JITNATH SINGH Vs. STATE OF BIHAR

JUDGEMENT

(1.) The State of Bihar (hereinafter referred to as 'the State') filed Title Suit No. 16 of 1961 in the Court of the Subordinate Judge, Hazaribagh (hereinafter referred to as 'the Court below'). The main reliefs claimed in the suit were that the entire property of Raja Kamakhya Narain Singh of Ramgarh including Kedla, Jharkhand and Rauta coal mines (with which we are concerned in these three cases, the civil revision and the two writ applications), vested in the plaintiff-State under the Bihar Land Reforms Act free from all encumbrances and that conveyances by the Raja of Ramgarh in favour of the defendants of the suit including the petitioner of the civil revision (defendant No. 9 in the suit) -- hereinafter referred to as 'the petitioner' -- were fraudulent, sham, colourable and void being in contravention of law and that leases and subleases mentioned in the plaint were also colourable and farzi. A relief for permanently restraining the defendant including the petitioner from working the mines or obtaining any minerals directly or indirectly was also claimed. The State made an application for appointment of a receiver of the suit properties. By order dated 10th of October, 1969, the Court below appointed the State as receiver. The State as the receiver managed the property in dispute including the said three coal mines through its nominee, an Officer of the Commissioner's rank. The Officer used to take directions from the Court. On 22nd of August 1970, National Coal Development Corporation (Opposite Party No. 30) and the Union of India (Opposite Party No. 31) issued a notification purporting to be under Sections 4 and 7 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 -- if necessary, hereinafter to be referred to as 'the 1957 Act' -- expressing their intention to acquire the right of mines, quarry etc. and to prospect in the lands mentioned in the notification measuring 2160 acres in Taping Block and 3000 acres in Kedla Block. On 5th of December, 1970, opposite party Nos. 30 and 31 were restrained by the Court below from giving effect to their intention as mentioned in the aforesaid notification dated 22nd of August, 1970. They made an application for withdrawing that order. This application was dismissed by the Court below on 21st of February, 1972. Against this order they filed an appeal to this Court which was numbered as Miscellaneous Appeal No. 138 of 1972 which is still pending.

(2.) This Court admitted Miscellaneous Appeal No. 138 of 1972 and issued an order of ad interim injunction against the receiver restraining him from managing the aforesaid three coal mines. The injunction matter was finally heard by this Court on 22nd of January, 1973, and by the order of that date the Court vacated the ad interim order of injunction. In the meantime Coking Coal Mines (Emergency Provisions) Act, 1971 -- if necessary, hereinafter to be referred to as 'the 1971 Act' -- had been passed and come into force. On 23rd of December, 1972, opposite party No. 30 who had been appointed Custodian by opposite party No. 31 under the 1971 Act, made an application before the Court below for handing over the management of the aforesaid three coal mines to it. It was mentioned in the petition that on 13th December, 1972, the Coal Board had taken a decision that the three mines aforesaid contained coking coal. On 6th of January, 1973, some of the Managing contractors appointed by the nominee of the State-receiver and the petitioner made an application before the Court below praying, inter alia, that hearing of the petition of opposite party No. 30 be stayed pending the decision of the Supreme Court on the vires of the 1971 Act. On 30th of January, 1973, the President of India promulgated an Ordinance, the Coal Mines (Taking Over of Management) Ordinance, 1973 -- hereinafter referred to as 'the Ordinance' --providing for taking over the management of 464 coal mines as detailed in the schedule. Jharkhand and Kedla coal mines were serial Nos. 243 and 255 respectively of the said schedule. Rauta coal mine was serial No. 232 of the schedule. The schedule also indicated the names of the owners. As against serial Nos. 243 and 244 names of owner was not indicated, rather it was mentioned 'under dispute1. As against serial No. 232, Bokaro and Ramgur Ltd., one of the main defendants of the suit, was mentioned. R. D. Rai, Opposite Party No. 32, who was appointed as Custodian by the Custodian-General under the provisions of the Ordinance, made an application before the Court below on 1st of February, 1973 praying for a direction to the receiver not to act inconsistently with the provisions of the Ordinance. The Court below passed an order on the very day allowing the said prayer of opposite party No. 32. In pursuance of that order, the nominee of the State-receiver stopped issuing coupons to the petitioner and other managing contractors resulting in total stoppage of sale and despatch of coal and mining operations resumed under the control and supervision of the receiver pursuant to vacating of the order of ad interim injunction by this Court on 22nd of January, 1973, in Miscellaneous Appeal No. 138 of 1972. On 3rd of February, 1973, the petitioner filed an application in the Court below praying to it to refer the matter to the High Court under Section 113 of the Code of Civil Procedure to decide the question whether the Ordinance was ultra vires, or, in the alternative, to stay hearing of the matter till the disposal of the Miscellaneous Appeal No. 138 of 1972 by this Court. The State filed an application stating that it had no objection to the transfer of management but the assets in possession of the receiver should not be handed over to the Custodian. Two petitions were filed by Bokaro and Ramgur Ltd., defendant No. 1, on that date stating that it had no objection to the management of the Rauta colliery being handed over to the Custodian under the Ordinance and that of Kedla and Jharkhand mines to opposite party No. 30 under the 1971 Act.

(3.) On 31st of January, 1973, opposite party No. 32 had filed a petition for directing the receiver to hand over possession of Kedla and Jharkhand mines to him forthwith. On 5th and 7th of February, 1973, he filed two petitions for direction to the receiver to hand over possession of Rauta Mines also to him forthwith. On 7th of February, 1973, the Court below passed an order to the effect that by its order dated 1st of February, 1973, it never meant to stop issue of coupons and stoppage of mining operations. On 19th of February, 1973 the petitioner filed a petition that hearing of the question of handing over of management and possession of the three mines by the receiver be stayed pending the hearing of the writ applications by the Supreme Court challenging the vires of the Ordinance. In the meantime the receiver and some of the managing contractors had filed petitions stating that coupons were not being issued to them by the authorities with the result that despatch and sale of coal was completely stopped. On 21st of February, 1973, petitions were filed praying for direction to the Coal Superintendent, Dhanbad, Opposite party No. 33, to issue coupons or that the Court may itself make some alternative arrangement. It was also alleged that the coal authorities had committed contempt of Court and notice may issue to them to show cause why they should not be proceeded with for contempt On 22nd of February, 1973, the Court below passed an order that it was imperative on the coal authorities to issue coupons and their action in not issuing coupons in spite of the order dated 7th of February, 1973 amounted to interference with the administration of property incharge of the receiver. Accordingly it issued notice to the Coal Controller, Govt. of India, Calcutta, Deputy Coal Superintendent, Dhanbad and Assistant Coal Superintendent, Dhanbad (petitioners in C. W. J. C. No. 278 of 1973) to show cause why they should not be proceeded with for contempt of Court. On 24th of February, 1973, the Court below passed an order directing the receiver to hand over the possession of the aforesaid three mines to the Custodian. The civil revision is directed against this order.