{"id":96439,"date":"1989-03-31T00:00:00","date_gmt":"1989-03-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/kali-prasad-agarwalla-others-vs-bharat-coking-coal-limited-on-31-march-1989-2"},"modified":"2018-05-02T17:29:02","modified_gmt":"2018-05-02T11:59:02","slug":"kali-prasad-agarwalla-others-vs-bharat-coking-coal-limited-on-31-march-1989-2","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/kali-prasad-agarwalla-others-vs-bharat-coking-coal-limited-on-31-march-1989-2","title":{"rendered":"Kali Prasad Agarwalla & Others vs Bharat Coking Coal Limited & … on 31 March, 1989"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Kali Prasad Agarwalla & Others vs Bharat Coking Coal Limited & … on 31 March, 1989<\/div>\n
Equivalent citations: 1989 AIR 1530, \t\t 1989 SCR (2) 283<\/div>\n
Author: K Shetty<\/div>\n
Bench: Shetty, K.J. (J)<\/div>\n
           PETITIONER:\nKALI PRASAD AGARWALLA & OTHERS\n\n\tVs.\n\nRESPONDENT:\nBHARAT COKING COAL LIMITED & OTHERS\n\nDATE OF JUDGMENT31\/03\/1989\n\nBENCH:\nSHETTY, K.J. (J)\nBENCH:\nSHETTY, K.J. (J)\nOZA, G.L. (J)\n\nCITATION:\n 1989 AIR 1530\t\t  1989 SCR  (2) 283\n 1989 SCC  Supl.  (1) 628 JT 1989 (3)\t170\n 1989 SCALE  (1)852\n\n\nACT:\n    Coal  Mines (Nationalisation) Act, 1973:  ss.  2(h)(iv),\n2(h)(vi), 3, 5 & 6--Land used for carrying on mining  opera-\ntions  adjacent\t to  a coal  mine--Whether  a  mine--Whether\nvested in Central Government-Owners right, title and  inter-\nest--Whether extinguished.\n    Practice  and  Procedure: Whether  parties\tentitled  to\nretract from evidence let in.\n\n\n\nHEADNOTE:\n    Section  3 of the Bihar Land Reforms Act, 1950  provided\nfor  vesting an estate or tenure in the State. Section\t2(h)\nof  the\t Coal Mines (Nationalisation) Act,  1973  defines  a\n'mine,\tto mean any excavation where any operation  for\t the\npurpose\t of searching for or obtaining minerals has been  or\nis being carried on. Sub-clause (iv) thereto includes there-\nin  all open cast workings and sub-clause (vi) takes in\t all\nlands, buildings etc., in or adjacent to a mine and used for\nthe purposes of the mine. Section 3(1) provides for acquisi-\ntion  of  rights of owners in respect of coal mines  by\t the\nCentral Government. Section 5(1)empowers the Central Govern-\nment  to direct vesting of the said rights in  a  Government\ncompany.  Section 6(1) refers properties vested in the\tCen-\ntral Government free from mortgages etc.\n    The\t appellants instituted a suit in respect of a  large\nexpanse\t of  land for declaration of their  homestead  right\nthereto.  The possession in the zamindari right was  settled\nto  their ancestor in 1949. They, therefore, claimed  owner-\nship of leasehold land.\n    The\t respondent Government-company resisted the suit  on\nthe grounds, firstly, that the disputed land formed part  of\na  colliery which had vested in the Central  Government\t and\nthereafter  in the company under the provisions of the\tCoal\nMines (Nationalisation) Act and secondly, that the  interest\nclaimed by the plaintiffs, automatically stood\textinguished\nwith the vesting of the estate of the plaintiffs' lessor  by\nreason\tof  the notification issued under s. 3 of  the\tLand\nReforms Act.\nThe trial court negatived all the defences anti decreed\t the\nsuit.\n284\nReversing  the\tsaid decree, the High Court  held  that\t the\nlease granted to the plaintiffs was an encumbrance which was\nannihilated with the issuance of the notification under s. 3\nof the Land Reforms Act, and that the lease having thus come\nto  an\tend the plaintiffs had no title to be  declared.  