Holding

Water is a mineral within the meaning of the Act, so ONGC may lay the water pipeline under the existing user right, and the appeal is dismissed.

Summary

The appellant, Ichchapur Industrial Co‑operative Society Ltd., owned land over which the Oil and Natural Gas Commission (ONGC) had been vested with the right of user under the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 for laying a gas pipeline. When water became necessary for the gas‑processing plant, ONGC issued a notice under section 8 of the Act to lay a water pipeline, which the appellant challenged, arguing that water is not a "mineral" and that fresh notification and declaration were required. The Gujarat High Court rejected the challenge, holding that the water pipeline was permissible under section 7 of the Act. On appeal, the Supreme Court examined the definition of "minerals" in section 2(ba) of the Act, which incorporates the definition from the Mines Act, 1952, and concluded that water, being obtainable by drilling, qualifies as a mineral. Consequently, the Court held that the existing user right allowed ONGC to lay the water pipeline without additional notification, affirming the High Court’s decision. The appeal was dismissed.

Issues considered

Whether "water" falls within the definition of "minerals" under section 2(ba) of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 as incorporated from the Mines Act, 1952.
Whether laying a water pipeline under the existing user right is permissible under section 7 of the Act without fresh notification under section 3 and declaration under section 6.

Legislation cited

Mines Act, 1952s. 2(jj)
Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962s. 2(ba), s. 3, s. 6, s. 7, s. 8

Subjects

water as mineralpipeline right of userinterpretation of statuteslegislation by referencesection 7 utilisationPetroleum and Minerals Pipelines ActMines Act definitionONGCland acquisition

Judgment

A ICHCHAPUR INDUSTRIAL CO-OPERATIVE SOCIETY LTD.
v.
THE COMPETENT AUTHORITY, OIL AND NATURAL GAS
COMMISSION AND ANR.

DECEMBER 19, 1996
B
[KULDIP SINGH AND S. SAGHIR AHMAD, JJ.]

Petroleum & Minerals Pipelines (Acquisition of Right of User in Land)
Act, 1962:
c Ss. 2(ba), 3, 6 and 7-Right of user of land vested in ONGC for laying
pipelines for transportation of petroleum-Held, it shall be lawful to lay
pipelines for transporting minerals including "water" without any further"
Notification u/s. 3 or declaration u/s. 6, since "water" is a mineral-Besides,
canying of water through new pipelines would be an act for utilization of
D pipelines with the meaning of S. 7 and therefore permissible-Mines Act, S. ·
2(jj).

Principle of Legislation by Reference or incorporation-Applied.

Interpretation of Statutes :
E
Definition-Held, has to be read in the context in which it is used and
for the purpose for which the Act was made.

Words and Phrases :

F "Minerals''-"Water" in the context of Petroleum and Mineral Pipelines
(Acquisition of Right of User in Land) Act, 1962 and Mines Act 1952-Held,
water is a "Mineral".

The appellant was the owner of certain lands in respect whereof
notification under section 3(1) and declaration under Section 6(1) of the
G Petroleum and Minerals Pipelines (Acquisition of Right of User in Land)
Act, 1962 were issued and rights of user in the land stood vested in the Oil
and Natural Gas Commission, respondent No. 2, for laying pipelines for
transportation of petroleum. The ONGC laid the pipelines in the said land
initially for transportation of gas to its gas processing plant. Later, when
H water could not be made available to the plant from the existing source,
416
ICHCHAPURINDL CO-OP SOCY. LID. v. COMPETENT AUTIIORITY, 0.N.G.C. . 417
the ONGC gave the appellant a notice under section 8 of the Act for laying A
pipelines in the said land to carry water to the plant for its effective '
working. The appellant challenged the notice by fding a writ petition before
the High Court on the ground that the proposed pipelines were not being
; laid for transportation of petroleum or any other mineral but were to be
used for transporting water which was not permissible under the Act. The
B
High Court rejected the petition holding that water being necessary to run
the gas processing plant, transportation thereof through the pipelines to
the plant would amount to an act for utilisation of pipelines for transpor-
tation of the gas.

