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2007 Supreme(Jhk) 700
IN THE HIGH COURT OF JHARKHAND AT RANCHI
D.G.R. Patnaik, J.
Tata Iron and Steel Company Ltd. – Appellants.
Vs.
The State of Bihar (now Jharkhand) and Ors. – Respondent
Civil Writ Jurisdication Case No. 363 of 1997 (R)
Decided On : 31.08.2007
For Appellant/Petitioner/Plaintiff: G.M. Mishra and B.P. Verma, Advs.
For Respondents/Defendant: Pradeep Modi, G.P. I.
The main legal point established in the judgment is that the State cannot make settlements of lands within a mining lessee's lease hold area without prior notice and opportunity for the lessee to be heard, and illegal settlements can be quashed and subjected to scrutiny and verification.
Headnote:
Mandamus - Settlement of Lease Hold Lands - M.M.R.D. Act, 1960, Mineral Concession Rules, 1960, Bihar Land Reforms Act, 1950, Chhotanagpur Tenancy Act - [SUMMARY]
Fact of the Case:
The petitioner, a mining lessee, sought a writ of mandamus to prevent the State from making settlements of land within the lease hold area, claiming that such settlements interfered with its mining operations. The petitioner argued that it had been granted permission to use the surface area for mining operations and had been paying rent regularly to the State. The State, however, made settlements without the petitioner's knowledge, leading to complications in its mining operations.
Finding of the Court:
The court found that the petitioner had been granted permission to use the surface area for mining operations and had been paying rent regularly to the State. The State's settlements of land within the lease hold area without the petitioner's knowledge were deemed illegal.
Issues: The issues raised for adjudication were whether the State had jurisdiction to settle surface lands within the petitioner's lease and whether the State could deprive the petitioner of coal-bearing areas by making settlements with third parties.
Ratio Decidendi: The court held that the State had no jurisdiction to make settlements of lands within the petitioner's lease hold area in favor of private individuals without prior notice to the petitioner and without offering the petitioner an opportunity to be heard on such claims. The court also quashed illegal settlements made during the pendency of the writ application and ordered scrutiny and verification of settlements made prior to a specified date.
Final Decision: The court prohibited the State from making fresh settlements of lands within the petitioner's lease hold area in favor of private individuals, quashed illegal settlements made during the pendency of the writ application, and ordered scrutiny and verification of settlements made prior to a specified date.
D.G.R. Patnaik, J.
1. In this writ application, the petitioner has prayed for a writ or order in the nature of mandamus commanding upon the Respondents not to make settlement of any land in any manner with any person which is within the lease hold area of 13007 Bighas of the petitioner as mentioned and described in the indenture dated 1st March, 1946 and as accepted by the State of Bihar by indenture dated 29th March, 1973 and for a further writ of mandamus commanding upon the Respondents not to pass any order with regard to any claim made by any person in respect of any surface land in lease hold area of the petitioner with an additional direction to the Respondents to refrain from interfering in any manner directly or indirectly with the possession of the petitioner over the lease hold land.
2. The case of the petitioner is that the then Maharaja Kamakhya Narayan Singh, Raja of Ramgarh being the proprietor of villages Durukasmar, Banji, Parej, Pundi, Barughuttu, Kedla, Parsabera and Duni within the Mandu Police Station in the District of Hazaribagh executed a mining lease on 21st November, 1946 and the supplemental of the same deed (Annexure-1/1A) in favour of Bokaro and Ramgarh Ltd. for a period of 999 years commencing from 1st March, 1946 with liberty to the lessee that on payment of Salami and royalty on coal to search, raise coal from quarries or through pits, inclines, or shalts, work, make market and carry away coal and further power for all other purposes connected therewith. The lessee under the terms and conditions and the covenants were entitled to have right and interest of the surface rights and in the properties demised by the lease deed, which may be required for colliery purposes. The total area of the land so leased out was more or less 13007 Bighas. The Bokaro and Ramgarh Ltd. thereafter executed a sub-lease and its supplemental in favour of West Bokaro Ltd. both on 23rd January, 1947 (Annexures-2 and 2/A). The terms and conditions of the sub-lease were the same as in the Head lease executed on 21.11.1946. Later the entire right, title and interest of the properties of Ramgarh Raja vested in the State of Bihar under the provisions of Bihar Land Reforms Act, 1950 on 3rd November, 1951. Upon such vesting, the State of Bihar filed Title Suit No. 45 of 1960 in the court of the Subordinate Judge, Hazaribagh against Bokaro and Ramgarh Ltd., claiming Royalty payable under the lease deed. The West Bokaro Ltd., being the sub-lessee was also made a party to the said suit. Pursuant to the amendment in the Bihar Land Reforms Act by the amendment No. 4 of 1965 in Section 10A of the Act, the sub-lessee, namely, the West Bokaro Ltd. became a direct lessee of the State. An amicable settlement between the State of Bihar and the West Bokaro Ltd. was made and the same was filed in the aforesaid Title Suit No. 45 of 1960 in the court of the Subordinate Judge, Hazaribagh. On 29th March, 1973, an agreement (Annexure-3) was entered into by and between the State of Bihar and the West Bokaro Ltd. on the basis of the out of court settlement arrived at between the parties, whereby the State of Bihar admitted and acknowledged the West Bokaro Ltd. on the lessee of the State of Bihar on the same terms and conditions and the covenants as embodied in the sub-lease with regard to the area and land mentioned in the Head-lease dated 21st November, 1946, namely, Annexure-1A and 1B. Later by an order of the Hon'ble Calcutta High Court passed in Company Petition No. 353 of 1973 connected with Company application No. 204 of 1973, the West Bokaro Ltd. was amalgamated with the petitioner-Company with effect from 1st April, 1973. The petitioner became thus a statutory mining lessee under the State of Bihar in terms of the lease granted to the West Bokaro Ltd and accepted by the State.
The further case of the petitioner is that out of the entire 13,007 Bighas (4,299.88 acres) of land covered under the lease and an area of about 2,054.70 acres of
