M.Y.EQBAL, J. - (1.) THE petitioner has challenged the legality and validity of the certificate proceeding initiated by the respondents for recovery of cess and royalty for the minerals fire -clay extracted in course of mining activities.
(2.) THE petitioners case is that the Central Coal Field Limited is a Government Company and carrying on mining activities in the coal mines area having been nationalized under the Cooking Coal Mines Nationalization Act, 1972 and Coal Mines Nationalization Act, 1973. The coal mines were acquired under the aforesaid Act and all rights and obligations are governed by the said Act. It is contended that since no lease in respect of mineral fire clay was ever granted by the respondents, they have no right or jurisdiction to demand royalty and cess in respect of mineral fire clay. The respondents case is that cess and royalty has been demanded on account of extraction and removal of fire -clay by the petitioner, in course of extraction of coal from different coal mines. It is contended that the petitioner -company while extracting coal also extracts fire clay which is found with coal deposits. The petitioner being the deemed lessee for extraction of coal only has no legal right to extract and remove any other mineral during the course of mining operation unless a mining lease with respect to the mineral is given by the competent authority. It has been found that huge quantity of fire clay is being extracted the thrown away into the debris along with waste materials of the mines product resulting in destruction of huge quantity of fire clay.
(3.) HAVING regard to the rival contention of the parties the question that falls for consideration is whether the respondents is empowered and entitled to recover price, rent, royalty or cess from the petitioner in respect of fire clay which is being extracted in course of extraction of coal by the petitioner.;