CHAIRMAN-CUM-MANAGING DIRECTOR, MAHANADI COALFIELDS LTD Vs. DEPUTY DIRECTOR OF MINES, TALCHER & OTHERS

JUDGEMENT

(1.) This writ application involves a challenge to the order dated 21.3.1997 passed in Certificate Case No.2/95 appearing at Annexure-4 and the order dated 31.3.1998 passed in Certificate Appeal Case No.9/97 appearing at Annexure-6.

(2.) Short background involved in the case is that the petitioner is a Government Company, which is engaged, inter alia, in extraction and sale of coal from the mines held by it. The petitioner owns various collieries in the district of Jharsuguda. The coal bearing lands involving the above collieries have been acquired by the Central Government under the provision of Coal Bearing Areas (Acquisition and Development) Act, 1957 ( in short, "the C.B.A.(A & D) Act, 1957") . On publication in the Official Gazette of the declaration under Section 9, the lands and rights over the said land vest absolutely with the Central Government and under Section 10 or continuing to show vests, vest in the Government Company from the date of satisfying in such direction. Accordingly, Central Government on various dates issued orders vesting of the particular land in the Government Company, i.e., the predecessor of the present Mahanadi Coalfields Ltd. (M.C.L.). On vesting of such land from the Government Company, different Projects, such as Bharatpur Open Cast Project, Kalinga Open Cast Project and Balanda Colliery Project started functioning under the Government Company, i.e., C.C.L./S.E.C.L. and M.C.L., which are successorsin-interest in succession and the Government Company has the right to use including the mining in the said land without taking any mining lease under the Mineral Concessions Rules from the State Government. As such, the petitioner claims that the M.C.L. is operating on the land acquired under the provision of the C.B.A.(A & D) Act, 1957, accordingly no lease was ever executed under the provision of the Mineral concession Rules between the M.C.L. or its predecessors-in-interest with the State Government for operation of either of the Projects.

(3.) While the matter stood thus, the Deputy Director of Mines, O.P.1 issued a requisition along with a certificate to the O.P.2, the Certificate Officer on the head of interest for delayed payment of royalty in respect of collieries/open cast projects appearing at Anexure-2. Upon receipt of the certificate, vide Annexure-2, the petitioner submitted the denying liability petition contending therein that the levy of interest is not permissible against the certificate debtor, as the M.C.L. is not paying any royalty under the provision of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (in short, "the M.M.(D.R.) Act, 1957") read with Rule 64-A of the Mineral Concession Rules (in short, "the M.C.Rules") with further clarification in the denying liability petition that the mines are operated by way of extraction following the authority with the Company under the provisions of C.B.A. Act, 1957. It is for no mining lease being executed with the M.C.L., the petitioner contended that neither there is any royalty involved nor levy of interest on delayed payment of royalty arises, for which there is no arrear land revenue to be collected on initiation of certificate proceeding. The certificate proceeding was concluded confirming the demand, vide Annexure-4.