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Structured Summary of Opinion delivered by Lord Thankerton

Factual and Procedural Background

The consolidated appeals arose from two decrees of the High Court of Judicature at Patna dated 21 May 1931, which, with a slight modification, confirmed a decree of the Subordinate Judge of Dhanbad dated 30 July 1927. The plaintiff, a sub-lessee of coal-mining rights over part of Mouza Gararia, instituted suit on 28 May 1925 against the predecessor of defendant 1 (a lessee of Mauza Ekra, immediately south of Gararia) and defendants 2 and 3 (agents who successively worked defendant 1's coal). Defendant 3 succeeded defendant 2 in May 1924.

The plaintiff alleged conversion (removal) of coal from an area of his sub-leased plot, sought an order for the defendants to vacate encroached land, an injunction against future trespass and conversion, inquiries to ascertain the extent of encroachment and amount of coal removed, and an inquiry into quantum of damages. The plaintiff's sub-lease dated 26 April 1922 described the demised subjects and the plaintiff pleaded that his cause of action arose in or about November 1924 when he became aware of the encroachments.

Certain facts were agreed: the boundary between the parties' coal areas was fixed by Revenue Survey maps; the defendants had encroached over that boundary into the southern part of the plaintiff's plot; and the encroached area had been worked such that prior to 1911 gallery working had removed 8,209 tons (leaving 6,643 tons in pillars), during 1924–25 4,422 tons of pillar coal was removed, and 2,221 tons of pillar coal were rendered unworkable except at heavy expense by defendants' working and consequent subsidence. The total tonnage involved was 14,852 tons.

The Subordinate Judge held the plaintiff's claim for gallery coal (taken more than 12 years prior to suit) barred by limitation, but awarded damages for the pillar coal (6,643 tons) at Rs. 4 per ton less a deduction for bringing to bank (originally 12 annas but later modified to 8 annas). The Subordinate Judge disallowed any deduction for cost of cutting and severing. Both parties appealed to the High Court, which dismissed both appeals and affirmed the Subordinate Judge's decree with alteration of the deduction rate to 8 annas (the rate the parties agreed was intended). The defendants and the plaintiff both appealed further to the Board.

Legal Issues Presented

  1. Whether, prior to the institution of the suit, defendant 1 had acquired a good title by adverse possession to the gallery coal and the whole disputed area (including both gallery and pillar coal).
  2. Whether the defendants were entitled to a deduction in respect of the cost of cutting and severing the coal when assessing damages.
  3. Whether the plaintiff's claim in respect of the gallery coal was barred by limitation and, relatedly, whether the plaintiff (who acquired his sub-lease in 1922) had a right to sue in respect of abstractions of gallery coal occurring prior to 1911 by virtue of the terms of his sub-lease.
  4. Whether the rate of Rs. 4 per ton fixed for pillar coal damages was appropriate.

Arguments of the Parties

Defendants' Arguments

  • The defendants (appellants) contended that defendant 1 had acquired title by adverse possession prior to the suit not only to the gallery coal but to the whole area (gallery and pillar coal).
  • They further contended that, in assessing damages, they were entitled to a deduction for the cost of cutting and severing the coal.

Plaintiff's Arguments (Cross-Appeal)

