High Court Of Calcutta
SABYASACHI MUKHERJI
VALLEY REFRACTORIES PVT.LTD. - Appellant
Versus
K.S.GAREWAL - Respondent
Matter 102 Of 1973
Decided On : 04/07/1978
COAL MINES (NATIONALISATION) ACT, 1973 - SECTION 3 - WEIGH-BRIDGE USED FOR WEIGHING COAL EXTRACTED FROM COLLIERY - WHETHER VESTED IN CENTRAL GOVERNMENT - INTERPRETATION OF 'COAL MINE' AND 'OWNER' - STRICT CONSTRUCTION OF STATUTE - RELEVANCE OF DEFINITIONS IN MINES ACT, 1952.
Fact of the Case:
Valley Refractories Pvt. Ltd. and Bajrang Prasad Agarwal challenged the vesting of their weigh-bridge in the Central Government under Section 3 of the Coal Mines (Nationalisation) Act, 1973. The weigh-bridge was situated in the plot of land where the refractory plant was installed and was used for weighing coal extracted from Merha Collieries, which was nationalized under the Act. The petitioners contended that the weigh-bridge was not part of the coal mine and was not used exclusively for mining operations.
Finding of the Court:
The court held that the weigh-bridge was part of the 'coal mine' as defined under Section 2(h) of the Act, which includes all lands, buildings, works, machinery, and equipment used for the purposes of the mine. The court also held that the petitioners, as the owners of the weigh-bridge, were 'owners' in relation to the coal mine as defined under Section 2(o) of the Act, which incorporates the definition of 'owner' from the Mines Act, 1952. Therefore, the right, title, and interest of the petitioners in relation to the weigh-bridge vested in the Central Government under Section 3 of the Act.
Issues: 1. Whether the weigh-bridge was part of the 'coal mine' as defined under the Coal Mines (Nationalisation) Act, 1973? 2. Whether the petitioners were 'owners' in relation to the coal mine as defined under the Act?
Ratio Decidendi: 1. The court interpreted the definition of 'coal mine' under Section 2(h) of the Act to include all lands, buildings, works, machinery, and equipment used for the purposes of the mine, regardless of whether they were used exclusively for mining operations. 2. The court held that the petitioners, as the owners of the weigh-bridge, were 'owners' in relation to the coal mine as defined under Section 2(o) of the Act, which incorporates the definition of 'owner' from the Mines Act, 1952.
Final Decision: The court dismissed the petition, holding that the weigh-bridge vested in the Central Government under Section 3 of the Coal Mines (Nationalisation) Act, 1973.
( 1 ) IN this application under Article 226 of the Constitution the petitioners Valley Refractories Private Limited and one Bajrang Prasad Agarwal contend that the weigh-bridge which is alleged to be belonging to Valley Refractories Pvt. Ltd. situate in the village Merha Mouza, Police Station and Post Office Chirkunda in the District of Dhanbad has not vested in the Central Government under Section 3 of the Coal Mines (Nationalisation) Act, 1973. For the purpose of this application it is not necessary to refer to many facts. The petitioner No. 1 company contends that it is the owner of the weigh-bridge and the said weigh-bridge according to the petitioners, is situate in the plot of land on which the said refractory plant has been installed by the petitioner No. 1. Nirmal Chandra Das in his affidavit affirmed on 30th Aug. , 1973 on behalf of the respondents, states that the land over which the weigh-bridge is situated is within the leasehold of Merha Colliery, the management of which was taken over by the Coal Mines Authority. There is no dispute that the said weigh-bridge was used for weighing coal extracted out of the Merha Collieries. In order to appreciate the contention it is necessary to refer to Section 3 of the Coal Mines (Nationalisation) Act, 1973 which is as follows :"3. Acquisition of rights of owners in respect of coal mines - (1) 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 incumbrances. (2) For the removal of doubts, it is hereby declared that if, after the appointed day, the existence of any other coal mine comes to the knowledge of the Central Government, the provisions of the Coal Mines (Taking Over of Management) Act, 1973, shall until that mine is nationalised by an appropriate legislation, apply to such mine. "section 2 of the Act provides the definition and under Clause (b) of the said section 'coal mine' means a mine in which there exists one or more seams of the coal. Clause (h) of Section 2 defines "mine" and the relevant part of the same is as follows:--" (h) 'mine' means any excavation where any operation for the purpose of searching for or obtaining minerals has been or is being carried on, and includes- (vi) all lands, buildings, works, adits, levels, planes, machinery and equipments, instruments, stores, vehicles, railways, tramways and siding in or adjacent to a mine and used for the purposes of the mine ; (vii) all workshops (including buildings, machinery, instruments, stores, equipment, of such workshops and the lands on which such workshops stand) in or adjacent to, a mine and used substantially for the purposes of the mine or a number of mines under the same management; (xi) all lands and buildings (other than those referred to in Sub-clause (x)), wherever situated, if solely used for the location of the management, sale or liaison offices, or for the residence of officers and staff, of the mine; (xii) all other fixed assets, movable and immoveable, belonging to the owner of a mine, wherever situated, and current assets, belonging to a mine, whether within its premises or outside, and also any money lawfully due to such owner in relation to the mine in respect of any period prior to the appointed day. "the term 'owner' is not defined in the Act. Therefore, the definition, in view of Clause (o) of Section 2 of the Act, of 'owner' in the Mines Act, 1952 would be applicable. The said definition is provided by Clause (1) of Section 2 of the Mines Act, 1952 and the said definition reads as follows :--" (1) "owner", when used in relation to a mine, means any person who is the immediate proprietor or lessee or occupier of the mine or of any part thereof and in the case of a mine the business whereof is being carried on by a liquidator or receiver such liquidator or receiver and in the case of a mine owned
Referred to : Motibhai F.P.and Co. v. Collector, Central Excise
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