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Supreme Court of India

BHUBANESHWAR SINGH AND BIMLA DEVI PODDAR AND ORS. ETC. ETC.versusUNION OF INDIA AND ORS.

Citation
1994 INSC 253
Decided
14 July 1994
Disposal
Dismissed

Holding

The retrospective amendment and its validating provision are constitutionally valid, and the compensation payable under the 1972 Act is deemed to include the value of coke stock, so the petitioners' claim is barred.

Summary

The petitioners, owners of coking coal mines, claimed that the Central Government, as custodian, had failed to credit them for the value of coke stock lying in the mines on the date immediately before the appointed day of nationalisation, and sought compensation under the Coking Coal Mines (Nationalisation) Act, 1972. The High Court and the Supreme Court had earlier held that the value of such stock must be accounted for in determining compensation. Subsequently, Parliament enacted the Coal Mines Nationalisation Laws (Amendment) Act, 1986, inserting a retrospective sub‑section in Section 10 of the 1972 Act and a validating provision in Section 19, declaring that compensation payable already includes the value of coke stock. The petitioners challenged the validity of this amendment as an attempt to nullify the courts’ earlier judgments. The Supreme Court held that, provided the amendment is within legislative competence and not violative of the Constitution, Parliament may legislate retrospectively and the amendment validly removes the basis of the claim, rendering the earlier judgments ineffective. Consequently, the petitioners were not entitled to additional compensation for the coke stock and the writ petition was dismissed.

Issues considered

  • The amendment of the Coking Coal Mines (Nationalisation) Act, 1972 by a retrospective provision can nullify a prior judicial determination on compensation.
  • Whether Section 19 of the Coal Mines Nationalisation Laws (Amendment) Act, 1986 validly validates the retrospective amendment and bars court challenge.
  • Whether Parliament has the constitutional competence to enact such retrospective legislation affecting vested rights.

Legislation cited

Subjects

retrospective legislationvalidation actcoking coal minesnationalisationcompensationArticle 32judicial reviewlegislative competence

Judgment

  BHUBANESHWAR SINGH AND BIMLA DEVI PODDAR AND                                  A
                  ORS. ETC. ETC.
                                     v.
                     UNION OF INDIA AND ORS.

                              JULY 14, 1994                                     B
       [KULDIP SINGH, P.B. SAWANT AND N.P. SINGH, JJ.)

        Coal Mines Nationalisation Laws (Amendment) Act, 1986-Sub-Sec.
(2) introduced in Section JO of Coking Coal Mines (Nationalisation) Act,
1972 with retrospective effect and Section 19-Validity of-Amendnie11t i11 law
                                                                                c
stating anzount payable as conzpensation to owner shall include anzount in
respect of stock in trad~Wliether effect of judgments of High CouTt and
Supreme Co11Tt can be nullified by amending legislation with restrospective
effect.
                                                                                D
     The management of Coking Coal Mine was taken over by the Central
Government in the year 1971. The ownership or the Mine continued to
remain with the owner of the Mine. The Central Government and/or its
Custodian were to account to the owner, profit and loss during the period
while it was under the management of the custodian. Petitioners made a
claim that the custodian had not credited the price for the quantity of coal    E
raised, which was lying in stock on the date prior to the date the said coal
mine vested under the Central Government. The High Court allowed the
claim and issued adirection that payment be made to the petitioner. In
appeal filed by the Central Coal Fields Ltd. , the Supreme Court was also
of the view that the sale price of the stock or extracted coal lyi_ng at the    F
commencement or the appointed date had to be taken into account for
determining the profit and loss during the period or management of the
mine by the custodian.

      Thereafter the Coal Mines Nationalisation Laws (Amendment) Or-
dinance, 1986 was promulgated, which was later replaced by the Coal G
Mines Nationalisation Laws (Amendment) Act, 1986, Sub-section (2) was
introduced in Section 10 of the Coking Coal Mines (Nationalisation) Act,
1972, with retrospective effect. The sub-section declared that the amount
required to be given by the Central Government to its owner shall be
deemed to include and deemed always to have included the amount in H
                                    639
    640                   SUPREME.COURT REPORTS (1994] SUPP. 1 S.C.R. ·

A   respect or all coke In stock on the date immediately before the appointed
    date. Writ application has been tiled by petitioners questioning the validity
    or the Amendment Act.

