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ICHCHAPUR INDUSTRIAL CO-OPERATIVE SOCIETY LTD. versus THE COMPETENT AUTHORITY, OIL AND NATURAL GAS COMMISSION AND ANR.

Citation: [1996] SUPP. 10 S.C.R. 416 · Decided: 19-12-1996 · Supreme Court of India · Bench: KULDIP SINGH · Disposal: Dismissed

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Judgment (excerpt)

A 
ICHCHAPUR INDUSTRIAL CO-OPERATIVE SOCIETY LTD. 
B 
c 
v. 
THE COMPETENT AUTHORITY, OIL AND NATURAL GAS 
COMMISSION AND ANR. 
DECEMBER 19, 1996 
[KULDIP SINGH AND S. SAGHIR AHMAD, JJ.] 
Petroleum & Minerals Pipelines (Acquisition of Right of User in Land) 
Act, 1962: 
Ss. 2(ba), 3, 6 and 7-Right of user of land vested in ONGC for laying 
pipelines for transportation of petroleum-Held, it shall be lawful to lay 
pipelines for transporting minerals including "water" without any further" 
Notification u/s. 3 or declaration u/s. 6, since "water" is a mineral-Besides, 
canying of water through new pipelines would be an act for utilization of 
D pipelines with the meaning of S. 7 and therefore permissible-Mines Act, S. Β· 
2(jj). 
E 
Principle of Legislation by Reference or incorporation-Applied. 
Interpretation of Statutes : 
Definition-Held, has to be read in the context in which it is used and 
for the purpose for which the Act was made. 
Words and Phrases : 
F 
"Minerals''-"Water" in the context of Petroleum and Mineral Pipelines 
(Acquisition of Right of User in Land) Act, 1962 and Mines Act 1952-Held, 
water is a "Mineral". 
The appellant was the owner of certain lands in respect whereof 
notification under section 3(1) and declaration under Section 6(1) of the 
G Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) 
Act, 1962 were issued and rights of user in the land stood vested in the Oil 
and Natural Gas Commission, respondent No. 2, for laying pipelines for 
transportation of petroleum. The ONGC laid the pipelines in the said land 
initially for transportation of gas to its gas processing plant. Later, when 
H water could not be made available to the plant from the existing source, 
416 
ICHCHAPURINDL CO-OP SOCY. LID. v. COMPETENT AUTIIORITY, 0.N.G.C. . 417 
the ONGC gave the appellant a notice under section 8 of the Act for laying A 
' 
pipelines in the said land to carry water to the plant for its effective 
working. The appellant challenged the notice by fding a writ petition before 
the High Court on the ground that the proposed pipelines were not being 
; 
laid for transportation of petroleum or any other mineral but were to be 
used for transporting water which was not permissible under the Act. The B 
High Court rejected the petition holding that water being necessary to run 
the gas processing plant, transportation thereof through the pipelines to 
the plant would amount to an act for utilisation of pipelines for transpor-
tation of the gas. 
On appeal by the land owner to this Court, besides raising the pleas c 
taken by the parties before the High Court, the ONGC also contended that 
"water" for which the pipelines were required to be laid was a mineral and 
since "minerals" could be validly carried-through those pipelines, "water" 
could also be carried or transported through them. It was contended for 
the appellant that "water" should be understood in the same se1:1se in which D 
it is understood by a common man and it should not be construed as 
"mineral"; and new pipelines for carrying ~nother commodity could not be 
laid unless fresh notification u/s. 3 and a declaration u/s. 6 were issued. 
Dismissing the appeal, this Court 
HELD : 1.1. InΒ· view of the fact that the Petroleum and Minerals E 
Pipelines (Acquisition of Right of User in Land) Act, 1962 is an Act of 
Parliament intended to deal with the particular technology and the com-
modities involved therein, "water" in the Act has been used in both the 
senses, namely, that (i) it is a "mineral"; and (ii) the most common, readily 
.and freely available substance on the earth. Since the respondents have F 
the right to lay down pipelines for transporting a "mineral" after the 
amendment of the Act they can legally lay down the pipelines through the 
land in question for carrying and transporting "water" without any further 
Notification u/s. 3 or declaration u/s. 6 of the Act. [ 429-H; 430-A; 429-F-G] 
1.2. Section 2(ba) of the Act defines "Minerals" which have to have G 
the meaning assigned to them in the Mines Act, 1952. The definition of 
-
"Mineral", which has been bodily lifted from the Mines Act, 1952 and has 
been placed in the Act, was deliberately so incorporated by Amending Act 
No. 13 of 1977 so that while carrying Petroleum through the pipelines, any 
other minerals may also be carried through it. Thus the definition of H 
418 
SUPREME COURT REPORTS{1996] SUPP.10 S.C.R. 
A "Minerals" in the Act would indicate t

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