MISRALAL JAIN Vs. STATE OF ORISSA

JUDGEMENT

(1.) THESE two applications were heard together and are disposed of by one judgment.

(2.) THE two petitioners are holders of leases of manganese ores in the district of sundargarh in Orissa. The Administrator, Orissa Mining Areas Development Fund by his orders dated 24th and 25th May 1960 respectively levied cess on them under the provisions of the Orissa Mining Areas Development Fund Act, 1952 (Orissa Act 27 of 1952) hereinafter referred to as the impugned State Act) and called upon them to deposit the cess within a certain period. The two petitioners have challenged the constitutional validity of the impugned State Act and the levy of cess under its provision and have prayed for the issue of a appropriate direction under Article 226 of the Constitution cancelling the notice of demand issued to them.

(3.) IT is necessary to briefly narrate the various statutes dealing with the regulation and development of mines and minerals. In 1948 the Dominion Legislature passed an Act entitled the Mines and Minerals (Regulation and Development) Act, 1948 (Act 53 of 1948 hereinafter referred to as the old Central Act) to provide for the regulation of mines and oil fields and for the development of minerals to the extent specified in that Act. The Act was practically a skeleton Act and left everything to be done by rules framed under it. Section 3 conferred power on the central Government to make rules for regulating grant of mining leases. Section 6 conferred power on the same Government to make rules for the conservation and development of minerals. In exercise of the powers conferred by Section 5, the mineral Concession Rules of 1949 were made by the Central Government, but it appears that no rules were made under Section 6. In the meantime, the Orissa legislature passed the impugned State Act in 1952 and it was brought into force on 23-12-52. The main objection of the impugned Act was to constitute mining areas in various parts of Orissa and to constitute a fund known as the Mining areas Development Fund for the purpose of providing water supply, public health, educational facilities and other amenities for people residing within those areas, the main source of income for this fund was the cess levied and collected under the provisions of the impugned State Act on all minerals extracted from the mining areas. In 1957 Parliament passed another Act known as the Mines and Minerals (Regulation and Development) Act, 1957 (Act 67 of 1957 hereinafter referred to as the new Central Act) by which the provisions of the old Act were practically repealed except in respect of oil-fields which are not material for our purpose. The new Act was more elaborately drafted than the old Act but in that Act also the central Government was given wide powers to make Rules for regulating the grant of prospecting licenses and mining leases (Section 13) and for conservation and development of minerals (Section 18 ). Section 29 of the new Central Act continued in force the Mineral Concessions Rules 1949 until they were replaced by the mineral Concession Rules of 1960. It also appears that no Rules have been made under Section 18 of the new Central Act for the conversion and development of minerals.