Coal bearing Areas (Acquisition and Development) Act, 1957

Establishes greater public control over the coal mining industry and its development by providing for the acquisition by the State of unworked land containing coal deposits, etc.

Coal Bearing Areas (Acquisition and Development) Act, 1957

[Act 20 of 1957]      [8th June, 1957]

An Act to establish in the economic interest of India greater public control over the coal mining industry and its development by providing for the acquisition by the State of unworked land containing or likely to contain coal deposits or of rights in or over such land, for the extinguishment or modification of such rights accruing by virtue of any agreement, lease, licence or otherwise, and for matters connected therewith

Be it enacted by Parliament in the Eighth Year of the Republic of India as follows:—

1. Short title, extent and commencement.

1. Short title, extent and commencement.—(1) This Act may be called the Coal bearing Areas (Acquisition and Development) Act, 1957.

(2) It extends to the whole of India, except the State of Jammu and Kashmir.

(3) It shall come into force on such date[i] as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions.

2. Definitions.—In this Act, unless the context otherwise requires,—

(a) “competent authority” means any person appointed to be a competent authority under Section 3;

(b) “Government company” means a Government company as defined in Section 617 of the Companies Act, 1956 (1 of 1956), in which any land or rights in or over land shall have vested under Section 11;

(c) “Mineral Concession Rules” means the rules for the time being in force made under the Mines and Minerals (Regulation and Development) Act, 1948 (53 of 1948);

[ii][(cc) “mining lease” includes a mining sub-lease, and “lessee” shall be construed accordingly;]

(d) the expression “person interested” includes all persons claiming an interest in compensation to be made on account of the acquisition of land, or of the acquisition, extinguishment or modification of any rights in or over land, under this Act;

(e) “prescribed” means prescribed by rules made under this Act;

(f) “Tribunal” means the Tribunal constituted under Section 14.

3. Appointment of competent authority.

3. Appointment of competent authority.—The Central Government may, by notification in the Official Gazette, appoint any person to be the competent authority for the purposes of this Act; and different persons may be appointed as competent authorities for different provisions of this Act and for different areas.

4. Preliminary notification respecting intention to prospect for coal in any area and powers of competent authorities thereupon.

4. Preliminary notification respecting intention to prospect for coal in any area and powers of competent authorities thereupon.—(1) Whenever it appears to the Central Government that coal is likely to be obtained from land in any locality, it may by notification in the Official Gazette, give notice of its intention to prospect for coal therein.

(2) Every notification under sub-section (1) shall given a brief description of the land and state its approximate area.

(3) On the issue of a notification under sub-section (1), it shall be lawful for the competent authority and for his servants and workmen—

(a) to enter upon and survey any land in such locality;

(b) to dig or bore into the sub-soil;

(c) to do all other acts necessary to prospect for coal in the land;

(d) to set out the boundaries of the land in which prospecting is proposed to be done and the intended line of the work, if any, proposed to be made thereon;

(e) to mark such boundaries and line by placing marks; and

(f) where otherwise the survey cannot be completed and the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle:

Provided that no person shall enter into any building or upon any enclosed court or garden attached to a dwelling house (unless with the consent of the occupier thereof) without previously giving such occupier at least seven days' notice in writing of his intention to do so.

(4) In issuing a notification under this section the Central Government shall exclude therefrom that portion of any land in which coal mining operations are actually being carried on in conformity with the provisions of any enactment, rule or order for the time being in force or any premises on which any process ancillary to the getting, dressing or preparation for sale of coal obtained as a result of such operations is being carried on are situate.

5. Effect of notification on prospecting licences and mining leases.

5. Effect of notification on prospecting licences and mining leases.—On the issue of a notification under sub-section (1) of Section 4 in respect of any land—

(a) any prospecting licence [iii][which authorises any person] to prospect for coal or any other mineral in the land shall cease to have effect; and

(b) any mining lease [iv][* * *] shall, in so far as it authorises the lessee or any person claiming through him to undertake any operation in the land, cease to have effect for so long as the notification under that sub-section is in force.

6. Compensation for any necessary damage done under Section 4.

6. Compensation for any necessary damage done under Section 4.—(1) Whenever any action of the nature described in sub-section (3) of Section 4 is to be taken, the competent authority shall, before or at the time such action is taken, pay or tender payment for all necessary damage which is likely to be caused, and in case of dispute as to the sufficiency of the amount so paid or tendered or as to the person to whom it should be paid or tendered, he shall at once refer the dispute to the decision of the Central Government, and the decision of the Central Government shall be final.

(2) The fact that there exists any such dispute as is referred to in this section shall not be a bar to action under sub-section (3) of Section 4.

7. Power to acquire land or rights in or over land notified under Section 4.

7. Power to acquire land or rights in or over land notified under Section 4.—(1) If the Central Government is satisfied that coal is obtainable in the whole or any part of the land notified under sub-section (1) of Section 4, it may, within a period of two years from the date of the said notification or within such further period not exceeding one year in the aggregate as the Central Government may specify in this behalf, by notification in the Official Gazette, give notice of its intention to acquire the whole or any part of the land or of any rights in or over such land, as the case may be.

