STATE OF ORISSA Vs. MADAN GOPAL RUNGLA

JUDGEMENT

(1.) These are five companion appeals form the judgement of the High Court at Orissa, delivered on five petitions filed by the respondent in each of the appeals, to obtain from the Court a writ of mandamus and / or directions under Art. 226 of the Constitution of India.

(2.) Each of the respondents alleged that between 1941 and 1947 he had agreed to take from the ruler of Keonjhar a mining lease and had entered into possession of the area. Some of the petitioners alleged that they had spent money on the development of the mines and installed machinery to work the same. It is however common ground that there was no registered lease in favour of any of the respondents before 1947. On 14th December 1947, the ruler of Keonjhar entered into a merger agreement with the Dominion of India and as from 1st January 1948 the State was merged in the Dominion of India. After singing the merger agreement , the Ruler gave registered leases on 27th December 1947 to the respondents in these appeals. In pursuance of the exercise of the powers conferred on the Government of Orissa by S. 4, Extra Provincial Jurisdiction Act, 1949, read with Notification No. 172/1B dated 23rd March 1948 of the Government of India, the Government of Orissa issued a notification dated 8th June 1949 declaring inter alia, the said leases to be void and not binding on it. This annulment was made expressly on the ground that these commitments were not reasonable and bona fide. Thereafter, the respondents, along with others approached the Orissa Government to give them leases and the State Government gave them temporary permits to work the mines in November 1949. On 3rd July 1951 however they passed an order cancelling the temporary permits and directed the respondents to remove their assets appertaining to the respective mines within a fortnight. The respondents thereupon filed the petitions before the Orissa High Court praying for writs or directions in the nature of mandamus against the State of Orissa directing them to withdraw the notices dated 8th June and 3rd July 1951 and the forbear from acting upon or giving effect to the same.

(3.) The Court, after noticing the rival contentions of the parties and rejecting the contention that the State of Orissa had cancelled the permits and were attempting to take possession as an act of State, posed the question,