BUTHELLO AND CO Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) IN this batch of petitions, the constitutional validity of the Maharashtra Abolition of Subsisting Proprietory Rights to Mines and Minerals in Certain Lands Act, 1985 is under challenge. It is not necessary to set out the facts of each of the petition and it would be convenient to dispose of all the petitions by common judgment. To appreciate the contentions urged in support of the petitions, brief facts involved in Writ Petition No. 97 of 1986 are set out. In the year 1774, the island of Salsette came within the political sovereignty of the British from the Peshwas. The lands comprising in the Village Chandivali were wholly and inalienably granted by East India Company in favour of Helenus Scott agreement dated August, 30, 1799. By diverse transactions, assignments and conveyances, the lands transferred hands and ultimately the predecessors of the petitioners secured the assignment in the year 1941. The lands were used for mining operations and some time in the year 1960, the Additional District Deputy Collector of Government of Maharashtra demanded royalty amount from the petitioners. The petitioners instituted Suit No. 94 of 1961 on the Original Side of this Court for a declaration of right to the lands as well as right to sub-soil minerals. The petitioners also sought injunction restraining the Government from recovering any royalty amount in respect of mining operations. The suit was decreed by learned Single Judge by judgment date April 28, 1967. Appeal No. 53 of 1967 preferred by the Government ended in dismissal by judgment dated April 17, 1973 delivered by Division Bench of this Court. The Government of Maharashtra then approached the Supreme Court and appeal preferred is pending hearing and disposal before the Supreme Court. During the pendency of the proceedings, the petitioners had executed leases from time to time for carrying out the mining operations in favour of respondent Nos. 4 to 17.

(2.) THE Central Government passed Legislature known as The Mines and Minerals (Regulation and Development) Act, 1957 to provide for the regulation of mines and the development of minerals under the control of the Union. Section 2 of the Act declares that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent provided in the Act section 4 of the Act inter alia provides that no person shall undertake any prospecting or mining operations in any area, except under and in accordance with the Terms and Conditions of a prospecting licence or, as the case may, a mining lease, granted under this Act and the rules made thereunder. Section 13 (1) of the Act confers power on the Central Government to make rules for regulating the grant of prospecting licences and mining leases in respect of minerals and for purposes connected therewith. Section 18 of the Act prescribes that it shall be the duty of the Central Government to take all such steps as may be necessary for the conservation and systematic development of minerals in India and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations.

(3.) THE Maharashtra (Abolition of Subsisting Proprietary Rights to Mines and Minerals in Certain Lands) Act, 1985, hereinafter referred to as the Act, was passed by Maharashtra Legislature and received assent of the President of India on August 1, 1985 and which was declared as the appointed date. The legislation was enacted to abolish subsisting proprietory rights to mines and minerals in any lands under the Land Tenure Abolition Laws or such other laws for the time being in force by acquisition thereof and to provide for matters connected therewith. The preamble to the Act recites that pursuant to the national policy of bringing the actual cultivator into the direct relation with the Government, series of Land Tenure Abolition Laws for abolition of intermediary rights, jagir and inam tenures were enact, but the rights of inamdars and jagirdars to mines and minerals were specifically saved thereby allowing such existing rights to service particularly where the inams are grants of soil. The preamble further recites that the mines and minerals available with inamdars were exploited by inamdars for individual grains without being liable to pay any royalty to the State Government and in the manner highly detrimental and prejudicial to the public interest. The Government therefore felt it necessary to abolish subsisting proprietory rights to mines and minerals under the land tenure abolition laws or such other laws for the time being in force. Section 4 of the Act provides for vesting of rights of alienee to mines and minerals in the State Government. This section reads as under :-Save as otherwise provided in this Act, notwithstanding anything contained in any settlement, Kaul, grant, sanad or order, any judgment, order or decree of a Court or Tribunal or in any law or instrument for the time being in force, on the date of commencement of this Act, all subsisting rights to mines and minerals vesting in any alienee in any land shall pass from such person to and vest in the State Government, free of any encumbrances. " the expression alienee is defined under section 3 (a) as follows:-