Case Note & Summary
The dispute arose from the government's declaration of land as 'Sarkari', which was challenged by the appellant, North Eastern Coalfields Coal India Ltd., a successor of the Assam Railways and Trading Company Ltd. (ARTC), after the government settled part of the land in favor of a private individual. The appellant contended that the declaration was illegal as they had not been notified and had been paying land revenue. The learned Single Judge ruled in favor of the appellant, stating that the appellant was a lessee and the land could not be declared 'Sarkari' without proper procedure. However, the Division Bench of the Gauhati High Court reversed this decision, claiming the land was not defined as a 'Mine' under the Act and that the appellant had not paid land revenue for five years. The Supreme Court found that the Additional Deputy Commissioner's order was illegal and without jurisdiction, as the rights of the erstwhile company had vested in the Central Government under the Coal Mines (Nationalization) Act, 1973. The court emphasized that all properties used for mining operations vested in the Central Government, and any declaration of land as 'Sarkari' without proper notice was invalid. The court affirmed the Single Judge's order and set aside the Division Bench's ruling, allowing the appellant to pursue their rights in accordance with the law.
Headnote
A) Property Law - Nationalization of Coal Mines - Legality of Government Declaration - Coal Mines (Nationalization) Act, 1973, Sections 2(h), 3 - The court held that the declaration of land as 'Sarkari' by the government was illegal as the appellant had paid land revenue and was recognized as a lessee. The Additional Deputy Commissioner's order was set aside due to lack of jurisdiction and failure to follow proper legal procedures (Paras 1-4).
Issue of Consideration
Whether the declaration of land as 'Sarkari' by the government was legal and whether the appellant retained rights as a lessee under the Coal Mines (Nationalization) Act, 1973.
Final Decision
The Supreme Court set aside the Division Bench's order and affirmed the Single Judge's ruling, declaring the government's action illegal and recognizing the appellant's rights as a lessee.
Law Points
- Nationalization of coal mines
- definition of mine
- lessee rights
- land revenue payment
- jurisdiction of authorities