  • The plaintiff contended that his claim for gallery coal was valid and not barred by limitation, asserting that his sub-lease granted him rights in respect of the coal removed.
  • The plaintiff also argued that the rate of Rs. 4 per ton awarded for pillar coal was too low in view of the evidence.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Secy of State v. De endra Lal Khan, 1934 PC 23 = 147 IC 545 = 61 IA 78 = 61 Cal 262 (PC) The Board's recent restatement of the law on what constitutes adverse possession; adoption of requirements of continuity, publicity and extent so as to show possession adverse to the competitor, and the classical test nec vi nec clam nec precario; that possession must be overt so that the person affected, exercising due vigilance, would be aware of it. The court relied on this restatement as the governing principle in assessing whether the defendants had established adverse possession of the gallery and pillar coal; the defendants were held to have failed to satisfy this standard.
Radhamoni Debi v. Collector of Khulna, (1900) 27 Cal 943 = 27 IA 136 = 7 Sar 714 (PC) Language (Lord Robertson) describing that possession required must be adequate in continuity, publicity and extent to show possession adverse to a competitor; the classical formulation nec vi nec clam nec precario. The Board adopted Lord Robertson's language (via the Secy of State restatement) as instructive for the test of adverse possession; the court used this formulation to evaluate whether plaintiff's predecessors should have been put on notice by the defendants' surface manifestations (e.g., inclines, coal stacking) and concluded they were not.

Court's Reasoning and Analysis

The court proceeded by addressing the cross-appeal first (plaintiff's challenge to limitation and to the damages rate) and then the defendants' appeal (adverse possession and deduction for cutting/severing).

On the plaintiff's right to recover for gallery coal (contract/sub-lease interpretation and limitation):

  • The plaintiff relied on the descriptive terms of his sub-lease, which demised "all those coal mines now being worked and all those coal mining rights and other rights of and in the said three plots of coal land ... together with ... stock of coal ... mines, beds, seams and veins of coal ... all privileges, advantages, appurtenances appertaining or belonging thereto or usually enjoyed with the same."
  • The Court interpreted these words as limited by the phrase "of and in the said three plots of coal land," which the Court read as referring to the plots as they stood at the date of grant. The Court concluded that clear words would be required to assign to a lessee a right of action in respect of past abstractions of gallery coal and that such clear words were absent.
  • On the question of the damages rate, the Court saw no reason to disturb the concurrent findings of the courts below that fixed damages at Rs. 4 per ton (with the agreed deduction of 8 annas per ton for bringing to bank).

On adverse possession (defendants' main contention):

  • The Court stated the governing principle of adverse possession as recently restated by the Board: possession must be adequate in continuity, publicity and extent to show that it is adverse to a competitor; the classical test is nec vi nec clam nec precario; possession must be overt and without concealment so that the person against whom time runs, if exercising due vigilance, ought to be aware of what is happening.
  • Applying this principle to the facts, the Court examined whether the plaintiff's predecessors, by exercising due vigilance, ought to have become aware of the defendants' working of the coal beneath the plaintiff's plot. The physical and operational facts considered included:
    • The gallery area was underground (roughly 50 yards north–south and 150 yards east–west); a railway crossed the plaintiff's plot about 65–70 yards north of it.
    • The defendants at one time treated the railway line as the boundary and worked their colliery leaving a margin for protection of the railway; the seam dip and use of inclines generally made the defendants' working connected with their adjoining colliery.
    • The working plan of 1911 showed multiple inclines (including Incline No. 4 on the area itself and several inclines to the east and west), and the defendants relied on the existence/use of Incline No. 4 as a surface manifestation of their working under the plaintiff's area.
    • Incline No. 4 reached coal only in 1905 and account books (not continuous) showed some coal (the Subordinate Judge put it at 2,000 tons) raised by Incline No. 4 before 1911, but it was not possible to identify the precise source of that coal from the records.
    • The entrance to Incline No. 4 was on jungle-covered surface, stacking of coal beside the entrance was indefinite in amount and frequency, and suggestions that plaintiff's predecessors would necessarily have passed nearby were given little weight by the Court.
  • On these facts the Court concluded that the defendants had failed to show that plaintiff's predecessors, exercising reasonable vigilance, ought to have been aware of the defendants' underground working. The Court held that the failure to notice the surface signs, even if those signs might have put a vigilant person on guard, did not establish lack of reasonable vigilance by the plaintiff's predecessors. It was therefore unnecessary to consider whether the defendants' possession was adequate in continuity and extent.

