Case Note & Summary
The appeal before the Supreme Court arose from a judgment of the Gujarat High Court concerning the right of user in land for laying pipelines under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962. The appellant, Ichchapur Industrial Co-operative Society Ltd., owned survey plots in moja Ichchapur, Tehasil Choryasi, District Surat. The respondent, Oil and Natural Gas Commission (ONGC), acquired right of user over those plots through a notification dated 23.6.83 under Section 3(1) and a declaration dated 16.1.84 under Section 6(1) of the Act, vesting the right in ONGC for laying pipelines to transport petroleum from Utran Terminal to Kribhco Terminal. ONGC initially laid a 12-inch gas pipeline through the land. It operated a gas processing plant at Hazira and south basin, which required water. Initially water was drawn from KRBC canal division, but when further canal water became unavailable due to the Kakarpara Irrigation Project, ONGC decided to draw water from alternative sources through its own pipelines under the land where right of user had already vested. A notice dated 6.10.94 was issued under Section 8 for laying a pipeline to carry water for the gas processing plant. The proposed pipeline was 13 km long, and landowners of 11 km raised no objection, but the appellant challenged the notice for the remaining 2 km, contending that the proposed pipeline was for transporting water, not petroleum or any mineral, and was not permissible under the Act. The High Court rejected this contention, holding that carrying water was covered by the phrase "any other act necessary for the utilisation of the pipeline" in Section 7(1)(ii), especially since right of user had already vested in ONGC. In the Supreme Court, the appellant repeated the challenge, while ONGC raised the additional ground that water is a mineral and since minerals could be validly carried through such pipelines, water could also be transported. The court noted that the High Court did not decide whether water is a mineral. The court then examined the statutory provisions: Section 2(ba) defines minerals by reference to the Mines Act, 1952, including mineral oils and stowing sand but excluding petroleum; Section 2(c) defines petroleum by reference to the Petroleum Act, 1934, including natural gas and refinery gas; Sections 3, 5 and 6 provide the procedure for acquisition of right of user; Section 7(1)(ia) links the right to lay pipelines for petroleum and minerals; Section 7(1)(ii) allows acts necessary for utilisation of pipelines. Clause (ia) and the definition of minerals were introduced by the Amendment Act 13 of 1977 with effect from 3.2.1977, and the Statement of Objects and Reasons explained that technological advance made it possible to transport minerals besides petroleum through pipelines. The court considered the question whether water is a mineral under the Mines Act definition and referred to the principle of legislation by reference or incorporation. The extracted text ends before a final determination of this issue. No final operative decision is available from the provided portion.
Headnote
A) Mines and Minerals - Definition of Mineral - Water as Mineral - Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Section 2(ba); Mines Act, 1952 - The court considered whether water is a mineral under the Mines Act definition incorporated by Section 2(ba); Section 2(ba) defines minerals as having meanings assigned in Mines Act, 1952, including mineral oils and stowing sand but excluding petroleum. The court examined the amendment history and statement of objects to assess scope; no final conclusion is available from the extracted text (Paras 8-10, 16-18). B) Petroleum Pipelines - Right of User - Acts Necessary for Utilisation of Pipeline - Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Section 7(1)(ia), 7(1)(ii) - The High Court held that carrying water through new pipelines to run a gas processing plant is an act necessary for utilisation of existing gas pipelines under Section 7(1)(ii); the Supreme Court set out the statutory text and noted that clause (ia) links petroleum and mineral transport rights. Held: the issue of whether water transport is covered remained open pending determination of water as mineral (Paras 7, 13-16). C) Statutory Interpretation - Legislation by Reference - Mines Act Definition Applied - Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Section 2(ba); Mines Act, 1952 - Section 2(ba) incorporates the Mines Act definition of minerals by reference; the court referred to the classic principle of legislation by reference or incorporation used for convenience to avoid verbatim repetition. Held: the Mines Act definition governs the meaning of minerals under the 1962 Act (Paras 8, 18). D) Acquisition of Right of User - Fresh Notification for New Commodity - Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, Sections 3, 5, 6 - The appellant contended that laying pipelines for a different commodity required fresh notification and declaration under Sections 3 and 6 or acquisition under Land Acquisition Act; the court stated it would consider this question if need be later and proceeded to examine whether water is a mineral first (Para 12).
Issue of Consideration
Whether water is a mineral within the meaning of Mines Act, 1952 read with Section 2(ba) of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962; whether existing right of user acquired for petroleum pipelines permits laying pipelines for transporting water under Section 7(1)(ia) or (ii) of the Act; whether fresh notification and declaration are required for laying pipelines carrying a different commodity
Law Points
- Definition of minerals under Mines Act
- 1952 applied by reference under Section 2(ba) of Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act
- 1962
- section 7(1)(ia) links right of user for petroleum and minerals
- section 7(1)(ii) permits acts necessary for utilisation of pipelines
- acquisition of right of user under sections 3
- 5
- 6
