MAHANADI COAL FIELDS LTD. & ANR. Vs. MATHIAS ORAM & ORS.
LAWS(SC)-2017-7-166
SUPREME COURT OF INDIA
Decided on July 10,2017

Mahanadi Coal Fields Ltd. And Anr. Appellant
VERSUS
Mathias Oram And Ors. Respondents

JUDGEMENT

- (1.) Vide notification dated 11.02.1987 issued under Section 4(1) of the Coal Bearing Areas (Acquisition and Development) Act, 1957 (in short "the Act'), the Central Government gave notice of its intention to prospect for coal in Revenue Village Gopalpur, District Sundergarh, Orissa. This was followed by Notification dated 27.07.1987 under Section 7(1) giving notice of intention to acquire the notified land. Finally, Section 9 notification dated 10.07.1989 was issued by which the notified lands got vested in the Central Government. Vide notification dated 20.03.1993 issued under Section 11 of the Act, all rights in the acquired lands were vested in the Mahanadi Coal Field Ltd., appellant herein w.e.f 17.11.1991. The affected land owners claimed compensation and rehabilitation and finally moved the High Court of Orissa by way of W.P.(C) No.11463/2003 which was disposed of on 13.11.2006 titled " Mathias Oram and Ors. v. Mahanadi Coal Fields Ltd. and Anr." which is the impugned judgment.
(2.) When the matter came up for hearing before this Court on 19.07.2010, former Judge of the Orissa High Court, Justice A.K. Parichha was appointed as Chairman of the Commission along with two other officers to examine the claims of the affected parties and also to go into other related aspects.
(3.) The scheme was proposed by the Amicus Curaie and was accepted by this Court in (2010) 11 SCC 269 as follows:- "22. The scheme proposed by Mr. Subramanium and agreed upon by the Central Government and the Coal Company is as follows:- 1. The land in Village Gopalpur, District Sundergarh, Orissa stands acquired by the Central Government and ownership is vested with MCL, which will determine and pay compensation to the erstwhile landowners. 2. In respect of vast portions of the acquired land (excluding the area where mining activities are being undertaken), actual physical possession was never taken. The State of Orissa and its officers are directed to assist MCL in taking actual physical possession of the acquired land. 3. Since the matter pertains to an acquisition of 1987 i.e. more than two decades ago, the extent of actual physical possession needs to be re-ascertained, it is necessary that the genuine landowners, amount of compensation payable, status of possession, use to which the land has been put in the last two decades, is discovered. The entire land needs to be surveyed again. 4. In accordance with the advice of the learned Solicitor General, a Claims Commission needs to be set up with representatives of the Central Government as well as MCL. It is submitted that the Claims Commission will consist of 3 Members:- (a) A former Judge of the High Court of Orissa (Chairman); (b) An officer who has held a post/office equivalent to the rank of Secretary to the Government of India; (c) An officer to be nominated by Chairman, Coal India Ltd. The Claims Commission will carry out the exercise referred to above and submit a report on the compensation payable and the persons to whom it should be paid, within a period six months. 5. The above-said report will be submitted to the Central Government, and upon formal approval by the Central Government, MCL will make payment within a further period of two months. 6. Some portions of the land have been determined to be unsuitable for the Petitioner having regard to physical features (mining being impossible, area being heavily populated, etc.). The Claims Commission will examine whether possession of such portions has been taken over by the Petitioner. It would be open to the Claims Commission to recommend de-notification/release of the said land from acquisition. 7. In view of the special facts obtaining above, the Central Government may be permitted to de-notify the said land from the acquisition as a special case, since the land is not required and possession also was never taken. 8. Even in the case of the de-notified land, suitable compensation, in appropriate cases, may have to be paid to the landowners. The Claims Commission may also give a report on this aspect of the matter. 9. The learned Solicitor General has opined that such matters of uncertain acquisition or pending compensation claims lead to unnecessary social tensions and the Petitioner must act in a spirit of good governance. Upon examination of all the surrounding villages, in the light of the opinion of the learned Solicitor General, for the sake of uniformity as well as fairness, the above exercise would be carried out for the following villages as well: (i) Sardega (ii) Jhupurunga (iii) Ratansara (iv) Tikilipara (v) Siarmal (vi) Tumulia (vii) Karlikachhar (viii) Kulda (ix) Bankibahal (x) Balinga (xi) Garjanbahal (xii) Bangurkela (xiii) Kiripsira (xiv) Lalma R.F. It must be noted that in the case of Sardega and Tikilipara Villages, part-payment has already been made. Further, in the case of Bankibahal and Balinga Villages, full payment has already been made but possession has not been fully taken. 10. The Petitioner and the Central Government shall assist in the establishment of the Commission including the provision of suitable infrastructure. The honorarium payable to the Commission may be determined by this Hon'ble Court. 11. This Order is being passed with the agreement of all parties and in the peculiar facts and circumstances of this case. The said order shall not operate as a precedent." 24. We nominate Mr. Justice A.K. Parichha, a former Judge of the High Court of Orissa as Chairman of the Commission. Mr. Solicitor General in consultation with the Secretary, Ministry of Coal, Government of India, shall nominate an officer who has held a post/office equivalent to the rank of Secretary to the Government of India as one of the members of the Commission within two weeks from today. Similarly, the Chairman, Coal India Ltd. shall nominate an officer as the other member of the Commission. Mr. Justice A.K. Parichha, shall be paid honorarium, equal to the monthly salary of a sitting High Court Judge and he shall be entitled to all other facilities as available to a sitting judge of the High Court. The officer nominated by Mr. Subramanium/Secretary, Ministry of Coal, Government of India, shall similarly be entitled to honorarium and other facilities available to a serving officer of his rank. All the expenses of the Commission shall be borne by Coal India Ltd. 25. The Commission shall prepare its report as envisaged in the scheme, first in respect of the lands in village Gopalpur, District Sundergarh, Orissa, as soon as possible and in any event not later than four months from today. In case the Commission recommends de-notification/release of any portion of the lands earlier acquired, it would also determine the rate or the amount of compensation/mesne profit payable to the land holder. The Commission shall submit its report not to the Central Government but to this Court for approval and further directions. Any de-notification/release of the land would be only subject to further orders passed by this Court in light of the Commission's report. The Commission may proceed with the survey in relation to the acquired lands in other villages, as suggested in paragraph 9 of the scheme only after submitting its report in respect of village Gopalpur and subject to further orders by this court. The officers of the State Government and the coal company shall extend full help and cooperation to the Commission in preparing the report and in the discharge of their duties in terms of the scheme.";


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