Revenue dispute over 10% market share and one-eighth payment remains unresolved

Shillong, August 11: Paiem Ainam Manik Sing Syiem has resumed office as the Syiem of Hima Mylliem after the Meghalaya High Court quashed the suspension order issued against him by the Executive Committee (EC) of the Khasi Hills Autonomous District Council (KHADC).

Paiem Ainam had challenged the KHADC suspension order dated May 22, 2026, through WP(C) No. 233 of 2026 before the High Court. He was represented by advocate L. Khyriem.

The Court’s ruling has paved the way for Paiem Ainam to return to the administration of Hima Mylliem. Following his suspension, the KHADC had appointed Paiem Alban Frederick Syiem as Acting Syiem to oversee the affairs of the Hima.

Revenue dispute behind suspension

The KHADC had suspended Paiem Ainam amid allegations that Hima Mylliem had failed to remit the Council’s prescribed share of revenue collected from markets and other sources.

According to the KHADC, Hima Mylliem is required to remit 10 per cent of the gross income collected from markets within the Hima under Section 11(5) of the Khasi Hills (Establishment, Management and Control of Markets) Regulation Act, 1979.

The Council also claimed entitlement to a one-eighth share under the provisions of the Sanad and a decision reportedly in force since 1953.

The KHADC alleged that these payments had not been made in full for several years, particularly between the 2018–19 and 2024–25 financial years.

As per the Council’s calculations, the outstanding one-eighth share was approximately ₹3.24 crore, while the Hima had reportedly remitted around ₹12 lakh as an interim payment.

The Council further alleged that it had not received the prescribed 10 per cent share of market revenue for 2022–23, 2023–24 and 2024–25.

The KHADC said it had issued several reminders, notices and a show-cause notice directing the Hima to clear the alleged outstanding dues.

It also stated that during a personal hearing on February 5, 2026, Paiem Ainam had agreed to comply with the relevant provisions and settle the payments. However, according to the Council, the Hima subsequently stated in a letter dated March 24, 2026, that it was unable to accept the demand for payment of 10 per cent of its market revenue.

Suspension challenged in High Court

Following this, the KHADC Executive Committee suspended Paiem Ainam under Section 7 of the Khasi Hills Autonomous District (Appointment and Succession of Syiem, Deputy Syiem, Electors and Rangbah Shnong of Mylliem Syiemship) Act, 2007.

Paiem Ainam challenged the order, questioning both its legality and the procedure adopted by the Executive Committee.

His counsel argued that the dispute between Hima Mylliem and the KHADC primarily concerned financial liabilities and the interpretation and implementation of revenue-sharing provisions.

The petitioner’s side maintained that a disagreement over the calculation or payment of money could not, by itself, justify the suspension of a Syiem without strict compliance with the law and the principles of natural justice.

Questions were also raised over whether Paiem Ainam had been given a sufficient opportunity to respond to the allegations and present his case before the suspension order was issued.

Revenue issue still open

The High Court’s decision allowing Paiem Ainam to resume office does not necessarily settle the underlying dispute over the 10 per cent market revenue or the one-eighth share.

The question of whether any amount remains payable by Hima Mylliem to the KHADC may still require scrutiny of accounts, reconciliation of figures and interpretation of the applicable legal provisions.

The central issue before the Court was the legality of the suspension order and the procedure followed in issuing it, rather than simply determining the amount allegedly outstanding.

The KHADC and Hima Mylliem may therefore still have to resolve the revenue-sharing dispute separately in accordance with the applicable law.

With Paiem Ainam’s return, the interim tenure of Paiem Alban Frederick Syiem as Acting Syiem has come to an end.

Warm welcome on return

Paiem Ainam was accorded a warm welcome by senior Myntris, officials and employees of Hima Mylliem, as well as by his mother and children, following his return to office.

Speaking to reporters, Paiem Ainam expressed respect for the District Council for accepting his return and said he would cooperate with whichever Executive Committee was in office.

He, however, maintained that his removal on the ground that Hima Mylliem had not fully paid the Council’s share was not legally justified.

He further stated that the payment made by the Hima was made as a mark of respect and customary recognition.

The ruling is significant beyond the immediate dispute involving Hima Mylliem, as it touches upon the relationship between the traditional Khasi Himas and the District Council, particularly the authority of the Executive Committee to suspend traditional chiefs and the importance of following due process and the principles of natural justice.