Section 1484 in Coal Mines (Nationalisation) Act, 1973
1484.
Object and Reason.- Act 67 of 1976.- After the nationalisation of coal mines a number of persons holding coal mining leases unauthorisedly started mining of coal in the most reckless and unscientific manner without regard to considerations of conservation, safety and welfare of workers. Not only were they resorting to slaughter mining by superficial working of outcrops and thereby destroying a valuable national asset and creating problems of water-logging, fires, etc., for the future development of the deeper deposits, their unsafe working also caused serious and fatal accidents. They were making larger profits by paying vcry low wages, and by not providing any safety and welfare measures. Thefts of coal from adjacent nationalised mines were also reported after the Commencement of these unauthorised operations. The number of these unauthorised operations had shown an increasing trend of late. Areas where illegal and unauthorised operations were being carried on, were without proper geological of mine plans and also without any assessment of reserves in regard to quality and quantity of coal which could be made available after detailed exploration work was undertaken and results analysed. No scientific ex ploitation of these deposits could be undertaken in the nationalised sector without these details. It was, therefore, considered that it would not be appropriate either to nationalise these unauthorisedly worked mines after taking them over under the Coal Mines (Taking Over of Management) Act, 1973 or to get the connected mining leases prematurely terminated and re-granted to Government Companies under the Mines and Minerals (Regulation and Development) Act, 1957. In view of the policy followed by the Central Government that the coal industry is to be in the nationalised sector, it was decided that the Coal Mines (Nationalisation) Act, 1973 should be amended to provide for termination of all privately held coal leases except those held by privately owned steel companies, so that it may he possible for the Central Government, Government Company or Corporation to take mining leases where necessary, after the necessary exploration has been made as to the extent of the deposits of coal, etc.2. It is now proposed to replace this Ordinance by an Act of Parliament. -Gazette of India, 7-5-1976, Pt. II, Section 2, Ext., p. S33.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, subsides 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 Commissioner 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 nit and which does not belong to the colliery owners to apply for the residuary amount lying with the Com[Vol. 716 A.M./50 missioner 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 in as much 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 made.(b) With the commencement of the Coal Mines (Nationalisation) Amendment Act, 1976 on 294-1976, 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 mis-description 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 be 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 above-mentioned Ordinance. It also seeks to make certain further amendments of a clarificatory 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).[30th May, 1973]An Act to provide for the acquisition and transfer of the right, title and interest of the owners in respect of the coal mines specified in the Schedule with a view to re-organising and reconstructing such coal mines so as to ensure the rational, co-ordinated and scientific development and utilisation of coal resources consistent with the growing requirements of the country, in order that the ownership and control of such resources are vested in the State and thereby so distributed as best to subserve the common good, and for matters connected therewith or incidental thereto.BE it enacted by Parliament in the Twenty-fourth Year of the Republic of India as follows:-