It\nfurther\t found that the salt lands were adjacent to  a\tcoal\nmine  and were being used for the purpose of the said  mine.\nTherefore, it held that the suit lands were more within\t the\nmeaning\t of  the Nationalisation Act, and  that\t what  vests\nunder  that Act is the mine and not .merely the interest  of\nthe owner of the mine.\nDismissing the appeal,\n    HELD: 1.1 The evidence on record both for the  plaintif-\nfappellants  and the defendant-respondents makes it  evident\nthat the land was being used for the purpose of the mine for\ncarrying on the mining operations in respect of the part  of\nthe  seam lying immediately below the surface. There  cannot\nbe  any working mine without the surface being\tincluded  in\nthat  concept.\tIf  the surface does not form  part  of\t the\nconcept of mine, it is not possible to have any\t excavation.\nSection\t 2(h)(iv)  of the Coal Mines  (Nationalisation)\t Act\nincludes open cast working within the definition of  'mine.'\n[289E-F]\n    1.2\t The suit land was also adjacent to a coal mine\t and\nwas  being used for the purposes of the said  mine,  namely,\nstacking  of the coal and effecting local sale\tthereof.  It\nwas  therefore, a mine as defined under s. 2(h)(vi)  of\t the\nAct. [289G]\n    2.\tUnder  s. 3 of the said Act, the  right,  title\t and\ninterest  of the owners in relation to the coal mines  stood\ntransferred to and vested absolutely in the Central  Govern-\nment  free from encumbrances. It was immaterial whether\t the\nmine belonged to the State or to a private party. The appel-\nlant's\ttitle  to the said land, if any, thus  stood  extin-\nguished. [289H; 290A]\n    State  of  West Bengal v. Union of India,<\/a> [1964]  1\t SCR\n371, referred to.\n    3.\tThe  parties went to trial knowing fully  well\twhat\nthey  were required to prove. They have adduced evidence  of\ntheir  choice  in  support of the  respective  claims.\tThat\nevidence  has  been  considered by both\t courts\t below.\t The\nappellants  cannot now turn round and say that the  evidence\nshould\tnot be looked into. This is a well accepted  princi-\nple. [290C-D]\n285\n    Kunju  Kesavan v.M.M. Philip & Ors., [1964] 3  SCR\t634,\nreferred to.\n\n\n\nJUDGMENT:\n<\/pre>\n
    CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 2647  of
\n1980.\n<\/p>\n
    From the Judgment and Order dated 24.4.1980 of the Patna
\nHigh Court in Original Decree No. 289 of 1979(R).
\nShankar Ghosh, S .P. Lal and H.K. Puri for the Appellant.
\nL.N.  Sinha, R.N. Sachthey and A. Sachthey for the  Respond-
\nents.\n<\/p>\n
The Judgment of the Court was delivered by
\n    K.\tJAGANNATHA  SHETTY, J. This  appeal  by\t certificate
\nunder Art. 133(1) of the Constitution is from a decision  of
\nthe  Patna High Court which reversed the decree in the\tsuit
\nfiled by the appellant for declaration of title and  confir-
\nmation of possession.\n<\/p>\n
    In\tthe court of the Subordinate Judge, the First  Court
\nat  Dhanbad, the plaintiff\/appellants instituted a  suit  in
\nrespect\t of  Schedule B of the plaint for a  declaration  of
\ntheir  homestead right thereto and for confirmation of\tpos-
\nsession\t or in the alternative recovery of  possession.\t The
\nsuit property consists of 30 bighas, 18 kattar and 11  chha-
\ntaks  being part of plot nos. 59 and 70 in village  Dhansar.
\nThe plaintiff’s claim was based on a registered indenture of
\nlease  dated December 9, 1949 by which it is said  that\t the
\npossession in the Zamindari right of Kali Prasad was settled
\nto  Ruplal  Aggarwal, father of plaintiff No. 1\t and  grand-
\nfather of plaintiff Nos. 2 and 3. The plaintiffs’ claim that
\nthey  have become the owners of the lease hold land and\t are
\nin  possession\tof the same by exercising  diverse  acts  of
\npossession, mutating their name and by payments of stipulat-
\ned  rents  to the State of Bihar, who  recognised  the\tsaid
\nlease.\n<\/p>\n
    The\t defendant  is a Government company  called  Messrs.
\nBharat\tCoking Coal Limited (The Company). The\tCompany\t re-
\nsisted\tthe  suit on three main grounds: firstly,  that\t the
\ndisputed land formed part of North Bhuggatdih Colliery which
\nhad  vested in the Central Government and thereafter in\t the
\ncompany under the provisions of the Coal Mines (Nationalisa-
\ntion) Act, 1973, secondly, that the interest claimed by\t the
\nplaintiffs automatically stood extinguished with the vesting
\nof  the estate of the plaintiffs’ lessor, by reason  of\t the
\nvesting notification
\n286<\/span>
\nissued\tunder  sec. 3 of the Bihar Land Reforms\t Act,  1950.
\nLastly, that actual lease of the land was taken much earlier
\nexpressly for the purposes of the mines and that the instru-
\nment  of 1949 is contaminated with flaw and obtained with  a
\nview  to certifying the vesting of the estates in the  State
\nof  Bihar  and even that on a misapprehension that  the\t so-
\ncalled homestead land would. not vest.\n<\/p>\n
The  trial court negatived all the defences and decreed\t the
\nsuit.\n<\/p>\n
    Upon  appeal  by the company, the Patna High  Court\t re-
\nversed the decree of the trial court and dismissed the suit.
\nThere  are two main findings recorded by the High  Court  to
\nallow  the appeal. As to the scope and effect of the  provi-
\nsions of the Bihar Land Reforms Act, 1950 in respect of\t the
\nsuit property, the High Court held:\n<\/p>\n
\t\t       “For  the reasons indicated above,  I
\n\t      am  of  the view that a lease granted  to\t the
\n\t      plaintiffs  in the instant case was an  encum-
\n\t      brance  and it was annihilated with the  issu-
\n\t      ance  of the notification under sec. 3 of\t the
\n\t      Act.  The\t submission urged on behalf  of\t the
\n\t      appellants, therefore, in this behalf must  be
\n\t      accepted.\t The lease of the plaintiffs  having
\n\t      come to an end consequent upon the issuance of
\n\t      notification  under  sec. 3 of  the  Act,\t the
\n\t      plaintiffs  have no title to be  declared\t and
\n\t      the decree of the trial court is liable to  be
\n\t      set aside.”\n<\/p><\/blockquote>\n
\t\t  As to the nature of the suit property\t and
\n\t      the  scope and effect of the Coal\t Mines\t(Na-
\n\t      tionalisation) Act, 1973, the High Court on an
\n\t      appraisal of the oral and documentary evidence
\n\t      led by both the parties said:\n<\/p><\/blockquote>\n
\t\t       “I  would,  therefore,  prefer  their
\n\t      positive\tevidence (referring to\tthe  defend-
\n\t      ants\/respondents\tevidence) than to the  nega-
\n\t      tive evidence adduced on behalf of the  plain-
\n\t      tiffs. It will, however, be seen that the suit
\n\t      lands  are  adjacent to a coal  mine,  namely,
\n\t      North Bhuggatdih Colliery and were being\tused
\n\t      for  the\tpurposes of the said  mine,  namely,
\n\t      stacking\tof  coal and effecting\tlocal  sales
\n\t      thereof.\tThe conclusion is, therefore,  ines-
\n\t      capable  that the suit lands are\tmore  within
\n\t      the  meaning of the Nationalisation Act.\tWhat
\n\t      vests  under  the Nationalisation Act  is\t the
\n\t      mine and not merely the interest of the  owner
\n\t      of the mine.”<\/p><\/blockquote>\n
287<\/span><\/p>\n
    Having regard to these findings, the High Court did\t not
\nfind it necessary to examine whether the instrument of\t1949
\nwas a genuine transaction.\n<\/p>\n
    In\tthis appeal, on the submission of counsel  for\tboth
\nsides, two questions arise for our consideration: (i) wheth-
\ner the suit lands had vested, free from encumbrance in\tthe.
