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2016 Supreme(All) 1214

ALLAHABAD HIGH COURT
BEFORE : SUDHIR AGARWAL AND SHASHI KANT, JJ.
STATE OF U.P. ....Appellant
Versus
RANI RAJENDRI KUMARI ....Respondent
(First Appeal No. 481 of 1979, decided on 29th September, 2016)

Advocates:
Counsel :
S.C., S.N. Upadhayay and Ramesh Upadhyay for the Appellant; V.K. Singh, Ravi Kant, Shashi Nandan, Siddharth Nandan, Udayan Nandan and Rahul Agarwal for the Respondent.

Headnote:U.P. Zamindari Abolition and Land Reforms Act, 1951—Sections 4, 108—Mines and Minerals (Regulation and Development) Act, 1957—Sections 8(1)(b), 16—Mining Lease—Silica Sand—Demand of Royalty—Favour of plaintiff-respondent—Legality of—Statutory Leave under Section 108 of 1951 Act—Effect of Section 8(1)(b) of MMRD Act, 1957—Defendants-appellants could not show how suit was barred by principle of acquiescence and estoppel—Any amount not payable under lease would not be called ‘royalty’—Demand of royalty under MMRD Act would not be permissible—Plaintiff-respondent entitled to all reliefs excluding damages pendente lite and future—All rights, title and interest of all Intermediaries in every estate, including the right, if any, in mines and minerals shall cease and be vested in State of U.P. unless provided otherwise in 1951 Act—All rights of erstwhile owner, i.e. Intermediary ceased and extinguished as on 1.7.1952 and thereafter—Entire estate including mines and minerals from date of vesting, vested in State of U.P. leaving status of intermediary only that of an ex-Zamindar entitled to compensation under Section 27 of U.P. Act of 1951—No ownership right over mining and minerals found in said land—Lease-deed dated 16.4.1947 which was a “contractual lease” ceased to be in operation as such on and after 1.7.1952 and thereafter there came into existence a new “statutory lease”—Even after coming into existence a “new statutory lease” on 1.7.1952, it remained unaffected by provisions of MMRD Act, since it was not a lease granted by owner but operated by virtue of operation of law—Respondent’s right to operate mining lease thus continued validly—Lease-deed dated 16.4.1947, when granted, was not controlled by any Central or Provincial legislation—MMRD Act admittedly came into force on 1.6.1958—Impugned demand of royalty for the period 1.1.1952 till 31.5.1958 was not justified—However, on and after 1.6.1958 entire mining operation carried out by plaintiff-respondent or sub-lessees including removal of minerals from land in dispute held illegal—As such demand of royalty by Collector for period 1.6.1958 and onwards held proper and plaintiff-respondent liable to pay the same—Impugned judgment set aside—Direcitons issued. [Paras 20 to 166]

       Result; Appeal Partly Allowed.

       

JUDGMENT

Hon’ble Sudhir Agarwal, J.—Heard Sri Ashok Kumar Pandey, Additional Advocate General, assisted by Sri R.C. Yadav, Dr. Y.K. Srivastava and Sri Lokendra Kumar, learned Standing Counsels for appellant; and, Sri Shashi Nandan, learned Senior Advocate, assisted by Sri Udayan Nandan and Sri Rahul Agarwal, Advocates, for respondent.

2. This is a defendant’s appeal under Section 96 of Code of Civil Procedure, arisen from the judgment and decree dated 2.7.1979 passed by Sri Ghanshyam Pandey, Civil Judge/Judge Small Causes Court at Allahabad in Original Suit No. 107 of 1969, whereby he had decreed the suit with cost in the following manner :

“Defendants are restrained from interfering in any manner whatsoever with the enjoyment and possession of the plaintiff over the land and mines held by her in pursuance of lease dated and as granted by the lease-deeds dated 16.4.47 and 27.4.59 and also of all the minerals extracted from mines from the areas covered by said leases. Defendants are further restrained from inviting or accepting applications and considering or granting any mining lease for any mineral covered under the mining lease held by plaintiff for the area or any part or portion thereof which is mentioned in aforesaid plaintiff’s lease-deeds dated 16.4.47 and 27.4.59 so long as the subsisting lease in favour of plaintiff is in force and is not otherwise terminated or cancelled by any Court of law of competent jurisdiction or in accordance with law. Defendants also cannot demand or realise the sum of rupees nine lacs forty thousand two hundred thirty five and paise five (940235.5 p.) as royalty for the period from 1.1.52 to 26.6.68, from plaintiff as claimed by them other than royalty stipulated in plaintiff’s lease-deed dated 16.4.47 and 27.4.59 till these leases are subsisting and are not cancelled or amended in accordance with law. It is also declared that the impugned order dated 31.5.68 and all subsequent orders etc. flowing there from in any manner directing that a clearance certificate from D.M./Collector is necessary before booking and transfer of silica sand situated within the district of Allahabad is void illegal and without jurisdiction. Plaintiff’s suit for damages and also pendentelite and future damages is dismissed with cost. It is also made clear that defendants and all their servants, agent and subordinates will not hold out threat of criminal prosecution against plaintiff for alleged illegal mining of silica sand till her lease-deeds are subsisting and are not terminated, modified or cancelled by any law or competent Court and plaintiff does not act centrary to any relevant law and also against the terms of lease.” (emphasis added)

3. Original Suit No. 107 of 1969 was filed by Smt. Rani Rajendri Kumari Ba, w/o-Maharao Raja Kamlakar Singh, R/o- Sankargarh, Tehsil Karchhana, District Allahabad, impleading State of U.P. through Secretary, Industries and Union of India, New Delhi (hereinafter referred to as the plaintiff-respondent) as defendants. Plaintiff initially impleaded only State of U.P. as sole defendant but subsequently made amendment by impleading Union of India as defendant No. 2 vide Court’s order dated 24.9.1969. The plaintiff-respondent claimed following reliefs:

“(a) by prohibiting the defendants and all their servants, agents and subordinates by a permanent prohibiting injunction directing the defendants by themselves and through their officers and agents not to hold out threats of criminal prosecution against the plaintiff alleging that the plaintiff will be prosecuted and proceeded criminally for the alleged illegal mining silica sand from the area under lease of the plaintiff. (Valued at Rs. 2,000/-).

(b) by restraining the Government of U.P. and the Union of India by issue of a permanent prohibitory injunction prohibiting them from interfering in any manner whatsoever with th



















































































































































































































































































































































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