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The Act of State which began in' 1948 could continue uninterrupted even beyond 1950 and it did not lapse or get replaced by another Act of State.
The plaintiffs then appealed to the High Court and the High Court allowed all appeals and the suits were decreed.' The High Court held on the basis of the letter written by Shri V. Menon, Secretary that the succeeding sovereign had waived or relinquished its right to repudiate the Tharao.
The High Court further held that the Tharao was not a legislative action of the Ruler of Sant State. (i) The Act of State comes to an end only when the new sovereign recognises either expressly or impliedly the rights of the aliens.
The State Government appealed to this Court by special leave. It does not come to an end by an action of subordinate officers who have no authority to bind the new sovereign.
Till recognition, either express or implied, is granted by the new sovereign, the Act of the State continues.
462 Thereupon these respondents filed suits for declaration of rights in the forests and for a permanent injunction against interference with those rights by the State.
The Government of Bombay, after considering the implications of the Tharao, decided that the order was mala fide and cancelled it on 8th July 1949 In the meantime these respondents were stopped from working the forests by the Government of Bombay.
(iv) That the impugned Tharao was not a law as it did not lay down any rule of conduct.
These rights in question cannot be protected under the Constitution because these rights were not recognised even before 1950.