          Dismissing the writ petition, this Cotirt

B          HELD : 1.1 Ir the intention of the Legislatdre Is clearly expressed
    that it purports to introduce the legislation or to amend an existing
    legislation retrospectively then subject to the legislative competence and
    the exercise being not In violation of any of the provisions of the Constltu·
    tlon, such power cannot be questioned. Sub-section (2) of Section 1 of the
C   Coal Mine Nationalisation Laws (Amendment) Act, 1986 clearly and
    specifically says that the said amendment to the Coking Coal Mines
    (Nationalisation) Act, 1972 shall be deemed to have come Into force on the
    1st day of May, 1972. Sub-section (2) of Section 10 which has been
    introduced with retrospective effect says that the amount which bas been
D   mentioned In the schedule to be payable to the owner shall be deemed to
    Include and deemed always to have Included the amount required to be
    paid to such owner In respect or all coke In stoke on the date Immediately
    before the appointed day. The amount which Is to be paid as compensation
    for acquisition of right, title and Interest of the petitioner In the Coking
    Coal Mine In question, shall Include the compensation for all coke In stock
E   on the date Immediately before the appointed day. It can therefore be said
    that. the amendments which have been Introduced retrospectively have
    taken away the substratum of the claim made on behalf of the petitioner,
    In respect of the price of the stock of coke lying on the date Immediately
    before the appointed day. [646-E·H & 647-A)
F
          1.2. Reading sub-section (2) of Section 10 alongwith Section 19, It
    bas to be held that respondents are not required to take Into account the
    "tock of coke lying on the date prior to the appointed day, for the purpose
    of accounting during the period when the mine In question was under the
    managell!ent or the Central Government, because It shall be deemed that
G   the compensation awarded to the petitioner included the price for such
    coal lying in stock on the date prior to the appointed day. Neither any
    compensation to be paid for su~b stock of coal nor the price thereof is to
    be taken into account for the purpose of sub-section (1) of Section 22 of
    the Coking Coal Mines (Nationalisation) Act, 1972. In view of the aforesaid
H   sub-section (2) introduced in Section 10 of the Coking Coal Mines
                    B. SINGH v. U.0.1. [N.P. SINGH, J.]                  641

(Nationalisation) Act, 1972. It shall be deemed that the Compensation has       A
been paid even for the stock of coal lying on the date prior to the appointfd
day. [649-D·E]

      D. Cawasji and Co. v. State of Mysore, AIR (1984) SC 1780, distin·
guished.
                                                                                B
       Central Coal fields Ltd, Etc. v. Bhubaneshwar Singh & Ors., (1985] 1
SCR 618; Tara Prasad Singh v. Union of India, (1980] 3 SCR 1042; Mis.
P.C. Mills v. Broach Municipality, AIR (1970) SC 192; West Ramnad Electric
Distribution Co. Ltd. v. State of Madras, AIR (1962) SC 1753; Udai Ram v.
Union of India, AIR (1968) SC 1138; Tirath Ram v. State of UP., AIR (1973)      C
SC 405; krishna Chandra v. Union of India, AIR (1975) SC 1389; Mis
Hindustan Gum & Chemicals Ltd. v. State of Haryana, AIR (1985) SC 1683
and Mis Utakal C & J (P) Ltd. v. State of Orissa, AIR (1987)·SC 2310,
referred to.

      CIVIL ORIGINAL JURISDICTION : Writ petition (C) No. 1642 of               D
1986 etc. etc.

      Under Article 32 of the Constitution of India.

      AK. Sen, R.F. Nariman, R.N. Sachtbey S.B. Sanyal, D.N.
Goburdhan, Suman Khaitan, for the Khaitan & Co. R.N, Banerjee, K.J,             E
John, Anip Sachthey Himansbu Munshi, C.D. Singh, AK. Banerjee, Amlan
Ghosh and R.C. Bhatia for the Petitioners.

