Aapka Consultant Judgment Series- In this series, we are providing case analysis of Landmark Judgments of Hon’ble Supreme Court of India.
Bharat Coking Coal Ltd. and Anr. Vs. State of Bihar and Ors.
(1990) 4 SCC 557
Hon’ble Judges/Coram: K.N. Singh and M.H. Kania, JJ.
Date of Decision: 17.08.1990
FACTS: –
M/s. Bharat Coking Coal Ltd. (Appellant) is a Government Company which carries coal mining operations in village Sudamdih in the State of Bihar. There is a coal washery adjacent to the Appellant’s coal mine in village Sudamdih. After the coal is extracted from the mines, it is crushed into pieces of different sizes for purposes of grading. Since the coal is mixed up with mud and other impurities, same is brought to the washery for washing and cleaning the same for reducing the ash percentage and for use by metallurgical consumers. In the process of washing small coal particles escape from the washery in the form of slurry along with water and the same are deposited in the slurry ponds constructed for their storage by the Appellant Company. But when the ponds are full, the slurry overflows the pond and flows down into the river Damodar. After the water is soaked by the soil the small particles of coal get deposited in the river bed. These coal particles are collected and formed into briquettes which are sold in market for energy and fuel purposes. The slurry coal has high commercial value as it is of exceptional quality and high grade; it is used by steel plants and thermal power stations. The State of Bihar granted lease in favour of one Ram Nath Singh for collecting the coal particles settled in the Damodar fiber bed and other land including plot No. 370.
ISSUE: –
Whether the State of Bihar had legal authority to execute leases in favour of the Respondents for collection of slurry after its escape from the Appellants washries on payment of royalty to it?
JUDGMENT: –
Coal is found in seams mixed with mud and other impurities. After its extraction from the mines, it is crushed into different sizes, thereafter it is washed in the washeries of the coal mines for removing its impurities for purposes of making it fit for use for metallurgical purposes. In the process of washing, large quantity of water is discharged through pipes which carry the discharged water to storage ponds constructed for the purpose of retaining the slurry. Along with the discharged water, small particles of coal are carried away to the pond where the coal particles settle down on the surface of the pond, and the same is collected after the pond is de-watered. The coal particles so collected are of fine quality, ash free and the same is used as fuel. There is no doubt that in the instant cases slurry is coal slurry, as admittedly small particles of coal escape from the washery plant alongwith water.
Articles 245 and 246 of the Constitution read with Seventh Schedule and the legislative lists therein prescribe the extent of legislative competence of Parliament and, State Legislature. The subject matter of legislation with respect of Regulation of Mines and Mineral development is enumerated under Entry 23 of List II and Entry 54 of List I. The State Legislature is competent to enact law for the Regulation of mines and mineral development under Entry 23 of State List but this power is subject to the declaration which may be made by Parliament by law as envisaged by Entry 54 of Union List. Thus the legislative competence of the State Legislature to make law on the topic of mines and mineral is subject to Parliamentary Legislation.
The Parliament has enacted the Mines and Minerals (Regulation and Development) Act, 1957. By Section 2 of the Act the Parliament has declared that it is expedient in public interest that the Union should take under its control the Regulation of mines and the development of minerals to the extent provided in the Act. In view of Parliamentary declaration as made in Section 2 of the Act, the State Legislature is denuded of its legislative power to make any law with respect to the Regulation of mines and mineral development to the extent as provided by the Act.
The amended and unamended sections both lay down that it shall be the duty of the Central Government to take all such steps as may be necessary “for the conservation and development of minerals” in India and for that purpose it may make such rules as it thinks fit. The expression ‘conservation’ means “the act of keeping or protecting from loss or injury.” With reference to the natural resources, the expression in the context means preservation of mineral; the wide scope of the expression “conservation of minerals” comprehends any rule reasonably connected with the purpose of protecting the loss of coal through the waste of coal mine, such a rule may also regulate the discharge of slurry or collection of coal particles after the water content of slurry is soaked by soil. In addition to the general power to frame rules for the conservation of mineral, Section 18(2) confers specific power for framing rules regulating disposal of waste of a mine. Section 18(2)(k) confers express power on the Central Government for framing rules for the conservation and the development of mineral including the disposal or discharge of waste arising from any mining operations of a mine. Such a rule may regulate disposal of slurry discharged from a washery which is an integral part of mining operations. Disposal and discharge of sludge or slurry emanating or coming from the washery of a coal mine is exclusively within the legislative power of Parliament. The Act provides that the Central Government has exclusive power to frame any rule either Under Section 13(2)(0) or under the amended Section 18(2)(k) of the Act regulating disposal of slurry. The effect of the Parliamentary declaration as contained in the Act is that the matters referred to in the declaration, stand abstracted from List II and those become matters of legislation in List I of the Seventh Schedule. As a result of the declaration made by Parliament, under Section 2 of the Act, the State Legislature is denuded of its legislative power with respect to the Regulation of mines and mineral development and the entire legislative field has been taken over by Parliament.
The Central Government has not framed any rule either under Section 13 or under Section 18 of the Act. Does it affect the legal position as discussed earlier? The answer must be in the negative. Prior to the Amending Act 37 of 1986 Section 13(2)(o) conferred power on the Central Government to frame rules for the purpose of granting prospecting licences and mining leases including the disposal or discharge of any tailings, slime or other waste products. Sub-clause (0) of Section 13(2) was transposed into Section 18(2)as Sub-clause (k) by the Amending Act 37 of 1986. Thus, power to frame rules, regulating the discharge or disposal of slime or slurry emanating from a coal mine including its collection from the river bed or from Raiyati land after its escape from the washery of the coal mines, would clearly fail within the expression “conservation of mineral”. Slurry admittedly contain coal particles, its collection from land or river is reasonably connected with the ‘conservation of mineral’. Section18(2)(k) which expressly confers power on the Central Government to regulate disposal or discharge of waste of a mine makes the Parliamentary declaration apparent that the State Legislature is not competent to regulate waste discharge of a coal mine. Mere absence of any rule framed by the Central Government under Sections 13 or 18 of the Act with regard to the disposal of slime or waste of a coal mine does not confer legislative competence on the State Legislature to make any law or rule. The inclusive definition of mine is wide enough to include any premises belonging to a mine where any ancillary process is carried on for preparing the minerals or Coal for sale.
HELD:-
Slurry which escapes from the Appellants’ washeries is mineral and its Regulation is within the exclusive jurisdiction of the Central Government. The impugned settlements made in favour of the Respondents by the State Government are illegal.
To Get Legal Opinion from Advocates/ Legal Experts, click here
To Get Legal Opinion from Retired Hon’ble Judges, Please click here