On the deduction for cutting and severing: The Court saw no sufficient reason to interfere with the discretionary conclusion reached by both lower courts that disallowed a deduction for cutting and severing; it declined to disturb the exercise of that discretion.

Holding and Implications

HOLDING: The Board dismissed both appeals and advised that the decrees of the High Court of Judicature at Patna (21 May 1931) be affirmed. The decrees confirmed the Subordinate Judge's award in substance: damages for the pillar coal (6,643 tons) at Rs. 4 per ton with a deduction of 8 annas per ton for bringing to bank, and refusal to allow a deduction for cutting and severing. The plaintiff's appeal on the gallery coal issue failed, and the defendants' appeal on adverse possession and on entitlement to a cutting-and-severing deduction failed.

Implications:

  • The decision affirms the concurrent findings of the courts below on valuation (Rs. 4 per ton) and on discretionary refusal to allow deduction for cutting and severing.
  • The decision applies established principles of adverse possession (continuity, publicity and extent; nec vi nec clam nec precario; requirement that possession be overt so that a vigilant owner would be aware) and holds that those principles were not satisfied by the defendants on these facts.
  • Direct effect: the plaintiff's claims in respect of gallery coal prior to 1911 were not upheld and his appeal failed; the plaintiff recovered damages in respect of the pillar coal as awarded below; the defendants were not entitled to the contested deductions and did not succeed in establishing adverse possession.
  • This opinion applies established legal principles and affirms the courts below; it does not present a contrary or novel precedent beyond restating and applying existing authority cited in the judgment.

Disposition: Appeals dismissed; decrees of the High Court affirmed; costs to the successful party as ordered by the Board.

    Maharaja Srischandra Nandy And Others v. Baijnath Jugal Kishore (Firm)

    Lord Thankerton:-

    These consolidated appeals consist of an appeal by the defendants 1 and 3 in the suit and a cross-appeal by the plaintiff from two decrees of the High Court of Judicature at Patna dated 21st May 1931, which subject to a slight modification, confirmed a decree of the Subordinate Judge of Dhanbad dated 30th July 1927. The plaintiff, who is a sub-lessee of the coal-mining rights of a part of Mouza Gararia, instituted the present suit on 28th May 1925, against the predecessor of the present defendant 1, who was a similar lessee of Mauza Ekra, which lies immediately to the south of Mauza Gararia, and defendants 2 and 3, who were in succession the agents of defendant 1 in working his coal, defendant 3 having succeeded defendant 2 in May 1924. The suit was based on the alleged conversion of an area of the plaintiff's coal, and he asked for an order on the defendant to vacate the land encroached on, for an injunction prohibiting future trespass and conversion, for an inquiry and ascertainment of the extent of the defendants' encroachments and the amount of coal removed and for an inquiry as to the quantum of damages.

    The plaintiff's sub-lease was obtained by him on 26th April 1922, and he set out his cause of action as having arisen in or about November 1924, when he first came to know of the encroachments.

    Gararia and Ekra are both part of the Jharia Raj. In 1896 the then Raja granted a mukarrari lease of the coal-mining rights in Gararia to one Maheshwar Rai, and in 1898 he granted a similar lease of Ekra to the ancestor of defendant 1. In 1901, 1902 and 1907 Maheshwar Rai granted sub-leases of the coal-mining rights in plots of 100 bighas and 100 bighas 40 bighas respectively to the lessors of the plaintiff, who demised by way of sublease the rights in the whole 240 bighas to the plaintiff in 1922. The plot with which the present dispute is concerned is the plot of 100 bighas, sub-let by Maheshwar Rai in 1901, which is a comparatively narrow strip running north and south, and having Ekra as its southern boundary. The remaining plots of 100 bighas and 40 bighas may be disregarded.

