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1964 Supreme(Online)(MP) 8

MADHYA PRADESH HIGH COURT
, J
United Collieries Ltd. – Appellant
Versus
State Government – Respondent
Writ Petition No. 426 of 1963



Advocates:
For the Appellants/Petitioners: Shri Dabir
For the Respondents: Shri Bhave

The court clarified that rights under a mining lease are contractual and not necessarily protected under constitutional articles; any disputes must be addressed in civil proceedings.

Headnote:(A) Constitution of India - Articles 226 and 227 - Mining Lease - Petitioners assert rights under a mining lease granted by State Government, claiming interference by Railway Administration in constructing railway on leased land - Court held that rights under the lease are subject to conditions and that essential authorizations were given by the State Government for such construction, thus no relief under Articles - No statutory warranties underlay the contractual rights granted, thus no breach established. (Paras 1, 3, 6, 8, 9)

(B) The contention was whether the construction by the Railway Administration infringed the petitioners' rights under the lease - Court found that any resulting interference does not infringe statutory rights under the lease, as such rights are contractual and must be litigated in civil court. (Paras 7, 10)

Facts of the case:
The petitioners claim rights under a coal mining lease dating from 1962, objecting to unauthorized interference from Railway authorities constructing a railway line on leased property. They sought command under constitutional articles for rights preservation.

Findings of Court:
The rights in question are defined by the lease Terms; the State's actions fall within contract provisions as authorized, thus petitioners must seek remedy through civil litigation rather than administrative writs.

Issues: The Court determined whether the actions by the State and Railway Administration infringed the petitioners' rights under the contractual terms of the lease and whether Article 226 provides for redress in contractual disputes.

Ratio Decidendi: The court ruled that interference by the Railway into the leasehold rights, when justified by terms authorized under the lease, does not substantiate any constitutional relief under Articles; breaches of contract must resolve within civil courts.

Result: Petition dismissed.

Table of Content
1. petitioners claim lease rights and interference. (Para 1 , 2 , 3)
2. arguments on statutory warranties and contract enforcement. (Para 4 , 5)
3. court's determination on lease terms and contractual nature. (Para 6 , 8 , 9)
4. clarification on rights not constituting statutory provisions. (Para 7)
5. final judgment, petition dismissed as contractual breach cannot be addressed via articles. (Para 10 , 11)

1.This is an application under Art.226 and Art.227 of the Constitution of India for the issue of a command to the State Government, the Collector of Surguja, the Divisional Forest Officer, Surguja, and South Eastern Railway Administration and its Engineer - in - chief at Manindragarh to secure and preserve the rights of the petitioners granted to them under a mining lease by the State of Madhya Pradesh and to ensure the continued enjoyment of those rights by the petitioners and their quiet possession. The petitioners also pray for the issue of a prohibitory direction restraining the respondents from interfering in any way with the petitioners' rights under the lease.

2. The material facts of the case are very simple. By an indenture of lease concluded between the first petitioner, the United Collieries Ltd., (hereinafter referred to as the Company), and the State Government on 9th April 1962 the Company was granted for a period of thirty years, commencing from 3rd January 1946, a coal mining lease in respect of lands described in Part I of the Schedule to the indenture, known as the North Chirimiri Colliery in the district of Surguja,
"together with liberties, powers and privileges to be exercised or enjoyed"
mentioned in Part II of the Schedule, subject to the restrictions and conditions as to the exercise and enjoyment of such liberties, powers and privileges specified in Part III of the Schedule and subject to the liberties, powers and privileges mentioned in Part IV of the Schedule reserved to the State Government. The other petitioner is the Managing Agent of the Company. The petitioners claim that under the lease they are the absolute assignees of the rights of the State Government, have a restricted right to enter upon the reserved forest with the previous sanction in writing of the Divisional Forest Officer and to fell, cut and use timber trees in accordance with the terms of the lease and the conditions which the Government may impose and own surface rights also, and that they are entitled to the active protection of the lessor, the State Government, and its officers in the enjoyment of the rights, liberties and privileges granted to them under the lease.
The grievance of the petitioners is that the respondents Nos. 1 and 2, namely, the Engineer - in - chief of the South Eastern Railway and the South Eastern Railway Administration, without obtaining any authority from the Government have begun constructing a railway track on a portico of the leased area; that in carrying out this project they have illegally cut down a substantial portion of the reserved forest on their area of lease and have also opened some portions of the earth exposing some fifty tons of coal which has been removed by the Railway Administration, their contractors and labourers; that the railway line when completed will make the functioning of the petitioners' aerial ropeways impossible; that the petitioners have already driven galleries underground; that they are entitled to the right of support of the surface and the laying of the railway line on it has endangered safety in the working of the mines; and that by this act of the railway authorities their rights under the lease of excavating the mineral without let or hindrance from any outside authority has been seriously hampered. The petitioners further say that they brought their grievance to the notice of the Collector and the Divisional Forest Officer of Surguja district but obtained no redress. They have, therefore, invoked the powers of this Court under Art.226 and Art.227 praying




















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