     Altaf Ahmed, Additional Solicitor General, R.N. Sachthey, P. Par·
meswaran, Anip Sachthey, Himanshu Munshi, C.D. Singh, Rathin Das, Dr.
Roxna Swamy, Bharat Sangal, A Mariaputham, Ms. Sushma Suri, C.V.S.              F
Rao and Ms. Naresh Bakshi for the Respondents.

      The Judgment of the Court was delivered by

       N.P. SINGH, J. This writ application has been filed on behalf of the
petitioners, questioning the validity of the Coal Mines Nationalisation Laws G
(Amendment) Ordinance, 1986, primarily on the ground that it purports
to nullify the judgment of this Court in the case of Central Coal Fields Ltd.
Etc. v. Bhubaneswar Singh & Ors., [1985] 1 SCR 618. The ordinance has
been replaced by the Coal Mines Nationalisation Laws (Amendment) Act,
1986.                                                                         Ii
    642                   SUPREME COURT REPORTS (1994] SUPP. l S.C.R.

A          In order to appreciate the controversy involved in this case, it is
    proper to refer to the background in which the aforesaid amending Act
    was passed. The Coking Coal Mines (Emergency Provisions) Ordinance
    was promulgated in the Year 1971, which was replaced by the Coking Coal
    Mines (Emergency Provisions) Act, 1971. In view of Section 3 of the
    aforesaid Ordinance/Act, management of all the Coking Coal Mines vested
B   in the Central Government on and from 17.10.1971, being the appointed
    date. The Central Government appointed custodians to take over the
    management of the Coking Coal Mines. Such Coking Coal Mines remained
    under the management of the Central Government through the custodian
    during the period from 17.10.1971 to 30.4.1972. The Coking Coal Mines
c   (Nationalisation) Act, 1972 came into force w.e.f. 1.5.1972, the appointed
    date. In terms of Section 4 of the said Act, on and from the appointed date
    the right, title and interest of the owners in relation to the Coking Coal
    Mines specified in the first schedule stood transferred to and vested
    absolutely in the Central Government free from all encumbrances. The
D   provisions of the Coking Coal Mines (Nationalisation) Act, 1972 as
    amended by the Coal Mines Nationalisation Laws (Amendment) Act, 1986
    were challenged before this Court in the case of Tara Prasad Singh v. Union
    of India, [1980] 3 SCR 1042. A Constitution Bench upheld the validity of
    the said Act.

E          The petitioner No. (hereinafter referred to as 'the petitioner' was the
    owner of Turiyo Colliery, a Coking Coal Mine, listed under Serial No. 7 in
    the first schedule of the Nationalisation Act. Along with other Coking Coal
    Mines, the Management of the aforesaid Coking Coal Mine had been taken
    over by the Central Government on 17. 10.1971 and it remained under the
F   management of the Central Government npto 30.4.1972. During the period
    aforesaid, the ownership of the said Coking Coal Mine continued lo remain
    with the petitioner. As such the Central Government and/or its custodian
    were account to the petitioner, profit and loss during the aforesaid period
    while it was under the management of the Custodian.

G         The petitioner filed an application under Article 226 of the Constitu-
    tion before the High Court, making a grievance that the custodian had
    debited the expenses for raising the coal while the Coking Coal Mine was
    under the management of the Custodian but had not credited the price for
    the quantity of coal raised, which was lying in stock on the date prior to
H   the date the said Coal Mine vested under the Central Government. The
                    B. SINGH v. U.0.1. [N.P. SINGH, J.]                  643

High Court allowed the said application holding that the petitioner was the     A
owner of the said coal Mine and was entitled to credit for the stock of coal
lying unsold as on 30.4.1972. A direction was given that account be recast
and payment be made to the petitioner.