\nState  consequent  upon the issuance of\t Notification  under
\nsec.  3 of the Bihar Land Reforms Act; and (ii) whether\t the
\nsuit  land is “mines” within the meaning of the\t Coal  Mines
\n(Nationalisation) Act, 1973?\n<\/p>\n
    In our opinion, it is unnecessary to consider the  first
\nquestion  and indeed it is not proper also to  consider\t the
\nquestion  in the absence of the State which is\ta  necessary
\nparty  for adjudication of that dispute. The State of  Bihar
\nis  not impleaded as a party to the suit and we,  therefore,
\nrefrain\t from expressing any opinion on the first  question.
\nOn the second question, the relevant provisions of the\tCoal
\nMines  (Nationalisation)  Act,\t1973 (The Act)\tmay  now  be
\nnoted.\n<\/p>\n
\t\t\t“Section  2(h)\tdefines\t “mines”  to
\n\t      mean  any excavation where any  operation\t for
\n\t      the  purpose  of searching  for  or  obtaining
\n\t      minerals has been or is being carried on,\t and
\n\t      includes
\n\t      XXX XXX XXX XXX XXX\n<\/p><\/blockquote>\n
\t      (iv) all open cast workings;\n<\/p><\/blockquote>\n
\t      XXX XXX XXX XXX XXX\n<\/p><\/blockquote>\n
\t\t\t(vi)  all lands,  buildings,  works,
\n\t      adits,  levels, planes, machinery\t and  equip-
\n\t      ments, instruments stores, vehicles, railways,
\n\t      tramways\tand  sidings in, or adjacent  to,  a
\n\t      mine and used for the purposes of the mine;
\n\t\t    XXX XXX XXX XXX XXX\n<\/p><\/blockquote>\n
\t\t\t(x) all lands, buildings and  equip-
\n\t      ments belonging to the owners of the mine, and
\n\t      in, adjacent to or situated on the surface of,
\n\t      the  mine where the washing of  coal  obtained
\n\t      from  the mine or manufacture,  therefrom,  of
\n\t      coke is carried on.\n<\/p><\/blockquote>\n
\t      XXX XXX XXX XXX XXX XXX
\n\t      288<\/span>
\n\t      Section 3, so far it is relevant, reads.
