UNION OF INDIA Vs. KARANPURA DEVELOPMENT CO LTD

JUDGEMENT

(1.) These two appeals under Section 20 of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (hereinafter to be referred to as "the Act") are directed against the award dated the 20th of December, 1969, given by the Tribunal under Section 14 (2) of the Act in Reference Case No. 24 of 1964. Miscellaneous Appeal No. 26 of 1970 is by the Union of India through the Managing Director, National Coal Development Corporation Ltd., Ranchi. Miscellaneous Appeal No. 32 of 1970 is by M/s. Karanpura Development Co. Ltd. (hereinafter to be referred to as "Karanpura Company"). Both the appeals have been heard together and they are being disposed of by this common judgment.

(2.) The relevant facts for the disposal of these two appeals are not in dispute and they may briefly be stated as follows. On the 26th of March, 1915, the Proprietor of Ramgarh Estate acting through the Court of Wards granted a prospecting licence of coal rights in respect of 49072 bighas of land known as Karanpura Fields including the land in dispute in favour of M/s. Bird and Company. Under the terms of the licence the Company was entitled to take lease in respect of different areas covered by the licence after prospecting. On the 30th of May, 1921, the Karanpura Company obtained a prospecting licence by a deed of assignment executed in its favour by M/s. Bird and Company. On the 17th of July, 1922, the Court of Wards granted a mining lease in respect of 3036 bighas of land in mouza Sayal in favour of the Karanpura Company. On the 20th of April, 1923, the Karanpura Company granted two sub-leases in favour of M/s. Andrew Yule and M/s. Villiers and Company for 2011 bighas and 1024 bighas respectively. On the 26th of March, 1929, M/s. Villiers and Co. executed a deed of surrender in favour of the Karanpura Company. M/s. Andrew Yule also executed a deed of surrender in favour of the Karanpura Company on the 6th December, 1932. On the 3rd of November, 1951, the Ramgarh, Estate vested in the State of Bihar under the Bihar Land Reforms Act. Under a notification dated the 29th of December, 1958, published under Section 9 of the Act in the issue of the Gazette of India dated the 9th January, 1959, the Central Government declared to have acquired the lands and mining rights in and over the lands specified in the said notification. By virtue of that notification the mining rights over an area of 2020 bighas of lands situate in mouza Sayal in the District of Hazaribagh were acquired. It appears that the Karanpura Company claimed as compensation Rs. 9,87,585.72 paise for mining rights only. The Central Government offered only an amount of Rupees 72,581.64 paise as compensation. The Karanpura Company accepted that amount under protest as to the sufficiency of the amount. As no agreement was reached between the Karanpura Company and the Central Government, a reference under Section 14 of the Act was made to the Tribunal for the purpose of determining the amount of compensation.

(3.) Before the Tribunal the claimant submitted a claim for Rs. 9,87,585.72 paise as per Schedules A to L including a sum of Rs. 60,975.48 paise as solatium under Section 13 (4) of the Act. Subsequently by an amendment Rs. 28,220.00was added as compensation for bungalow and 6 bighas of land making the total claim at Rs. 10,15,805.72 paise. According to the Karanpura Company, the amount assessed, payable as compensation to it by the Central Government, was inadequate and arbitrary and was in clear disregard of the provisions of Section 13 of the Act.