       The Central Coal Fields Ltd., one of the respondents of that applica-
tion, filed an application under Article 136 of the Constitution, before this   B
Court. Leave to appeal was granted. But ultimately the appeal was dis-
missed on 23.8.1984. This Court said :

        "Admittedly the amount claimed from the owner represents the
        cost of extraction of the coal from the mine. The appellants had        C
        conceded before the High Court and Mr. Sinha appearing for them
        before us accepted the position that if the extracted coal had been
        sold before the appointed day, the owner would have b.een entitled
        to the price. The mere fact that the extracted coal remained in
        stock at the commencement of the appointed date can make on
        difference to the position. The expenses were to be set off against     D
        the sale price of the stock to be received at the time of disposal.
        Therefore, the stock of coal had to be taken into account for
        balancing the position. Reliance on the definition of 'mine' and
        S.10 of the Nationalisation Act to counteract the this conclusion
        cannot avail the appellants. Indeed, the submission advanced on         E
        behalf of the appellants is so much opposed to common sense logic
        of the matter that in the absence of a legislative mandate we have
        no hesitation in rejecting it. 11

This Court was of the view that the sale price of the stock of extracted coal
lying at the commencement of the appointed date had to be taken into            F
account for determining the profit and loss during the period of manage-
ment of the mine by the Custodian.

      Thereafter the aforesaid Coal Mines Nationalisation laws (Amend-
ment) Ordinance, 1986 as already mentioned above was promulgated,               G
which was later replaced by the Coal Mines Nationalisation laws.(Amend-
ment) Act. 1986. By Section 4 of the Amending Act aforesaid, sub-section
(2) was introduced in Section 10 of the Coking Coat Mines (Nationalisa-
tion) Act, 1972, which is as follows : -

        "(2) For the removal of doubts, it is hereby declared that the H
    644                   SUPREME COURT REPORTS [1994) SUPP. 1 S.C.R.

A           amount specified in the fifth column of the First Schedule against
            any coking coal mine or group of coking coal mines specified in
            the second column of the said Schedule and required to be given ·
            by the Central Government to its owner under sub-section (1) shall
            be deemed to include, and deemed always to have included, the
            amount required to be paid to such owner in respecl of all coal in
B           stock or other assets referred to in clause G) of section 3 on the
            date immediately before the appointed day and no further amount
            shall be payable to the owner in respect of such coal or other
            assets. 11

C Section 19 of the Coal Mines Nationalisation Laws (Amendment) Act, 1986
    contains a validating provision :

            "Sec. 19 - Notwithstanding any judgment, decree, order or direction
            of any court to the contrary -

D               (a) every amount paid to the owner of every coking coal mine
            of group of coking coal mines under section 10, or of every coke
            oven plant under section 11, of the Coking Coal Act, or to the
            owner of every coal mine or group of coal mines under section 8 ·
            of the Coal Mines Act (hereinafter in either case referred to as
            the owner), shall be deemed to include and be deemed always to
E           have included, the amounts required to be paid to the owner in
            respect of the coal in stock or other assets, coke in stock or other
            assels, referred to in c'.ause G}, or clause (b) of section 3 of the
            Coking Coal Act or, as the case may be, coal in stock or other
            assets referred to in clause (h} or section 2 of the Coal Mines Act,
F           on the date immediately before the appointed day as if the
            provisions of section 10, or section 11, of the Coking Coal Act or,_
            as the case may be, section 8 of the Coal Mines Act, as amended
            by this Act, had been in force at all material times, and no such
            payment shall be called in question in any court on the ground that
            it had not included the value of such coal or coke or other assets;
G
               (b) every statement of accounts or supplementary statement of
            accounts prepared by the Central Government of the Government
            company under section 22 of the Coking CoalAct or under section
            19 of the Coal Mines Act, shall be deemed to have been validity
H           prepared as if the provisions of section 22 of the Coking Coal Act
                    B. S!NGH v. U.O.l. [N.P. S!NGH,J.]                  645

        or, as the case may be, section 19 of the Coal Mines Act, as           A
        amended by this Act, had been in force at all material times, and
        no such statement of accounts or supplementary statement of
        accounts shall be called in question in any court on the ground
        that it had not been prepared in accordance with the normal
        commercial practice or that any them has or has not been included
                                                                               B
        in such statement, and accordingly no suit or other legal proceed-
        ing shall be maintained or continued in any court -

            (i) for the recovery of any sum on the ground that the amount
        to the owner under section 10 or section 11 of the Coking Coal
        Act or under section 8 of the Coal Mines Act, does not include         C
        the amounts required to be paid in respect of all coal or coke in
        stock or other assets referred to in clause (a); or

            (ii) for the recovery of any sum as being the excess of receipts
        over payments on the ground that the statement of accounts or
        supplementary ·statement of accounts required to be prepared           D
        under section 22 of the Coking Coal Act or, as the case may be,
        section 19 of the Coal Mines Act, had not been prepared in
        accordance with the normal commercial practice or that any item
        has or has not been included in such statement.

