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PATNA HIGH COURT
V.Ramaswami and N.L.Untwalia JJ.
Khas Karanpura Colliery Ltd.
Versus
Union Of India
Miscellaneous Judicial Case No. 643 of 1964 ;
Decided On : OCTOBER 30, 1964
COAL BEARING AREAS (ACQUISITION AND DEVELOPMENT) ACT, 1957 - SECTION 4(1), 4(4) - INTERPRETATION - NOTIFICATION ISSUED UNDER SECTION 4(1) - EXCLUSION OF PORTION OF LAND - SCOPE.
Fact of the Case:
The petitioner, Khas Karanpura Colliery Limited, obtained a mining lease of a block of land measuring approximately 1401 bighas in mauza Sael in the district of Hazaribagh and commenced mining operation in the demised block of land from December, 1947. The petitioner claimed to have spent about fourteen lacs of rupees in developing the mine, which includes the cost of buildings, machinery, plants, railway siding, tools, implements, driving inclines, boilers and premium paid for obtaining the leasehold right. The petitioner raised about 623650 tons of coal, upto February, 1964, and despatched 571688 tons as detailed in the statement, a copy of which is annexure A to the writ application. The petitioner claimed to be working and carrying on mining operation in the entire block of land as one unit by means of inclines and quarries, which have been driven and dug by it (petitioner) for the purpose of raising coal. The petitioner obtained supply of electricity and the electric equipments have been placed in the said coal land with necessary accessories. The petitioner obtained a rule from this Court against the respondent, the Union of India--the Ministry of Steel, Mines and Fuel,--to show cause why the notification No. S. O. 2991 dated 9th October, 1963, published in the Gazette of India dated October 19, 1903, a copy of which is annexure C to the writ application, be not quashed by grant of an appropriate writ and why the respondent be not restrained from taking any action on the strength of the said notification issued under Sec. 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (Central Act XX of 1957), hereinafter called the Act.
Finding of the Court:
The Court held that the entire land comprised in the petitioners colliery known as Khas Karanpura Colliery should be excluded from the notification issued under Section 4(1) of the Act by the Central Government and directed that a writ of mandamus should issue against the respondent commanding it to forbear from taking any action on the basis of the said notification.
Issues: Whether the Central Government can give notice of its intention to prospect for coal in the land of the petitioner covered by the impugned notification, issued under Sec. 4(1) of the Act, by excluding therefrom only that portion, of the land which it proposes to exclude under Sub-section (4) of Sec. 4 of the said Act.
Ratio Decidendi: The Court interpreted Sub-section (4) of Section 4 of the Act and held that what is meant to be excluded under it is the land comprised in the colliery or the mine if It forms one unit in the commercial and legal sense with reference to the various enactments, rules and regulations referred to above. The Court further held that the petitioner's right of working the colliery has been infringed and interfered with at this stage by the issuance of the notification under Sec. 4(1) of the Act by the Central Government and under Clause (b) of Sec. 5 of the lessee or the person, claiming through him could not undertake any operation in the land mentioned in the mining lease.
Final Decision: The Court allowed the application and quashed the impugned notification dated the 9th of October, 1963, issued by the Central Government contained in annexure C to the writ application by grant of a writ of certiorari. The Court further directed that a writ of mandamus should issue against the respondent commanding it to forbear from taking any action on the basis of the said notification, either directly through its officers or through its agents, nominees or the like.
Untwalia, J.
1. The petitioner, Khas Karanpura Colliery Limited, has obtained a rule from this Court against the respondent, the Union of India--the Ministry of Steel, Mines and Fuel,--to show cause why the notification No. S. O. 2991 dated 9th October, 1963, published in the Gazette of India dated October 19, 1903, a copy of which is annexure C to the writ application, be not quashed by grant of an appropriate writ and why the respondent be not restrained from taking any action on the strength of the said notification issued under Sec. 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (Central Act XX of 1957), hereinafter called the Act. Cause has been shown by the respondent by filing counter-affidavits sworn by some officers of the National Coal Development Corporation, a Government of India undertaking, for whose benefit the notification has been issued, and by the learned Government Advocate, who opposed the rule at the time of its hearing.
2. The petitioner claims to have obtained a mining lease of a block of land measuring approximately 1401 bighas in mauza Sael in the district of Hazaribagh on the terms and conditions mentioned in the Indenture of Lease dated the 8th July, 1949, effective from a back date, i.e., the 27th of September, 1946. The petitioner further claims to have opened the mine after obtaining necessary permission from the authorities and commenced mining operation in the demised block of land from December, 1947. The colliery is known as the Khas Karanpura Colliery. The petitioners further case is that It has spent about fourteen lacs of rupees in developing the mine, which includes the cost of buildings, machinery, plants, railway siding, tools, implements, driving inclines, boilers and premium paid for obtaining the leasehold right. The railway siding was opened in April 1952, and despatches from the said siding commenced from June, 1952. The block of land contains several coal seams commonly known as Argada Seam, Upper Siwana Seam, Karse Seam, and Sirka Beam.
The petitioner, since June, 1952, has raised about 623650 tons of coal, upto February, 1964, and despatched 571688 tons as detailed in the statement, a copy of which is annexure A to the writ application. The petitioner claims to be working and carrying on mining operation in the entire block of land as one unit by means of inclines and quarries, which have been driven and dug by it (petitioner) for the purpose of raising coal. It has further obtained supply of electricity and the electric equipments have been placed in the said coal land with necessary accessories. A plan of the demised block known as Khas Karanpura Colliery showing the underground work as well as the surface features on which various constructions done by the petitioner are existing, has been annexed with the writ application and marked annexure B. The entire land is being worked as one unit known as Khas Karanpura Colliery In accordance with the various Statutes, Rules and Regulations governing the working of the coal mines. According to the petitioner, the mine has been worked continuously since 1947 and it is not a dormant or unworked mine or land justifying acquisition of it or any portion of it by the Central Government in exercise of the power vested in It under Sec. 4(1) of the Act. After the issue of the notification in October, 1963, the respondent is said to have taken action in pursuance of it upon the petitioners land in March, 1964, and hence the present application was filed on 23rd of March, 1964.
3. On 25-3-64 when the application was admitted by this Bench, the operation of the impugned notification was stayed. On 2-6-64 an application supported by an affidavit sworn by the Legal Inspector employed under the National Coal Development Corporation was filed on behalf of the respondent alleging that the respondent, after the order of stay passed by this Court, had stopped prospecting In the land but the petitioner has started driving
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