SAILENDRA NATH CHANDRA Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner took four mineral leases from the ex-proprietor including one dated the 27th February, 1941, in respect of fireclay, and other minerals in mauza Debiana in the district of Dhanbad for a period of 31 years on a dead rent of 25 rupees and royalty (commission) of Re. 0-1-6 per ton or four annas a Gadda. The estate in which this village was situate vested in the State of Bihar on the 1st January, 1956, under the Bihar Land Reforms' Act, whereafter the lessor's rights vested completely in the State Government.

(2.) The Controller of Mining Leases for India, Opposite Party 3, by his order dated the 22nd February, 1961, after holding an inquiry under the Mining Leases (Medication of Terms) Rules, 1958 (as amended up to 1960), modified the terms of the petitioners lease by reducing the period of lease to twenty one years with effect from the 27th February, 1941 and enhancing the dead rent to Rs. 7.50 per acre per annum for fireclay. He also directed that a new clause shall be deemed to have been inserted in the lease and form part thereof to the effect that except for the modification made by him under that order, the lease shall be subject to the rules made or deemed to have been made under Sections 13 and 18 of the Mines and Minerals (Regulation and Development) Act, 1957 (Act 67 of 1957). He also observed in his order, by way of clarification, that royalty shall be payable by the lessee in accordance with Section 9 of the Act 67 of 1957 in place of the rate provided in the deed of lease. The order of modification of the terms of the lease was to take effect immediately.

(3.) Since the petitioner-lessee did not pay the dues according to the modified terms, a certificate under the Public Demands Recovery Act was filed against him before the Certificate Officer, Dhanbad, in case No. 62/M/61-62 for recovery of the Government dues. The petitioner felt aggrieved both by the order of modification in regard to the period of lease and the rate of dead rent and the certificate proceedings; and came to this court with an application under Articles 226 and 227 of the Constitution with a prayer for issue of a writ of certiorari or any appropriate order or direction quashing the order passed by the Controller of Mining Leases dated the 22nd February, 1961, and the orders passed by the Certificate Officer, Dhanbad dated the 17th June, 1963. The State of Bihar and the Certificate Officer were impleaded as opposite Party 1 and 2; and the Secretary to the Ministry of Steel and Mines (Union of India) as opposite party 4 and the District Mining Officer, Dhanbad, as opposite party 5 to the writ application.