(2) If no notice to acquire the land or any rights in or over such land is given under sub-section (1) within the period allowed thereunder, the notification issued under sub-section (1) of Section 4 shall cease to have effect on the expiration of three years from the date thereof.

8. Objections to acquisition.

8. Objections to acquisition.—(1) Any person interested in any land in respect of which a notification under Section 7 has been issued may, within thirty days of the issue of the notification, object to the acquisition of the whole or any part of the land or of any rights in or over such land.

Explanation.—It shall not be an objection within the meaning of this section for any person to say that he himself desires to undertake mining operations in the land for the production of coal and that such operations should not be undertaken by the Central Government or by any other person.

(2) Every objection under sub-section (1) shall be made to the competent authority in writing, and the competent authority shall give the objector an opportunity of being heard either in person or by a legal practitioner and shall, after hearing all such objections and after making such further inquiry, if any, as he thinks necessary, [v][either make a report in respect of the land which has been notified under sub-section (1) of Section 7 or of rights in or over such land, or make different reports in respect of different parcels of such land or of rights in or over 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].

(3) For the purposes of this section, a person shall be deemed to be interested in land who would be entitled to claim an interest in compensation if the land or any rights in or over such land were acquired under this Act.

9. Declaration of acquisition.

9. Declaration of acquisition.—(1) When the Central Government is satisfied, after considering the report, if any, made under Section 8 that any land or any rights in on over such land should be acquired, a declaration shall be made by it to that effect [vi][, and different declarations may be made from time to time in respect of different parcels of any land, or of rights in or over such land, covered by the same notification under sub-section (1) of Section 7, irrespective of whether one report or different reports has or have been made (wherever required) under sub-section (2) of Section 8]:

[vii][Provided that no declaration in respect of any particular land, or rights in or over such land, covered by a notification under sub-section (1) of Section 7, issued after the commencement of the Coal Bearing Areas (Acquisition and Development) Amendment and Validation Act, 1971, shall be made after the expiry of three years from the date of the said notification:

Provided further that, where a declaration] relates to any land or to any rights in or over land belonging to a State Government which has or have not been leased out, no such declaration shall be made except after previous consultation with the State Government.

(2) [viii][Every] declaration shall be published in the Official Gazette, and—

(a) in any case where land is to be acquired, shall take the district or other territorial division in which the land is situate and its approximate area; and, where a plan shall have been made of the land, the place where such plan may be inspected;

(b) in any case where rights in or over such land are to be acquired, shall state the nature and extent of the rights in addition to the matters relating to the land specified in clause (a); and

a copy of every such declaration shall be sent to the State Government concerned.

[ix][9-A. Special powers in cases of urgency.—If the Central Government is satisfied that it is necessary to acquire immediately the whole or any part of the land notified under sub-section (1) of Section 4 or any rights in or over such land, the Central Government may direct that the provisions of Section 8 shall not apply, and if it does so direct, a declaration may be made under Section 9 in respect thereof at any time after the issue of the notification under Section 7.]

10. Vesting of land or rights in Central Government.

10. Vesting of land or rights in Central Government.—(1) On the publication in the Official Gazette of the declaration under Section 9, the land or the rights in or over the land, as the case may be, shall vest absolutely in the Central Government [x][free from all encumbrances].

(2) Where the rights under any mining lease granted [xi][or deemed to have been granted] by a State Government to any person are acquired under this Act, the Central Government shall, on and from the date of such vesting, be deemed to have become the lessee of the State Government as if a mining lease under the Mineral Concession Rules had been granted by the State Government to the Central Government, the period thereof being the entire period for which such a lease could have been granted by the State Government under those rules.

11. Power of Central Government to direct vesting of land or rights in a Government company.

11. Power of Central Government to direct vesting of land or rights in a Government company.—(1) Notwithstanding anything contained in Section 10, the Central Government may, if it satisfied that a Government company is willing to comply, or has complied, with such terms and conditions as the Central Government may think fit to impose, direct, by order in writing, that the land or the rights in or over the land, as the case may be, shall, instead of vesting in the Central Government under Section 10 or continuing to so vest, vest in the Government company either on the date of publication of the declaration or on such other date as may be specified in the direction.

(2) Where the rights under any mining lease acquired under this Act vest in a Government company under sub-section (1), the Government company shall, on and from the date of such vesting, be deemed to have become the lessee of the State Government as if a mining lease under the Mineral Concession Rules had been granted by the State Government to the Government company, the period thereof being the entire period for which such a lease could have been granted by the State Government under those rules; and all the rights and liabilities of the Central Government in relation to the lease or the land covered by it shall, on an from the date of such vesting, be deemed to have become the rights and liabilities of the Government company.

12. Power to take possession of land acquired.

12. Power to take possession of land acquired.—The competent authority may, by notice in writing, require any person in possession of any land acquired under this Act to surrender or deliver possession of the land within such period as may be specified in the notice, and if a person refuses or fails to comply with any such notice, the competent authority may enter upon and take possession of the land, and for that purpose may use or cause to be used such force as may be necessary.

