The Punjab Minerals (Vesting of Rights) Act, 1994

PUNJAB GOVT GAZ. (EXTRA.), DEC. 12, 1996 
(AGHN. 21, 1918 SAKA) 
PART I 
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB 
Notification 
The 12th December, 1996 
No. 13-Leg/96.The following Act of the Legislature of the 
On the 
State of Punjab received the assent cf the President of India 
22nd October, 1996, and is hereby published for general information: 
THE PUNJAB MINERALS (VESTING OF RIGHTS) 
ACT, 1994 
(Punjab Act No. 9 of 1996) 
39 
AN 
ACT 
to vest the miner.il rights in the State Government and to provide for 
payment of amount to the owners of minerals and for other mnatters 
C» VNecte l therevith. 
BE it enacted by the Legislature of the State of Punjab in the Forty 
fifth Year of the Republic of India, as follows 
1. This Act may be called the Punjab Minerals (Vesting of Rights) 
Act, 1994. 
2. In this Act, unless the context otherwise requires, 
(a) "Collector" means the Deputy Commissioner of a District and 
includes any officer appointed by the State Government to 
discharge all or any of the functions of a Collector under this 
Act ; 
(b) "Minerals" means minerals and minor minerals as defined in 
clauses (a) and (e) respectively of section 3 of the Mines and 
Minerals (Regulation and Development) Act, 1957 (Central 
Act No. 67 of 1957) ; 
(c) "land" means land whether assessed to land revenue or not 
and include river beds and the sites of buildings and other 
structures ; 
(d) "person" shall include a local authority or conpany or associa 
tion or body of individuals, whether incorporated or not ; and 
(e) "prescribed" mcans prescribed by rules made under this Act, 
Short title. 
Deflnitions. 
—— 
~~ No. 13-Leg/96.—The followin 
PUNJAB GOVT GAZ. (EXTRA.), DEC. 12,1996 Cog 
(AGHN. 21, 1918 SAKA) 
Part I 
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB 
Notification 
The 12th December, 1996 
g Act of the Legislature of the 
State of Punjab received the assent of the President of India on the 
22nd October, 1996. and’ is hereby published for goneral information: — 
THE PUNJAB MINERALS (VESTING OF RIGHTS) 
ACT, 1994 
(Punjab Act No.9 of 1996) 
AN 
ACT 
to vest the mineral rights in the State Government and to provide for 
payment of amount to the owners of minerals and for other matters 
comectz] therewith. 
Be it enactzd by the Legislature of the State of Punjab in the Forty- 
fifth Year of the Republic of India, as follows :— 
1. This Act may be called the Punjab Minerals (Vesting of Rights) 
Act, 1994. 
2. In this Act, unless the context otherwise requires, — 
(a) “Collector” means the Deputy Commissioner of a District and 
includes any officer appointed by the State Government to 
discharge all or any of the functions of a Collector under this 
Act ; 
(b) “Minerals” means minerals and minor minerals as defined in 
clauses (a) and (e) respectively of section 3 of the Mines and 
Minerals (Regulation and Development) Act, 1957 (Central 
Act No. 67 of 1957) ; 
* 
{¢) “land” means land whether assessed to land revenue or not 
and include river beds and the sites of buildings and other 
structures ; 
(d) “person” shall include a local authority or company or associa 
ated or not jand tion or body of individuals, whether incorpor 
(e) “prescribed” means prescribed by rules made under this Act, 
Short title. 
Definitions.
Vesting of 
minerals in State 
Government. 
Payment of 
amount. 
40 PUNJAB GOVT GAZ. (EXTRA.), DEC. 12, 1996 
(AGHN. 21, 1918 SAKA) 
3. () The State Government may, from time to time, by notifi cation, acquire -the right to the minerals in any land and notwithstanding anything contained in any law for the time being in foree, from the date of the publication of the notification the right to the minerals in the land specified in the notification shall vest absolutely in the State Government and the State Government shali, subject to the provisions of the Mines and Minerals (Regulation and Development) Act, 1957 (Central Act No. 67 of 1957), have all the powers necessary for the proper enjoyment or disposal 
(2) Ifthe State Government has assigned to any person its right to the 
minerals in any land, and if for the proper enjoyment of such right, it is necessary that all or any of the powers specified in sub-section () should be exercised, the Colector may, by an order, in writing, subject to such con 
ditions and reservations as he may specify, delegate such powers to the 
person to whom the right has been assigned. 
Explanation.--In this section and section 4, the expression "right to the minerals in any land" includes the right of access to the land for the 
purpose of prospecting and working mines and for the purposes subsidiary thereto including the sinking of pits and shafts, erection of plants 
and machinery, construction of roads, stacking of minerals and deposit of 
refuse, quarrying and obtaining bui!lding and road materials, using water 
and taking timber and any other purpose which the State Government 
may declare to be subsidiary to mining. 
4. ()) On the vesting of the right to the minerals in any land under 
section 3, the person entitled to the right to the minerals in any land imme 
diately before such vesting shall be paid annually, in the manner pres 
cribed, an amount equal to ten per cent of the annual contract money or of 
royalty or dead rent, whichever is higher, payabie to the State Govern 
ment on minerals raised in a year, for a period of ten years with effect from such vesting : 
Provided that if no contract 
raise the minerals for any period, 
and the aforesaid period of ten extended by that period: 
or lease is given or the lessee does not 
no amount shall be paid for that period years shail be deemed to have been 
Providcd further that the paymént of the amount shall commence 
after the expiry of one year from the date of commencement of the period 
Explanation.Where the State Government exploits the minerals 
itseli, the royalty or dead, rent, whichever is higher, shall be calculated as if the State Government is the lessee. 
(2) The Collector shall announce in the manner prescribed an order specifying the person or persons to whom the amount shall be paid. 
(3) Ifthere is any dispute as to the person or persons who are entitled 
to the payment of an:ount, the Coliecior shall by an order decide the dispute and if he finds ihat nore tH.an cne peiscn is entitled to the amount he shall apportion the amount among such persons. 
of such rights. 
of contract or lease, as the case may be. 
Vesting of 
a in State 
Government. 
Payment of 
amount. 
40 PUNJAB GOVT GAZ. (EXTRA), DEC. 12, 1996 
_ "(AGHN. 21,1918 SAKA) 
3. (1) The State Government may, from time to time, by motifi- 
cation, acquire -the right to the minerals in any land and notwithstanding 
anything contained in any law for the time being in force, from the date of 
the publication of the notification the right to the minerals in the land 
specified in the notification shall vest absolutely in the State Government 
and the State Government shall, subject to the provisions of the Mines and 
Minerals (Regulation and Development) Act, 1957 (Central Act No. 67 of 
1957). have all the powers necessary for the proper enjoyment or disposal 
of such rights. } } 
(2) Ifthe State Government has assigned to any person its right to the 
minerals in any land, and if for the proper enjoyment of such right, it is 
necessary that all or any of the powers specified in sub-section (/) should be 
exercised, the Collector may, by an order, in writing, subject to such con- 
ditions and reservations as he may specify, delegate such powers to the 
person to whom the right has been assigned. 
Explanation.—In this section and section 4, the expression “right to 
the minerals in any land” includes the right of access to the land for the 
purpose of prospecting and working mines and for the purposes subsidiary 
thereto including the sinking - of pits and shafts, erection of plants 
and machinery, construction of roads, stacking of minerals and deposit of 
refuse, quarrying and obtaining building and road materials, using water 
and taking timber and any other purpose which the State Government 
may declare to be subsidiary to mining. 
4. (1) On the vesting of the right to the minerals in any land under 
section 3, the person entitled to the right to the minerals in any land imme- 
diately before such vesting shall be paid annually, in the manner pres- 
cribed, an amount equal to ten per cent of the annual contract money or of 
royalty or dead rent, whichever is higher, payable to the State Govern- 
ment on minerals raised in a year, fot a period of ten years with effect from 
such vesting : 
Provided that if no contract or lease is given or the lessee does not 
be paid for that period raise the minerals forany period, no amount shall 
and the aforesaid period of ten years shail be deemed to have been 
extended by that period : 
shall commence Provided further that the payment of the amount 
t of the period after the expiry of one year from the date of commencemen 
of contract or lease, as the case may be. 
Explanation.—Where the State Government ¢ 
itself, the royalty or dead, rent, whichever is higher, 
if the State Government is the lessee. 
xploits the minerals 
shall be calculated “2 
(2) The Collector chall announce in the manner prescribed an order 
specifying the person or persons to whom the amount shall be paid. 
(3) If there is any dispute as to the person or persons who are entitled 
to the payment of anount, the Collector shall by an order decide the dispute 
and if he finds that more than ene peisen is entitled to the amount he shall 
apportion the amount among such persons. 
PUNJAB GOVT. GAZ. (EXTRA.), DEC. 12, 1996 
(AGHN 21, 1918 SAKA) 
5. () Any person who is not satisfied by the order of the Collector 
under section 4 may, by written application to the Collector, require that 
the matter be referred by the Collector for the determination of a principal 
civil court of original jurisdiction, whether his objection be to the quantum 
of amount, the persons to whom it is payable, or to the apportionment of 
the amount among the persons entitled thercto. 
41 
(2) The application under sub-section (/) shall state the grounds on 
which the objection to the order of the Collector is taken : 
Provided that every such application shall be made, 
(a) if the person making it was present or represented before the 
Collector at the time when he passed his order, within six 
weeks from the date of the order of the Collector ; and 
(b) in other cases, within six weeks from the date of communication 
of ths order of the Collector. 
(3) In making the reference, the Collector shall state for the infor 
mation of the principal civil court of original jurisdiction, in writing under 
his hand, such particulars as may be prescribed. 
(4) On receipt of a reference under sub-section (3), the principal civil 
court of original jurisdiction may decide the matter itself or by a written 
order direct any civil court subordinate to it to decide the same. 
6. The provisions of the Code of Civil Procedure, 1908 shall apply 
to all proceedings before the civil court under this Act. 
7. An appeal shall lie to the principal civil court of original juris 
diction where the matter is decided by a civil court subordinate to it and to 
the High Court in other cases. 
8. (1) The State Government may, by notification, make rules for 
Carrying out the purposes of this Act. 
(2) In particular and without prejudice to the generality of the foregoing 
following matters, 
power, such rules may provide for all or any of the 
n¡mely : 
(a) .the manner in which the money is to be paid under sub-section 
(1) of section 4 ; 
(5) the manner in which an order is to be announced by the Collec 
tor under sub-section (2) of section 4; 
(c) the particulars to be stated by the Collector while making a 
reference to a principal court of original jurisdiction under 
sub-section (3) of section 5; and 
(d) any other matter which is to be, or may be prescribed under 
this Act. 
Refoton0e te 
GOurt. 
Code of Civil 
Proceduro, 1908 
to apply to 
proceedings before civil 
court. 
Appeals in 
proccedings 
before Civil 
Courts. 
Power to make 
rules, 
—~—— 
PUNJAB GOVT. GAZ. (EXTRA.), DEC. 12, 1996 41 
(AGIHIN 21,1918 SAKA) 
5. (I) Any person who is not satisfied by the order of the Collector 
under section 4 may, by written application to the Collector, require that 
the matter be referred by the Collector for the determination of a principal 
civil court of original jurisdiction, whether his objection be to the quantum 
of amount, the persons to whom it is payable, or to the apportionment of 
the amount among the persons entitled thercto. 
(2) The application under sub-section (1) shall state the grounds on 
which the objection to the order of the Collector is taken : 
Provided that every such application shall be made, — 
(a) if the person making it was present or represented before the 
Collector at the time when he passed his order, within six 
weeks from the date of the order of the Collector 3 and 
(b) in other cases, within six weeks {rom the date of communication 
of tas ordar of the Collector. 
(3) In making ‘the reference, the Collector shall state for the infor- 
mation of the principal civil court of original jurisdiction, in writing under 
his hand, such particulars as may be prescribed. b 
(4) On receipt of a reference under sub-section (3), the principal civil 
court of original jurisdiction may decide the matter itself or by a written 
order direct any civil court subordinate to it to decide the same. 
6. The provisions of the Code of Civil Procedure, 1908 shall apply 
10 all proceedings before the civil court under this Act. 
7. An appeal shall lic to the principal civil court of original juris- 
diction where the matter 1s decided by a civil court subordinate to itand to 
the High Court in other cases. 
8. (/) The Siate Government may, by notification, make rules for 
carrying out the purposes of this Act. 
(2) In particular and without prejudice to the generality of the foregoing 
power, such rules may provide for all or any of the following matters, 
namely — 
(a) .the manner in which the money is to be paid under sub-section 
(7) of section 4; 
(b) the manner in which an order isto be announced by the Collec- 
tor under sub-section (2) of scction 4; 
(¢) the particulars tO be stated by the Daliogier be uwking a 
reference to a principal court of original jurisdiction under 
sub-section (3) of section 5 ; and 
. inl i se or may be prescri d 
(4) any other matter which is to be, or may be | ribed under 
this Act. . 
court, 
Code of Civil 
Procedure, 1908 
to apply to 
piacesdin 
fore ci 
court. 
Appeals in 
proceedings 
before Civil 
Courts. 
Powel t0 make 
rules,
42 PUNJAB GOVT GAZ. (EXTRA.), DEC, 12, 1996 
(AGHN. 21, 1918 SÁKA) 
(3) Every rule made under this scction shall be laid as soon as may 
be, after it is made, before the State Legislature while it is in session for a 
total period of ten days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session in which 
it is so laid or the successive sessions aforesaid, the House agrees in making any modification in the rule or the House agrees that the rules should not be made, the rule shall thereafter have effect only in such modified 
form or be of no effect, as the case may be, so, however, that any such 
modification or annulment shall be without prejudice to the vaidity of 
anything previously done under that rule. 
BHUPINDER SINGH SIDHU, 
Joint Secretary to Government of Punjab, 
Department of Legal and Legislatiye Affairs. 
42 PUNJAB GOVT GAZ. (EXTRA.), DEC. 12, 1996 
- (AGHN. 21, 1918 SAKA) 
(3) Every rule made under this section shall be laid as soon as may 
be, after it is made, before the State Legislature while it is in session for a 
total period of ten days which may be comprised in one session or in two 
or more successive sessions and if, before the expiry of the session in which 
it is so laid or the successive sessions aforesaid, the House agrees in making 
any modification in the rule or the House agrees that the rules should not 
be made, the rule shall thereafter have effect only in such modified 
form or be of no effect, as the case may be, so, however, that any such 
modification or annulment shall be without prejudice to the validity of 
anything previously done under that rule. 
BHUPINDER SINGH SIDHU, 
Joint Secretary to Government of Punjab, 
Department of Legal and Legislative Affairs.

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