CENTRAL COALFIELDS LTD Vs. STATE

JUDGEMENT

(1.) The petitioner is a Government company in which the right, title and interest in relation to the coal mines including Jagal Daga colliery, mentioned in the Schedule to the Coal Mines (Nationalisation Act) 1973, have vested under S.5 of the Act.

(2.) The District Mining Officer, respondent 3, made a demand by notice Annexure "1" with respect to the dead rent for the period 1-5-1973 to 30-9-1974 at the maximum rate, as prescribed by the Third Schedule to the Mines and Minerals (Regulation and Development) Act, 1957, payable to the State of Bihar under S.9A of the Act. A proceeding under the provisions of the Public Demands Recovery Act was started for realisation of the demand. The petitioner denied the liability on the ground that the lease in its favour must be treated as a new lease with effect from 1-5-1973 and no dead rent is, therefore, payable for the period 1-5-1973 to 30-4-1974; and, for the remaining period, the rent is payable at the minimum rate of Rs. 12.50 per hectare per annum. By order in Annexure "3", the Certificate Officer, respondent 2, rejected the petitioner"s objection. This writ application has been filed for quashing Annexures 1 and 3.

(3.) In pursuance of a decision to nationalise the coal mines, The Coal Mines (Taking Over of Management) Ordinance (Ordinance No. 1 of 1973) was passed and was followed by the Coal Mines (Taking over of Management) Act, 1973. Subsequently, the Parliament passed Coal Mines (Nationalisation) Act, 1973 (Act 26 of 1973) which came into force on 1-5-1973 whereby a number of coal mines including Jagal Daga colliery mentioned in the Schedule belonging to one Mr. S. K. Dutta stood transferred to the Central Government. The object was to ensure rational, co-ordinated and scientific development and utilisation of the coal resources of the country. In exercise of the powers under S.5(1) of the Nationalisation Act, the Central Government directed the vesting of the collieries in the Coal India Ltd., a Government company. The petitioner is a subsidiary company.