\n\t\t\t“(1)  On  the  appointed  day,\t the
\n\t      right,  title  and interest of the  owners  in
\n\t      relation\tto the coal mines specified  in\t the
\n\t      Schedule shall stand transferred to, and shall
\n\t      vest  absolutely\tin, the\t Central  Government
\n\t      free from all incumbrances  ……….  ”
\n\t      Section 5(1) reads as under:\n<\/p><\/blockquote>\n
\t\t\t“(1)  Notwithstanding anything\tcon-
\n\t      tained  in secs. 3 and 4, the Central  Govern-
\n\t      ment may, if it is satisfied that a Government
\n\t      company is willing to comply, or has complied,
\n\t      with such terms and conditions as that Govern-
\n\t      ment  may think fit to impose, direct,  by  an
\n\t      order  in writing, that the right,  title\t and
\n\t      interest\tof  an owner in relation to  a\tcoal
\n\t      mine referred to in sec. 3, shall, instead  of
\n\t      continuing to vest in the Central\t Government,
\n\t      vest  in the Government Company either on\t the
\n\t      date  of\tpublication of the direction  or  on
\n\t      such  earlier or later date (not being a\tdate
\n\t      earlier  than  the appointed day), as  may  be
\n\t      specified in the direction.”\n<\/p><\/blockquote>\n
\t      Section 6(1) provides as under:
\n\t\t       “(1) All property which vests in\t the
\n\t      Central Government or in a Government  company
\n\t      under  this  Chapter shall, by force  of\tsuch
\n\t      vesting  be  freed  and  discharged  from\t any
\n\t      trust, obligation, mortgage, charge, lien\t and
\n\t      all  other incumbrances affecting it  and\t any
\n\t      attachment,  injunction or decree or order  of
\n\t      any court restricting the use of such property
\n\t      in  any  manner shall be deemed to  have\tbeen
\n\t      withdrawn.”<\/p><\/blockquote>\n
    Sections  8 to 10 in chapter III provide for payment  of
\ncompensation  to  owners  of coal  mines.  Provisions  under
\nChapter\t IV  of\t the Act deal with claims to  be  .made\t for
\ncompensation  and for disbursing the amounts payable to\t the
\nOwners of coal mines by Commissioner of Payments.
\n    On behalf of the plaintiffs, 11 witnesses were  examined
\nincluding  plaintiff  No. 1 himself. Most of  the  witnesses
\nhave  not  made any relevant statement on  the\tquestion  of
\nlocation or user of the suit land.\n<\/p>\n
289<\/span><\/p>\n
However, Kanhaiya Lal Agarwal, witness No. 6 for the  plain-
\ntiff stated, “The land is full of collieries on all the four
\nsides.”\t Likewise Ram Briksha Viswakarma, witness No. 8\t for
\nthe  plaintiffs\t has stated that the suit land is  a  fallow
\nland and no crop is grown on it and there is nothing  except
\nthe  road in between the suit land and the  North  Bhagatdih
\nColliery. The 9th witness of the plaintiffs B.K.  Mukherjee,
\nwho surveyed the locality and submitted a report stated:\n<\/p>\n
\t\t\t“At  the time of my inspection,\t the
\n\t      defendants  were\tremoving  the  over-burdened
\n\t      surface  and then taking out coal and this  is
\n\t      called open cast working\t…..  I do not\t see
\n\t      the quarry by Southern side of the leased coal
\n\t      land  but\t do not remember  whose\t quarry\t was
\n\t      there.  There were coal all over the land\t but
\n\t      it   was\tafter  the  burden  of\t earth\t was
\n\t      removed  …..  The coal was being ,cut at the
\n\t      depth  of 25 from the surface.  Adjoining\t the
\n\t      quarry,  the land was not for  homestead\tpur-
\n\t      poses.”\n<\/p><\/blockquote>\n
    The witnesses for the defendant company have specifical-\n<\/p><\/blockquote>\n
ly  stated  that the land in dispute constitutes  the  upper
\nlayer  of the coal lying beneath and above the surface.\t The
\nworking\t of the mines is by open cast working  system.\tWhen
\nthe  mining operations are carried on in the other parts  of
\nthe  Seam, the land is being used for the  various  purposes
\nconnected with the mining operations.\n<\/p>\n
    In the light of this evidence, the location of the\tsuit
\nland  and the uses to which it is put to are  beyond  doubt.
\nThe land is being used for carrying on the mining operations
\nand it is adjacent to a mine. It is used for the purposes of
\nthe mine for carrying on the mining operations in respect of
\nthe  part of the Seam lying immediately below  the  surface.
\nApparently,  there  cannot be any working mine\twithout\t the
\nsurface being included in that concept. If the surface\tdoes
\nnot form part of the concept of mine, it is not possible  to
\nhave  any  excavation. Section 2(h)(iv) includes  open\tcast
\nworking within the definition of “mine”.
