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M/S BHARAT COKING COAL LTD. versus MAHENDRA PAL BHATIA AND ORS.

Citation: [2022] 13 S.C.R. 287 · Decided: 01-04-2022 · Supreme Court of India · Bench: HEMANT GUPTA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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[2022] 13 S.C.R. 287
287
M/S BHARAT COKING COAL LTD.
v.
MAHENDRA PAL BHATIA AND ORS.
(Civil Appeal No. 5377 of 2015)
APRIL 01, 2022
[HEMANT GUPTA AND V. RAMASUBRAMANIAN, JJ.]
Coal Mines (Nationalization) Act, 1973: ss.2(h), 3 – Coal
mines – It is not the corporate houses or the business entities owning
coal-mines that are transferred to and vested in the Central
Government, but it is the coal-mines that are transferred to and
vested in the Central Government – If the land fell within the
definition of the expression “mine” under the Nationalisation Act,
the same stood transferred to and vested in the Central Government
under s.3(1) – As could be seen from clause (xi) of s.2(h), even the
land and building used solely for the location of the management,
sale or liaison offices or for the residence of officers and staff are
also included in the definition of the word ‘mine’ – In the instant
case, the contention that the property was the private property of
one ‘J’ and that his occupation as Manager of a colliery was
irrelevant, would fall to the ground – The focus of s.2(h) r/w s.3(1)
is on the property and not on who the owner of the property is –
Similarly, the objection that the land in question was not used as a
colliery is also irrelevant in view of the fact that clause (xi) of s.2(h)
uses the words “wherever situated”.
Allowing the appeal, the Court
HELD 1. Section 3(1) of the Nationalisation Act, declares
that on the appointed day, which was 01.05.1973, the right, title
and interest of the owners in relation to the coal-mines specified
in the Schedule shall stand transferred to and shall vest absolutely
in the Central government free from all encumbrances. [Para
12][291-E]
2. What was transferred to and vested in the Central
Government, were not corporate houses or business entities
owning coal-mines. What was transferred to and vested in the
Central Government were the coal-mines. In other words this
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288
SUPREME COURT REPORTS
[2022] 13 S.C.R.
Nationalisation Act, was little different from the statutory
enactments nationalizing institutions such as banks, insurance
companies etc. Therefore, the ownership of the land was
immaterial. If the land fell within the definition of the expression
“mine” under the Nationalisation Act, the same stood transferred
to and vested in the Central Government under Section 3(1).
[Para 13][291-G-H; 292-A]
3. The contention that the property was the private property
of one ‘J’ and that his occupation as Manager of a colliery was
irrelevant, would fall to the ground. The focus of Section 2(h)
read with Section 3(1) is on the property and not on who the
owner of the property is. Similarly, the objection that the land in
question was not used as a colliery is also irrelevant in view of
the fact that clause (xi) of Section 2(h) uses the words “wherever
situated”. In any case the contention that the property was not
part of a colliery, may be factually  incorrect. [Paras 15 and 16][293-
D-E]
4. In Bharat Coking Coal Ltd. vs. Madanlal Agrawal, this
Court clarified that the extended meaning given to the word
“mine” was to ensure that the activity of mining coal could be
carried on in an uninterrupted fashion. This Court also cautioned
“that the Act should not be construed in a way to frustrate the
working of the coal mines altogether, thereby stop or bring down
production of coal by the nationalization of coal mines”. Therefore,
the impugned orders of the High Court run contrary to the
statutory prescriptions and hence liable to be set aside.
Accordingly, the appeal is allowed, the impugned orders of the
High Court are set aside and the writ petition filed by the
respondents is dismissed. [Paras 18 and 19][294-D-F]
Bharat Coking Coal Ltd. v. Madanlal Agrawal (1997)
1 SCC 177 : [1996] 8 Suppl. SCR 886- followed.
New Satgram Engineering Works & Another v. Union
of India & Ors. (1980) 4 SCC 570 : [1981] 1 SCR 406
- referred to.
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Case Law Reference
[1981] 1 SCR 406
referred to
Para 17
[1996] 8 Suppl. SCR 886
followed
Para 18
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5377
of 2015.
From the Judgment and Order dated 19.02.2015 of the High Court
of Jharkhand at Ranchi in L.P.A. No. 272 of 2013.
Anupam Lal Das, Sr. Adv., Amit Sharma, Dipesh Sinha, Anirudh
Singh, Ms. Pallavi Barua, Krishanu Barva, Advs. for the Appellant.
Arijit Mazumdar, Shambo Nandy, Abhinav Mukerji, Advs. for the
Respondents.
The Judgment of the Court was delivered by
V. 

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