CENTRAL COAL FIELDS LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) This is an application under Art. 136 of -the Constitution and is directed against the decision of a Division Bench of the Patna High Court dismissing a writ petition made to that Court under Art. 226. Petitioner is a Government company in which under S. 5 of the 'Coal Mines (Nationalisation) Act, 1973, Act 26 of 1973, ('Nationalisation Act' for short), the right', title and interest of the owner of the Jagaldaga Colliery came to vest following nationalisation. The District Mining Officer, Palamau, raised a demand of dead rent as payable under the Mineral Concession Rules of 1960, amounting to Rs. 1,41,140.87 paise for the period May 1, 1973 to September 30, 1974. The Certificate Officer constituted under the Bihar and Orissa Public Demands Recovery Act, IV of 1914, signed a certificate on the basis of the requisition of the Mining Officer and called upon the petitioner to satisfy the demand. The claim was resisted by the petitioner, on several grounds, inter alia, that under the law applicable to payment of dead rent the petitioner had no liability for the first year from May 1, 1973, when the ownership of the mine came to vest in the Central Government and came to the petitioner company and at concessional rate thereafter. The objection was overruled by the Certificate Officer and the demand was held payable. The order of the Certificate Officer was assailed before the High Court in the manner indicated. The Division Bench heard both the parties and dismissed the writ. petition holding that the objection was without any foundation and the claim was payable.

(2.) In our opinion there is absolutely no merit in the stand taken by the petitioner and the special leave petition has to be dismissed. Ordinarily such dismissal did not require reasons to be assigned. Since a Government company has chosen to carry the matter up to this Court and Mr. L. N. Sinha, Senior counsel has not only addressed oral arguments in support of the application but has followed it up by copious written submissions, we think it proper to indicate the reasons in brief for dismissing the application.

(3.) One S.A. Datta was the owner of the coal mine in question. Under the coal Mines (Taking Over of Management) Ordinance, the management was, taken over with effect. from May 1, 1973. Subsequently the Nationalisation Act came into force with retrospective effect from May 1, 1973. While under the take over legislation only the management had passed, under the Nationalisation Act the right. title and interest of the owner in relation to the coal mine stood transferred to, and vested absolutely, in the Central Government free from all encumbrances. S.4(1) of the Nationalisation Act provided: