NEW SATGRAM ENGINEERING WORKS & ANR. versus UNION OF INDIA & ORS. AND VICE VERSA

Citation: [1981] 1 S.C.R. 406 · Decided: 14-08-1980 · Supreme Court of India · Bench: V.R. KRISHNA IYER · Disposal: Case Partly allowed

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Judgment (excerpt)

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.406 
NEW SATGRAM ENGINEERING WORKS & ANR. 
v. 
UNION OF INDIA & ORS. AND VICE VERSA 
August 14, 1980 
[V. R. KRISHNA IYER, 0. CHINNAPPA REDDY AND A P. SEN. JJ.J 
Coal Mines (Nationalisation) Act, 1973, sections 2(h), 18(2) read with s11b.. 
sections (3) and (4) of section 19 of the Act as amended, interpretation of-
Disbursement of amoullts to the owners of coal mines, secti'1ns 20 to 27 of 
the Coal Mines (Nationalisation) Act, scope of. 
M / s. Shethia Mining and Manufacturing Corporation, Calcutta owned three 
non-coking coal mines one of which was New Satgram Coal Mines, besides a 
workshop called- the New Satgram Engineering Works built on a plot adjacent 
to the New Satgram Coal Mines in 1964, a building known as the Technical' 
Director's Bungalow, built somewhere in 1957-58 outside the mining area but 
adjacent to it, and another building constructed in 1960·61 on the same plot 
of land, namely the Guest House used for the residence of officers and staff 
of mines. 
The management of the New Satgram Coal Mine• along with two other 
coal mines was taken over by the Central Government under the Coal Mines. 
(Taking over of Management) Act, 1973, with effect from January 31, 1973: 
Thereafter the Coal Mines (Nationalisation) Act, 1973 was passed and by virtue 
of section 3(1) thereof, the right title and interest of M/s. Shethia Mining and 
ir 
Manufacturing Corporation Yested in the Central Government with effect from 
May 1973 and subsequently by a notification in the Government company that 
is, the Coal (India) Ltd. 
On May 17, 1973, the Central Government took over 
possession of the Technical Director's Bungalow and the Guest House. 
The-
-~
appellants who had filed two writ petitions challenging the taking over and the-
Nationalisation Act in th1i Supreme Court withdrew them and filed a petition 
under Article 226 of the Constitution in the Delhi High Court for the issuance 
of a writ or direction in the nature of mandamus in regard to the taking over 
of New Satgram Engineering Works and the dues pertaining to the New Satgram 
Coal Mines and New Majri Coal Mines. The High Court partly allowed the 
petition but declined to go into the question as to whether the Engineering 
Unit, together with Shethia Bhavan and all its assets etc.. the Technical' 
Director's Bungalow and Guest House were or not covered by the definition-
of the term "mine" in section 2(h)(vi), (vii) & (xi) of the Nationalisation Act. 
T 
Jlence the appeals by special leave one by New Satgram Engineering Wdrk~ 
·and the other by the Union of India. 
Allowing the Government's appeal and dismissing the appeal of the 
Engineering Works, the Court 
HELD : (!) When the. facts themselves are seriously controverted, the-
dispute relating to the properties in question raise a "serious question of title" 
and the parties must get their rights adjudicated upon in a civil court and nor 
J 
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SATGRAM ENGG. WORKS V. UNION 
407 
.under Art. 226 of the Constitution. 
The question whether the engineering unit 
.A. 
was "situate in, or adjacent to" 
the 
new 
Satgram Coal Mines 
and was 
·"substantially" used for the purposes of the mine as well as the question whether 
the Technical Director's Bungalow and the Guest House were "solely" med 
for the ·residence of officers and staff of the mine and. therefore. fell within 
the definition of 'mine' as contained in s. 2(h) of the Nationalisation Act, cannot 
be decided in proceedings under Art. 226 of the ·Constitution. 
The proper 
remedy is by way of a suit. [416 H; 418 G-H] 
Jt. 
(2) Parliament instead of providing that the word 'mine' shall have the 
meaning assigned to it in the Mines Act, 1952, has given an enlarged definition 
·of 'mine' in s. 2(h) so that not merely the colliery but everything connected with 
the mining industry should vest in the Central Government, that is, not only 
. that part of the industry which consisted of raising, winning and getting coal 
but also that part of it which consisted in the sale of coal and its supply to 
. customers both of which are a part of an integrated activity. 
Parliament by 
. an enlarged definition of mine as contained in section 2(h) of the Act 
has indicated the nature of the properties that vest, and the question whether 
a particular asset is taken within the sweep of s. 2(h) depends on whether it 
answers the description given therein. [415 H, 416 A-D] 
(3) The language used in s. 2(h)(vii) and (xi) of the Coal Mines 
(Nati

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