STATE OF U.P. & ANR. versus NORTHERN COAL FIELDS

STATE OF U.P. & ANR. versus NORTHERN COAL FIELDS

Where there was no pre-existing mining lease at the time the Central Government acquired the land under the CBA, 1957 and the rights were thereafter vested in a Government company under s.11(1), the Government company acquires absolute rights identical to the Central Government and does not become a deemed lessee of...

Source-derived case information.

Parties
Appellant: State of U.P. & Anr.; Respondent: Northern Coal Fields
Jurisdiction
India
Judgment Date
03 October 2024
Procedural Posture
Civil Appeal / Appeal to the Supreme Court
Outcome
Appeal dismissed
Legal Topics
Lease Rent, Vesting of Rights, Deemed Lessee, Section 10, Section 11, Legislative Competence
Land Acquisition Mining Law Constitutional Law Lease Rent Vesting of Rights Deemed Lessee Section 10 Section 11 +1 more

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Parties

State of U.P. & Anr.

Appellant

Northern Coal Fields

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court

Legal Issues

  1. 1 Whether the State Government was entitled to realise lease rent from a Government company whose rights in land had vested under the Coal Bearing Areas (Acquisition and Development) Act, 1957
  2. 2 Whether a Government company vested with rights under s.11(1) of the CBA, 1957 becomes a deemed lessee of the State Government where there was no pre-existing mining lease at the time of acquisition

Ratio Decidendi

Where there was no pre-existing mining lease at the time the Central Government acquired the land under the CBA, 1957 and the rights were thereafter vested in a Government company under s.11(1), the Government company acquires absolute rights identical to the Central Government and does not become a deemed lessee of the State; consequently the State cannot demand lease rent in such circumstances as no statutory provision supports such a demand.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • High Court judgment dated 16.01.2013 upheld which had set aside orders dated 23.03.2010, 11.06.2010 and 31.07.2010 and directed the State not to realise further lease rent and to refund/adjust the amount paid by the Respondent for the year 2010-2011