M/S. BHARAT COKING COAL LTD. versus NEW GOVINDPUR COAL CO. PVT. LTD.

Citation: [2004] 3 S.C.R. 315 · Decided: 22-03-2004 · Supreme Court of India · Bench: R.C. LAHOTI · Disposal: Dismissed
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Judgment (excerpt)

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MIS. BHARAT COKING COAL LTD. 
A 
v. 
NEW GOVINDPUR COAL CO. PVT. LTD. 
MARCH 22, 2004 
[R.C. LAHOTI AND DR. AR. LAKSHMANAN, JJ.] 
B 
Coking Coal Mines (Nationalisation) Act, 1972: 
Sections 22, 23 and 25-Statement of accounts in relation to management 
period-Claim petition under-Central Government appointed a Company as C 
custodian to manage various coal mines-During the 111anagement period the 
said Company incurred losses due to excess payments made to one of the 
collieries-Assistant Co111missioner of Payments dismissed the said Co111pany 's 
clai111 petition-First appellate court and High Court, in revision, also dismissed 
the claim-Correctness of-Held.• Statement of accounts in relation to the D 
111anagement period filed by the said Company not carrect-Procedure 
prescribed under S. 2 2 not followed at all-No proof in support of the claim 
was filed-Hence, claim petition rightly rejected. 
The appellant-company was a Central Government company 
constituted under the Coking Coal Mines (Nationalisation) Act, 1972. The E 
Central Government appointed the appellant-company as custodian on its 
behalf to manage the Company's coal mines. 
During the management period the appellant-company had incurred 
losses due to excess payments made to the respondent's colliery. The 
appellant-company, therefore, preferred a claim petition before the F 
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Assistant Commissioner of Payments for recovery of the excess payment 
made to the respondent, which was rejected. The first appellate court and 
the High Court, in revision, also rejected the claim. Hence the appeal. 
Dismissing the appeal, the Court 
HELD: 1. The accounts statement in relation to the period of 
management by the appellant is not correct and the procedure prescribed 
under Section 22 of the Coking Coal Mines (Nationalisation) Act, 1972 
has not been followed at all. The Appellate Court and the High Court, in 
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316 
SUPREME COURT REPORTS 
f2004j 3 S.C.R. 
A revision, has rightly dismissed the claim of the appellant holding that the 
appellant has failed to file the required papers and proof to substantiate 
the claim. The appellant has also failed to comply with the provisions of 
the Nationalisation Act, in particular, Sections 22 and Section 23(4), (6) 
& (7) of the Nationalisation Act in the matter of filing of the proof in 
B support of the claim. Although the auditor's check of the account as per 
insertion of Section 21(8) of the Nationalisation Act shall be the proof of 
the claim unless contrary is proved but the fact remains that the auditor's 
statement of account also did not support the case of the appellant and 
rather it goes in favour of the respondent in view of the fact that the 
respondent had proved the contrary to the entries and the court has also 
C considered it and accordingly rejected the claim of the appellant after 
thorough examination and discussion. [329-A-E[ 
2. It must, therefore, be held that the claim made by the appellant 
in its entirety is not maintainable. [329-81 
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CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2355 of 1999. 
E 
From the Judgment and Order dated 23.9.97 of the Patna High Court 
in C.R. No. 225 of 1992 (R). 
Ajit Kumar Sinha for the Appellant. 
S.B. Upadhyay, Rana S. Biswas and Shiv Mangal Sharma for the 
Respondent. 
The Judgment of the Court was delivered by 
F 
DR. AR. LAKSHMANAN, J. The above appeal arising out of S.L.P. 
(Civil) No. 11082/1998 was filed against the final judgment and order passed 
in Civil Revision Petition No. 225/1992 dated 23.09.1997 by the High Court 
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of Judicature at Patna whereby the High Court dismissed the Civil Revision 
Petition. 
G BRIEF FACTS OF THE CASE ARE: 
The appellant-company is a Central Government Company with in the 
meaning of Section 617 of the Companies Act, constituted under the Coal 
Nationalisation Act in and around of Distt., Dhanbad in the State of Bihar. 
H 
The appellant-company after formed by the Central Government was 
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BHARAT COKING COAL LTD. r. NEIVGOVINDrURCOALCO. rvr. LTD. [LAKSllMANAN,J.] 317 
appointed as custodian on behalf of the Central Govern·ment to manage the A 
Company's Coal mines. the management of which were taken over by the 
Central Government on enactment of the Coal Mines Act. 
The intervening period i.e. between the 17.10.1971 to 30.04.1972 is 
known as Management period during which the management of such coal 
mines was with the appellant-company. During the said management period B 
the Central Gov
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