VidhiSangh

Supreme Court of India · 20/01/2023

MAHANADI COALFIELDS LTD. versus STATE OF ODISHA & ORS

[2023] 1 S.C.R. 1055 · 2023 INSC 63

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Summary

Odisha government land was acquired under the Coal Bearing Areas (Acquisition and Development) Act, 1957 and vested in a government coal company under Section 11. The Collector demanded a land premium and compensation. The company argued that the State could claim only the royalty under Section 18A. The Supreme Court upheld the demands. Under Section 11(2), the company is a deemed lessee of the State, and the State, as original owner, is a 'person interested' under Section 2(d) entitled to compensation. Royalty, introduced in 1971 to compensate States for minerals, is for extraction and is distinct from compensation and surface rent for the loss of land. Disputes over quantum can be taken to the appropriate authority.

Issues

  1. Whether, after coal-bearing government land acquired under the 1957 Act vests in a Government company under Section 11, the State Government is entitled to premium, compensation and surface rent for the land in addition to royalty under Section 18A.

Provisions considered

Held

Result

Civil Appeal No. 220 of 2023 against the Orissa High Court judgment dated 02.04.2019 in W.P. (C) No. 2477 of 2009 dismissed and the demands upheld, with liberty to the appellant to approach the appropriate authority on quantum or calculation; no costs.

Judgment PDF: Supreme Court of India, [2023] 1 S.C.R. 1055.