SECRETARY OF STATE Vs. LODNA COLLIERY CO LTD

JUDGEMENT

(1.) The plaintiffs in the suits out of which these appeals arise seek to recover from the Secretary of State, defendant No. 1 the appellant, compensation which they say has become due to them under certain provisions of the Mines Acquisition Act and complain that the Secretary of State has declined to follow the prescribed procedure for assessing such compensation and has declined to pay the statutory or any compensation, wherefor they have been compelled to resort to the Civil Court. The facts as to which there is little or any dispute are as follows; The Raja of Jharia is the landlord of a large area. In the year 1891, by two documents (Exs. 12 and 12-A) he granted a permanent, marousi mukarrari of the surface and subsoil of 468 bighas including the 9.03 acres with which this case is concerned to two persons hereinafter referred to as Banerji and Laik. Banerji and Laik transferred their rights to Messrs. Turner Morrison & Co. on June 5, 1897, by a document (Ex. 12-B). These persons in turn on February 4, 1928, transferred their rights to the Lodna Colliery Co., Ltd., (Ex. 12-D) who in turn transferred such rights to the Lodna Colliery Co. (1920), Ltd. on June 6, 1929, by Ex. 12-E.

(2.) Banerji and Laik had on April 14, 1896, by patta Ex. 13, granted a sub-lease of the right to recover minerals (at a cash rental and a tonnage royalty with a minimum), of an area of 190 bighas (including the 9.03 acres above referred to) out of the said 468 bighas to one Golap Chandra Sarkar. This was a perpetual lease. He in turn by Ex. 14 granted a sub-lease of his subsoil rights in the said 190 bighas to one Ramlal Singh on September 30, 1899, reserving a tonnage royalty with a minimum. Ramlal Singh by Ex. G-2 granted a sub-lease to Bipin Behari Bose who carried on business under the style of the North Barakar Coal Co. This lease is dated February 4, 1909. The business of Bipin Behari Bose was in 1924 converted into a Limited Liability Company and since that year has been in possession of the mining rights under the said Sarkar. The situation in 1920 was that the Lodna Colliery Co. (1920), Limited was the mokarrdridar of the 468 bighas: Sarkar was the lessee of the mining rights in the 190 bighas of that area with an obligation to pay royalty on the coal raised by him, and Bipin Behari Bose was the tenant under Sarkar. The E. I. R. Co., Ltd., had about 1920 acquired the surface rights in an area of 9 03 acres out of the 190 bighas beneath which the Sarkars and their assigns or sub-lessees had the working lease of the mining rights, and had constructed railway sidings thereon.

(3.) Sarkar is now dead, leaving two sons Jitendra and Rishendra, who are the plaintiffs respectively in Suit No. 73 of 1930 which has given rise to First Appeal No. 84 of 1932 and Suit No. 55 of 1930 which has given rise to Appeal No. 85 of 1932. The Lodna Colliery Co. (1920), Ltd., is the plaintiff in Suit No. 54 of 1930 which has given rise to First Appeal No. 83 of 1932. In this suit the Secretary of State is defendant No. 1, the North Barakar Coal Co. (1920) Limited is defendant No. 2 and Bipin Behari Bose is defendant No. 3; the two brothers Rishendra and Jitendra Sarkar are defendants Nos. 5 and 6 the present Raja of Jharia is defendant No. 7, the late Raja's widows are defendants Nos. 8 and 9 and the Receiver of the Jharia Raj estate is defendant No. 10. The plaintiff Company complains, that it has been restricted by Government under the Mines Acquisition Act from working (through its lessees) under this area of 9.03 acres; that the plaintiff Company is a person interested in that it is entitled to a royally from the North Barakar Coal Co., Ltd. the Company's lessee and that notwithstanding the restriction the Government took no step to ascertain the statutory compensation payable to the plaintiff Company and refuses to pay any such compensation. In Suit No. 73 of 1930, which has given rise to First Appeal No. 8.4 of 1932, Jitendranath Sarkar, one of the two sons of Golap Chandra Sarkar deceased, claims that he also is a person interested under the lease of September 30, 1899, (Ex. 14) to & share in the royalty payable to his father by the North Barakar Coal Co., Ltd. Suit No. 55 of 1930 giving rise to First Appeal No. 85 of 1932 is a similar suit by Rishendra Sarkar for the half-share to which he is entitled. In Jitendra's suit the Secretary of State is defendant No. 1, the parties interested in the Jharia Raj above referred to are defendants Nos. 2 to 5 inclusive. The Lodna Colliery Co. (1920) Limited, plaintiffs in appeal No. 83 of 1932 are defendants 6, Rishendra Sarkar is defendant No. 7, Bipin Behari Bose is defendant No. 8 and the North Barakar Coal Co. (1920) Ltd., is defendant No. 9. In appeal No. 85 arising out of the suit brought by Rishendra Sarkar the same parties appear as defendants but Jitendra is in turn made defendant No. 5.