On appeal by the land owner to this Court, besides raising the pleas c
taken by the parties before the High Court, the ONGC also contended that
"water" for which the pipelines were required to be laid was a mineral and
since "minerals" could be validly carried-through those pipelines, "water"
could also be carried or transported through them. It was contended for
the appellant that "water" should be understood in the same se1:1se in which
it is understood by a common man and it should not be construed as D
"mineral"; and new pipelines for carrying ~nother commodity could not be
laid unless fresh notification u/s. 3 and a declaration u/s. 6 were issued.

Dismissing the appeal, this Court
E
HELD : 1.1. In· view of the fact that the Petroleum and Minerals
Pipelines (Acquisition of Right of User in Land) Act, 1962 is an Act of
Parliament intended to deal with the particular technology and the com-
modities involved therein, "water" in the Act has been used in both the
senses, namely, that (i) it is a "mineral"; and (ii) the most common, readily
.and freely available substance on the earth. Since the respondents have F
the right to lay down pipelines for transporting a "mineral" after the
amendment of the Act they can legally lay down the pipelines through the
land in question for carrying and transporting "water" without any further
Notification u/s. 3 or declaration u/s. 6 of the Act. [429-H; 430-A; 429-F-G]

1.2. Section 2(ba) of the Act defines "Minerals" which have to have G

- the meaning assigned to them in the Mines Act, 1952. The definition of
"Mineral", which has been bodily lifted from the Mines Act, 1952 and has
been placed in the Act, was deliberately so incorporated by Amending Act
No. 13 of 1977 so that while carrying Petroleum through the pipelines, any
other minerals may also be carried through it. Thus the definition of H
418 SUPREME COURT REPORTS{1996] SUPP.10 S.C.R.

A "Minerals" in the Act would indicate that the meaning given to it in the
Mines Act is to apply here also on the basis of classic principle of
Legislation by Reference or Incorporation which is a legislative device
adopted for the sake of conveniences in order to avoid verbatim reproduc-
tion of the provisions of the earlier Act into the later. The provisions so
B incorporated become part and parcel of the later Act as if they had been
bodily transposed into it. (429-E-F; 426·A·B]

1.3. The definition of "Minerals" in s. 2(ii) of the Mines Act, 1952
indicates that "Minerals" are substances which can be obtained from the
earth by employing different technical devices indicated in the definition,
C namely, "Mining, digging, drilling, dredging, Hydraulicing, quarrying".
These words are followed by the words "by any other operation". On
account of the vicinity of these words with the previous words, namely
mining, digging, drilling etc. they have to be understood in the same sense
and, therefore, if "Minerals" are obtained from the earth "by any other
D operation" such operation should be an operation akin to the device or
operation involved in mining, digging, drilling etc.

Another significant feature of the definition is the use of words
"substances which can be obtained from the earth" which indicate that the
"Minerals" need not necessarily be embeded in the earth or lie deep
E beneath the surface of the earth. They may also be available on the surface
of the earth, and in such a case the operation which would be obviously
imployed would be dredging, quarrying or hydraulicing or any other
similar operation. The definition, therefore, is very vide in terms but in
spite of its wide connotation, every substance which can be obtained from
F earth would not be a "Mineral". (426-E·H]

1.4. 'Water" being a substance which can be obtained from the earth
by the process of drilling, it would fall within the defmition of "Mineral"
set out and placed in this Act. (428-F]

G 1.5. Moreover, in Mineralogy, water is treated, on account ofits chemi·
cal composition as a mineral. If therefore, it falls within the definition of
"Mineral" as set out in this Act, it should not surprise anyone, not even the
common man, as it is a substance which can also be obtained by a process of
drilling and notwithstanding that it is available in plenty and everywhere, it
H is to be treated more valuable than any other "Mineral". (429-B·CJ
ICHCHAPUR INDL CO-OP SOCY. LTD. v. COMPEIBNT AUI1IORITY, O.N.G.C. 419

"World Book Encyclopeadia'~ Vol. 21 ''Earth" by Frank Press of the A
Massachusetts Institute of Technology and Raymod Siever of Harvard Univer-
sity; Rutley's Elements of Mineralogy 26th Ed., H.B. Read, F.R.S., Professor .
Emeritus of Geology in the Imperial College of Science and Technology
and the University of London, referred to.

1.6. A definition has to be read in the context in which it is used and the B
purpose for which the Act was made. Where the definition clause is preceded
by the words "unless the context otherwise requires"; the definition has to be
interpreted in the light of the context in which it is used. [ 429-C-D]

2.1. Besides, the High Court was right in holding that carrying of C
"water" through the new pipelines would be an act for utilisation of the
pipeline within the meaning of "Section 7" of the Act and, therefore,
permissible. Section 7 of the Act provides that where the right of the user,
in any land, has vested in the Central Government or in any State Govern-
ment or Corporation under Section 6, it shall be lawful by those authorities
to enter upon the land and lay pipelines or to do any other act necessary D
- for the laying up of pipelines. [430-B; 424-D-E]

2.2. The provisions of S.7 further indicate that if the right of user of
the land has vested in the Government for.laying pipelines for transporting
petroleum, it shall be IaWful to lay pipelines for transporting minerals. It
also provides that where the right of user of a land has vested in the E
Government for laying pipelines for transporting and mineral, it would be
lawful to lay pipelines for transporting petroleum_ or any other mineral
including the mineral for the transportation of which the right of user had
already vested. The two rights, namely the right to lay pipeline for
Petroleum and the right to lay pipeline for minerals have been linked F
together. If one is acquired, the other also becomes available. [425-A·B]

CIVIL APPELLATE JURISDICTION: Civil Appeal No.16834 of
1996.

From the Judgment and Order dated 4.5.95 of the Gujarat High G
Court in L.P.A. No. 166 of 1995.

-· Dr. Rajeev Dhawan, Sanjay Kapur, M.K. Michael and Rajiv Kapur
for the Appellant. ·

R. Sasiprabhu for the Respondents. H
420 SUPREME COURT REPORTS[1996) SUPP.10 S.C.R.

A The Judgment of the Court was delivered by

S. SAGHIR AHMAD, J. : Leave granted.

2. Water is a mineral within the meaning of Mines Act, 1952 read
with Section 2{ba) of the Petroleum and Minerals Pipelines (Acquisition
B of Right of User in Land) Act, 1962 (for short, the Act)- or not is the
question raised by the respondent in this appeal.

3. Appellant owns survey plot Nos. 780, 781 913/1, 914, 893, 918/223,
924/2, 923, 926 of moja Ichchapur Tehsil Choryasi, District Surat which
C were notified on 23.6.83 under Section 3(1) of the Act. For acquiring the
right of user in those plots to enable the respondent No. 2, namely, the Oil
and Natural Gas C::Ommission, in whom the rights were ultimately vested,
to lay pipelines for transporting Petroleum from one place to another, a
Notification was issued under Section 3(1) of the Act on 23.6.83. This
Notification was followed by Notification dated 16.1.84 issued under Sec-
D tion 6(1) of the Act and the right of u5er in the aforesaid land stood
acquired for laying the pipelines. It was also indicated in that Notification
that the right of user in the said lands shall, instead of vesting in the Central
Government, vest in the Oil and Natural Gas Commission.

4. In pursuance of the aforesaid Notifications, Oil and Natural Gas
E Commission (for short, ONGC) laid down pipelines in the aforesaid plots
of land for transportation of Petroleum from Utran Terminal to Kribhco
Terminal.

5. The right to user having vested in the ONGC, they initially laid
p one 12" Gas pipeline through the said land (30 metres wide) for transpor-
tation of the Gas. The Gas processing plant is said to be located at Hazira
and south basin. Gas is being processed at that plant since 1988 for being
supplied to various consumers. In order to run the aforesaid plant efficietly
and effectively, water is a commodity which is vitally required. Water was
initially drawn for that purpose from KRBC canal division but when
G ONGC was informed that no further water would be made available from
the canals due to Kakarprra Irrigation Project, the ONGC decided to draw
water from the alternative sources through their own pipelines which they
thought they would lay down underneath the land of which the right of user
had already vested in them. Accordingly, a notice dated 6.10.94 was issued
H under Section 8 of the Act for laying pipelines to carry water for effective
I
ICHCHAP UR IND!.. CO-OP SOCY. LID. v. COMPIITllNT AU11l0RITY, O.N.G.C. (S. SAGHIR AHMAD, J.) 421

working of the Gas processing plant. The pipeline was to pass through a A
stretch of land of 13 Kms. out which the land owners/occupiers of 11 Kms.
did not raise any objection whatsoever but the appellant who is concerned
only with 2 Kms. of land challenged the notice on the ground that the
proposed pipelines were not being laid for transporting petroleum or any
other mineral but for transporting water which was not permissible under B
the Act. This contention has been rejected by the Gujarat High Court
which was of the opinion that the action of ONGC in laying down the
proposed pipeline for transporting water was fully covered by the
provisions of the Act specially as the right of user of the land through which
the pipeline was proposed to be carried had already vested in the ONGC.
c
6. The appellant has again raised this question in this appeal while
ONGC has raised an additional ground that "WATER" for which the
pipelines have been laid is a mineral and since "Minerals" could be validly
carried through those pipelines, "Water" could also be carried or
transported through them.
D
7. Whether "Water" is a mineral or not was not decided by the High
Court as it was of the opinion that carrying of water through the pipelines
would be covered by the phrase "any other act necessary for the utilisation
of the pipeline" used in Section 7(1)(ii) of the Act on the simple logic that:
E
(i) Pipelines earlier laid were meant, and, are being utilised for
transportation of Gas.

(ii) This Gas is processed at the Gas processi~g plant.

(iii) For running of Gas processing plant, water is necessary other- F
wise the plant will not run and Gas will not be available.

(iv) If water was carried through the new pipelines to run the
plant, it would amount to an act for the utilisation of pipelines
for transportation of the Gas. G
8. Section 2(ba) defines "Minerals" as under :
...:

"2(ba). "minerals" have the meanings assigned to them in the Mines
Act, 1952, and include mineral oils and stowing sand but do not
include petroleum." H
422 SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

·A 9. "Petroleum" has been defined in Section 2(c) as under :

"2(c). "petroleum" has the same meaning as in the Petroleum Act,
1934, and includes natural gas and refinery gas.

10. Section 3 of the Act provides as under :
B
"3. Publication of notification for acquisition. - (1) Whenever it
appears to the Central Government that it is necessary in the public
interest that for the transport of petroleum (of any minerals) from
one locality to another locality pipelines may be laid by that
Government or by any State Government or a Corporation and
c that for the purpose of laying such pipelines it is necessary to
acquire the right of user in any land under which such pipelines
may be laid, it may, by notification in the Official Gazette, declare
it intention to acquire the right of user therein.

D (2) Every notification under sub-section (1) shall give a brief
description of the land.

(3) The competent authority shall cause the substance of the
notification to be published at such pla.ces and in such manner as
may be prescribed."
E
11. Sections 5 and 6 provide as under :

"5. Hearing of Objections - (1) Any person interested in the land
may, within twenty-one days from the date of the notification under
sub-section (1) of section 3, object to the laying of the pipelines
F under the land.

(2) Every objection under sub-section (1) shall be made to the
competent authority in writing and shall set out the grounds thereof
and the competent authority shall give the objector an opportunity
of being heard either in person or by a legal practitioner and may,
G after hearing all such objections and after making such further
inquiry, if any, as that authority thinks necessary, by order either
allow or disallow the objections.

(3) Any order made by the competent authority under sub-section
H (2) shall be final."
!CHCllAPUR INDI.. CO-OP SOCY. LID. v. COMPETENT AlITHORITY, O.N.G.C. (S. SAGHIR AHMAD, l.) 423

"6. Declaration of acquisition of right of user. - (1) Where no A
objections under sub-section (1) of Section 5 have been made to
the competent authority within the period specified therein or
where the competent authority has disallowed the objections under
sub-section (2) of that Section, that authority shall, as soon as may
be, (either make a report in respect of the land described in the B
notification under sub-section (1) of section 3, or make different
reports in respect or different parcels of such land, to the Central
Government containing his recommendations on the objections,
together with the record of the proceedings held by him, for the
decision of that Government) and upon receipt of such report, the
Central Govt. shall (if satisfied that such land is required of laying C
any pipeline for the transport of petroleum or any mineral),
declare, by notification, in the Official Gazette, that the right of
user in the land for laying the pipelines should be acquired (and
different declarations may be made from time to time in respect
of different parcels of the land described in the notification issued D
under sub-section (1) of section 3, irrespective of whether one
report or different reports have been made by the competent
authority under this section).

(2) On the publication of the declaration under sub- section (1),
the right of user (in the land specified therein) shall vest absolutely E
in the Central Government free from all encumbrances.

(3) Where in respect of any land, a notification has been issued
under sub-section (1) of section 3 but (no declaration in respect
of any parcel of land covered by that notification has been pub- F
lished under this section) within a period of one year from the date
of that notification, that notification shall cease to have effect on
the expiration of that period.

(4) Notwithstanding anything contained in sub-section (2), the G
Central Government may, on such terms and conditions as it may
think fit to impose, direct by order in writing, that the right of user
--' in the land for laying the pipelines shall, instead of vesting in the
Central Government vest, either on the da0f publication of the
declaration or, on such other date as may be specified in the
direction, in the State Government or the corporation proposing H
424 SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

A to lay the pipelines and thereupon the right of such user in the
land shall, subject to the terms and conditions so imposed, vest in
that State Government or corporation, as the case may be, free
from all encumbrances."

12. There is no dispute between the parties that a Notification under
B Section 3 of the Act was duly published which was subsequently followed
by Declaration under Section 6 with the result that the right of user of the
land in question vested in the ONGC. The question which is being con-
vassed before us now is that new pipelines for carrying another commodity
cannot be laid unless fresh Notification under Section 3 followed by a
C Declaration under Section 6, which too is made after following the proce-
dure prescribed under Sections 4 and 5, are issued or the land itself is
acquired under the Land Acquisition Act for this purpose. We shall
consider this question, if need be, later as we intend to take up the other
question, namely, the question whether 'Water" is a "Mineral" or not, first.

D 13. This question arises in view of the provisions contained in
Section 7 of the Act which provides that where the right of the user, in any
land, has vested in the Central Government or in any State Government or
Corporation under Section 6, it shall be lawful by those authorities to enter
upon the land and lay pipelines or to do any other act necessary for the
E laying up of pipelines.

14. Clauses (ia) and {ii) of Sub-section {1) which are relevant are
reproduced below :

"(ia) for laying pipelines for the transport of petroleum, it shall be
F lawful for any person authorised by the Central Government or
such State Government or corporation to use such land for laying
pipelines for transporting any mineral and where the right of user
in any land has so vested for laying pipeline for transporting any
mineral, it shall be lawful for such person to use such land for
laying pipelines for transporting petroleum or any other mineral;
G and

(ii) such land shall be used only for laying the pipelines and for
maintaining, Qmining, repairing, altering or removing any such
pipelines or for doing any other act necessary for any of the
H aforesaid purposes or for the utilisation of such pipelines."
!CHCHAPUR IND!. CO-OP SOCY. LID.'· COMPETENT AUTIIORITY, O.N.G.C [S. SAGHIR AHMAD, J. j 425

15. A perusal of the above would indicate that if the right of user of A
the land has vested in the Government for laying pipeline for transporting
petroleum, it shall be lawful to lay pipelines for transporting minerals. It
also provides that where the right of user of a land has vested in the
Government for laying pipelines for transporting any mineral, it would be
lawful to· lay pipelines for transporting petroleum or any other mineral B
including the mineral for the transportation of which the right of user had
already vested. The two rights, namely, the right to lay pipeline for
Petroleum and the right to lay pipeline for minerals have been linked
together. If one is acquired, the other also becomes available.

16. Clause (ia) was introduced in Section 7 by the Petroleum C
Pipelines (Acquisition of Right of User in Land) Amendment Act, 1977
(Act 13 of 1977) with effect from 3rd February, 1977. By the same Amend-
ing Act, the definition of "Minerals" contained in Clause (ba) of Section 2
was also introduced in the parent Act. "Mineral" was not earlier defined
and so also the right to lay down pipelines for carrying "Mineral" was also D
not available in the original Act. The Statement gf Objects and Reasons
for amending the parent Act by Act 13 of 1977 provides, inter-alia, as
under:

"The Petroleum Pipelines (Acquisition of Right of use in Land)
Act, 1962 was enacted to empower the Central Government to E
acquire the right of user in any land if it appears to that Govern-
ment that it is necessary, in the public interest, to lay pipelines
under such land for the Transport of petroleum (which is defined
to include natural gas and refinery gas) from one locality to
another. When the legislation was enacted, petroleum Including F
natural gas and refinery gas) was the only commodity for which
transportation through pipelines was contemplated. Technological
advance has since made it possible to transport in bulk, mineral
(besides petroleum) through pipelines. It is therefore proposed to
amend the Act to enable the acquisition of the right of user in land
also for laying pipelines for the transport of minerals (besides G
petroleum) from one place to another."

17. In view of the availability of right to lay down pipelines for
transporting a "Mineral" after the amendment of the Act, the respondents
can legally lay down the pipelines through the land in question for carrying H
426 SUPREME COURT REPORTS[1996] SUPP.10 S.C.R.
. ' I

A ·and transporting "Water" provided "Water" is a "Mineral".

18. The definition of "Minerals" which we have already quoted above
would indicate that the meaning given to it in the Mines Act, 1952 is to
apply here also on the basis of classic principle of Legislation by Reference
or Incorporation which is a legislative device adopted for the sake of
B convenience in order to avoid verbatim reproduction of the provisions of
the earlier Act into the later. The provisions so incorporated become part
and parcel of the later Act as if they had been bodily transposed into it.

19. On this principle, the definition of "Minerals" as set out in the
C Mines Act, 1952 shall be deemed to have been bodily lifted and incor-
porated into this Act. We have, therefore, to look to that Act to find out
the true meaning of the word "Minerals" which is defined in Section 2Qj)
as under:

D "2Gj). "minerals" means all substances which can be obtained from
the earth by !llining, digging, drilling, dredging, hydraulicing, quar-
rying or by any other operation and includes minerals oils (which
in turn include natural gas and petroleum.)"

