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1969 Supreme(SC) 321

SUPREME COURT OF INDIA
M. HIDAYATULLAH, C.J.I., J.M. SHELAT, V. BHARGAVA, K.S. HEGDE AND A.N. GROVER, JJ.
Baijnath Kedia etc., Appellants
Versus
The State of Bihar and others, Respondents. Dhalbham Trades and Industries Ltd. (In C. A. No. 685 of 1967), Intervener.
Civil Appeals Nos. 685 to 688 of 1967 D/- 28-8-1969.
Advocates appeared
Mr. A. K. Sen, Sr. Advocate (Mr. P. K. Chatterjee, Advocate, with him), for Appellants (in all appeals); Mr. Lal Narain Sinha, Sr. Advocate (M/s. Lakshman Saran Sinha and D. Goburdhun, Advocates with him), for Respondents (in C. A. No. 685/67); Mr. B. P. Jha, Advocate, for Respondents (in C. A. No. 686/67); Mr. U. P. Singh, Advocate, for Respondents Nos. 1 to 3 (in C. A. Nos. 687 and 688 of 1967); Miss Krishna Sen, Advocate and M/s. M. M. Kshatriya and G. S. Chatterjee, Advocates of M/s. Kshatriya and Chatterjee, for No. 4 (in C. A. No. 687/67) and Nos. 5 to 8 (in C. A. No. 688/67) for Respondents; Mr. R. C. Prasad Advocate, for Intervener (in C. A. No. 685/67).

Advocates:
A.K.SEN GUPTA, B.P.JHA, D.GOVERDHAN CHARY, G.S.CHATTERJEE, KRISHNA SEN, LAKSHMI SARAN SINHA, LAL NARAIN SINHA, M.M.KSHATRIYA, P.K.CHATTERJI, R.C.PRATAD, Udaipratap Singh

Headnote:

Bihar Land Reforms (Amendment) Act, 1964 - Section 10 (2) - Bihar Minor Mineral Concession Rules, 1964 - Bihar Land Reforms Act, 1959 - Mines and Minerals (Regulation and Development) Act, 1957 - Section 15 – Leases - Leasehold property – Possession - Ex-landlords ceased to have any interest from date of vesting and in their place State of Bihar became lessor - Terms of S. 10 were as given below - After vesting of estate of intermediaries, State of Bihar as new lessor recognised lease for quarrying of stones for remaining period and Deputy Commissioner, asked for rent from date of vesting at rate of Rs. 200 per year as stated in original lease - Notwithstanding anything contained in this Act, where immediately before date of vesting of estate or tenure there is a subsisting lease of mines or minerals comprised in estate or tenure or any part thereof, whole or that part of estate or tenure, comprised in such lease shall, with effect from date of vesting, be deemed to have been leased by State Government to holder of said subsisting lease for remainder of term of that lease, and such holder shall be entitled to retain possession of the leasehold property - Whether mine was worked or not – Held, Other side pointed to words and for purposes connected therewith in S. 15 and contended that those words were sufficiently wide to take in modification of leases - Argument is unfortunately not tenable in view of two rulings of this Court - On basis of those rulings we have held that entire legislative field in relation to minor minerals had been withdrawn from State Legislature - Courthave also held that vested rights could only be taken away by law made by a competent legislature - As no such parliamentary law had been passed second sub-rule to R. 20 was ineffective - It could not derive sustenance from second Proviso to S. 10 (2) of Land Reforms Act since that proviso was not validity enacted - A mandamus shall issue restraining State Government from enforcing provisions of second Proviso to S. 10 (2) added by Bihar Land Reforms (Amendment) Act 1964 (Bihar Act 4 of 1965) and second sub-rule of Rule 20 added by a notification on Bihar Mineral Concession Rules 1964 - Appeals allowed.

Judgment

HIDAYATULLAH, C.J.I. : This judgment will also govern the disposal of Civil Appeals 686 (Kanti Prasad Pandey v. State of Bihar and others), 687 (Shri Krishna Chandra Gangopadhya v. State of Bihar and others) and 688 (M/s. Pakur Quarries Private Ltd. and Anr. v. State of Bihar and others) of 1967. These four appeals have been brought against a common judgment, November 1, 1966, of the High Court of Patna (reported in AIR 1968 Pat 50) and arise out of four petitions under Art. 226 of the Constitution filed to question the validity of Proviso (2) to S. 10 (2) added by Bihar Land Reforms (Amendment) Act, 1964 (Bihar Act 4 of 1965) and the operation of the second sub-rule of R. 20 added on December 10, 1964 by a notification of the Government in the Bihar Minor Mineral Concession Rules, 1964. The facts of all the four cases are similar and the same points arise for determination. It is, therefore, sufficient to state the facts in Civil Appeals 685 and 686 as illustrative of the others as well.

2. One Jyoti Prakash Pandey obtained on March 23, 1955 from Babu Bijan Kumar Pandey and Smt. Anila Devi acting for herself and also as legatee under the will of one Baidyanath Pandey, registered leases to quarry stone ballast, boulders and chips from and upon Blocks Nos. 32. 45/1, 45/2 and 43/3 in tauzi No. 1452. Khata No. 1 in Mouza Malpahari No. 89 in Pakur Sub Division of Santhal Parganas. The leases were to commence from November 1, 1954 and to end on October 31, 1984, that is to say, they were for a total period of 30 years. Jyoti Prakash Pandey was working under the name and style of stone India . He sold his rights, title and interest by a registered sale-deed on September 9, 1963 to the present appellant. It is admitted that rent under the terms of the original lease was deposited upto September 1965.

3. On the passing of the Bihar Land Reforms Act, 1959 (Act 30 of 1950) the ex-landlords ceased to have any interest from the date of vesting and in their place the State of Bihar became lessor under S. 10 (1) of the Land Reforms Act. The terms of S. 10 were as given below*. After the vesting of the estate of the intermediaries, the State of Bihar as the new lessor recognised the lease for the quarrying of stones for the remaining period and the Deputy Commissioner, Santhal Parganas asked for the rent from the date of vesting to 30 April, 1965 at the rate of Rs. 200 per year as stated in the original lease. This was by a letter issued from his office on February 2, 1963. On December 10, 1964 the appellants received a letter which gives the gist of the facts on which the present controversy starts and the relevant part may be quoted here:

* "10. Subsisting leases of mines and minerals. - (1) Notwithstanding anything contained in this Act, where immediately before the date of vesting of the estate or tenure there is a subsisting lease of mines or minerals comprised in the estate or tenure or any part thereof, the whole or that part of the estate or tenure, comprised in such lease shall, with effect from the date of vesting, be deemed to have been leased by the State Government to the holder of the said subsisting lease for the remainder of the term of that lease, and such holder shall be entitled to retain possession of the leasehold property.

(2) The terms and conditions of the said lease by the State Government shall mutatis mutandis be the same as the terms and conditions of the subsisting lease referred to in sub-section (1), but with the additional condition that, if in the opinion of the State Government the holder of the lease had not, before the date of the commencement of this Act, done any prospecting or development work, the State Government shall be entitled at any time before the expiry of one year from the said date to determine the lease by giving three months notice in writing:

Provided that nothing in this subsection shall be deemed to prevent any modifications being made in the terms and conditions of the said lease i



















































































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