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2019 Supreme(Mad) 2195

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. DHANDAPANI, J.
The State of Tamil Nadu, Rep. by the Secretary to Government, Industries Department, Chennai – Petitioner
Versus
Dalmia Cements (Bharath) Ltd., Dalmiapuram, Tiruchirapalli & Another – Respondents
Writ Petition Nos. 4373 of 2000 & 7896, 7897, 7898, 7899, 7900 & 7901 of 2001 & 6958 & 6959 of 2002 & 6487, 6488, 6489 & 6490 of 2005 & 4442 & 4443 of 2010 & 7057 of 2017
Decided On : 20-11-2019

Advocates Appeared:
For the Petitioner:Vijay Narayan, Advocate General assisted by E. Manoharan, Additional Government Pleader
For the Respondent:Raghul Balaji, J. Madhanagopal Rao, Advocates.

Headnote:

Compensation - Government Poromboke Lands - Mines and Minerals (Regulation and Development) Act, 1957, Rules 22, 27, 72 - The State Government is empowered to collect and levy annual compensation for surface right in respect of the Government Poromboke lands from the occupier of the lands. The lessees are liable to remit annual compensation for surface rights in respect of mining leases granted in government poromboke lands. The Government is entitled to levy and collect annual compensation from the lessees towards the damages caused to the surface of the Government poromboke lands.

Fact of the Case:

The Government of Tamil Nadu granted mining lease for limestone over government poromboke lands. The lessees resisted the demand for payment of compensation, contending that they themselves are the occupiers of the government poromboke lands and cannot be called upon to pay compensation to themselves.

Finding of the Court:

The Court held that the State Government is empowered to collect and levy annual compensation for surface right in respect of the Government Poromboke lands from the occupier of the lands. The lessees are liable to remit annual compensation for surface rights in respect of mining leases granted in government poromboke lands.

Issues: The main issue was whether the State Government is entitled to collect and levy annual compensation for surface right in respect of the Government Poromboke lands from the occupier of the lands.

Ratio Decidendi: The Court interpreted the Mines and Minerals (Regulation and Development) Act, 1957 and the relevant Rules to hold that the State Government is entitled to levy and collect annual compensation from the lessees towards the damages caused to the surface of the Government poromboke lands.

Final Decision: The writ petitions filed by the State Government were allowed, and the other writ petitions filed by the lessees were dismissed. The State Government is entitled to collect and levy annual compensation for surface right in respect of the Government Poromboke lands from the occupier of the lands.

ORDER :

(Prayer: WP No. 4373 of 2000: Writ Petition filed under Article 226 of The Constitution of India praying for the issuance of a Writ of Certiorari to call for the records of the 2nd Respondent in Final Order No.17/99, dated 31.3.99 and quash the same.)

1. Among these batch of cases, the Government of Tamil Nadu has filed WP No. 4373 of 2000, WP Nos. 7896, 7897, 7898, 7899, 7900 and 7901 of 2001 as well as WP Nos. 6958 and 6959 of 2002. The rest of the writ petitions were filed by the lesses, in which the Government is arrayed as the respondent.

2. As the issue raised in all these writ petitions is common, they are taken up for adjudication together and disposed of by this common order.

3. For the purpose of appreciation of the factual scenario, the averments made in WP No. 4373 of 2000 filed by the State Government is taken as a test case. The facts leading to the filing of WP No. 4373 of 2000 is as under.

4. The Government of Tamil Nadu vide G.O. Ms. No.2689, Industries Department dated 24.08.1967 granted mining lease to the first respondent M/s. Dalmia Cements (Bharat) Limited for mining limestone over an extent of 5.41 acres in S.F. Nos. 51/1 and 51/2 of Kallakudi Village, Lalgudi Taluk, Tiruchirapalli District for a period of 20 years. The lease deed was executed on 05.02.1968 which expired on 04.02.1988. Therefore, the lessee - Dalmia Cements (Bharat) Limited applied for grant of first renewal of mining lease for lime stone. The Government, after examining the claim for first renewal, issued G.O. No.2 (D) No.364, Industries (MMA-2) Department dated 14.11.1996 granting first renewal of mining lease for limestone over an area of 5.39 acres in Kallakudi Village, Lalgudi Taluk, Tiruchirapalli District for a period of 10 years from 05.02.1988, which was subsequently enhanced to 20 years by the Government by issuing Lr.Ms.No.163, Industries Department dated 03.06.1997. Even in the said Government Order dated 14.11.1996, the rate of royalty, dead rent and surface rent were determined. As far as Surface rent is concerned, the Government directed that Annual rent for the surface right shall be paid at the rate fixed by the District Collector, Tiruchirapalli in respect of poromboke lands besides land revenue and other cesses assessable for the land are also to be fixed by the District Collector. For the purpose of collection of annual rent for the lands so leased, the Government in para No.7 of G.O. 2 (D) No.364 dated 14.11.1996, instructed the District Collector, Perambalur to fix the annual rent for surface right in respect of poromboke lands. Subsequently, the Government issued revised orders vide Government Letter No. 27826/MMA.2/96-B, Industries Department dated 01.07.1997 directing the District Collector to levy and collect compensation for surface right of the Government poromboke lands as contemplated under Rule 72 of Mineral Concession Rules, 1960. Aggrieved by the revised order passed by the Government on 01.07.1997 in so far as it relates to levy and collection of compensation on poromboke lands under Rule 72 of Mineral Concession Rules, the respondent therein namely Dalmia Cement (Bharat) Limited has filed Revision Application in File No.9/7/98-RCII) under Section 30 of the Mines and Minerals (Regulation and Development) Act, 1957 and Rule 55 of the Mineral Concession Rules, 1960 before the Revisional Authority namely Secretary to Government, Ministry of Mines, Union of India, New Delhi.

5. According to the lessee, the mining leases are within the concept of a lease wherein the interest of the property is transferred by the owner to the lessee, who uses the property as an occupier and pays surface rent as required under Rule 27 (1) (d) of the Mineral Concession Rules, 1960. During the period of lease, the lessee having been given the possession becomes the occupier of the property and the holder of mining lease cannot be made liable to pay additional sum as compensation to the Government especially when the Government

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