- (1.) The appeal relates to the Birsinghpur Colliery. It was nationalised by reason of the Coal Mines (Nationalization) Act, 1973 and by reason of a direction issued by the Central Government under Section 5 thereof, it vested in the appellant. The first respondent sought to levy property tax on the Colliery. The levy was challenged by the appellant by way of a writ petition before the High Court of Madhya Pradesh. The writ petition was summarily dismissed, relying upon the judgment of this Court in the case of the appellant itself Western Coalfields Ltd. v. Special Area Development Authority. This appeal against the order of summary dismissal is filed by special leave.
(2.) The first respondent sought to tax the property of the Colliery in exercise of the power contained in Section 127-A of the M. P. Municipalities Act, 1961. Section 127-A contains sub-section (2) which states that property tax shall not be leviable on "buildings and lands owned by or vesting in (i) the UNION Government. . ".
(3.) S. 3, 5 and 11 of the Coal Mines (nationalization) Act, 1973, so far as they are relevant to this appeal, read thus: "3.Acquisition of rights of owners in respect of coal mines.- (1 On the appointed day, the right, title and interest of the owners in relation to the coal mines specified in the Schedule shall stand transferred to, and shall vest absolutely in, the central government free from all encumbrances. * * * 5. Power of central government to direct vesting of rights in a government company.- (1 Notwithstanding anything contained in S. 3 and 4, the central government may, if it is satisfied that a government company is willing to comply, or has complied, with such terms and conditions as that government may think fit to impose, direct, by an order in writing, that the right, title and interest of an owner in relation to a coal mine referred to in Section 3, shall, instead of continuing to vest in the central government, vest in the government company either on the date of publication of the direction or on such earlier or later date (not being a date earlier than the appointed day) , as may be specified in the direction. (2 Where the right, title and interest of an owner in relation to a coal mine vest in a government company under Ss. (1, the government company shall, on and from the date of such vesting, be deemed to have become the lessee in relation to such coal mine as if a mining lease in relation to the coal mine had been granted to the government company and the period of such lease shall be the entire period for which such lease could have been granted under the Mineral Concession Rules; and all the rights and liabilities of the central government in relation to such coal mine shall, on and from the date of such vesting, be deemed to have become the rights and liabilities, respectively, of the government company. (3) The provisions of Ss. (2) of Section 4 shall apply to a lease which vests in a government company as they apply to a lease vested in the central government and references therein to the 'central government' shall be construed as reference to the government company. 11. Management, etc. , of coal mines.- (1 The general superintendence, direction, control and management of the affairs and business of a coal mine, the right, title and interest of an owner in relation to which have vested in the central government under Section 3, shall,- (A) in the case of a coal mine in relation to which a direction has been made by the central government under Ss. (1 of Section 5, vest in the government company specified in such direction, or ";