Supreme Court Upholds State's Recovery of Pre-1958 Mining Fees Despite Supersession of Orissa Act by Central Mining Law. Accrued Liabilities Under Repealed State Act Saved by Section 6 of General Clauses Act, 1897.

Writ petitions under Article 226 of the Constitution challenging the legality of demands for mining fees levied under the Orissa Mining Areas Development Fund Act, 1952.

Respondents sought writs of mandamus restraining the State of Orissa and the Administrator from applying the Orissa Act and directing cancellation of demand notices for fees assessed thereunder.

The State demanded payment of mining fees for the period July 1957 to March 1958; respondents contended that the Orissa Act had been superseded by the Central Act 67 of 1957 from June 1, 1958, rendering the demands invalid.

The Orissa High Court allowed the writ petitions on April 18, 1961, holding that the Orissa Act should be deemed non-existent from June 1, 1958 for every purpose; the State's review application was dismissed.

Whether the Orissa Mining Areas Development Fund Act, 1952 continued to operate after the commencement of the Mines and Minerals (Regulation and Development) Act, 1957. Whether fees that had accrued before June 1, 1958 under the Orissa Act could be recovered after its supersession, particularly in light of Section 6 of the General Clauses Act, 1897. Whether the Central Act covered the entire field of regulation of mines and mineral development, thereby rendering the State Act inoperative. Whether the doctrine of repugnancy and implied repeal applied to the State Act.

State of Orissa argued that the supersession of the Orissa Act by the Central Act was a repeal, and Section 6 of the General Clauses Act, 1897 applied to preserve liabilities that had accrued before June 1, 1958; the Central Act was not retrospective. Respondent mining companies argued that the Central Act occupied the entire field of mines and mineral development, leaving no legislative power in the State, and therefore the Orissa Act became void for all purposes including recovery of past fees.

When Parliament enacts legislation under Entry 54 of List I with the requisite declaration, it occupies the entire field of regulation of mines and mineral development, rendering State legislation on the subject inoperative from the date of commencement. However, such supersession operates as a repeal, attracting Section 6 of the General Clauses Act, 1897, which preserves rights and liabilities accrued before the repeal.

The Central Act carried in its second section a declaration envisaged by the last words of the entry. the test of two legislations containing contradictory provisions is not, however, the only criterion of repugnancy, for if a competent legislature with a superior efficacy expressly or impliedly evinces by its legislation an intention to cover the whole field, the enactments of the other legislature whether passed before or after would be overborne on the ground of repugnance. a repeal may be brought about by repugnant legislation, without even any reference to the Act intended to be repealed, for once legislative competence to effect a repeal is posited, it matters little whether this is done expressly or inferentially or by the enactment of repugnant legislation. the liability to pay the fee which was the subject of the notices of the demand had accrued prior to June 1, 1958 it would follow that these notices were valid and the amounts due thereunder could be recovered notwithstanding the disappearance of the Orissa Act by virtue of the superior legislation by the Union Parliament.

The Orissa State Legislature enacted the Orissa Mining Areas Development Fund Act, 1952. The State Government made demands on August 1, 1960 for fees due for the period July 1957 to March 1958. The respondent mining companies filed writ petitions (O.J.C. Nos. 142 and 144 of 1960) before the Orissa High Court under Article 226 of the Constitution. The High Court allowed the writ petitions on April 18, 1961, holding that the Orissa Act was non-existent from June 1, 1958. The State of Orissa filed a review application, which was dismissed. The State then appealed to the Supreme Court on certificate under Article 132(1). The Supreme Court heard the appeals and delivered judgment on August 16, 1963, allowing the appeals.

• Constitution of India: Article 246(1), Article 246(3), Seventh Schedule List I Entry 54, Seventh Schedule List II Entry 23
• Mines and Minerals (Regulation and Development) Act, 1957: Section 2, Section 18(1), Section 18(2)
• Orissa Mining Areas Development Fund Act, 1952: Section 4, Section 5
• General Clauses Act, 1897: Section 6
• Mines & Minerals (Development & Regulation) Act, 1948: