SECRETARY OF STATE Vs. AMBDLAL KHORA

JUDGEMENT

(1.) This appeal which is from a judgment dated 8 May 1941, of the High Court of Judicature at Patna, arises out of a dispute between the appellant, the Secretary of State for India as representing the Government of Bihar and Orissa and also the East Indian Railway Administration, and the respondents, the owners of a colliery known as the Khas Jheria Colliery, in regard to the compensation payable by the former to the latter for coal, the working of which was prevented or restricted under the Land Acquisition (Mines) Act (No. 18 of 1886), which will be referred to as "the Act of 1885. In the long drawn out litigation between the parties a number of questions have been raised which are no longer at issue. The single question now remaining for decision depends on the construction of an agreement made on 11 June 1913, between the East Indian Railway Company and the predecessor in title of the respondents, by which the rights of the parties in respect of the working of coal or of compensation for leaving it unworked were adjusted and defined. Inasmuch as this agreement specifically refers to the Act of 1885 which would itself but for the agreement between the parties have defined their rights, it is necessary to refer to its provisions.

(2.) By S.3 (1) it is provided that when the Lieutenant-Governor makes a declaration under S.6, Land Acquisition Act, 1870 that land is needed for a public purpose or for a company, he may, if he thinks fit, insert in the declaration a statement that the mines of coal, ironstone, slate or other minerals lying under the land or any particular portion of the land except only such parts of the mines or minerals as therein mentioned are not needed and by S. 3 (3) it is provided that if any such statement is inserted in such declaration the mines in question under the land or portion of the land so specified except as aforesaid shall not vest in the Government when the land so vests under the said Act.

(3.) By S. 7 it is provided that if the person for the time being entitled to work or get any mines or minerals lying under any land so acquired is desirous of working or getting the same he shall give the Lieutenant- Governor notice in writing of his intention so to do 60 days before the commencement of working. By S. 5 (1) provision is made for inspection by the Lieutenant-Governor after such notice and by S. 5 (2) it is provided that if it appears to the Lieutenant-Governor that the working or getting of the mines or minerals or any part thereof is likely to cause damage to the surface of the land or any works thereon he may publish a declaration of his willingness either (a) to pay compensation for the mines or minerals still unworked or ungotten or that part thereof to all persons having an interest in the same, or (b) to pay compensation to all such persons in consideration of those mines or minerals or that part thereof being worked or gotten in such manner and subject to such restrictions as the Lieutenant-Governor may in his declaration specify, by S. 5 (3) that if the declaration mentioned in case (a) is made then those mines or minerals or that part thereof shall not thereafter be worked or gotten by any person and by S. 5 (4) that, if the declaration mentioned in case (b) is made, then those mines or minerals, or that part thereof, shall not thereafter be worked or gotten by any person save in the manner and subject to the restrictions specified by the Lieutenant- Governor.