MAHANADI COALFIELDS LTD. versus STATE OF ODISHA & ORS

Citation: [2023] 1 S.C.R. 1055 · Decided: 20-01-2023 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Dismissed
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1055
1055
MAHANADI COALFIELDS LTD.
v.
STATE OF ODISHA & ORS.
(Civil Appeal No. 220 of 2023)
JANUARY 20, 2023
[M. R. SHAH AND C.T. RAVIKUMAR, JJ.]
Coal Bearing Areas (Acquisition and Development) Act, 1957–
ss.11(2),2(d)– ‘Person interested’ –Lands in question owned by
respondent-State was acquired by the Central Govt. –In exercise of
powers u/s.11(1), the Central Govt. directed that the lands and rights
so vested shall instead of continuing to vest in the Central Govt.,
vest in the appellant-Govt. Company subject to the terms and
conditions as mentioned– Demand notice issued by State for premium
and compensation – Challenged by appellant– Demand confirmed
by High Court– On appeal, held: As per s.11(2), where the rights
under any mining lease acquired under this Act vest in a Govt.
company, the Govt. company shall, on and from the date of such
vesting, be deemed to have become lessee of the State Govt. as if a
mining lease under the Mineral Concession Rules had been granted
by the State Govt. to the Govt. company–It shall be liable to pay
compensation/rental, etc., to the State Govt. being ‘person
interested’– Person interested’ is defined u/s.2(d) – State Govt. being
the original owner can be said to be deemed lessor and ‘person
interested’ in getting the compensation – Therefore, the High Court
is right in observing that being ‘person interested’, the State Govt.
is entitled to the compensation/rental, etc.– Demand(s) upheld –
Impugned judgment not interfered with.
Coal Bearing Areas (Acquisition and Development) Act, 1957
– ss.11, 18(a) – Plea of the appellant that the Govt. company in
whose favour the order is passed u/s.11,except the amount of royalty
u/s.18(a) it is not liable to pay any amount – Held : The argument
has no substance –Compensation/rental payable with respect to the
lands by the lessee/deemed lessee is altogether different than the
royalty – Royalty is for extraction of minerals in the lands in question
– Over and above the amount of royalty, the coal company/
Government company shall be liable to pay the compensation and
surface land rent, etc. –Amount of royalty cannot be mixed with the
compensation/loss caused to the State Government due to loss of
land and surface land rent as the State Government is entitled for
   [2023] 1 S.C.R. 1055
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1056
SUPREME COURT REPORTS
[2023] 1 S.C.R.
the adequate compensation – High Court justified in confirming
the respective demand(s).
CIVIL APPELLATE JURISDICTION : Civil Appeal No.220 of
2023.
From the Judgment and Order dated 02.04.2019 of the High Court
of Orissa at Cuttack in WP (C) No.2477 of 2009.
K. M. Nataraj, ASG, Soumyajit Pani, Aishwary Bajpai, Siddharth
Jain, Advs. for the Appellant.
Umakant Mishra, Niranjan Sahu, Apoorva Sharma, Debabrata
Dash, Sibo Sankar Mishra, Advs. for the Respondents.
The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied withthe impugned judgment
and order dated 02.04.2019, passed by theHigh Court of Orissa at
Cuttackin W.P. (C) No. 2477/2009, by which, the High Court has
dismissed the said writ petition preferred by the appellant herein and
has confirmed the demand made by the District Magistrate & Collector,
Sambalpur, of Rs. 70 lakhs towards the premium of the government
land, the appellant – Mahanadi Coalfields Ltd. has preferred the present
appeal.
2. The facts leading to the present appeal in a nutshell are as
under: -
2.1 That the lands in question owned by the State Government of
Odisha came to be acquired by the Government of India under Section
9 of the Coal Bearing Areas (Acquisition and Development) Act, 1957
(hereinafter referred to as the Act, 1957). That thereafter, vide order
dated 04.09.1981 and in exercise of powers conferred by Sub-section
(1) of Section 11 of the Act, 1957 with respect to some lands acquired,
the Central Government directed that the rights in or over the lands
vested absolutely in the Central Government, shall, instead of continuing
to vest in the Central Government, under Sub-section (1) of Section 10,
vest in the Western Coalfields Limited. That vide order dated 15.12.1988,
with respect to some other lands acquired by the Central Government
and in exercise of powers conferred by the Sub-section (1) of Section
11 of the Act, 1957, the Central Government directed that the said lands
and rights so vested shall, with effect from 16.05.1987 instead of
continuing to so vest in the Central Government, shall vest in the
Gove
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