WESTERN COALFIELDS LTD Vs. STATE OF M P

JUDGEMENT

(1.) In these six writ petitions common question is involved whether the petitioners who is Govt. Company is liable to make the payment of stamp duty on a notification issued u/S. 11 by the Central Government under the provision of Section 11 of the Coal Bearing Area (Acquisition and Development) Act, 1957 vesting land in the company.

(2.) The facts lie in narrow compass. Coal Bearing Area (Acquisition and Development) Act, 1957 enacted to safeguard the economic interest of India, greater public control over the coal mining industry and its development by providing for the acquisition by the State of unworked land containing or likely to contain coal deposits or of rights in or over such land, for the extinguishment or modification of such rights accruing by virtue of any agreement, lease, licence or otherwise, and for matters connected therewith. Vires of the aforesaid Act was upheld by the Apex Court in State of West Bengal v. Union of India, AIR 1963 SC 1241.

(3.) In exercise of powers under the Coal Bearing Area (Acquisition and Development) Act, 1957 properties were acquired as per notifications (P/5) issued u/Ss. 9(1) and 11(1) of the Coal Bearing Area (Acquisition and Development) Act, 1957 on 19-9-1963, 14-10-1971, 18-12-1971,21-8-1978, 20-4- 1983, 22-4-1983, 12-5-1987, 30-12-1988, 5-6-1991, 23-11-1963, 18-4-1978, 27-3- 1974, 9-10-1979, 20-4-1986, 11-4-1986, 25-1-1988 and 10-5-1995 respectively, District Registrar issued notices calling for the details to levy duty under Indian Stamp Act, Item 35 of Schedule 1A. General Manager of the Western Coal-fields Limited submitted reply (P/8) on 10-10-2001. It was pointed out that question of payment of stamp duty does not arise. Reliance was placed on letter (P/9) issued on 8-5-1997 by the State Government in which Government clarified that under the Coal Bearing Area (Acquisition and Development) Act, 1957 if land has been acquired as no lease-deed is executed registration was not necessary. It was necessary only for the leases executed under the Mineral Concession Rules, 1960 as per Article 35 of Schedule IA, stamp duty was payable on such leases. Reliance has also been placed on a communication (P/10) dated 27-1-1997 issued by the Inspector General of Registration in which it was clarified that these deemed leases have come into existence by operation of law. These have been renewed by the Government. There is no question of any lease deed to be executed by the lessees. As no lease deeds are to be executed, the registration fee and stamp duty cannot be levied. The District Registrar demanded a sum of Rs. 6,08,38,832/- as per order (P/4) dated 17-1-2002. Pursuant to the order demand was raised as per notice (P/16) u/S. 146 of the M.P. Land Revenue Code, 1959 of the aforesaid amount. Recovery has been ordered in W.P. No. 359/ 2002. In remaining cases notice have been issued for assessment of stamp duty.