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1972 Supreme(HP) 45

Himachal Pradesh High Court
D. B. LAL
Gram Panchayat - Appellant
Versus
State - Respondent
Decided On : 07/11/1972

Advocates:
Chhabil Dass, for Petitioners; B. Sita Ram, for Respondents.

The presumption of ownership under Section 42 (2) of the Punjab Land Revenue Act applies to minor minerals (sand, stones, and bajri) that are not expressly included in the record-of-rights as belonging to the Government.

Headnote:

MINERAL RIGHTS - OWNERSHIP OF MINOR MINERALS - PRESUMPTION OF OWNERSHIP - SECTION 42 (2) OF THE PUNJAB LAND REVENUE ACT - INTERPRETATION - AUCTION OF MINING LEASES - RESTRAINT ON INTERFERENCE WITH LANDOWNERS' RIGHTS.

Fact of the Case:

The petitioners, landowners, challenged the directions of the State of Himachal Pradesh and the Director of Industries to auction minor minerals (sand, stones, and bajri) found underneath their lands. They claimed ownership of these minerals based on the presumption of ownership under Section 42 (2) of the Punjab Land Revenue Act and argued that the respondents lacked jurisdiction to grant mining leases.

Finding of the Court:

The court held that the Wajub-ul-arj entry, a record-of-rights, excluded quarries of lime, black stone, and slate, but did not include quarries of sand, stones, and bajri. Therefore, the presumption of ownership under Section 42 (2) arose in favor of the landowners.

Issues: 1. Whether the minor minerals (sand, stones, and bajri) belonged to the landowners or the Government. 2. Whether the respondents had the jurisdiction to grant mining leases for these minerals.

Ratio Decidendi: 1. The court interpreted Section 42 (2) of the Punjab Land Revenue Act strictly, holding that the presumption of ownership in favor of landowners was conclusive and unrebuttable. 2. The court found that the Wajub-ul-arj entry excluded sand, stones, and bajri from the Government's ownership, and thus the presumption of ownership under Section 42 (2) applied. 3. The court relied on previous decisions, including a 1935 decision by the Financial Commissioner of Punjab, which held that the Government was not entitled to levy royalty on these minerals.

Final Decision: The court allowed the petitions, restraining the respondents from conducting public auctions of mining leases for the disputed minor minerals and from interfering with the landowners' rights to extract and dispose of these minerals.

Judgement

ORDER :- These are three connected writ petitions in which the petitioners claim to be the owners of minor minerals namely sand, stones and bajri, which are found underneath the lands belonging to them and described in the three petitions. They have called in question the directions of the State of Himachal Pradesh and the Director of Industries which are two of the respondents, whereby the said minor minerals are being put to auctions under separate notifications and the petitioners pray that the said directions regarding auctions be set aside and that the respondents should not interfere with the petitioners right to extract these minor minerals from these lands.

2. C. W. P. No. 76 of 1971 pertains to village Surajpur, C. W. P. No. 77 of 1971 pertains to village Sirath and C. W. P. No. 78 of 1971 pertains to village Mohtli, all in Tehsil Nurpur, District Kangra.

3. The petitioners who are the owners of the disputed lands contend that sand, stones and Bajri have been excluded from the record of rights prepared in the settlement of 1918 and in view of Section 42 (2) of the Punjab Land Revenue Act the presumption of ownership arises in their favour. As such the respondents not being the owners of the minor minerals could not make any directions for public auctions in regard to the same. The petitioners who are landowners have executed registered leases in favour of other petitioners and according to them these leases are to be held valid and the lessees cannot be restrained from extracting the minor minerals.

4. According to the petitioners the respondents have issued directions for granting leases by public auctions under Section 15 (1) of the Minor Minerals (Regulations and Development) Act, 67 of 1957. The respondents in fact, have no jurisdiction according to them to grant such mining leases. In this manner, the petitioners have been deprived of their property without any payment of compensation and the action of the respondents is violative of Arts. 19 (f) and (g) and Art. 31 of the Constitution of India.

5. In the three writ petitions the prayer is that the respondents be restrained from auctioning the minor minerals and also from interfering with the petitioners in the exercise of their rights to extract, sell and otherwise dispose of minor minerals found underneath the lands.

6. Before adverting to the respective contentions of the parties, it appears appropriate to set out Sec. 42 (2) of the Punjab Land Revenue Act :-

"42 (2). When in any record-of-rights completed after that date it is not expressely provided that any forest or quarry or any such land or interest belongs to the Government it shall be presumed to belong to the landowner".

6-A. The Wajub-ul-arj entry which is a record-of-rights and pertains to the year 1918 stands in the following terms :-

"Copy of Wajub-ul-arj relating to the village Surajpur, Tikka Chhani, Tehsil Nurpur, District Kangra, Hadbast No.125 for the settlement to the year 1918. Section 15. Explanation :-In respect of the rights of the Government relating to the ownership in Nazul (Government property) or unclaimed property or unoccupied land or quarry of

The entire Nazul (Government lands and property) and quarries of lime, kanker, black stone (kalapather) slate of every kind whether these are found over or beneath the land and the ruinous property or ancient monuments or wild growth or other relative rights unclaimed property or unoccupied land or quarry of monuments or wild growth or other relative rights stones, ruined property or ancient monuments or wild growth of the land or other profits arising out of the land. belong to the Government No reservation has been made in the Settlement about this.

7. In the year 1935 a dispute arose for determination of ownership of these minor minerals with reference to the Wajub-ul-arj entry and the decision was made on 20th September, 1935 by the Financial Commissioner of Punjab. A copy of that decision is reproduced below:-

"Copy of letter No. 2153-R/














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