BHARAT COKING COAL LIMITED Vs. MADANLAL AGRAWAL

JUDGEMENT

(1.) This appeal arises out of a suit instituted by one Madanlal Agrawal for eviction of Bharat Coking Coal Limited from land and buildings allegedly owned by him adjacent to the coal mine known as Victory Colliery, which had vested in the Central Government by virtue of the Coal Mines (Nationalisation) Act, 1973. Victory Colliery was owned by United Mining Company Private Limited. The case of the appellant is that the company was practically a one man company. If the corporate veil is lifted, it will be found that Madanlal Agrawal was de facto owner of the company. Madanlal Agrawal's case is that he had in his individual capacity purchased certain properties together with structures thereon by registered deeds of sale dated 7-7-1949 and 24-3-1950 and

(2.) Bharat Coking Coal Limited in its written statement alleged that the said properties were bought with the moneys belonging to the colliery and as such the land and the structures really belonged to the company. The alleged payment of rent by Victory Colliery to Madanlal Agrawal was only a paper transaction and for tax benefit. All the purchases were made by United Mining Company and sources of investment came from the funds of the said company.

(3.) It may be mentioned that even before the Coal Mines (Nationalisation) Act came into force on 1-5-1973, the management of Victory Colliery along with the disputed properties were taken over by the Central Government on 1-1-1973. No objection was taken thereto by the plaintiff. It was only on 1-1-1976 the plaintiff issued a legal notice to the appellant to vacate the suit premises and to pay arrears of rent from January, 1973 till the filing of the suit. Title Suit (T. S. No. 7/6 of 1976) for eviction was filed on 2-2-1976. On 21-5-1979, the 1st Additional Subordinate Judge dismissed the suit with costs. The respondent preferred an appeal against the judgment and decree passed by the Trial Court. It was allowed by the Division Bench of the Patna High Court. The High Court was of the view that right, title and interest in the suit premises had not vested in the Central Government. Bharat Coking Coal Limited in respect of the suit premises was a tenant under Madanlal Agrawal. Since it had defaulted in payment of rent for the period from January, 1973, it was liable to be evicted from the suit premises. A further direction was given to pay the arrears of rent to the tune of Rs. 66,000/- and mesne profits.