MAHINDRA NATH SHUKLA JUGAL KL HORE JAYSWAL Vs. STATE OF BIHARS:PRADIT GUPTA
LAWS(SC)-1980-4-34
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on April 11,1980

MAHINDRA NATH SHUKLA,JUGAL KL HORE JAYSWAL Appellant
VERSUS
STATE OF BIHAR,PRADIT GUPTA Respondents

JUDGEMENT

Krishna Iyer, J. - (1.) We have a hunch - we leave it at that - that these "workers" writ petitions are a kind of litigative puppetry, the illcit mine exploiters being the puppeteers. This set of writ petitions, where some private managements claim to have the right to extract coking coal on the score that prohibition enacted in the Coal Mines (Nationalisation) Amendment Act, 1976 does not affect or operate on coking coal mines, must be dismissed as devoid deserts.
(2.) The short point sharply focussed by Dr. Chitale and echoed with some variant notes by other counsel, in support of those writ petitions may be briefly stated thus. According to him, the history of coal nationalisation legislation in this country in the seventies of this century shows that Parliament has treated coal and coking coal separately for legislative purposes in regard to taking over of management, nationalisation of ownership and the like. It all began with the year 1971 when Parliament enacted the Coking Coal Mines (Emergency Provisions) Act, 1971 (hereinafter called the 1971 Act for short). It took over management of coking coal mines. Iron and Steel are key industries requiring, importantly, coking coal for their very survival. When Parliament found that coking coal was not being made available properly to the Industry on account of the unsatisfactory conduct of the Private sector operating in this field, the entire management of coking coal mines was taken over on an emergency footing in the public interest by the 1971 Act. Thereafter, with more deliberation and detailed investigation, the management of coking coal mines (and of other coal mines) was taken over by appropriate legislation, still later, after mature planning and understanding of implications. Parliament enacted legislation for vesting of ownership of coking coal mines and eventually of all coal mines. The management of coking coal was taken over by the Central Government under Coking Coal Mines (Emergency Provisions) Act, 1971. The management of all other coal mines was taken over by the Central Government under the Coal Mines (Taking over of Management) Act, 1973. The second step after management came under the control of the Central Government was the actual nationalisation of ownership itself. This state of planning led to Parliamentary enactments of Coking Coal Mines (Nationalisation) Act, 1972 (36 of 1972) and the Coal Mines (Nationalisation) Act, 1973 (26 of 1973). The sequence of events shows the evolution of national policy in this regard. Coking coal, being absolutely essential, was first taken over urgently. Later on, the entire coal industry came under Parliamentary consideration and management thereof was taken over. Finally, the ownership of all coal mines, including coking coal mines, was vested in the Central Government and in certain instrumentalities created by Central Government. Thus we see that the comprehensive plan behind coal nationalisation did not permit of private agencies operating in the field. Coking coal was more strategic than ordinary coal having regard to its use for iron and steel industries. Nevertheless, it was found as a fact that on account of these mines being located in remote places and in jungles, especially in the State of Bihar and Bengal, the Central Government wanted to take effective steps to put an end to clandestine mining by any private agency. The jungle of laws haphazardly enacted partly helped the privateers get round the law and clandestinely or even through Court receivers extract coal as there was big money in it. Therefore, the 1976 Act was enacted to plug all loop-holes, virtually banish the private sector and to ensure legal success for Project Public Sector in the field of coal mining. Section 3 (3) of the 1976 Act reads thus: "3 (3). On and from the commencement of Section 3 of the Coal Mines (Nationalisation) Amendment Act, 1976:- (a) no person, other than - (i) the Central Government or a Government company or a corporation owned managed or controlled by the Central Government, or (ii) a person to whom a sub-lease, referred to in the proviso to clause (c) has been granted by any such Government, company or Corporation, or (iii) a company engaged in the production of iron and steel, shall carry on coal mining operation in India, in any form; (b) excepting the mining leases granted before such commencement in favour of the Government Company or corporation, referred to in clause (a), and any sub-lease granted by any such Government Company or corporation, all other mining leases and sub-leases in force immediately before such commencement, shall, in so far as they relate to the wining or mining of coal, stand terminated; (c) no lease for winning or mining coal shall be granted in favour of any person other than the Government, company or Corporation, referred to in clause (a) ........"
(3.) Section 4 of the same Act superadds severe punishment for contravention of the prohibition contained in Section 3 (3). The total effect thus is clear. The Parliament wanted to prevent the mischief of coal mining and other illcit extraction of coal to the national detriment. Scratching, slaughter mining and such like activities on the sly were regarded as defeating the nationalisation scheme.;


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