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PATNA HIGH COURT
Shambhu Prasad Singh and Nagendra Prasad Singh JJ.
Jitnath Singh
Versus
State Of Bihar
Civil Revision No. 145 of 1973 ;
Civil Writ Jurisdiction Case No. 278 of 1973 ; 363 of 1973 ;
Decided On : MAY 24, 1973
COAL MINES (TAKING OVER OF MANAGEMENT) ACT, 1973 - SECTION 18 - APPLICABILITY - OWNERSHIP, MANAGEMENT OR CONTROL BY GOVERNMENT - INTERPRETATION.
Fact of the Case:
The State of Bihar filed a suit for the possession of certain coal mines, including Kedla, Jharkhand, and Rauta, from the defendants, including the petitioner. The State was appointed as the receiver of the suit properties and managed the mines through its nominee. On 22nd August 1970, the National Coal Development Corporation and the Union of India issued a notification expressing their intention to acquire the right of mines, quarry, etc., in the lands mentioned in the notification. The State Court restrained them from giving effect to their intention. The State Court also admitted Miscellaneous Appeal No. 138 of 1972 and issued an order of ad interim injunction against the receiver restraining him from managing the aforesaid three coal mines. The injunction matter was finally heard by the State Court on 22nd January 1973, and by the order of that date, the Court vacated the ad interim order of injunction. In the meantime, the Coking Coal Mines (Emergency Provisions) Act, 1971 (1971 Act) had been passed and came into force. On 23rd December 1972, the Custodian appointed by the Union of India under the 1971 Act made an application before the State Court for handing over the management of the aforesaid three coal mines to it. On 30th January 1973, the President of India promulgated an Ordinance, the Coal Mines (Taking Over of Management) Ordinance, 1973 (Ordinance), providing for taking over the management of 464 coal mines as detailed in the schedule. Jharkhand and Kedla coal mines were serial Nos. 243 and 255 respectively of the said schedule. Rauta coal mine was serial No. 232 of the schedule. The Ordinance was superseded by the Coal Mines (Taking Over of Management) Act, 1973 (Act), which was passed on 31st January 1973. The Act is similar to the Ordinance, but with slight changes here and there. The petitioner filed a civil revision application challenging the vires of the Act and also contending that even if the Act is intra vires, provisions of it are not applicable to and do not affect the petitioner.
Finding of the Court:
The State Court passed an order directing the receiver to hand over the possession of the aforesaid three mines to the Custodian. The petitioner filed a civil revision application challenging the order. The State Court also passed an order authorizing the receiver to issue necessary certificates on the same pattern as issued by the Custodian so that despatch and sale of coal might be resumed. The Custodian filed a writ petition challenging the orders of the State Court. The State Court also passed an order that the working and despatch of coal be stopped and the direction for issue of coupons be stayed. The Custodian filed another writ petition challenging the order. The three cases were heard together and disposed of by a common judgment.
Issues: 1. Whether the Act is ultra vires the Constitution of India? 2. Whether the provisions of the Act are applicable to and affect the petitioner? 3. Whether the State Court had the jurisdiction to issue a direction to the petitioners of the writ application to issue coupons to the superintendents of the receiver?
Ratio Decidendi: 1. The Act is not ultra vires the Constitution of India. 2. The provisions of the Act are not applicable to and do not affect the petitioner because the three coal mines in question are owned, managed, and controlled by the Government of Bihar. 3. The State Court did not have the jurisdiction to issue a direction to the petitioners of the writ application to issue coupons to the superintendents of the receiver.
Final Decision: The civil revision application was allowed, and the order of the State Court dated 24th February 1973 was set aside. The writ petition challenging the order of the State Court dated 5th March 1973 was also allowed, and that part of the order by which the State Court had directed the petitioners to issue coupons was quashed.
Shambhu Prasad Singh, J.
1. The State of Bihar (hereinafter referred to as the State) filed Title Suit No. 16 of 1961 in the Court of the Subordinate Judge, Hazaribagh (hereinafter referred to as the Court below). The main reliefs claimed in the suit were that the entire property of Raja Kamakhya Narain Singh of Ramgarh including Kedla, Jharkhand and Rauta coal mines (with which we are concerned in these three cases, the civil revision and the two writ applications), vested in the plaintiff-State under the Bihar Land Reforms Act free from all encumbrances and that conveyances by the Raja of Ramgarh in favour of the defendants of the suit including the petitioner of the civil revision (defendant No. 9 in the suit) -- hereinafter referred to as the petitioner -- were fraudulent, sham, colourable and void being in contravention of law and that leases and subleases mentioned in the plaint were also colourable and farzi. A relief for permanently restraining the defendant including the petitioner from working the mines or obtaining any minerals directly or indirectly was also claimed. The State made an application for appointment of a receiver of the suit properties. By order dated 10th of October, 1969, the Court below appointed the State as receiver. The State as the receiver managed the property in dispute including the said three coal mines through its nominee, an Officer of the Commissioners rank. The Officer used to take directions from the Court. On 22nd of August 1970, National Coal Development Corporation (Opposite Party No. 30) and the Union of India (Opposite Party No. 31) issued a notification purporting to be under Sections 4 and 7 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 -- if necessary, hereinafter to be referred to as the 1957 Act -- expressing their intention to acquire the right of mines, quarry etc. and to prospect in the lands mentioned in the notification measuring 2160 acres in Taping Block and 3000 acres in Kedla Block. On 5th of December, 1970, opposite party Nos. 30 and 31 were restrained by the Court below from giving effect to their intention as mentioned in the aforesaid notification dated 22nd of August, 1970. They made an application for withdrawing that order. This application was dismissed by the Court below on 21st of February, 1972. Against this order they filed an appeal to this Court which was numbered as Miscellaneous Appeal No. 138 of 1972 which is still pending.
2. This Court admitted Miscellaneous Appeal No. 138 of 1972 and issued an order of ad interim injunction against the receiver restraining him from managing the aforesaid three coal mines. The injunction matter was finally heard by this Court on 22nd of January, 1973, and by the order of that date the Court vacated the ad interim order of injunction. In the meantime Coking Coal Mines (Emergency Provisions) Act, 1971 -- if necessary, hereinafter to be referred to as the 1971 Act -- had been passed and come into force. On 23rd of December, 1972, opposite party No. 30 who had been appointed Custodian by opposite party No. 31 under the 1971 Act, made an application before the Court below for handing over the management of the aforesaid three coal mines to it. It was mentioned in the petition that on 13th December, 1972, the Coal Board had taken a decision that the three mines aforesaid contained coking coal. On 6th of January, 1973, some of the Managing contractors appointed by the nominee of the State-receiver and the petitioner made an application before the Court below praying, inter alia, that hearing of the petition of opposite party No. 30 be stayed pending the decision of the Supreme Court on the vires of the 1971 Act. On 30th of January, 1973, the President of India promulgated an Ordinance, the Coal Mines (Taking Over of Management) Ordinance, 1973 -- hereinafter referred to as the Ordinance --providing for taking over the management of 464 coal mines as detailed in the schedule. Jharkhand and Kedla
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