13. Compensation for prospecting licences ceasing to have effect, rights under mining leases being acquired, etc.

13. Compensation for prospecting licences ceasing to have effect, rights under mining leases being acquired, etc.—(1) Where a prospecting licence ceases to have effect under Section 5, there shall be paid to the person interested compensation, the amount of which shall be a sum made up of all items of reasonable and bona-fide expenditure actually incurred in respect of the land, that is to say,—

(i) the expenditure incurred in obtaining the licence;

(ii) the expenditure, if any, incurred in respect of the preparation of maps, charts and other documents relating to the land, the collection from the land of cores or other mineral samples and the due analysis thereof and the preparation of any other relevant records or material;

(iii) the expenditure, if any, incurred in respect of the construction of roads or other essential works on the land, if such roads or works are in existence and in a usable condition;

(iv) the expenditure, if any, incurred in respect of any other operation necessary for prospecting carried out in the land.

(2) Where the rights under a mining lease are acquired under this Act, there shall be paid to the person interested compensation, the amount of which shall be a sum made up of the following items, namely,—

(i) if the lease was granted after prospecting operations had been carried out in respect of the land under a prospecting licence, the sum of all items of reasonable and bona-fide expenditure actually incurred with respect to the matters specified in clauses (i), (ii), (iii) and (iv) of sub-section (1) before the date of the lease:

Provided that where two or more leases had been granted in relation to any land covered previously by one prospecting licence, only so much of the expenditure aforesaid as bears to the total expenditure the same proportion as the area under the mining lease in respect of which the rights have been acquired bears to the total area covered by the mining leases shall be payable under this clause;

(ii) any reasonable and bona-fide expenditure of the nature referred to in clauses (i), (ii) and (iii) of sub-section (1) actually incurred in relation to the lease, together with the salami, if any, paid for obtaining the lease;

(iii) the expenditure, if any, incurred by way of payment of dead-rent or minimum royalty during any year or years when there was no production of coal;

(iv) interest on any such expenditure referred to in clauses (i), (ii) and (iii) as has actually been incurred [xii][up to] the year in which the rights under the lease are acquired, interest being calculated in the following manner, that is to say,—

interest at the rate of five per centum per annum in respect of the expenditure incurred during each calendar year for the first five years commencing from the year in which such expenditure was incurred plus interest at the rate of four per centum per annum in respect of each subsequent year after the expiration of the first five years and ending with the year in which the rights under the lease are acquired:

Provided that the total sum payable under this clause shall not exceed one-half of the total amount referred to in [xiii][clauses (i),] (ii) and (iii).

(3) Where the rights under a mining lease acquired under Section 9 relate only to a part of the land covered by the mining lease, the amount of compensation payable shall be such as bears to the total compensation which would have been payable if the rights of the mining lessee in respect of the entire land had been acquired, the same proportion which the area of the land in respect of which the rights are acquired bears to the total area of the land covered by the mining lease.

(4) Where a mining lease ceases to have effect for any period under clause (b) of Section 5, there shall be paid by way of compensation for the period during which the lease so ceased to have effect, a sum equivalent to five per centum of any such expenditure as is referred to in clauses (i) and (iii) of sub-section (2) for each year during which the lease remains suspended.

(5) Where any land is acquired under Section 9, there shall be paid compensation to the person interested the amount of which shall be determined after taking into consideration—

(a) the market value of the land at the date of the publication of the notification under sub-section (1) of Section 4;

Explanation.—The value of any minerals lying in the land shall not be taken into consideration in determining the market value of any land;

(b) the damage sustained by the person interested, by reason of the taking of any standing crops or trees which may be on the land at the time of the taking possession thereof;

(c) the damage, if any, sustained by the person interested, at the time of taking possession of the land, by reason of serving such land form other land;

(d) the damage, if any, sustained by the person interested, at the time of taking possession of the land, be reason of the acquisition injuriously affecting his other immovable property in any other manner, or his earnings;

(e) if, in consequence of the acquisition of the land, the person interested is compelled to change his residence or place of business, the reasonable expenses, if any, incidental to such change; and

(f) the damage, if any, bona fide resulting from diminution of the profits of the land between the time of the publication of the notification under sub-section (1) of Section 4 and the time of the publication of the declaration under sub-section (2) of Section 9.

[xiv][(5-A) In determining the amount of compensation for any land acquired under Section 9, any increase to the value of the other land of the person interested, likely to accrue from the use to which the land acquired will be put shall not be taken into consideration.]

(6) Where any operation carried on by or on behalf of the Central Government in the exercise of any powers conferred by this Act causes or is likely to cause damage to the surface of any land or any works thereon and in respect thereof no provision for compensation is made elsewhere in this Act, the competent authority shall pay or tender payment for all such damage, and, in case of dispute as to the sufficiency of the amount so paid or tendered or as to the person to whom it is to be paid or tendered, he shall refer the dispute to the decision of the Tribunal.

(7) No compensation under this section in relation to maps, charts and other documents shall be paid unless the person to whom it is payable has delivered to the prescribed authority all the maps, charts and other documents.

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