                     Explanation. - In this Section-                           E

      (a) "appointed day" means,-

           (i) in relation to the Coking Coal Act, the 1st day of May, 1972;
        and
                                                                               F
           (ii) in relation to the Coal Mines Act, the 1st day of May, 1973;

            (b) 11 receipts11 and npayments" mean receipts and payments in
        the statement of accounts prepared under section 22 of the Coking
        Coal Act or, as the case may be, section 19 of the Coal Mines Act.     G
      As sub-section (2) has been introduced in Section 10 of the
Nationalisation Act with retrospective effect, it shall be deemed to have .
been the.re since 1.5.1972, the day the Coking Coal Mines (Nationalisation)
Act, 1972 came into force. The said sub-section provides and declares thaf
the amount specified in the fifth column of the first schedule against any H
    646                   SUPREME COURT REPORTS [1994] SUPP. 1 S.C.R.

A   coking coal mine specified in the said schedule which was required to be
    given by the Central Government to its owner under sub-section (1) shall
    be deemed lo include, and deemed always to have include 'the amount
    required to be paid to such owner in respect of all coke in stock or other
    assets referred to in clause (b) of section 3 on the dale immediately before
    the appointed day and no further amount shall be payabk to the owner in
B   respect of such coke or other assets'. It cannot be disputed that if the
    sub-section 2 was in existence on the date the writ application had been
    filed on behalf of the petitioner, there would have been no occasion for the
    High Court or this Court to direct that the account be taken also of the
    stock of coke lying on the date immediately before the appointed day
c   because the amount which is payable to the petitioner shall be deemed to
    have included the payment even in respect of such coke.

           The question is as to whether by introduction of sub-section (2) in
    Section 10 with retrospective effect i.e. w.e.f. 1.5.1972, the respondents are
D   absolved of their liability and are exonerated from the responsibility of
    complying \\ith the direction given by the High Court and this court in the
    earlier writ application filed on behalf of the petitioner. It is well settled
    that Parliament and State Legislatures have plenary powers of legislation
    on the subjects within their field. They can legislate on the said subjects
    prospectively as well as retrospectively. If the intention of the legislature is
E   clearly expressed that it purports to introduce the legislation or to amend
    an existing legislation retrospectively, then subject to the legislative com-
    petence and the exercise being not in violation of any of the provisions of
    the Constitution, such power cannot be questioned. Sub-section (2) of
    Section 1 of the Coal Mines Nationalisation Laws (Ainendment) Act, 1986
F   clearly and specifically says that the said amendment to the Cocking Coal
    Mines (Nationalisation) Act, 1972 shall be deemed to have come into force
    on the 1st, day of May, 1972. Sub-section (2) of SeC!ion 10 which has been
    introduced with retrospective effect says that the amount which has been
    mentioned in the schedule to be payable to the owner shall be cleemed to
    include and deemed always to have included the amo•mt required ta be
G   paid to such owner in respect of all coke in stocke on the date immediately
    before the appointed day. The amount which is to be paid as compensation
    for acquisition of right title and interest of the petitioner in the coking coal
    mine in question, shall include the compensation for all coke in stock on
    the date immediately before the appointed day. It can therefore be said
H   that the amendments which have been introduced retrospectively, have
                    B. SINGH v. U.0.!. [N.P. SINGH, J.]                   647

taken away the substratum of the claim made on behalf of the petitioner, A
in respect of the price of the stock of coke lying on the date immediately
before the appointed day.

