Province Of Bombay vs Hormusji Manekji on 12 July, 1947
(5) The Government Pleader has relied on two decisions of the Privy Council. One is in --'Province of Bombay v. Hormusji Manekji', AIR 1947 PC 200 (D). In that case two agreements were entered into between the Government and the respondent before the Privy Council and the effect of the agreement was that the respondent was allowed to use the land for non-agricultural purposes on certain terms including a stipulated annual assessment at a concession rate. The respondent erected certain structures and the case of the Government was that this was in contravention of the agreements, and the Collector ordered him to pay a penalty and also enhanced assessment. An appeal to the Commissioner was rejected and then there was an appeal to the Governor in Council who passed an order directing that the non-agricultural assessment at the full standard rate should be levied on the entire holding of the respondent. The respondent then filed a suit alleging that the order of the Governor in Council was 'ultra vires' and for a declaration that the Government of Bombay was not entitled to recover any assessment in excess of the amounts payable by him under the agreements.