MAHANADI COALFIELDS LTD. Vs. STATE OF ODISHA

JUDGEMENT

(1.) Feeling aggrieved and dissatisfied with the impugned judgment and order dated 02.04.2019, passed by the High Court of Orissa at Cuttack in W.P. (C) No. 2477/2009, by which, the High Court has dismissed the said writ petition preferred by the appellant herein and has confirmed the demand made by the District Magistrate & Collector, Sambalpur, of Rs. 70 lakhs towards the premium of the government land, the appellant - Mahanadi Coalfields Ltd. has preferred the present appeal.

(2.) The facts leading to the present appeal in a nutshell are as under: -

(3.) Shri K.M. Nataraj, learned ASG, appearing on behalf of the appellant has taken us to the entire scheme of the Act, 1957 right from Section 4 to Section 11. It is submitted that as per Section 4 of the Act, 1957, whenever it appears to the Central Government that coal is likely to be obtained from land in any locality, it may, by notification in the Official Gazette give notice of its intention to prospect for coal therein. It is submitted that thereafter after following the due procedure as required the Central Government being satisfied, after considering the report, if any, made under Section 8 that any land or any right in or over such land should be acquired, a declaration shall be made by it to that effect. It is submitted that thereafter once the declaration under Section 9 of the Act is issued on the publication in Official Gazette of the declaration, the land or the rights in or over the land, as the case may be, shall vest absolutely in the Central Government free from all encumbrances as per Section 10 of the Act. It is further submitted that as per Section 11 of the Act, notwithstanding anything contained in Section 10, the Central Government may, if it is satisfied that a Government company is willing to comply or has complied with such terms and conditions as the Central Government may think fit to impose, direct, by order in writing, that the land or the rights in or over the land, as the case may be, shall, instead of vesting in the Central Government under Section 10 or continuing to so vest, vest in the Government company either on the date of publication of the declaration or on such other date as may be specified in the direction. It is submitted that therefore, once the land or the rights vested in the Central Government and/or in a Government company (under Section 11), the same is vested absolutely free from all encumbrances and the State Government is not entitled to recover any amount of premium of the land or the compensation or any rental except the royalty leviable under Section 18(a) of the Act, 1957. It is submitted that therefore, the demands made by the State Government upheld by the High Court towards premium/rental, etc., is absolutely illegal.