KARANPURA DEVELOPMENT COMPANY LIMITED Vs. KAMAKSHYA NARAIN SINGH

JUDGEMENT

(1.) These appeals raise questions as to the validity of a prospecting license granted on 26-3-1915 in favour of Messrs Bird and Co., by the Court of Wards as representing the Ramgarh-Estate and of two deeds dated 23-11-1917 and 1-6-1937 executed by the Court of Wards modifying the terms of the license dated 26-3-1915.

(2.) The Ramgarh Raj is an ancient principality situate in Bihar. It has three coal fields, Bokaro Jharia Ramgarh and Karanpura. Of these, the Karanpura Coal-fields are the largest being of the extent of 550 sq. miles, of which about 415 sq. miles belonged to the estate.

(3.) On 20-5-1913 the Court of Wards took over the management of the estate, and its first concern was to relieve it from the pressure of creditors, and for that purpose, to arrange for a loan on easy terms. It was at this juncture that Messrs Bird and Co., made an application for a prospecting license for the Karanpura coal-fields, and in reply thereto the manger of the Court of wards informed them on 4-9-1913 that