Ranganath Misra, J. - (1.) Special Leave granted.
(2.) Respondent No. 1, a partnership firm, held a coking coal mine known as Tariya Colliery within the State of Bihar the management whereof was taken over under the Coking Coal Mines (Emergency Provisions) Ordinance of 1971 with effect from October 17, 1971, along with several other coking coal mines and some coke oven plants. The ordinance was in due course replaced by a statute bearing the same title (hereinafter referred to as the 'Management Act'). Then came the Coking Coal Mines (Nationalisation) Act, 1971 ('Nationalisation Act' for short) which received Presidential assent on August 17, 1982, but under Section 1, sub-section (2) thereof, the statute was deemed to have come into force with effect from May 1, 1972. Under S. 3, sub-s. (a) of the Nationalisation Act, May 1, 1972 was the appointed day. Under the provisions of the Ordinance followed by the Management Act, ownership of the mines was not disturbed but management was taken over. Under the Nationalisation Act, the right, title and interest of the owner in the mines extinguished and became vested in the Central Government with effect from May 1, 1972. Under the Management Act, the Custodian carried on the management on behalf of the owner while under the Nationalisation Act ownership was abolished and payment of a sum to the owner by way of compensation was contemplated. So far as the period between October 17, 1971 and April 30, 1972, when title in the colliery continued to vest in the owner but only management had been taken over under the provisions of the first statute, was concerned, the business was run by the Custodian on account of the owner. Therefore, the Nationalisation Act provided that upon accounts being taken, either the owner was to be paid the surplus or if there had been excess expenditure, the same had to be recovered from the owner.
(3.) In the instant case there was a stock of 5650 tons of coking coal and 602 tons of soft coke when management was taken over on October 17, 1971 and on April 30, 1972, at the end of which ownership was extinguished, there was a stock of 30,411 tons of coking coal and 956 tons of soft coke. A total expenditure of about eight lac rupees had been incurred for raising the said quantity of coal during the period of management. This stock was not taken into account and credit for it was not given to the owner but the expenses of extraction amounting to Rs. 7,95,071.94 were raised against the owner. The owner laid claim to a sum of Rs. 1,01,755.37 as its entitlement under the Nationalisation Act on the ground that if credit was given to the stock in trade on the basis of the closing balance, it would be entitled to that amount.;