SONE VALLEY PORTLAND CEMENT CO LIMITED Vs. GENERAL MINING SYNDICATE PRIVATE LIMITED
LAWS(SC)-1976-8-55
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on August 24,1976

SONE VALLEY PORTLAND CEMENT COMPANY LIMITED Appellant
VERSUS
GENERAL MINING SYNDICATE PRIVATE LIMITED Respondents

JUDGEMENT

Jaswant Singh, J. - (1.) This appeal by certificate granted under Article 133 (1) (a) and (c) of the Constitution which is directed against the judgment and decree-dated March 25, 1968 of the High Court of Calcutta in Appeal No. 255 of 1963 raises important questions relating to the interpretation of certain provisions of the Bihar Land Reforms Act, 1950 (Act XXX of 1950) (hereinafter referred to as 'the B. L. R. Act') as also of the Mining Leases (Modification of Terms) Rules, 1956 providing for the modification and alteration of terms and conditions of the mining leases granted prior to the commencement of the Mines and Minerals (Regulation and Development) Act, 1948 (Act 53 of 1948) (hereinafter referred to as 'the 1948 Act') and of the Mines and Minerals (Regulation and Development) Act, 1957 (Act 67 of 1957) (hereinafter referred to as 'the 1957 Act') which replaced the 1948 Act on June 1, 1958.
(2.) The facts and circumstances leading to this appeal are:By an indenture of lease dated July 31, 1927 (hereinafter referred to as the 'head lease'). Raja Bishmbharanath Sahi (hereinafter referred to as the 'Raja') who was the sole proprietor of large tracts of land known as the Sonepura estate in Paragana Rohtas in the district of Shahbad in Bihar demised certain blocks of land situate in village Jaintipur, Nimhath, Deodand and Dhanwanti, District Shahbad, together with quarries of lime stone (known as Chunhatta Lime Stone Quarries) lying thereunder for a period of 40 years commencing from 1st day of August, 1927, and ending on 31st day of July, 1967 with an option to continue for a further period of 25 years, in consideration of a 'salami and fine of Rupees 8,200/- unto Karunaranan Dutt and Jugalchandra Dutt (hereinafter referred to as 'Dutts'). By the said indenture, the head lessees inter alia undertook to pay to the Raja during the first 15 years of the said period of 4o years of the lease i.e. from the 1st day of August, 1927, to 31st day of July, 1942, royalty at the rate of annas -/10/- (ten) = 62 paise for every 100 cubic feet i.e. roughly at 15 1/2 paise per ton of solid lime stone, quarried, raised, got, used or taken out from the demised premises and for the remaining 25 years of the lease i.e. from the 1st day of August, 1942, to 31 st day of July, 1967, royalty at the rate of annas -/15/- (fifteen) = 94 paise instead of annas -/10/- (ten) for every 100 cubic feet i.e. roughly at 24 paise per ton of solid lime stone, quarried, raised, got, used or taken out from the demised premises. The aforesaid royalty was made payable quarterly i.e. after every three months on the fixed dates specified in the indenture of lease. The head lessees also undertook to pay yearly rent of annas -/6/- (six) per acre subject to the maximum of Rupees 100/- for so much of the surface land as was to be entered upon, used or occupied by them for the purpose of placing stocking and heaping stones waste materials and rubbish etc. The lease deed further provided as follows:- "That the 'LESSEES" shall be at liberty and competent without obtaining any further consent of the "LESSOR" to assign and transfer this lease or sublet or part with the possession of the demised premises or any part thereof to any person, firm or company whether incorporated or otherwise and no mutation fee or Nazarana or premium shall be charged by the 'LESSOR' in case of such transfer or subletting for the first time, but in case of subsequent transfer or subletting a fee of rupees five hundred (500/-) shall be payable to the 'LESSOR' for each such occasion. If the rents and royalties hereby reserved or any part thereof or any other moneys hereunder payable by the 'LESSEES' to the 'LESSOR' shall remain unpaid for three months after the same shall become due and payable the 'LESSEES' shall pay interest thereon at the rate of twelve (12) per cent per annum calculated from the due date until payment. If the same shall remain unpaid for three years consecutively or if there by any breach of any of the covenants and agreements herein contained and on the part of the 'LESSEE' to be performed and observed then this lease shall be liable to be forfeited under an order of a competent Court besides any other relief hereunder and under the law then prevailing."
(3.) On October 12, 1928, the head lessees i.e. Dutts executed a sub-lease of the aforesaid blocks of land and quarries of lime stone for the residue of the period of the aforesaid indenture of lease dated July, 1927 except the last day thereof for a consideration of Rs. 5,000/- in favour of the appellant. The appellant undertook to pay to the head lessees during residue of the first 15 years of the said period of 40 years royalty of annas -/16/- (sixteen) for every 100 cubic feet of solid lime stone quarried, raised, got or used or taken out from the demised premises and for the remaining 25 years thereafter of the said period for each such quantity, royalty of annas -/11/- (eleven). The sub-lease gave option to the appellant to make payment to the head lessor directly of royalties in terms of the aforesaid head lease whether the head lessees were to make default or not in making payment of the same. On February 15, 1929, Dutts transferred by a deed of assignment all their rights, title and interest under and by virtue of the aforesaid indenture of head lease and the sub-lease dated October 12, 1928 to the respondent. The appellant had due notice of the said assignment and accepted the respondent as its lessor in place of Dutts.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.