    In the present appeals certain facts are no longer in dispute. It is now agreed that the boundary between the plaintiff's coal area and that of the defendants is that fixed by the Revenue Survey maps, and that the defendants have encroached over the boundary on to the southern part of the plot of which the plaintiff is now sub-lessee. Further the area of encroachment has been worked as follows, viz.: prior to 1911 coal amounting to 8,209 tons had been removed by working in galleries, leaving 6,643 tons of coal in the pillars: at some time during the years 1924 and 1925, 4,422 tons of the pillar coal was removed, and the remaining 2,221 tons of coal in the pillars have been rendered unworkable, except at heavy expense, by the defendants' working and the consequent subsidence. The total tonnage of coal thus involved was 14,852 tons.

    The Subordinate Judge held that the plaintiffs claim to recover damages in respect of the gallery coal, which had been taken more than twelve years prior to suit, was barred by limitation, but he awarded him damages in respect of the whole of the pillar coal, viz., 6,643 tons, at the rate of Rs. 4 per ton, under deduction of 12 annas per ton in respect of the cost of bringing it to bank, but disallowed any deduction in respect of the cost of cutting and severing the coal. Both parties appealed to the High Court which dismissed both appeals, and affirmed the decree of the Subordinate Judge, under alteration of the rate of deduction from 12 annas to 8 annas, which both parties agreed was the rate intended to be fixed by the Subordinate Judge.

    While other questions were in issue in the Courts below, the only contentions submitted to their Lordships were as follows: In their appeal defendants 1 and 3 maintained (a) that, prior to the institution of the suit, defendant 1 had acquired a good title by adverse possession not only of the gallery coal but of the whole area, including both gallery and pillar coal, and (b) that, in any event, they were entitled to a deduction in respect of the cost of cutting and severing the coal. In the cross-appeal, the plaintiff maintained (a) that his claim in respect of the gallery coal was well founded and that it was not barred by limitation, and (b) that the rate of Rs. 4 per ton was too small, in view of the evidence. It will be convenient to deal first with the cross-appeal. Apart from any question of limitation, the plaintiff, who only acquired his title in 1922, must show a title to sue in respect of the abstraction of the gallery coal prior to 1911. He claims such a right in virtue of the terms of his sub-lease, in which the subjects of lease are described as follows:

    "And whereas the lessor has desired to sublet the three plots and the lessee has proposed to take a sublease of the said three plots for a term of 475 years, the lessor abovenamed executes this sublease for a term of 475 years and demises unto the lessee all those coal mines now being worked and all those coal mining rights and other rights of and in the said three plots of coal land comprised set out and described in the Schs. A, B and C below belonging to the lessor together with all machineries, buildings, bungalows, houses, huts, coke ovens, tools, plants, engines, boilers, stock of coal, sidings, tram lines, mines, beds, seams and veins of coal, quarries, inclines, all privileges, advantages, appurtenances appertaining or belonging thereto or usually enjoyed with the same. . . ."

    The plaintiff maintained that the right to recover in respect of the gallery coal in question was included among the 'other rights' thus demised to him, but their Lordships are unable to place this construction on these words, which are limited by the words 'of and in the said three plots of coal land,' which clearly relates to these plots as they stood at the date of grant. It would require clear words to assign such a right of action to a lessee. As regards the plaintiff's second contention, their Lordships see no good reason for disturbing the concurrent findings of the Courts below as to the rate of Rs. 4 per ton. The plaintiff's appeal therefore fails. As regards the defendants' main contention, the principle of law as to what is necessary to constitute adverse possession is well settled, though its application in the circumstances of particular cases may present some difficulty; this, perhaps is more likely to occur in cases of the alleged adverse possession of underground mineral seams. The principle has recently been restated by this Board in Secy of State v. De endra Lal Khan, 1934 PC 23=147 IC 545=61 IA 78=61 Cal 262 (PC), at p. 82, as follows:

