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2006 Supreme(Cal) 710

High Court Of Calcutta
Ashim Kumar Banerjee And Tapan Mukherjee, JJ.
KARAM CHAND THAPAR - Appellant
Versus
J.G.KUMARAMANGALAM - Respondent
W. P 65 Of 1973
Decided On : 11/16/2006

Advocates Appeared:
ALOK BANERJEE, D.N.ROY, Mohit Gupta, MUNMUN TEVARI

The definition of "mine" under section 2 (h) of the Coal Mines Nationalisation Act, 1973, includes "all plants, machineries and equipments in, or adjacent to, a mine and used substantially for the purpose of the mine".

Headnote:

COAL MINES NATIONALISATION ACT - SECTION 2 (H) - VESTING OF MINE - SUBJECT MATTER - INTERPRETATION OF DEFINITION OF "MINE" - APPLICATION OF SECTION 2 (H) TO PLANT AND MACHINERY IMPORTED FOR COAL EXTRACTION.

Fact of the Case:

Thapar Intrafor imported machinery for coal extraction in Central Sounda Colliery of United Collieries Ltd. in Jharkhand. Thapar Intrafor was engaged by United Collieries to provide technical assistance and/or mechanisms for coal extraction. The appellant challenged the vires of the Coal Mines (Nationalisation) Act, 1973, and sought a writ of mandamus to direct the respondents to hand over the plant and machinery to the appellant.

Finding of the Court:

The court held that the plant and machinery imported by Thapar Intrafor for coal extraction in Central Sounda Colliery vested in the respondents by virtue of the provisions of the Coal Mines Nationalisation Act, 1973. The court found that the plant and machinery came within the definition of "mine" under section 2 (h) of the Act, as they were used substantially for the purpose of the mine.

Issues: 1. Whether the plant and machinery imported by Thapar Intrafor for coal extraction in Central Sounda Colliery vested in the respondents by virtue of the provisions of the Coal Mines Nationalisation Act, 1973? 2. Whether the plant and machinery came within the definition of "mine" under section 2 (h) of the Act?

Ratio Decidendi: 1. The court relied on the definition of "mine" under section 2 (h) of the Coal Mines Nationalisation Act, 1973, which includes "all plants, machineries and equipments in, or adjacent to, a mine and used substantially for the purpose of the mine". 2. The court found that the plant and machinery imported by Thapar Intrafor were used substantially for the purpose of the mine, as they were specifically brought by Thapar Group for running the Central Sounda Collieries of United Collieries Ltd.

Final Decision: The court dismissed the appeal and held that the plant and machinery imported by Thapar Intrafor for coal extraction in Central Sounda Colliery vested in the respondents by virtue of the provisions of the Coal Mines Nationalisation Act, 1973.

ASHIM KUMAR BANERJEE, J.

( 1 ) APPELLANT company being the successor-in-interest of Thapar Intrafor Company of India Ltd. , filed the above writ petition inter alia challenging the vires of the Coal Mines (Nationalisation)Act, 1973 (hereinafter referred to as "the Act of 1973") as well as for a writ of mandamus commanding the respondents directing to hand over the plant and machinery mentioned in Schedule B therein to the appellant.

( 2 ) ACCORDING to the appellant Thapar Intrafor imported certain machineries for the purpose of coal extraction in Central Sounda Colliery in the District of Hazaribagh in the State of Jharkhand belonging to United collieries Ltd. According to the appellant, Thapar Intrafor was engaged by united Colliery to provide technical assistance and/or mechanism for the purpose of extraction of coal in their Central Sounda Colliery in terms of a contract entered into on November 29, 1971. Initially the challenge to the relevant provisions of the Coal Mines Nationalisation Act was not there, those were brought in by way of the amendment of the writ petition.

( 3 ) WHEN the writ petition was initially moved the appellant obtained an interim order from the learned Single Judge on February 13, 1973 to the effect that the respondent be restrained from using or dealing with or disposing of the plant and machineries mentioned in Schedule B or removing the same from the places where they were kept. Such interim order continued till the writ petition was finally heard and disposed of by the learned Single judge.

( 4 ) DURING the pendency of the said writ petition, challenge to the vires of coal Mines Nationalisation Act failed in other proceedings upto the Apex court level.

( 5 ) THE learned Single Judge by His Lordship's judgment and order dated december 12, 2002 appearing at pages 143-152 of the paper book dismissed the writ petition.

( 6 ) BEFORE the learned Single Judge, it was contended on behalf of the appellant that it did not have any nexus with United Collieries being the owner of Central Sounda Colliery. Hence, the plant and machineries belonging to the appellant could not have been vested in the respondents by virtue of the provisions of Coal Mines Nationalisation Act. His Lordship was not inclined to accept such contention of the appellant and held that the plant and machinery stood vested by virtue of the provisions of the said Act of 1973.

( 7 ) BEING aggrieved by, and dissatisfied with, the judgment and order under appeal, the present appeal was filed by the appellant.

( 8 ) MR. Dibbendu Narayan Roy, learned Counsel appearing for the appellant contended before us that the learned Single Judge misconstrued the decision of the Apex Court in the case of Union of India vs. United Collieries Ltd. , reported in AIR 1985 SC 192. Mr. Roy contended that the plant and machineries were imported from abroad only for the purpose of coal extraction in Central Sounda Colliery by the predecessor-in-interest of the appellant under a contract entered into with United Collieries Ltd. The said plant and machineries, according to Mr. Roy, were not put in operation. Hence, this could not have been vested in the respondent under the provisions of the said Act of 1973. Mr. Roy placed section 2 (h), of the said Act of 1973 and contended that those plant and machineries did not come within the definition of "mine" and as such could not have vested in the respondent.

( 9 ) IN support of this contention, Mr. Roy cited two decisions, one being the Apex Court decision in the case of A. K. Ghosh vs. Bharat Cooking Coal ltd. , reported in 1993 (1) SCC 145 and a Division Bench decision of the Madhya pradesh High Court in the matter of Coal Mines Authority Ltd. vs. Associated cement Company Ltd. , reported in All India Reporter 1986, Madhya Pradesh, page 241.

( 10 ) MR. Alok Banerjee, learned Counsel appearing for the respondent authorities contended that the plant and machineries lying at the colliery vested in the responde










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