Judgment

MUDHOLKAR, J. : The petitioner in W. P. 241 of 1960, Messrs. Burrakur Coal Co., Ltd., and the petitioner in W. P. 242 of 1960, Messrs. East India Coal Co., Ltd., claim to have acquired mining rights in two blocks in Mouza Sudamdih and Mouza Sutikdin respectively situated in Dhanbad district in the State of Bihar. On July 28, 1960, the Central Government published a notification bearing no. S. O. 1927 under a S. 4 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (No. 20 of 1957), stating its intention to prospect for coal in an area approximately five sq. miles which includes Sudamdih colliery and Sutikdih colliery. The petitioners have stated in their respective petitions that in consequence of the issue of the aforesaid notification they are precluded from carrying on any mining operations in the respective collieries and that the Central Government is entitled to acquire mining rights in the area covered by the notification within a period of two years from the date of notification or within such further period not exceeding one year as the Central Government may specify by notification in the Official Gazette. The petitioners have come up to this Court under Art. 32 of the Constitution contending that the aforesaid notification is ultra vires and illegal inasmuch as it interferes with their fundamental rights to own property and to carry on business. Assuming that an incorporated company is a citizen we may point out that the East India Coal Co., Ltd., is incorporated in the United Kingdom while the Burrakur Coal Co., Ltd., is incorporated in India. Therefore, in so far as the rights conferred by Art. 19 are concerned it may only be the latter which is entitled to the protection of the Constitution but not the former company. Both the petitioners, however, contend that the right conferred by Art. 31 (2) of the Constitution is also infringed by the aforesaid notification and if their contention is correct they will be entitled to protection in respect of that right inasmuch as it is not limited to the citizens of India as is the case with regard to the rights enumerated in Art. 19. Both the petitions were argued together though the argument were addressed mainly with reference to the case of Burrakur Coal Co., Ltd., and, therefore, it is that case with which we will deal fully. After dealing with the arguments advanced with reference to that case we will deal briefly with the other case.

2. The challenge to the notification rests on two grounds, firstly that the notification is ultra vires the Act and secondly that the Act is itself ultra vires the Constitution.

3. The petitioner s learned counsel Mr. P. R. Das contends that the Act applies to "unworked" coal mines - which according to him, mean virgin lands - and not to those which are being worked at present or which were worked in the past. In support of this contention he strongly relies upon the preamble to the Act. The preamble runs thus :

"An Act to establish in the economic interest of India greater public control over the coal mining industry and its development by providing for the acquisition by the state of unworked land containing or likely to contain coal deposits or of rights in or over such land, for the extinguishment or modification of such rights accruing by virtue of any agreement, lease, licence or otherwise, and for matters connected therewith."

4. His argument proceeds to the length of saying that even abandoned mines are not touched by the Act. According to him, however, the Sudamdih colliery was not an abandoned mine out could it be regarded as abandoned because, though it was not actually worked between the year 1932 and the month of May, 1960, the petitioner had purchased it for a large consideration amounting to over Rs. 1,46,000 and thereafter it paid annually the minimum rent and royalty which totals upto over Rs. 1,23,000 from May 1, 1939 to June 30, 1960. According to the petitioner the mine was not actually worked during