CENTRAL MANBHUM COAL CO P LTD Vs. ADDITIONAL COLLECTOR DHANBAD
LAWS(CAL)-1982-7-42
HIGH COURT OF CALCUTTA
Decided on July 27,1982

CENTRAL MANBHUM COAL CO. (P.) LTD. Appellant
VERSUS
ADDITIONAL COLLECTOR, DHANBAD Respondents

JUDGEMENT

Monoj Kumar Mukherjee, J. - (1.) These two appeals arise out of the judgment and order dated Sept. 25, 1981 passed by a learned Judge of this Court in Civil Rule No. 2731 (w) of 1980, which was issued on an application under Article 226 of the Constitution of India jointly filed by the Central Manbhum Coal Co. (P.) Ltd., and Sri Keshab Narayan Banerjee, hereinafter referred to as the petitioner No. 1 and petitioner No. 2 respectively.
(2.) The case of the petitioners is that the petitioner No. 1 was incorporated on Aug. 24, 1948 and is an existing company within the meaning of the Companies Act, 1956. The petitioner No. 2 is a Director of petitioner No. 1. In the late 19th Century one Jadablal Banerjee, the great grandfather of petitioner No. 2, of Birbhum, West Bengal, acquired leasehold interests in some collieries in the district of Dhanbad, including a colliery known as Bhangabandh Colliery, hereinafter referred to as the said colliery, from the Rajas of Jharia. The said colliery was originally leased by the Rajas to Jadavlal Banerjee for a period of 999 years and the latter leased out the coal mining right in the same in favour of one F. W. Heilgers also for 999 years. F. W. Heilgers, in his turn, transferred his interest in the said colliery to Bird and Co. (P.) Ltd. who ran and managed the same as a Sub-lessee at all material times. By diverse devolutions and transfers, details whereof have been given in the writ application, Messrs Dubrajpur Rice Mills (P.) Ltd. and Jadavlal Trust Estate, a religious-cum-charitable Trust, became owners of the leasehold interests in the collieries, which were originally acquired by Jadavlal Banerjee from the Rajas of Jharia, and in turn, Sub-leased by him to different Sub-lessees, except in the said colliery, which through such devolutions and transfers came to be owned by the petitioner No. 1 as lessee.
(3.) After the Bihar Land Reforms Act, 1950 (hereinafter referred to as the Act) came into force the petitioner No. 1, as the head lessee of the mining leasehold interest of the said colliery under the landlord Raja of Jharia, filed by way of abundant caution, an application in the year 1956 for compensation in respect thereof under the Act although it was not required to do so. The application was filed before the Circle Officer, Jharia by the constituted attorney of the petitioner No. 1, one Bhabani Prosad Chatterjee, and an acknowledgment receipt in respect of the said application was duly issued by the said Circle Officer. By reason of circulars issued by the State of Bihar after the Act came into force the Sub-lessee M/s. Bird & Co. (P.) Ltd., slopped paying royalty to the petitioner No. 1. But from 1956 onwards the Sub-lessee resumed payment of royalty as it was adjudicated by appropriate Courts in the meantime that the mining lease in respect of the said colliery had not vested in the State of Bihar. However, in or about Nov., 1961 by promulgating an Ordinance the State of Bihar imposed a levy upon the head lessees of all the mining leases, including the petitioner No. 1, and started collecting royalties from the sublessee to the exclusion of the head lessee, viz. the petitioner No. 1.;


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