LALIT MOHAN SHARMA, J.

1. The petitioner is a Government company in which the right, title and interest in relation to the coal mines including Jagal Daga colliery, mentioned in the Schedule to the Coal Mines (Nationalisation Act) 1973, have vested under S.5 of the Act.

2. The District Mining Officer, respondent 3, made a demand by notice Annexure "1" with respect to the dead rent for the period 1-5-1973 to 30-9-1974 at the maximum rate, as prescribed by the Third Schedule to the Mines and Minerals (Regulation and Development) Act, 1957, payable to the State of Bihar under S.9A of the Act. A proceeding under the provisions of the Public Demands Recovery Act was started for realisation of the demand. The petitioner denied the liability on the ground that the lease in its favour must be treated as a new lease with effect from 1-5-1973 and no dead rent is, therefore, payable for the period 1-5-1973 to 30-4-1974; and, for the remaining period, the rent is payable at the minimum rate of Rs. 12.50 per hectare per annum. By order in Annexure "3", the Certificate Officer, respondent 2, rejected the petitioner"s objection. This writ application has been filed for quashing Annexures 1 and 3.

3. In pursuance of a decision to nationalise the coal mines, The Coal Mines (Taking Over of Management) Ordinance (Ordinance No. 1 of 1973) was passed and was followed by the Coal Mines (Taking over of Management) Act, 1973. Subsequently, the Parliament passed Coal Mines (Nationalisation) Act, 1973 (Act 26 of 1973) which came into force on 1-5-1973 whereby a number of coal mines including Jagal Daga colliery mentioned in the Schedule belonging to one Mr. S. K. Dutta stood transferred to the Central Government. The object was to ensure rational, co-ordinated and scientific development and utilisation of the coal resources of the country. In exercise of the powers under S.5(1) of the Nationalisation Act, the Central Government directed the vesting of the collieries in the Coal India Ltd., a Government company. The petitioner is a subsidiary company.

4. The Act came into force with effect from 1-5-1973 which date has been referred to in S.2(a) as the appointed day. The transfer of the interest of the owners in relation to the specified coal mines took place under S.3(1) of the Act which is in the following terms :

"3. Acquisition of rights of owners in respect of coal mines : - On the appointed day, the right, title and interest of the owners in relation to the coal mines specified in the Schedule shall stand transferred to, and shall vest absolutely in the Central Government free from all encumbrances."

The Central Government (or the Government company as the case may be) became the lessee under the State Government by virtue of the provisions of S.4 which is quoted below:

"4. The Central Government to be the lessee of the State Government : - (1) Where the rights of an owner under any mining lease granted, or deemed to have been granted, in relation to a coal mine by a State Government or any other person, vest in the State Government under S.3, the Central Government shall, on and from the date of such vesting, be deemed to have become the lessee of the State Government or such other person, as the case may be, in relation to such coal mine as if a mining lease in relation to such a coal mine had been granted to the Central Government and the period of such lease shall be the entire period for which such lease could have been granted by the State Government or such other person under the Mineral Concession Rules, and thereupon all the rights under such mining lease, including surface, underground and other rights granted to the lessee, shall be deemed to have been transferred to, and vested in, the Central Government.

(2) On the expiry of the term of any lease, referred to in sub-sec.(1), such lease shall, if so desired by the Central Government, be renewed, on the same terms and conditions on which the lease was held, immediately before the