under protest on 25.04.2012 and 04.04.2013. Subsequently, the petitioner sought refund of the amount, but the respondents rejected the claim vide orders dated 25.04.2012 and 04.04.2013, contending that the payment was not made under protest and that the claim was barred by limitation. The petitioner challenged these orders. The court examined the correspondence and found that the petitioner had clearly stated in his applications that the payment was made under protest. The court held that the respondents' rejection was unsustainable as the payment was made under protest, and the claim for refund of an illegal exaction is not barred by limitation. The court allowed the writ 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 until realization, within three months.
Headnote
A) Forest Law - Seigniorage Fee - Refund - Payment Under Protest - Petitioner paid seigniorage fee under protest for felling trees on land granted under Karnataka Land Grant Rules, 1969 - Respondents rejected refund claim citing limitation and lack of protest - Court held that payment under protest is established by contemporaneous correspondence, and limitation does not apply to refund of illegal exaction - Held that respondents must refund the amount with interest (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 the refund claim are sustainable.
Final Decision
Writ petition allowed. Impugned orders dated 25.04.2012 and 04.04.2013 set aside. Respondents directed to refund Rs.4,33,082.35 with interest at 6% per annum from date of payment till realization, within three months.
Law Points
- Refund of seigniorage fee
- payment under protest
- unjust enrichment
- limitation for refund claim
- writ jurisdiction for refund
