DEHRI ROHTAS LIGHT RAILWAY COMPANY LIMTED vs DISTRICT BOARD BHOJPUR AND ORS.

The Supreme Court held that the appellant, engaged in running a light railway, was liable to pay cess under Section 5 of the Bengal Cess Act, 1880, based on an unregistered agreement to pay a fixed sum of Rs. 10,000 p.a. The Court ruled that the demand for arrears raised by the respondent was unauthorized as it was not based on the net profits from immovable property, but rather on the income of the business. The Court found that the appellant was not disentitled to remedies under Article 226 due to delay, as the demand was made under a mistake of law, and thus quashed the demand for arrears.