20. The definition would indicate that "Minerals" are substances
E which can be obtained from the earth by employing different technical
devices indicated in the definition, namely, "mining, digging, drilling, dredg-
ing, hydraulicing, quarrying". These words are followed by the words "by
any other operation". On account of the vicinity of these words with the
previous words, namely, mining, digging, drilling etc., they have to be
p understood in the same sense and, therefore, if "Minerals" are obtained
from earth "by any other operation" such operation should be an operation
akin to the device or operation involved in mining, digging, drilling etc.
Another significant feature of the definition is the use of words "substances
which can be obtained from the earth" which indicate that the "Minerals"
need not necessarily be embeded in the earth or lie deep beneath the
G surface of the earth. They may be available either on the surface of the
earth or down below. If the "Mineral" is available on the surface, the
operation which would be obviously employed would be dredging, quarry-
ing or hydraulicing or any other similar operation. The definition, there-
fore, is very wide in terms but in spite of its wide connotation, every
H substance which can be obtained from earth would not be a "Mineral".
ICHCHAPUR IND!. CO-OP SOCY. LID.'· COMPEIENT AUTHORITY, O.N.G.C. [S. SAGHIRAHMAD, J.) 427

21. Learned counsel for the appellant contended that we should not A
enter into the exercise of analysing the definition of "Mineral" to find out
whether "Water" would fall within that definition or not, as the only
meaning which can be assigned to "Water" is the common meaning as
understood by a common man who does not treat "Water" as a mineral,
but treats it as the most common commodity available free of cost like B
"fresh air" and other gift of nature which are available in plenty to all living
beings, including human beings on the surface of the earth. We are not
prepared to accept this contention.

22. Water undoubtedly covers more than seventy per cent of the
earth's surface. It fills the oceans, rivers and lakes and is in the ground and C
in the air we breathe. In fact, "Water" is everywhere. Without "Water", there
can be no life. Great civilisations have risen where water supplies were
plentiful. They have fallen when these supplies failed. In the 'World Book
Encyclopedia", Vol. 21, it is further s_tated about "Water" as under :
D
"People have worshiped rain gods and prayed for rain. Often, when
rains have failed to come, crops have withered and starvation has
spread across a land. Sometimes the rains have fallen too heavily
and too suddenly. The rivers have overflowed their banks, drown-
ing everything and everyone in their paths.
E
Today, more than ever, water is both slave and master to people.
We use water in our homes for cleaning, cooking, bathing and
carrying away wastes. We use water to irrigate dry farmlands so
we can grow more food. Our factories use more water than any
other mineral. We use the water in rushing rivers and thundering F
waterfalls to produce electricity.

Our demand for water is constantly increasing. Every year, there
are more people in the world. Factories turn out more and more
products and need more and more water. We live in a world of
water. But almost all of it - about 97 per cent - is in the oceans. G
This water is too salty to be used for drinking, farming and about
3 per cent of the world's water is not easily available to people
because it is locked in icecaps and other glaciers. By the year 2000,
the world demand for fresh water may be double. What it was in
the 1980's. But there will still be enough to meet people's needs. H
428 SUPREME COURT REPORTS(l996] SUPP. 10 S.C.R.
I

A There is as much water on earth today as there ever was - or ever
will.be." .

In the book titled "Earth" by Frank Press of the Massachusetts Institute of
Technology and Raymond Siever of Harvard University, it is stated :

B "Water dissolves minerals during weathering, then carries the dis-
solved material away - into the ground or into rivers, most of which
ultimatly empty into the ocean. The movement of the Earth's
waters from one place to another and the dissolved loads carried
by them are parts of a continuous overall pattern : hydrologic cycle.
Groundwater accumulates by infiltration of water into soils and
c bedrock and reappears at the surface in springs and stream beds.
Groundwater levels, and thus water infiltration and the rate of loss
by springs, streams, and pumping from wells. The evolution to
surface waters and the ocean are related to the escape of gases
from the interior."
D
On account of its abundance, the common man does not think that "Water" '
could also be treated or utilised as a· mineral.

