NORTH EASTERN COALFIELDS COAL INDIA LTD. versus MUBARAK ALI AND ORS.

Citation: [2005] 3 S.C.R. 850 · Decided: 21-04-2005 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Appeal(s) allowed
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Judgment (excerpt)

A 
NORTH EASTERN COALFIELDS COAL INDIA LTD. 
v. 
MUBARAK ALI AND ORS. 
APRIL 21, 2005 
B 
[ASHOK BHAN AND A.K. MATHUR, JJ.] 
Coal Mines (Nationalization) Act, 1973-Sections. 2(h), 3, 5(/)-Right 
and title of erstwhile private company vesting in Government Company--
Erstwhile private company becoming patta holder of land in question-
C Declaring the .land as 'sarkari' (Government) and allotting to private 
individual-Legality of-Held: Since after nationalization, the right, title and 
interest of all private company stood vested fn Government Company, the 
finding is illegal. 
I) 
Appellant Company is a successor-in-interest of the erstwhile ARTC 
Ltd., a private mining company engaged in the, coal mining operations. 
On the nationalization of coal industry, the right, title and interest of all 
private mines including ARTC Ltd •. stood vested in Central Government 
and Central Government vested it in Coal Mines Authority Ltd. Appellant 
company, became the subsidiary of Coals .Mines Authority Ltd. and its 
E · patta holder of the land in question. Dispute arose when Additional Deputy 
Commissioner made the land 'Sarkari' (Govt.) and settled the land in 
favour of private individual, respondent .. no. l. ,\ggrieved appellant 
challenged the legality of the declaration of land JIS 'Sarkari'. Single Judge 
held that since appellant had paid land reve.nue and Government 
F recognised it as a lessee, the act of.declaring it as Fout Ferrar and land as 
'Sarkari' was not legal Division Bench reversed the order of Single Judge. 
In this appeal the questions which arose for consideration were 
whether the order of Additional Deputy Commissioner declaring ARTC 
Ltd. as Fout Ferrar and land as 'Sarkari' was legal and whether the whole 
G leased area which bas vested in Central Government falls within the 
definition of 'Mine' in Section 2(h) of the Coal Mines (Nationalization) 
Act, 1973. 
Allowing the appeal, the Court 
H 
850 
-
NORTH EASTERN COALFIELDS COAL INDIA LTD. v. MUBARAK ALI [A.K. MATHUR, J.] 851 
HELD : 1. The coal industry was nationalized under the Coal Mines A 
(Nationalization) Act, 1973 and a Notification was issued under this Act 
for the purposes of acquisition of rights of owners in respect of coal mines 
mentioned in schedule under Section 3; whereby the right, title and interest 
of the owners in respect of coal mines specified in the schedule stood vested 
absolutely in Central Government free from all encumbrances and in that I;\ 
one of the coal mines belonging to the ARTC Ltd. was included. Therefore, 
the finding given by the Additional Deputy Commissioner that since the 
ARTC is Fout Ferrar i.e. already, abandoned and resuming the land to 
the State was ex facie illegal order de hors the provisions of the Act and 
notification of the Central Government. (853-D-E; 854-F( 
c 
2. By virtue of Section 3, all properties vest in the Central 
Government and the definition of mine as defined in Section 2(h) of the 
Act is wide enough to include any land, building used for the purposes of 
residence of officers and staff of mine. It is open to the authorities to 
examine the question whether whole leased area which has vested in 
Central Government falls in definition of'Mine' as defined in Section 2(h) D 
of the Act or not. This is a matter of inquiry. In case of doubt, State may 
make inquiry after notice to the appellant. (855-G-H; 856-C-D) 
Bharat Coking Coal Ltd v. Madan Lal Agrawal, (1997) 1 SCC 177, 
relied on. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8129 of2003. 
From the Judgment and Order dated 27.9.2002 of the Guwahati High 
Court at Assam in W.A. No. 355 of 1999. 
Ajit Kumar Sinha for the Appellant. 
Shakil Ahmed Syed for Respondent No. I 
V .K. Sidharthan, for Mis. Corporate Law Group for the Respondent 
Nos. 2-4. 
The Judgment of the Court was delivered by 
E' 
F 
G 
A.K. MA THUR, J. This appeal is directed against the order dated 27th 
September, 2002 passed by the Division Bench of the Gauhati High Court in 
WA 355/1999 whereby the Division Bench set aside the Order dated 7th 
September, 1999 passed by the learned single Judge in Civil Rule No. 3516/ H 
852 
SUPREME COURT REPORTS 
[2005] 3 S.C.R. 
A 1997. Aggrieved against this Order, the present appeal has been filed by the 
appellant. 
Brief facts which are necessary for disposal of this appeal are : 
That the appellant is a successor-in-interest of the erstwhile Assam 
B Railways and Trading Company Ltd. (for short ARTC) engaged in
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