Judgement

HEGDE, J.: In this appeal by certificate the question for decision is whether the High Court of Patna was correct in its conclusion that the notification No. S. O. 2991 issued by the Union Government on October 9, 1963 under S. 4 (1)* of the Coal Bearing Areas (Acquisition and Development) Act, 1957, (No. 20 of 1957) - hereinafter called " the Act" - is violative of sub-s. (4) of that section.

* 4 (1) Whenever it appears to the Central Government that coal is likely to be obtained from land in any locality, it may, by notification in the Official Gazette, give notice of its intention to prospect or coal therein.

(2) .... .... .... .... .... ....

(3) .... .... .... .... .... ....

(4) In issuing a notification under this section, the Central Government shall exclude therefrom that portion of any land in which coal mining operations are actually being carried on in conformity with the provisions of any enactment, rule or order for the time being in force or any premises on which any process ancillary to the getting, dressing or preparation for sale of coal obtained as a result of such operations is being carried on are situate."

2. The facts of the case fall within a narrow compass. The respondent, Khas Karanpura Colliery Limited, took on lease 1401 bighas of land in mouza Sale in the district of Hazaribagh as per a registered lease deed of July 8, 1949, for the purpose of winning coal. Thereafter it commenced working the colliery in 1952. Certain seams were opened up. Electric transmission lines were put up, staff quarters, office quarters, houses for labourers, hospital, school etc. were built. For the purpose of dispatching the coal, a separate railway track was constructed and a railway siding built These works were completed long before the impugned notification was issued. Under the notification in question 1200 bighas of land were notified with a view to acquisition, which included areas on which the railway siding, staff quarters, boiler house, houses labourers etc. were constructed.

3. The respondent challenged the validity of the said notification in MJC No: 643 of 1964 - an application under Art. 226 of the Constitution - before the High Court. The main contention taken in the writ petition was that the notification in question contravenes subs. (4) of S. 4. The High Court accepted that contention and quashed the notification.

4. The material facts are more or less admitted. Along with its writ petition the respondent produced a plan of the colliery showing therein the railway track, the railway siding, labour quarters, office premises and various other buildings put up on the land. It had also shown therein the actual places where mining operations were carried on. We correctness of this plant has not been disputed. From that plan it is seen that in a considerable portion of the land notified under S. 4 (1) there are premises on which processes ancillary to the getting, dressing or preparation for sale of coal obtain as a result of the Mining operation are being carried on. There is also no doubt that if the respondent a deprived of the benefit of those premises it would be difficult, if not impossible for it, to continue to work the colliery.

5. The High Court has come to the conclusion that in determining the area in which coal mining operation is being actually carried on, one is not to take into consideration merely those spots where actual digging going on, but also areas which are sufficient to constitute a commercial or economic unit, and if so viewed, the entire leasehold may be justifiably considered as areas on which coal mining operations are actually being carried on. Alternatively, it held that the entire notified area had to be excluded because in parts of that area mining operations are actually being carried on and in the remaining parts there are premises on ,which processes ancillary to the getting, dressing or preparation for sale of coal obtained as a result of the mining operations are being ca