\n    Secondly, the suit land is also adjacent to a coal mine,
\nnamely,\t North Bhagatdih Colliery and is being used for\t the
\npurposes of the said mine, namely, stacking of the coal\t and
\neffecting  local sale thereof. It is, therefore, a  mine  as
\ndefined under sec. 2(h)(vi) of the Act.\n<\/p>\n
    Under  sec. 3 of the Act, the right, title and  interest
\nof  the\t owners in relation to the coal mines  stand  trans-
\nferred to and shall vest abso-\n<\/p>\n
290<\/span><\/p>\n
lutely in the Central Government free from encumbrances. For
\nthe  purpose  of acquisition and vesting, it  is  immaterial
\nwhether the mine belongs to the State or to the\t plaintiffs.
\nIn either case, the Act extinguishes the title. A  Constitu-
\ntion Bench of this Court in State of West Bengal v. Union of
\nIndia,<\/a> [1964] 1 SCR 371 has held that under Entry 44 of List
\n3 of the Seventh Schedule to the Constitution, Parliament is
\ncompetent to make a law for acquisition of property owned by
\nthe State.\n<\/p>\n
    It was, however, urged for the appellants that there  is
\nno proper pleading or issue for determination of the  afore-
\nsaid  question and the evidence let in should not be  looked
\ninto.  It is too late to raise this contention. The  parties
\nwent to trial knowing fully well what they were required  to
\nprove. They have adduced evidence of theft choice in support
\nof the respective claims. That evidence has been  considered
\nby  both  courts below. They cannot now turn round  and\t say
\nthat the evidence should not be looked into. This is a\twell
\naccepted principle.\n<\/p>\n
    In\tKunju Kesavan v. M.M. Philip & Others,<\/a> [1964] 3\t SCR
\n634, this Court has stated (as summarised in the headnote at
\np. 637):\n<\/p>\n
\t\t\t“The  parties went to  trial,  fully
\n\t      understanding  the  central fact\twhether\t the
\n\t      succession  as  laid down in  the\t Ezhava\t Act
\n\t      applied  to Bhagavathi Valli or not.  The\t ab-
\n\t      sence of an issue, therefore, did not lead  to
\n\t      a material sufficient to vitiate the decision.
\n\t      The plea was hardly needed in view of the fact
\n\t      that  the plaintiff stated in his\t replication
\n\t      that the “suit property was obtained as makka-
\n\t      thayam property, by Bhagavathi Valli under the
\n\t      Ezhava  Act”.  The subject of  exemption\tfrom
\n\t      Part IV of the Ezhava Act, was properly raised
\n\t      in the trial court and was rightly  considered
\n\t      by the High Court.”<\/p><\/blockquote>\n
    On\tthe facts and circumstances of the case\t we  cannot,
\ntherefore, accept the contention urged for the appellant  in
\nthis regard.\n<\/p>\n
    In\tthe  result and for the reasons\t stated\t above,\t the
\nappeal fails and is dismissed. In the circumstances,  howev-
\ner. we make no order as
\nto costs.\n<\/p>\n
P.S.S.\t\t\t\t\t       Appeal\tdis-\nmissed.\n291<\/span>\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Kali Prasad Agarwalla & Others vs Bharat Coking Coal Limited & … on 31 March, 1989 Equivalent citations: 1989 AIR 1530, 1989 SCR (2) 283 Author: K Shetty Bench: Shetty, K.J. (J) PETITIONER: KALI PRASAD AGARWALLA & OTHERS Vs. RESPONDENT: BHARAT COKING COAL LIMITED & OTHERS DATE OF JUDGMENT31\/03\/1989 BENCH: SHETTY, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-96439","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nKali Prasad Agarwalla & Others vs Bharat Coking Coal Limited & ... on 31 March, 1989 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/kali-prasad-agarwalla-others-vs-bharat-coking-coal-limited-on-31-march-1989-2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kali Prasad Agarwalla & Others vs Bharat Coking Coal Limited & ... on 31 March, 1989 - 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