| Citation(s) |
|---|
| 1956 SLG 184 1956 SLD 184 1956 AIR 446 1956 SCR 325 |
Supreme Court of India
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 191 & 192 of 1953. Appeal from the and decree dated the 27th October 1949 of the Patna High Court in Appeals from the Original Decrees Nos. 127 & 125 of 1943 arising out of the decrees dated the 30th day
AIYYAR, T.L. VENKATARAMA
M.C. Setalvad, Attorney-General for India, N. C. Chatterjee, S. Chaudhry, S. N. Mukherji and B. N. Ghosh, for the appellant. Atul Chandra Gupta and Ganpat Rai, for respondents Nos. 1 & 12. Atul Chandra Gupta and I. N. Shroff, for respondents Nos. 2, 4, 5,
CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 191 & 192 of 1953. Appeal from the and decree dated the 27th October 1949 of the Patna High Court in Appeals from the Original Decrees Nos. 127 & 125 of 1943 arising out of the decrees dated the 30th day
AIYYAR, T.L. VENKATARAMA
M.C. Setalvad, Attorney-General for India, N. C. Chatterjee, S. Chaudhry, S. N. Mukherji and B. N. Ghosh, for the appellant. Atul Chandra Gupta and Ganpat Rai, for respondents Nos. 1 & 12. Atul Chandra Gupta and I. N. Shroff, for respondents Nos. 2, 4, 5,
KARANPURA DEVELOPMENT CO., LTD.
VS
. RAJA KAMAKSHYA NARAIN SINGH
Law:
Section:
JUDGMENT: 1956. April 10. The Judgment of the Court was delivered by VENKATARAMA AYYAR J.-These appeals raise questions as to the validity of a prospecting license granted on 26-3-1915 in favour of Messrs Bird and Co., by the Court of Wards as representing the Ram- garh Estate and of two deeds dated 23-11-1917 and 1-6-1937 executed by the Court of Wards modifying the terms of the license dated 26-3-1915. The Ramgarh Raj is an ancient principality situate in Bihar. It has three coal-fields, Bokaro Jharia, Bokaro Ramgarh and Karanpura. Of these, the Karanpura coal-fields are the largest being of the extent of 550 sq. miles, of which about 415 sq. miles belonged to the estate. On 26-11-1907 Raja Ram narain Singh, the proprietor of the estate, granted in favour of Messrs Anderson Wright Co., a prospecting license in respect of the Bokaro Ramgarh coal-fields, referred to in these proceeding as the Bokaro license. He was also negotiating for a similar license in respect of the Karanpura coal-fields (vide Exhibit 155-b dated 1-12-1912), but before anything was concluded, he died on 26-1-1913 leaving him surviving his widow, Rikinath Kaur, and a minor son, Lakshminarain Singh. At the time of his death, the debts owing by the estate amounted to about Rs. 9 lakhs. On 20-5-1913 the Court of Wards took over the management of the estate, and its first concern was to relieve it from the pressure of creditors, and for that purpose, to arrange for a loan on easy terms. It was at this juncture that Messrs Bird and Co., made an application for a prospecting license for the Karanpura coal-fields, and in reply thereto, the manager of the Court of Wards informed them on 4-9-1913 that "the estate being involved and anxious to pay off the debts, one of the conditions of the lease would be an advance of about Rs. 8 to Rs. 11 lakhs including salami, etc., to the estate on the same terms as advanced by the Bokaro and Ramgarh Company". Then, there were negotiations extending over several months, a good deal of correspondence and personal discussions, and eventually on 29-7-1914 the terms were finally agreed upon, and on 26-3-1915 the deed of prospecting license was actually executed. Its…
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