STATE OF ASSAM AND ORS. vs RAMESHWAR AGARWALA AND ORS.

The Supreme Court held that the Government of Assam's power to fix the premium for leasing a tea garden is governed by Rule 40 of the Assam Land Revenue Regulations, which allows the government to set the rate of premium for special cultivation. The Court found that the High Court correctly determined that the government's fixation of the premium at Rs. 3,86,008 was illegal as it exceeded the authority granted under the rule. Consequently, the Court upheld the High Court's order preventing the auction of the tea garden due to the improper fixation of the premium.