Section 1487 in Coking Coal Mines (Nationalisation) Act, 1972
1487.
Object and Reasons.- Act 36 of 1972.- Coking coal is essential for the production of iron and steel but the resources thereof arc severely limited and consequently careful conservation of such resources is required in the long term interest of the steel, industry. Such conservation can be achieved only by ensuring scientific development and efficient conduct of operations in each coalfield and by employing proper techniques of mining. Efforts were made in the past to nationalise and co-ordinate the development and mining of coking coal but these efforts did not succeed. It had, therefore, become urgently necessary to assume, in the public interest, complete responsibility for the reorganisation and reconstruction of the coking coal industry and the connected coke production so that adequate supplies of coal and coke may be ensured to meet the growing requirements of the steel industry The Central Government, therefore, decided to nationalise the coking coal mines and coke oven plants as early as possible. As it was found that such nationalisation would take it long time to be effected. the management of 214 coking coal mines and 12 coke oven plants was taken over by the Government, pending nationalisation of such mines and plants, under the Coking Coal Mines (Emergency Provisions) Act, 1971 (No. 64 of 1971). The present Bill seeks to complete the process of nationalisation of the coking coal mines and coke oven plants by providing for the acquisition of the right. title and interest of the owners thereof, S.O.R. See Gazette of India, 31-7-72. Pt. II, Section 2, Ext., p. 648.Act 41 of 1973.- Since the Coking Coal Mines (Nationalisation) Act, 1972 received the President's as sent it has come to notice that in certain cases there are minor discrepancies in the description of the various coking coal mines listed in the Schedule to the Act. It is desired to remove these discrepancies, and such other discrepancies as may be brought to notice hereafter, by issue of suitable notifications if the power in this regard is vested in the Government.In course of the administration of the coking coal mines, since the enactment of the 1972 Act, it has been noticed that the previous owners had accumulated large arrears towards workers' dues in the shape of contributions to provident fund, wages and other dues. It is proposed to vest the Commissioner of payments appointed under Section 20 of that Act with the authority to deduct arrears of wages, employers share of the provident fund contribution, pension fund, gratuity fund or other funds established for the welfare of workers out of the amount payable to the owners specified in the first and second Schedules of the Coking Coal Mines (Nationalisation) Act, 1972, with priority over all other dues, whether secured or unsecured. The relevant clauses of the Bill are in conformity with similar provisions of the Coal Mines (Nationalisation) Act, 1973. Since it may not be possible for a large body of workmen or their dependents to make claims before the Commissioner, both the Acts are being amended with a view to empowering the Coal Mines Provident Fund Commissioner to make the claims on behalf of the workmen.It is proposed that any appeal against the decision of the Commissioner of payments shall lie before the High Court of the State in which the coking coal mine is situated and that such appeal shall be heard and disposed of by not less than two Judges of that High Court. (S.O.R.) See Gazette of India, 16-8-73, Pt. II, Section 2. Ext., p. 731.Act 22 of 1978.- After the nationalisation of coal mines in India under the Coking Coal Mines (Nationalisation) Act, 1972 and the Coal Mines (Nationalisation) Act, 1973, it was brought to light that certain provisions of these Acts needed clarification. It is, therefore, necessary to suitably amend these Acts with a view to removing the ambiguities as well as certain practical difficulties which have come to light in the implementation thereof. The main amendments are as follows :(a)As doubts were expressed whether certain amounts like dues on account of the sale of coal and coal products effected before the date of nationalisation of coking coal mines and coal mines, subsidies due for the pre-nationalisation period and earnest monies and security deposits made by the owners of coal mines with the various authorities were covered by the exception to the assets vesting in the Government on nationalisation. it is proposed to clarify in the said Acts that current assets vesting in the Government do not include such amounts.(b) The said Acts do not specify the interest rate admissible on the claimed amounts after the appointed day. In the absence of such a provision, the secured creditors have included in their claims interest at very high rates which, if allowed, will deprive the lower priority creditors, mostly Government organisations and small suppliers. It is, therefore, proposed to insert a new section in each of the said Acts to provide that the interest payable on such amounts shall be at such rate not exceeding the rate of interest accruing on any amount deposited by the Commissioner of Payments with a nationalised bank or in the Public Account of India as required under the said Acts.(c) It is proposed to empower the Commissioner of Payments(i) to authorise the persons appointed to assist him under the Coking Coal Mines (Nationalisation) Act, 1972 to exercise all or any of the powers exercisable by him under the Act. Such a provision already exists in the Coal Mines (Nationalisation) Act, 1973:(ii) to transfer cases from one Assistant Corttmissioner to another or to himself;(iii) to issue a notification inviting the owners, managing contractors and such other persons who are owners of any machinery, equipment or other property which has vested in the Central Government or a Government company under the Act and which does not belong to the colliery owners to apply for the residuary amount lying with Commissioner of Payments after settling all the claims.