    "As to what constitutes adverse possession, a subject which formed the topic of some discussion in the case, their Lordships adopt] the language of Lord Robertson in delivering the judgment of the Board in Radhamoni Debi v. Collector of Khulna, (1900) 27 Cal 943= 27 IA 136= 7 Sar 714 (PC), at 140, where his Lordship said that 'the possession required must be adequate in continuity, in publicity, and in extent to show that it is possession adverse to the competitor.' The classical requirement is that the possession should be 'nec vi nec clam nec precario.' Mr. Dunne for the Crown appeared to desiderate that the adverse possession should be shown to have been brought to the knowledge of the Crown, but in their Lordships' opinion there is no authority for this requirement. It is sufficient that the possession should be overt and without any attempt at concealment, so that the person against whom time is running ought, if he exercises due vigilance, to be aware of what is happening."

    In their Lordships' opinion the defendants have failed to show that the plaintiff's predecessors, by exercising due vigilance, ought to have been aware of what was happening, apart from the question of whether the possession was adequate in continuity and extent. The area from which the gallery coal was taken and its surroundings may be generally described as follows.: The area itself is underground, and measures roughly 50 yards from north to south and 150 yards from east to west. About 65 or 70 yards to the north of it a railway crosses the plaintiff's plot on the surface, running east and west. There is evidence that the defendants at one time understood that the railway line was the boundary of ekra and that in the adjoining areas, as well as in this case, they worked their colliery on that footing, but so as to leave a margin for protection of the railway. The dip of the strata is generally from north-east to south-west, and it is clear that, although they had pits some little distance off, the coal seam in question in this area and in their adjoining area was mainly raised by means of inclines descending approximately in a southerly direction. There is also little doubt that this area was worked along with their adjoining area as part of one colliery. This is shown by the working plan, dated in 1911, on which are found five inclines to the east, including Nos. 2, 8 and 13-the first of these having a tram line-and two inclines to the west of this area, while on the area itself incline No. 4 is situated. It is on the existence and use of incline No. 4 that the defendants mainly rely as the outward manifestation on the surface of their working of the coal in this area. As shown on the working plan, the foot of incline No. 4 almost reached the defendants' own coal, but this is not very material, for the real question is whether there was that to be seen on the surface, which the plaintiff's predecessors, being reasonably vigilant, ought to have seen, and so seeing, would have been put on their guard, although they did not have any title to the surface.

    For a similar reason it does not seem very material whether the coal which was raised by means of Incline No. 4 came from the area in question. The point must be that, on seeing coal being raised by means of Incline No. 4, the plaintiff's predecessors would be bound to suspect that it came from their seam. The sinking of Incline No. 4 was not completed so as to reach coal until 1905; it was then ascertained that a certain amount of gallery coal immediately below the incline had already been removed by means of another incline. The account books produced by the defendants, which are not continuous, show that an amount, which the Subordinate Judge states at 2,000 tons, was raised by means of Incline No. 4 before 1911, but it is not possible to identify the place from which that coal was cut. This must have been a very small portion of the total amount of coal raised by means of all the inclines, and which was also being taken along the surface to the sidings. Further, the entrance to the Incline No. 4 was in a surface covered with jungly, and the suggestion that the plaintiff's predecessors must have passed along a road in the near neighbourhood has little weight, as also the stacking of coal beside the entrance, the amount and frequency of which is left quite indefinite. The failure of the plaintiff's predecessors to notice these things, even if they were sufficient, when seen, to put them on their guard, involves, in the opinion of their Lordships, no lack of reasonable vigilance on their part, and the defendants' case must fail on this point; it is unnecessary to consider whether the defendants' possession was adequate in continuity and extent. As regards the defendants' minor contention as to a deduction in respect of the cost of cutting and severing the coal, their Lordships see no sufficient reason to interfere with the discretionary view which has been taken by both the Courts below. Their Lordships will therefore humbly advise His Majesty that both appeals should be dismissed with costs and that the decrees of the High Court should be affirmed.

    Appeals dismissed.

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    Maharaja Srischandra Nandy And Others v. Baijnath Jugal Kishore (Firm)
    (Dec 14, 1934)