       The question which however still requires to be examined is as to
whether by this process which negatives the claim made on behalf of the
                                                                             B
petitioner, even the effect Gf the judgment of the High Court and this Court
has been nullified. Section 19 of the Coal Mines Nationalisation Laws
(Amendment} Act, 1986 referred to above says that notwithstanding any
judgment decree, order or direction of any court to the contrary every
amount paid to the owner of every coking coal mine under section 10 shall
be deemed to include and deemed always to have included the amount C
required to be paid to the owner in respect of the coke in stock on the ·
date immediately before the appointed day, as if the provisions of Section
10 as amended by the said Act had been in force at all material times, and
no such payment shall be called in question in any court on the ground
that it had not included the value of such coal or coke.
                                                                                 D
      From time to time controversy has arisen as to whether the effect of
judidal pronouncements of the High Court or the Supreme Court can be
made wiped out by amending the legislation with retrospective effect. Many
such amending Acts are called Validating Acts, Validating the action taken
under the particular enactments by removing the defect in the statute            E
retrospectively because of which the statute or the part of it had been
declared ultra vires. Such exercise has been held by this Court as not to
amount to encroachment on the judicial power of the Courts. The exercise
of rendering ineffective the judgments or orders of competent Cpurts by
changing the very basis by the legislation is a well-known device of validat-    F
ing legislation. This Court has repeatedly pointed out that such validating
legislation which removes the cause of the invalidity cannot be considered
to be an encroachment on judicial power. At the same time, any action in
exercise of the power under any enactment which has been declared to be
invalid by a Court cannot be made valid by a validating Act by merely            G
saying so unless the defect which has been pointed out by the Court is
removed with retrospective effect. The validating legislation must remove
the cause of invalidity. Till such defect or the lack of authority pointed out
by the Court under a statute is removed by the subsequent enactment with
retrospective effect, the binding nature of the judgment of the Court cannot
be ignored.                                                                      H
    648                  SUPREME COURT REPORTS [1994] SUPP. 1 S.C.R.

A         In the case of Shri P.C. Mills v. Broach Municipality, AIR (1970) SC
    192 - [1970] 1 SCR 388, Hidayatullah, CJ speaking for the Constitution
    Bench said:

            "When a legislature sets out to validate a tax declared by a Court
            to be illegally collected under ineffective or an invalid law, the
B
            cause for ineffectiveness or invalidity must be removed before
            validating can be said to take place effectively. The most important
            condition, of course, is that the legislature must possess the power
            to impose the tax, for , it it does not, the action must ever remain
            effective and illegal. Granted Legislation competence, it is not
            sufficient to declare merely that the decision of the Court shall not
            bind for that is tantamount to reversing the decision in exercise of
            judicial power which the legislature does not possess or exercise.
            A Court's decision must always bind unless the conditions on which
            it is based are so fundamentally altered th the decision could not
D           have been given in the altered circumstances. ordinarily, a Court
            holds a tax to be invalidity imposed because the power to tax is
            wanting or the statute or the rules or both are invalid or do not
            sufficiently create the jurisdiction. Validation of a tax so declared
            illegal may be done only if the grounds of illegality or invalidity
            are capable of being removed and are in fact removed and the tax
E           thus made legal. Sometimes this is done by providing for jurisdic-
            tion where jurisdiction had not been properly invested before.
            Sometimes this is done by re-enacting retrospectively a valid and
            legal taxing provision and then by fiction making the tax already
            collected to stand under the re- enacted law. Sometimes the
F           legislature gives its own meaning and interpretation of the law
            under which the tax was collected and by legislative fiat makes the
            new meaning binding upon Courts. The legislature may follow any
            one method or all of them and while it does so it may neutralise
            the effect of the earlier decision of the Court which becomes
            ineffective after the change of the law."
G
  The same view has been expressed in the cases of Mis. West Ramnad
  Electric Distribu£ion Co. Ltd. v. The State of Madras & Another, AIR (1962)
  SC 1753 = [1963] 2 SCR 747, Udai Ram v. Union of India, AIR 1968 SC
  1138 = [1968] 3 SCR 41, Tirath Ram v. State of U.P., AIR (1973) SC 405
H = [1973] 3 .SCC 585, Krishna Chandra v. Union of India, AIR (1975) SC
                        B. SINGH v. U.0.1. [N.P. SINGH, J.]                   649

  1389 = (1975] Suppl. SCR 151, Mis. Hindustan Gum & Chemicals Ltd. v. A
  State of Haryana, AIR (1985) SC 1683 - (1985] Suppl. 2 SCR 630 and M/s.
  Utkal C.& I (P) Ltd. v. State of Orissa, AIR 1987 SC 2310 = (1988] 1 SCR
  314.