23. But there are subterranean waters which lie wholly beneath the
surface of the earth and which either ooze or seep through the surface
E strata without pursuing any defined course or channel (percolating waters)
or flow in a permanent and regular but invisible course, or lie under the
earth in a more or less immovable body, as a subterranean lake. This water
can be obtained only by the process of "Drilling" which, according to
Chambers Dictionary, also includes "Boring".
F 24. Now, if it is a substance which can be obtained from the earth by
the process of drilling, it would immediately fall within the definition of
"Mineral" set out and placed in this Act. Even otherwise. Rutley's Ele-
ments of Mineralogy, 26th Edition, drought out by H.H. READ, F.R.S.,
Professor Emeritus of Geology in the Imperial College of Science and
G Technology and the University of London, "Mineral" is defined as under:

"A mineral is a substances having a definite chemical composi- ,
tion and atomic structure and formed by the inorganic processes '
of nature."

H 25. On the basis of this definition, Rutley says :
I
I
ICHCHAPUR IND!. CO-OP SOCY. LTD. v. COMPEI'ENT AUIB'JRITY, O.N.O.C. (S. SAOHIRAHMAD, J.) 429

"Again, water, snow and ice come within the definition since A
. they are naturally occurring homogeneous inorganic substances of
a definite chemical composition."

26 We have, however, taken the aid of Rutley's book only to indicate
that in Mineralogy, water is treated, on account of its chemical composi-
tion, a mineral. If, therefore, it falls within the definition of "Mineral" as. B
set out in this Act, it should not surprise anyone, not even the common
man, as it is a substance which can also be obtained by a process of drilling
and notwithstanding that it is available in plenty and everywhere, it is to be
treated more valuable than any other "Mineral".

27. In Civil Appeal No. 10538 of 1983, decided by us on 17.12:96, we
c
have already indicated the Rules to Interpret a "Definition" and have
stressed that the Definition has to be read in the context in which it is used
and the purpose for which the Act was made. We observed that where the
definition clause is preceded by the words "unless the context otherwise
requires'', the definition has to be interpreted in the light of the context in D
which it is used. We observed :

"This implies that a definition, like any other word in a statute, has
to be read in the light of the context and scheme of the Act as also
the object for which the Act was made by the legislature."
E
28. If the question is examined in this background, it would be
noticed that the definition of "Mineral" which has been bodily lifted from
the Mines Act, 1952 and has been placed in the Petroleum and Minerals
Pipelines (Acquisition of Right of User in Land) Act, 1962 was deliberately
introduced by Amending Act No. 13 of 1977 so that while carrying F
Petroleum through the pipelines, any other minerals may also be carried
through it. If, therefore, water is treated as a "Mineral" it would be
permissible for the ONGC to carry it through any other pipeline without
any further Notification or Declaration under Section 3 or 6 of the Act.
This interpretation which is in consonance with the scientific definition of G
a "Mineral", serves the purpose of the Petroleum and Minerals Pipelines
(Acquisition of Right of User in Land) Act, 1962. The contention of the
learned counsel for the appellant that "Water" should be understood in the
same sense in which it is understood by a common man cannot, therefore,
be accepted. This Act is an Act of Parliament intended to deal with the
particular technology and the commodities involved therein. We are, there- H
430 SUPREME COURT REPORTS[1996J SUPP.10 S.C.R.

A fore, of the view that in this Act, "Water" has been used in both the senses,
namely, that (i) it is a mineral; and (ii) the most common, readily and
freely, available substance 011 earth.

29. That apart, on the second question, were fully endorse the view
. taken by the Gujarat High Court in holding that carrying of 'Water"
B through the new pipelines would be an act for the utilisation of the pipeline
within the meaning of "Section 7" of the Act and, therefore, permissible.

30. The whole Project under the Act is a Project of national impor-
tance and, therefore, any individual inconvenience has to yield to the
national interest.
c
31. We do not find any infirmity in the judginent passed by the
Gujarat High Court and dismiss the appeal, but without any order as to
costs.

R.P. Appeal dismissed.