CENTRAL COALFIELDS LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) IN these two writ petitions the short question that falls for consideration is whether the petitioners are liable to pay interest on the late payment royalty and also whether interest on royalty is recoverable from the respondent as public demand.

(2.) THE petitioners ' case is that there are two Collieries known as Kurhurbaree and Serampur collieries in the district of Giridih. Kurhurbaree Colliery was a part of erstwhile Kurhurbaree Estate and by virtue of indenture the East India Railway Company took the lease of the said Colliery from the Secretary of State for India in Council and is recorded in Tauzi No. 15 of Giridih Collectorate. In the Khewat of this Tauzi, the then Secretary of State for India in Council is recorded as Khewatdar. Similarly, the Serampur Colliery was a part of erstwhile Serampur Estate and was formerly held by the East India Railway Company under a perpetual lease which vested in the Secretary of State for India in council by virtue of Eat India Railway company Purchase Act, 1879 and is recorded in Tauzi No. 10 of the Giridih Collectorate. In the Khewat of this Tauzi, the then Secretary of the State for India is recorded as Khewatdar. The petitioners ' further case is that the East India Railway Company worked the aforesaid two Collieries till they were nationalized and vested in the Union Government. The said Collieries thereafter worked by the Union Government as absolute owner thereof.

(3.) THE respondents -State in their counter affidavit have stated that the petitioners sold these two Collieries to different consumers and realized royalty on behalf of the State Government. But this amount of royalty was not deposited in the accounts of the State Government, although the amount of royalty was relating to the period from 1977 -78 to 1995 -96. The petitioners deposited the amount of royalty in 1996 -97 in four instalments and started paying current royalty from 1997. Besides the above, it is stated that by virtue of operation of Bihar Land Reforms Act, 1950 , the Collieries in question came in possession of the State of Bihar and the State of Bihar became the owner of the said Collieries.