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High Court Of Calcutta
M.N.Roy, J.
Jnanananda Industries
Vs.
Sub-Divisional Land Reforms Officer
Decided On : May 10, 1977
WEST BENGAL ESTATES ACQUISITION ACT, 1953 - SECTION 2(I) - AMENDMENT - VALIDITY - MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT, 1957 - SECTION 30A - NOTIFICATION - VALIDITY - LEASE - MODIFICATION - COMPETENCE OF STATE LEGISLATURE - PROMISSORY ESTOPPEL - APPLICABILITY.
Fact of the Case:
The petitioners, a company registered under the Indian Companies Act, were granted a mining lease by the Maharaja of Burdwan. After the West Bengal Estates Acquisition Act, 1953 came into force, the State Government started demanding royalties from the working lessees of the mines. The petitioners challenged the validity of the demand and the State Government issued a notification under section 30A of the Mines and Minerals (Regulation and Development) Act, 1957, which was also challenged by the petitioners. The State Government then enacted the West Bengal Estates Acquisition (Amendment) Act, 1964, which was also challenged by the petitioners.
Finding of the Court:
The Court held that the amendment of section 2(i) of the West Bengal Estates Acquisition Act, 1953, was valid and that the State Government was competent to issue the notification under section 30A of the Mines and Minerals (Regulation and Development) Act, 1957. However, the Court also held that the State Government was not entitled to modify the terms of the lease granted to the petitioners and that the petitioners were not liable to pay royalty or interest to the State Government.
Issues: 1. Whether the amendment of section 2(i) of the West Bengal Estates Acquisition Act, 1953, was valid? 2. Whether the State Government was competent to issue the notification under section 30A of the Mines and Minerals (Regulation and Development) Act, 1957? 3. Whether the State Government was entitled to modify the terms of the lease granted to the petitioners? 4. Whether the petitioners were liable to pay royalty or interest to the State Government?
Ratio Decidendi: 1. The amendment of section 2(i) of the West Bengal Estates Acquisition Act, 1953, was valid because it was within the legislative competence of the State Legislature. 2. The State Government was competent to issue the notification under section 30A of the Mines and Minerals (Regulation and Development) Act, 1957, because the notification was issued in accordance with the provisions of the Act. 3. The State Government was not entitled to modify the terms of the lease granted to the petitioners because the lease was a statutory lease and could not be modified without the consent of the petitioners. 4. The petitioners were not liable to pay royalty or interest to the State Government because they had already paid the royalty and interest due under the lease.
Final Decision: The Rule was made absolute and the State Government was restrained from demanding royalty or interest from the petitioners.
M.N.Roy
1. THIS rule is directed against notices dated 6th November, 1971 and 30th November, 1971 (Annexure E and F respectively) whereby Jnanananda Industries Private Ltd. (hereinafter referred to as the petitioners) was directed to make necessary arrangements for the payment of royalty dues on or by 12th November, 1971. The said notices were issued by the Sub-divisional Land Reforms Officer, Asansol, respondent No. 1.
2. THE petitioners, a company registered under the Indian Companies Act, has its registered office at Ukhra, in the District of Burdwan. It has been alleged that Maharajadhiraja of Burdwan, was ceased and possessed of certain Zamindari estates and properties, of which the coal lands, mines and hereditaments comprising the Guru Gopinath Colliery (hereinafter referred to as the said Colliery) of the said petitioner, formed a part. By an indenture dated the 27th October, 1915 the said Maharaja granted and demised to one Ray Pulin Behari Singha Bahadur and others, the said coal lands, mines and hereditaments comprising the said colliery. THE said Singha Bahadur, by another indenture of sub-lease dated 5th July 1920, demised and granted to Ukhra Estate Zamindari Private Limited, amongst others, the said coal lands and mines comprising the said colliery for 999 years, effective from 1st day of Baisakh 1327 B.S. Ukhra Estate Zamindary Private Limited, in their turn by an indenture of under lease dated 19th March, 1950 granted and demised to the petitioners, the said coal lands and mines comprising the said colliery, for a period of 960 years on and from 21st March 1947, subject to payment of royalty at the rate of 6 annas per ton of all kinds of coal, with a minimum charge fixed at Rs. 1680/- only per annum.
The petitioners have stated that since 21st March 1947 they have been working in the said colliery and is in peaceful possession thereof. They have also stated that thereafter, they acquired the coal mining right of several Bajaipti lands from several Bajaiptidars and has also been working those lands as parts of the said colliery.
3. IT appears that the West Bengal Estate Acquisition Act, 1953 (hereinafter referred to as the said Act) came into force on 12th February 1954 and thereafter a notification was published under section 4 of the said Act by the State of West Bengal on 15th April 1955, as a result whereof the right, title and interest in the properties in question of the said Maharajadhiraja of Burdwan, who was the intermediary, vested in the State. Thereafter on 16th January 1957. the State of West Bengal promulgated an Ordinance by which section 2(i) of the said Act was amended in the following manner : - "Intermediary means a proprietor, tenure holder, under-tenure holder or any other intermediary above a raiyat or a non-agricultural tenant and includes a service tenure-holder and, in relation to mines and minerals, includes a leasee and a sub-lessee."
4. THE petitioners have stated that thus on the basis of the amendment as mentioned hereinbefore, the State Government started demanding royalties from the working lessees of the mines with effect from 15th April, 1955. THEre is also no dispute that on 9th March 1957, the State Government enacted the West Bengal Estates Acquisition (Amendment Act, 1957) (hereinafter referred to as the said Amending Act), which came into force immediately after the said Ordinance ceased to operate. THE petitioners have alleged the said Ordinance and the Amending Act in question as unconstitutional and void. THEre is also no dispute that some of the working lessees challenged the demand of the State Government and on such challenge, this Hon'ble Court in the case of Katrash Jharia Coal Co. Ltd. Vs. State of West Bengal, reported in 66 C.W.N. 304, was pleased to hold that the amendment of section 2(i) alone could not and did not affect the interest of the mining lessees and sublessees and for the purpose of affecting their right and/or interest, a fresh notification u
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