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2025 Supreme(Jhk) 1648
IN THE HIGH COURT OF JHARKHAND AT RANCHI
SUJIT NARAYAN PRASAD, ARUN KUMAR RAI, JJ.
Central Coalfields Limited - Petitioner
Versus
The State of Jharkhand – Respondent
W.P.(C) No.4478 of 2019 With W.P.(C) No.269 of 2019 With W.P.(C) No.4491 of 2019 With W.P.(C) No.1847 of 2022
Decided On : 16-09-2025
Advocate Appeared:
For the Petitioner:Mr. Amit Kumar Das, Advocate For the State:Mr. Rajiv Ranjan, Advocate General: Mr. Ratnesh Kumar, SC (L&C)-I : Mr. J.F. Toppo, G.A.-V : Mr. Rakesh Kr. Shahi, A.C. to A.G. : Mr. Shray Mishra, A.C. to A.G. : Mr. Amrit Raj Kisku, AC to G.A.-V : Ms. Moushmi Chatterjee, AC to GA-V
For the Respondent: Mr. Anil Kumar, A.S.G.I. :Mr. Prashant Vidyarthi, Advocate
The state lacks jurisdiction to impose demands for surface rent and lease rent after land has vested free of encumbrances in the Central Government pursuant to the Coal Bearing Areas Act.
Headnote:(A) Coal Bearing Areas (Acquisition and Development) Act, 1957 - Sections 10, 11, and 18A - Article 226 of the Constitution of India - Writ petitions concerning demands for lease and surface rent post land acquisition - Petitioners challenged demands asserting land vested free from encumbrances under the 1957 Act; the Court ruled on jurisdiction to impose demands. (Paras 29, 30, 60, and 66)
(B) Jurisdiction - State cannot impose demands if land vested absolutely in the Central Government without any subsisting lease rights; emphasis on statutory interpretation of Sections 10 and 11 of the Act, 1957. Petition allowed and order quashed based on absence of jurisdiction. (Paras 60, 66, and 69)
| Table of Content |
|---|
| 1. writ petitions filed under article 226. (Para 1 , 2) |
| 2. facts surrounding land acquisition for mining. (Para 3 , 4 , 5 , 6 , 7 , 11) |
| 3. overview of demands challenged in writ petitions. (Para 10 , 15 , 17) |
| 4. petitioner’s argument against the state’s claims. (Para 18 , 19 , 20 , 21 , 22) |
| 5. state’s perspective and reliance on mahanadi judgment. (Para 25 , 26) |
| 6. court's analysis on legal provisions. (Para 28 , 29 , 30 , 31 , 32) |
| 7. interpretation of section 18a and its implications. (Para 39 , 40 , 41) |
| 8. distinction between lease rent and royalty. (Para 50 , 52 , 63) |
| 9. impact of lack of subsisting lease on the demand for lease rent. (Para 60 , 62) |
| 10. conclusion on the quashing of demands. (Para 64 , 66 , 68) |
JUDGMENT :
SUJIT NARAYAN PRASAD, J.
1. Al the writ petitions since are having the common issues and, as such, were directed to the heard together and accordingly listed together which have been heard together with the consent of the learned counsel for the parties.
2. These writ petitions are under Article 226 of the Constitution of India for issuance of following reliefs :-
Prayer made in W.P. (C) No. 4478 of 2019
“a) For issuance appropriate writ(s)/order(s), direction(s) in the nature of certiorari for quashing and setting aside the order issued vide letter no. 409 dated 14/03/2019 (Annexure- 5), whereby and whereunder the respondent no.3 (District Mining Officer, Ramgarh) has directed the petitioner-company to pay the fixed rent with interest for Laiyo Colliery Area, which is closed colliery from the year before 2014 itself as per the respondents themselves.
b) Pass such other writ/ writs, order/orders, direction/directions as Your Lordships may deem fit and proper.
c) During the pendency of this writ petition, order issued vide letter no.- 409 dated 14/03/2019 (Annexure-5), passed by respondent no.3 (District Mining Officer, Ramgarh) directing the petitioner Company to deposit the fixed rent, may be stayed/kept in abeyance and respondents be restrained to proceed further in the matter or to take any coercive steps against the petitioner-Company.”
Prayer made in W.P. (C) No. 269 of 2019
“a) For issuance of appropriate writ(s)/ order(s)/, direction(s) setting aside the order dated 07.07.2000 (Annexure 2) passed by respondent No.5 in Certificate Case No.109/90-91, whereby and whereunder after rejecting the objection filed under Section 9 of the Bihar & Orissa Public Demand Recovery Act, 1914, directed the petitioner to pay the entire demanded amount without making any determination.
b) For issuance of further appropriate writ(s)/order(s)/, direction(s) setting aside the order dated 05.09.2018 (Annexure 3) passed by respondent No.3 in Certificate Appeal No.64/2005, whereby and whereunder he has been pleased to dismiss the appeal.”
Prayer made in W.P. (C) No. 4491 of 2019
“a) For issuance of appropriate writ(s)/order(s), direction(s) in the nature of certiorari for quashing and setting aside the order issued vide letter no. 407 dated 14/03/2019 (Annexure-5), whereby and whereunder the respondent no.-3 (District Mining Officer, Ramgarh) has directed the petitioner-company to pay the fixed rent with interest for Ara Colliery Area, which is closed colliery from the year before 2014 itself themselves as per the respondents.
b) Pass such other writ/ writs, order/orders, direction/directions as Your Lordships may deem fit and proper.
c) During the pendency of this writ petition, order issued vide letter no.- 407 dated 14/03/2019 (Annexure-5), passed by respondent no.3 (District Mining Officer, Ramgarh) directing the petitioner Company to deposit the fixed rent, may be stayed/kept in and respondents be abeyance restrained to proceed further in the matter or to take any coercive steps against the petitioner-Company.”
Prayer made in W.P. (C) No. 1847 of 2022
“a) For issuance of appropriate writ(s)/order(s)/direction(s) quashing Letter No. 1109/Mining, Hazaribagh dated 27.11.2019 (Annexure 2) issued by the District Mining Officer, Haz