           Ia the present case as already pointed out above, if sub-section 2 as     B
    introduced by the Coal Mines Nationalisation Laws (Amendment) Act,
    1986 in sub-section 10 had existed since the very inception, there was no
    occasion for the High Court or this Court to issue a direction for taking
    into account the price which was payable for the stock of coke lying on the
    date before the appointed day. The authority to introduce sub-section (2)
    in Section 10 of the aforesaid Act with retrospective effect cannot be           C
    questioned. Once the amendment has been introduced retrospectively,
    Courts have to act on the basis that such provision was there since the
    beginning. The role of the deeming provision need not be emphasised in
    view of series of judgments of this Court. Hence reading sub-section (2) of
    section 10 along with Section 19, it has to be held that respondents are not     D
    required to take into account the stock of coke lying on the date prior to
    the appointed day for the purpose of accounting during the period when
    the mine in question was under the management of the Centr.al Govern-
    ment, because it shall be deemed that the compensation awarded to the
    petitioner included the price for such coal lying in stock on the date prior
· ' to the appointed day. Neither any compensation is to be paid for such stock      E
    of coal nor the price thereof is to be taken into account for the purpose of
    sub-section (1) of Section 22 of the Coking Coal Mines (Nationalisation)
    Act 1972. It need not be pointed out that sub-section ( 1) of Section 22 shall
    be applicable where the statement of accounts is to be prepared in respect
    of each coking coal mine taking into account the expenditure incurred in         F
    raising the Coal and the price of the coal raised during the period when
    such coking coal mine was under the management of the Central Govern-
    ment or the Government company. In view of the aforesaid sub-section'(2)
    introduced in Section 10 of the Coking Coal Mines (Nationalisation) Act,
    1972 and Section 10 of the Coal Mines Nationalisation Laws (Amendment)
    Act, 1972, it shall be deemed that the compensation has oeen paid even           G
    for the stock of coal lying on the date prior to the appointed day.

        On behalf of the petitioner, reference was made to the case of D.
  Cawasji & Co. v. State of Mysore, AIR (1984) SC 1780 = (1985] 1 SCR 825.
  In that case, it was held that Section 3 of the Mysore Sales Tax (Amend- H
    650                  SUPREME COURT REPORTS (1994) SUPP. 1 S.C.R.

A ment) Act 1969 was unreasonable, in so far as it sought to nullify the High
    Court judgment which had become final and binding on parties. From. a
    bare reference to the aforesaid judgment it shall· appear that this Court
    pointed out that the amendment did not proceed to cure the defect or to
    remove the lacuna pointed out in the earlier judgment by bringing in an
B   amendment. As such it was not a validating Act and it could not nullify the
    judgment of the High Court, because the defect had not been removed by
    the said Act. In other words, the validating Act had not served its purpose.
    In the present case, the lacuna or defect has been removed by introduction
    of sub-section (2) in section of the Act with retrospective effect. Sub-sec-
    tion (2) of Section 10 as well as section 19, both have specified that the
C   amount which is be paid as compensation mentioned in the schedule shall
    be deemed to include and deemed always to have included, the amount
    required to be paid to such owner in respect of all coal in stock on the
    date immediately before the appointed day. As such the earlier Judgment
    of this Court is of on help to the petitioner.
D        Accordingly the Writ Application is dismissed. But in the facts and
    circumstance of the case, there shall be no order as to costs.

          Writ Petition Nos. 1238/90, 96/87, 830/86, 834/86, 2/87, 1384/87,
    1385/87, 659/87, 1594/86, 95/87, C.A. Nos. 822, 211, 212, 213, 214, 215, 216,
E   217, 218, 219, 1110, 1111, 1112, 1113, 1114, 1115, 1116, 1117 of 1988. C.A.
    No. 1532/90 And SLP No. 1194/86.

          For the reasons mentioned in the case of Bhubaneshwar Singh & Anr.
    v. Union of India of India & Ors., (Writ Petition (Civil) No. 1642 of 1986),
    disposed of today, all the above-mentioned matters are dismissed. But in
F   the facts and circumstances of the cases, there shall be no order as to costs.

     A.G.                                                     Petition dismissed.




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