STATE OF MADHYA PRADESH Vs. BAHMANSHA BYRAMJI

JUDGEMENT

(1.) THIS appeal, filed by the State Government of Madhya pradesh, is directed against a judgment of the Additional District Judge. Bala ghat, dated 4th April 1967, whereby the learned Judge has decreed the plaintiff's claim for compensation to the extent of Rs. 71,851, as representing loss of profits for alleged deprivation of 1500 tons of manganese ore.

(2.) THE facts leading to the appeal may be shortly stated. M/s. B. P. Byramji and Company, Nagpur, of which the plaintiff Bahmanshaw byramji was a partner, held as many as 13 mining leases for extraction of man ganese ore -in the erstwhile State of Madhya Pradesh, of which the Bharweli aolijhiri mines was one, which covered an area of 319. 28 acres and was to last for a period of 20 years from 22nd March 1952. Upon the dissolution of that firm on 31st October 1954, its partners, by their application dated 11th July 1955, applied to the State Government for sanction to transfer its pre-existing mining leases to the outgoing partners. As per the schedules annexed thereto, the Bharweli Aolijhiri mines was to be transferred to the plaintiff. The State government accorded its sanction under Rule 37 of the Mineral Concession rules, 1949, for assignment of the mining leases as applied for vide its memorandum No. 6415-5268-VII. M, dated 24th August 1955. The transfers were sanctioned on condition that M/s. B. P. Byramji and Company, Nagpur executed a mining lease afresh for each of the mines and the transferees entered into transfer agreements both in the standard forms. As a result of this, M/s. B. P. Byramji and Company of the one part and the State Government of the other executed a new mining lease dated 31st December 1955 in respect of the bharweli Aolijhiri mines, whereby the quondam partnership firm was demised the right to extract managanese ore from the aforesaid mines for a period of 20 years w. e. f. 22nd March 1952, i. e. from the date of commencement of the original lease. The transfer agreement, if any, executed by the plaintiff is not on record.

(3.) IN the year 1954-55 the State Government constructed the Gangulpara canal for providing irrigational facilities to the cultivators, which ran through the leased area of the Bharweli Aolijhiri mines, as shown in red in the map filed along with the written statement, and covering an area of 2. 32 acres. Under the terms of the lease, M/s. B. P. Byramji and Company was, however, prohibited from working the mines within a distance of 50 yards from the canal on either side and, therefore, the result of the construction of the canal was that no mining operations could be carried on over an area of 13. 40 acres. M/s. B. P. Byramji and Company accordingly made a claim for payment of compensation. The Assistant Engineer, P. W. D. (Irrigation), Canal Sub-Division, balaghat appears to have referred the question of settling the amount of compensation payable for acquisition of the aforesaid 13. 40 acres to the Land acquisition Officer, Balaghat. Thereupon, proceedings were started by the land Acquisition Officer, Balaghat in Land Acquisition Case No. III of 1954 55, purporting to act under the Land Acquisition Act, 1894. He issued a notice in those proceedings to M/s B. P. Byramji and Company and in pursuance of the said notice, the plaintiff appeared and filed his statement of claim. During the proceedings, Shri C. N. Chari, Mining Officer, Balaghat, submitted a report dated 12th October 1955 stating that the estimated loss of manganese ore as a result of construction of the canal was of 1852 tons approximately. On 30th june 1959, the Land Acquisition Officer, however, dropped the proceedings stating that the State Government had, in the meanwhile, "acquired the land subject to acquisition by private negotiation. "