Judgment

SEN, J.:- These appeals by special leave from a judgment of the Delhi High Court, involve interpretation of Sec. 2 (h) of the Coal Mines (Nationalisation) Act, 1973, as amended by the Coal Mines Nationalisation Laws (Amendment) Act, 1978, as well as of sub-section (2) of Section 18 read with sub-sections (3) and (4) of Section 19 of the Act.

2. The importance of this case in its legal aspect consists in the question as to whether the Central Government has the power under sub-section (3) of Section 19 of the Act to receive up to the specified date, i. e., June 30, 1975, any money due to a coal mine notwithstanding that the realisation pertains to a period prior to that date, even though such amounts may not be the "current assets", by reason of Explanation to Section 2 (h) (xii), and to apply such realisations under sub-section (4) thereof to discharge the liabilities of such coal mine which could not be discharged by the appointed day, i. e., May 1, 1973.

3. The facts of the case are as follows :-

Messrs Shethia Mining & Manufacturing Corporation, Calcutta apparently owned three non-coking coal mines, two in the State of West Bengal viz., New Satgram and New Jamuria coal mines, and one in the State of Maharashtra viz., New Majri coal mine. The concern also owned a workshop called the New Satgram Engineering Works, in short, "Engineering Unit", built on a plot adjacent to the New Satgram coal mine in 1964. Outside the mining area, but adjacent to it, it had constructed a building known as the Technical Directors Bungalow built somewhere in 1957-58. In or about 1960-61, it had constructed another building on the same plot of land, namely, the Guest House used for the residence of officers and staff of the mines.

4. The management of the aforesaid coal mines was first taken over under the Coal Mines (Taking over of Management) Ordinance, 1973 pending nationalisation of such mines and vested in the Central Government from the appointed day i. e., January 31, 1973. The ordinance was replaced by the Coal Mines (Taking over of Management) Act, 1973, hereinafter referred to as the "Management Act". Thereafter, Parliament enacted the Coal Mines (Nationalisation) Act, 1973, hereinafter referred to as the Nationalisation Act, providing for the acquisition and transfer of the rights, title and interest of the owners in respect of the coal mines specified in the Schedule with a view to re-organising and reconstructing such coal mines so as to ensure the rational, co-ordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country.

5. The Nationalisation Act provides by sub-section (1) of Section 3 that the right, title and interest of the owners in relation to the coal mines specified in the schedule shall stand transferred to, and vest absolutely in, the Central Government free from all incumbrances with effect from the appointed day, i. e., May 1, 1973. The mines in question were nationalised and have been mentioned at serial Nos. 383, 577 and 601 in the Schedule. The right, title and interest of Messrs Shethia Mining & Manufacturing Corporation consequently vested in the Central Government and subsequently by a notification in the Government Company, i. e., the Coal (India) Ltd.

6. The management of the New Satgram Engineering Works tried at first, to challenge the validity of the Coal Mines (Taking Over of Management) Ordinance; 1973 by a petition in this Court under Article 32 of the Constitution being Writ Petition No. 81 of 1973, On February 12, 1973, they obtained rule nisi and an interim order restraining taking over of the Engineering Unit. On May 4, 1973 the Court made the stay absolute, Between the making of the two orders the Coal Mines (Taking over of Management) Act, 1973, was enacted on March 31, 1973, with retrospective effect from January 30, 1973. On May 17, 1973, the Central Government took over possession of the Technical Directors Bungalow and the Guest