UNION OF INDIA Vs. COMMR OF PAYMENTS

JUDGEMENT

(1.) The petitioners in this case are Union of India, Coal India Limited and the Central Coal Fields Limited. The Respondent No. 3, Khas Karanpura Collieries Limited was the owner of a nationalised coal mine.

(2.) By virtue of Section 3 of the Coal Mines (Nationalisation) Act, 1973 the right, title and interest of the owners in relation to the coal mines specified in the Schedule to the Act stood transferred to and vested absolutely in the Central Government. The Act provided for payment to the owner of a coal mine the amounts specified in the Schedule to the Act (Section 5). A Commissioner of Payments was appointed for the purpose of disbursing the amounts specified in the Schedule to the owners (Section 17). Additional payment was to be made for the amount as may become due to the owner of a coal mine in relation to the period during which the management of the coal mine remained vested in the Central Government (Section 18(2)). This provision became necessary in view of the fact that prior to nationalisation, the management of the coal mines had been taken over by the Central Government on and from 30th January, 1973. Under the Nationalisation Act, the Central Government or the Government Company was required to prepare a statement of account in respect of the period of management by the Central Government before vesting. It was specifically provided that a copy of the statement of account had to be forwarded to the Commissioner and also to the owner. The statement of account had to be audited by an Auditor and the audit of the account had to be conducted in such manner as the Central Government might direct (Section 19).

(3.) Under Section 20 all claims against the owner of a coal mine have to be preferred before the Commissioner. Section 21 provides for priority of certain claims on account of provident fund, pension, gratuity etc. Section 22 provides for priority in relation to certain other claims. Section 23 lays down the procedure for admission and/or rejection of claims by the Commissioner. It requires every claimant to file proof of its claim with the Commissioner within the specified time. Section 23(4) is important for our purpose :- "23(4). The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the coal mine an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part."