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PATNA HIGH COURT
V.Ramaswami and N.L.Untwalia JJ.
Bishwanath Prasad
Versus
National Coal Development Corporation (Private) Ltd.
Miscellaneous Judicial Case No. 1069 of 1962 ;
Decided On : MAY 23, 1963
COAL BEARING AREAS (ACQUISITION AND DEVELOPMENT) ACT, 1957 - SECTION 4 - Notification under Section 4(1) - Exclusion of land from notification - Interpretation of Section 4(4) - Coal mining operations - Conformity with enactments, rules, and orders - MINERAL CONCESSION RULES, 1949 - RULE 37 - Transfer of mining lease - Approval of State Government and Central Government - MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT, 1957 - SECTION 13(2)(1) - Rule-making power of Central Government - Transfer of prospecting license or mining lease - INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951 - License requirement - Exemption for undertakings with less than 100 workers and fixed assets below 10 lakhs.
Fact of the Case:
Petitioner, Bishwanath Prasad, claimed ownership of Dhodidih Colliery, which he purchased from Bengal Coal Company Ltd. in November 1956. He applied to the Coal Board for permission to open four seams of the colliery but was denied permission in October 1957. The Coal Board also withdrew the Grade III-B fixed for the colliery in February 1958. The petitioner entered into correspondence with the Coal Board and the Ministry of Steel, Mines, and Fuel to reopen the colliery but faced delays. In November 1961, the petitioner was informed that the colliery had been notified under Section 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957. The petitioner protested the notification and filed a writ petition challenging its legality.
Finding of the Court:
The court held that the impugned notification issued under Section 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957, was valid and legal. The court found that the petitioner's colliery was not excluded from the notification as it was not a case of land in which coal mining operations were actually being carried on on the date of the notification. The court also held that even if the coal mining operations were being carried out, they were not in conformity with the provisions of the Mineral Concession Rules, 1949, and the Mines and Minerals (Regulation and Development) Act, 1957.
Issues: 1. Whether the impugned notification issued under Section 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957, was valid and legal. 2. Whether the petitioner's colliery was excluded from the notification under Section 4(4) of the Act. 3. Whether the coal mining operations, if any, were carried out in conformity with the provisions of the Mineral Concession Rules, 1949, and the Mines and Minerals (Regulation and Development) Act, 1957.
Ratio Decidendi: 1. The court interpreted Section 4(4) of the Coal Bearing Areas (Acquisition and Development) Act, 1957, and held that the Central Government was not obliged to exclude the land comprised in the petitioner's colliery from the notification as it was not a case of land in which coal mining operations were actually being carried on on the date of the notification. 2. The court found that the transfer of the mining lease in favor of the petitioner was illegal as it was not made with the previous sanction of the State Government and the Central Government as required under Rule 37 of the Mineral Concession Rules, 1949. 3. The court also held that the petitioner did not hold a certificate of registration or license as required under the Industries (Development and Regulation) Act, 1951, and hence he was not carrying on the coal mining operations, if any, in conformity with the enactment.
Final Decision: The court dismissed the petitioner's application with costs, holding that the petitioner was not entitled to a writ in this case.
N.L.Untwalia, J.
1. The case of the petitioner, Bishwanath Prasad, is that he is "the owner, proprietor and purchaser of Dhodidih Colliery situate within the Sub-Divisional area of Giridih in the district of Hazaribagh". He claims to have purchased the said colliery from the Bengal Coal Company Ltd., by a registered indenture of sale dated 22nd November, 1956, On the date of his purchase,
"the Colliery was a going concern raising coal of grade 111-B as per tonnage granted to it and the petitioner who hold (sic) a certificate of Approval granted to him by the State of Bihar under the Mineral Concession Rules, 1949 . after purchase continued raising coal from the said Dodidih Colliery."
The petitioner made an application on the 19th of January, 1957, to the Coal Board, Calcutta, for permission to open four seams of the said Dhodidih Colliery. The Coal Board by its order dated 10th October, 1957, refused permission to work the colliery and by another order dated 24th of February, 1958, withdrew Grade III-B fixed for the colliery on the ground that no such quality of coal was required from the area. After the orders aforesaid were made by the Coal Board, the petitioner entered into correspondence with it and pressed his claim for permission to reopen the said colliery in view of the heavy losses he was undergoing for the maintenance of the establishment. The Coal Board, however, went on postponing the matter and finally wrote to the petitioner on the 15th November, 1960, that it would consider the matter after the Government instructions were received, The petitioner thereupon filed a representation to the Ministry of Steel, Mines and Fuel which acknowledged receipt of the petitioners letter dated 6th of June, 1961, by its letter dated the 9th of June, 1961. Finally the petitioner wrote a letter dated 11th August, 1961, through his advocate, and demanded justice from the authority. Eventually, by a letter dated 23rd of November, 1961, the Ministry of Steel, Mines and Fuel, informed the petitioner that the Dhodidih Collieries appeared to have been notified under Sub-section (1) of Sec. 4 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (Act XX of 1957) published in the Gazette of India dated 8th July, 1961. The petitioner thereupon wrote a letter dated 6th December, 1961 to the Ministry of Steel, Mines and Fuel, Government of India, protesting against the issue of the notification aforesaid and praying to exclude his colliery from the operation of the notification on the ground that the Colliery was a running concern until it stopped functioning by an arbitrary and unlawful order of the Coal. Board. Copies of the two letters aforesaid dated 23-11-61 and 6-12-61 are annexure C to the writ application.
2. The petitioners further case is that on the 5th of December, 1961, the respondent. National Coal Development Corporation (Private) Ltd., in collusion with other authorities, namely, the Coal Board and others, commissioned a large number of men to take forcible possession of the colliery. Therefore, the petitioner filed a writ application in the Calcutta High Court which was registered and numbered as Matter No. 378 of 1961, against the Coal Board and others to restrain them from being in occupation of the Dhodidih colliery and. from entering upon it. The Calcutta High Court issued a rule on the 21st December, 1961, and by an order dated 20th of September, 1962, issued an ad interim injunction restraining the Chairman of the Coal Board from taking any steps in the matter of taking possession of Dhodidih colliery. A copy of the said order is annexure D to the writ application. According to the petitioners case, no rule could be issued against the present respondent as it is beyond the territorial jurisdiction of the Calcutta High Court. Hence the petitioner by making the present application under Article 226 of the Constitution of India has obtained a rule against the respondent to show cause why a writ in the
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