UNION OF INDIA Vs. KARAM CHAND THAPAR

JUDGEMENT

(1.) Just bare essential facts, as ascertainable on retrieval from a jumble of facts, are set out hereinafter, as those would suffice, in our opinion, to appreciate the crux of controversy arising for decision in this appeal. The controversy and the consequent litigation have spread over nearly four decades. In between, the parties have changed their identities by succession, amalgamation or supersession. The Coal Board, a statutory body has been dissolved and taken over by Union of India. What was M/s. Bhulanbaree Coal Co. Ltd. has taken shape as Oriental Coal Co. Ltd., and then the respondent No.1 hereinafter. We would refer to the present parties only and that reference would include their respective predecessor legal entities. The Oriental Coal Co. Ltd. shall be referred to as 'Coal Company' for short.

(2.) The Coal Company owns and possesses certain coal mines in the State of Bihar. The Coal Board was constituted under the provisions of the Coal Mines (Conservation and Development) Act, 1974, hereinafter 'the Act' for short. However, the said Coal Board was dissolved with effect from April 1, 1975 and all rights, privileges, liabilities and obligations of the board have come to vest in the Central Government.

(3.) There are cross-demands between the parties. It is not necessary to set out the details and particulars of the demands. It would suffice for our purpose to notice that the Coal Company is liable to pay royalty on account of sand extracted by it for the purpose of carrying out stowing operations in the coalfields. We would not enter into yet another controversy which we will briefly set out hereinafter at an appropriate place as to whether it is the Central Government as successor of the Coal Board of the State of Bihar which is entitled to recover the royalty. For the purpose of the present appeal we proceed on an assumption that the amount of royalty on the sand extracted by the Coal Company is due and payable by it to the Central Government. The fact remains that such obligation to pay the amount of royalty is contractual inasmuch as there is a contract i.e. a mining lease entered into by the Coal Company whereby it has earned the privilege of extracting sand from Damodar River-bed and an obligation to pay royalty on account of sand extracted, calculated at the rate appointed by the mining contract. So far as the quantified amount of royalty on sand is concerned the coal company is a debtor and the Union of India is creditor.