Judgment

KRISHNA IYER, J.:- The central issue in these petitions deals with the question whether a statute and a rule earlier declared by the Court unconstitutional or otherwise invalid, can be retroactive through fresh validating legislation enacted by the competent legislature. More pointedly, the constitutionality of Rule 20 (2) framed by the Bihar Government under Section 15 of the Mines and Minerals (Regulation and Development) Act, 1957 (Act LXVII of 1957) (for short, the Central Act) and the second proviso to S. 10 (2) of the Bihar Land Reforms Act, 1950 (for brevity, the Bihar Act) has been challenged on various grounds in the petitions, a validating statute by Parliament transforming them into Central legislation, as will be presently explained. The subject of the litigation is minor minerals and the right of the petitioners adversely affected by the impugned legislation, is to quarry stones etc., on the strength of leases granted to them by erstwhile proprietors whose ownership vested in the State by virtue of the Bihar Act. By the combined operation of the second proviso to Section 10 (2) of the Bihar Act and Rule 20 (2) (framed by the State Government) of the Bihar Minor Mineral, Concession Rules, 1964 (hereinafter called the Rules) the petitioners were called upon to pay certain rents and royalties in respect of mining operations, but the power of the State, clothed by these provisions, was put in issue in the first round of litigation by lessees of quarries, which culminated disastrously against the State in Baij Nath Kedia v. State of Bihar, (1970) 2 SCR 100 . This Court, in that case, held that the Bihar Legislature had no jurisdiction to enact the second proviso to S. 10 (2) of the Bihar Act, because it went further to hold that Section 15 of the Central Act, read with Section 2 thereof, had appropriated the whole field relating to minor minerals for Parliamentary legislation. This Court proceeded to lay down that the Second sub-rule, added by the Notification dated December 10, 1964 to R.20 of the rules did not affect leases in existence prior to the enactment of the rules. The upshot of the decision was that the action taken by the Bihar Government in modifying the terms and conditions of the leases which were in existence anterior to the rules and the levy sought to be made on the strength of the amended Bihar Act and rule were unsustainable. Thereupon the State persuaded Parliament to enact the Validation Act of 1969 with a view to remove the road-blocks which resulted in the, decision in Kedih s case. The preamble and the short Act (now impugned) provide thus:

"An Act to validate certain provisions contained in the Bihar Land Reforms Act, 1950, and the Bihar Minor Mineral Concession Rules, 1964 and action taken and things done in connection therewith."

Section 1 gives the title of the Act Section 2 of the Act, runs thus:

"2. Validation of certain Bihar State laws and action taken and things done connected therewith.

(1) The laws specified in the Schedule shall be and shall be deemed always to have been, as valid as if the provisions contained therein had been enacted by Parliament.

(2) Not withstanding any judgment, decree or order of any court, all actions taken, things done, rules made, notifications issued or purported to have been taken, done, made or issued and rents or royalties realised under any such laws shall be deemed to have been validly taken, done, made, issued or realised, as the case may be, as if this section had been in force at all material times when such action was taken, things were done, rules were made, notifications were issued, or rents or royalties were realised, and no suit or other proceeding shall be maintained or continued in any court for the refund of rents or royalties realised under any such laws.

(3) For the removal of doubts, it is hereby declared that nothing in sub-section (2) shall be construed as preventing any person from claiming refund of any rents or royalties paid