(d) It is proposed to legalise joint claims filed by workers through Trade Unions or through the officers under the Chief Labour Commissioner (Central) against the colliery owners.(e) Such of the claims as had not been time-barred on the relevant date when the management of the coal mines was taken over by Government and had been filed before the specified dates but had been rejected merely on the ground that such claims had become time-barred are proposed to be restored and dealt with.(f) It is proposed to prescribe a period of sixty days within which appeals against the decisions of the Commissioner of Payments have to be filed and to apply the relevant provisions of the Limitation Act, 1963, to such appeals. It is also proposed to extend the right of appeal to the colliery owners.(g) It is proposed to provide that the period of three years after which undisbursed amounts shall revert to the general revenue account should be counted from the date on which the last order for disbursement was made by the Commissioner of Payments and not from the date on which the amount was paid by the Government to the Commissioner.(h) With a view to dealing effectively with persons who indulge in illegal mining of coal, it is proposed to amend sub-section (2) of section 30 of the Coal Mines (Nationalisation) Act, 1973, by enhancing the punishment of imprisonment from two years to three years and of fine from ten thousand rupees to twenty thousand rupees.2. The Bill seeks to achieve the above objects. Gaz. of Ind., 26-4-1978, Pt. II, Section 2, Ext., p. 445.Act 57 of 1986.- After the nationalisation of coal mines in India under the Coking Coal Mines (Nationalisation) Act, 1972 (Coking Coal Act) and the Coal Mines (Nationalisation) Act, 1973, (Coal Mines Act), certain judicial pronouncements in regard to the interpretation of the provisions of the said Acts necessitated a few amendments in the relevant provisions of those Acts. It was also found necessary to remove certain ambiguities and difficulties in implementing those provisions. The Coal Mines Nationalisation Laws (Amendment) Ordinance, 1986(7 of 1986) was thus promulgated by the President on the 7th October, 1986 to make certain amendments in the above two Acts. Some of the important amendments which the Ordinance proposed were as follows :(a) the definition of "mine" in the Coking Coal Act and the Coal Mines Act included all coal and coke belonging to the owner of the mine whether in stock or in transit and all coal under production in a mine on a day immediately prior to the date on which the coal mines were nationalised. Accordingly, the amounts specified in the Schedules to the two Acts included the value of the coke and coal in stock lying at the mines at the time of nationalisation. The Supreme Court, however, in a recent case, while agreeing with the contention that the coke and coal stocks lying at the mine vested in the Government as a result of nationalisation took the view that the value of coke and coal stocks had to be taken into account for balancing the position of accounts as on the date immediately preceding the date of nationalisation. This would have involved double payment of the amount inasmuch as the value of the coke and coal stocks had already been included in the amounts mentioned in the Schedules to the Acts against each coal mine. In order to make the intention clear, sections 10 and 22 of the Coking Coal Act and sections 8 and 19 of the Coal Mines Act were amended retrospectively to remove any doubts in the matter and to clarify that the amounts specified in the Schedules to the relevant Acts shall also be deemed to include the amounts required to be paid to the owner in respect of the stock of coke and coal or other assets referred to in the definition of "mine" in the relevant Acts. Necessary provision validating the action taken under the two Acts was also tnaoic(b) With the commencement of the Coal Mines (Nationalisation) Amendment Act, 1976 on 29-4-1976, carrying on of coal mining operation or leasing for mining coal by any private party were prohibited. Thus, section 4(2) of the Coking Coal Act and section 3(2) of the Coal Mines Act became redundant and were omitted with effect from 29-4-1976 with a saving clause to protect action, if any, taken under the existing provisions. A provision for correction of an error, omission or misdescription was also added to section 3 of the Coal Mines Act, on the lines of a similar provision in the Coking Coal Act.(c) Section 25 of both the Acts was amended so as to clarify that any amount in excess of payment over receipts in the statement of accounts prepared by the coal companies shall be deemed to he the amount advanced by the Central Government or the Custodian.(d) Section 26 of both the Acts was also amended to empower the Commissioner of Payments to make apportionment of the amount among the various owners on the basis of the highest annual production in the relevant coal mines during the last 3 years immediately preceding the appointed day.2. The Bill seeks to replace the abovementioned Ordinance. It also seeks to make certain further amendments of a clariticatory nature, which have been explained in the memorandum annexed to this Bill. Gazette of India, 17-11-1986, Pt. II. Section 2, Ext., p. 12 (No. 48).[17th August, 1972]An Act to provide for the acquisition and transfer of the right, title and interest of the owners of the coking coal mines specified in the First Schedule, and the right, title and interest of the owners of such coke oven plants as are in or about the said coking coal mines with a view to reorganising and reconstructing such mines and plants for the purpose of protecting, conserving and promoting scientific development of the resources of coking coal needed to meet the growing requirements of the iron and steel industry and for matters connected therewith or incidental thereto.Be it enacted by Parliament in the Twenty-third Year of the Republic of India as follows: -
