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Structured Summary of the Provided Opinion

Factual and Procedural Background

The dispute concerns the village Petana, which lies within the ancestral zemindari of the plaintiff, Kumar Jyoti Prasad Singh Deo. The village was held by a group of permanent tenure-holders called the Goswamis (third group of defendants) as a debutter tenure subject to a quit-rent of about Rs. 23 paid to the zemindar (the plaintiff's predecessor). Under the Goswamis, a large number of persons (the second group of defendants, the Chakravartis and Namtirthas) held makarrari maurusi tenures. These mukarraridars leased the village to Messrs. Mylne & Co. (the first group of defendants) from May 1894 to June 1899 so that the Company might work coal mines discovered in the village.

The plaintiff became aware of mining operations in 1898 and instituted suit in July 1900 against Messrs. Mylne & Co. seeking declaration of his underground rights, khas possession, an injunction against the Company, and compensation for coal taken. In September 1900 and February 1901 the plaintiff added the Goswamis and the mukarraridars as co-defendants. The Subordinate Judge decreed the suit and awarded the plaintiff Rs. 2,000 in damages against all defendants except the Goswamis. Most of the mukarraridars appealed that decision.

Legal Issues Presented

  1. Whether the underground rights (mines and minerals) are included within the mukarrari tenure held by the Chakravartis and Namtirthas in the village.
  2. Whether the mukarraridars had acquired such underground rights by prescription through open exercise of those rights for about twenty-six years.
  3. Whether, overall, the underground rights belong to the zemindar (the plaintiff) or to the permanent tenure-holders (the Goswamis) — framed by the court as the essential question if the Goswamis' permanent tenure is valid.

Arguments of the Parties

Appellants (Mukarraridars) — principal contentions

  • They had held the village as mukarrari for about eighty years and thereby owned all underground rights in it.
  • They had exercised those underground rights openly for upwards of twenty-six years (relying on long usage and practice).
  • They relied on authorities cited in support — both parties cited Prince Mahomed Buktyar Shah v. Rani Dhojamani, and the mukarraridars' counsel specifically relied on In re Punnanandas Jeewandas (1882) I.L.R. 7 Bom. 109 (observations at page 117 were relied upon).

Plaintiff's — principal contentions

  • The plaintiff had not asserted underground rights until he learned of the Company's workings in 1898, and he contended that the underground rights did not appertain to the permanent tenure-holders but were reserved to the zemindar (the plaintiff).
  • The plaintiff relied on the position that such rights would not pass with the tenure unless expressly reserved or unless legal principle required it.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Prince Mahomed Buktyar Shah v. Rani Dhojamani (1905) 2 C.L.J. 20 Authority concerning rights of persons holding temporary or limited interests (lessees for years) and their inability to claim underlying mineral rights where mines/quarries are not open when they take possession. The court held this case inapplicable to the present dispute because it deals with temporary interests (lessees for years) whereas the present case concerns permanent, heritable and transferable tenures. The court did not apply it to decide the main question.
In re Punnanandas Jeewandas (1882) I.L.R. 7 Bom. 109 Observations relating to the rights of temporary/term lessees as to minerals and mines. The court found the observations not in point for the present case, because they concern lessees for years and temporary interests, not permanent tenures; the court therefore did not rely on this authority for the decision.

Court's Reasoning and Analysis

The court proceeded in a series of analytical steps, applying legal principle to the facts presented:

  1. Prescription claim: On the question whether the mukarraridars had acquired underground rights by prescription (through open exercise for about twenty-six years), the court found their evidence insufficient. The mukarraridars produced general statements that quarrying rights had been granted for over twenty years, but no documents, accounts or trustworthy particulars were produced. The activities proved were largely surface quarrying (ironstone and "geri stone") under old country methods; there was no evidence on the extent, publicity or continuity necessary to establish acquisitive prescription of underground rights. Accordingly, the court held the mukarraridars had not proved title by prescription.
  2. Validity and nature of the Goswamis' tenure: Even though the validity of the mukarrari itself had not been formally raised on the issues and the Subordinate Judge had expressed doubts about some deeds, the court treated the Goswamis' tenure as a valid permanent debutter tenure. The Subordinate Judge had found it was not a mughali estate but part of the zamindari and that the Goswamis held a valid permanent tenure at a fixed quit-rent of Rs. 22-15-6 pies. The appellate court concurred with those findings.
  3. Applicability of authorities on lessees and statutory provisions: The court explained that the authorities cited (which concern lessees for terms) and sections of the Transfer of Property Act (notably Section 108 clause (o), Section 105, and Section 117) deal with ordinary leases and cannot safely be analogised to permanent tenures created under local land law. The court contrasted the restraints that the Transfer of Property Act imposes on lessees (e.g., prohibition on working mines not open at grant, restrictions on pulling down buildings or erecting permanent structures) with the ordinary rights enjoyed by permanent tenure-holders under local law (and cited Section 10 of the Bengal Tenancy Act as illustrating that permanent tenure-holders are generally not similarly restrained).
  4. Nature of permanent tenure and the rights conveyed: The court analysed the nature of permanent tenures under the land-law of the province. It stated that when zemindars created such tenures they invested tenure-holders with every right appertaining to proprietorship short of the quit-rent; the tenure is permanent, heritable and transferable, and the zemindar in effect retained only a nominal perpetual annuity (the quit-rent). In that situation there was no rational basis to hold that underground rights had not passed with the tenure: to so hold would mean neither tenant nor landlord could work mines — an untenable result in the absence of express reservation.
  5. Textual and doctrinal support: The court referred to treatises (Mitra's "Land Law of Bengal") and policy considerations: if the State's rights to minerals had passed to zamindars when the State accepted fixed sums as revenue, then by parity of reasoning those rights passed from zamindars to permanent tenure-holders when zemindars created permanent tenures without reservation. The court also noted that in the present case there was evidence of historical surface mineral operations and that tenure-holders had exercised quarrying rights without objection from the zemindar — supporting the conclusion that known quarrying rights were not reserved.
  6. Conclusion of analysis: Combining the legal character of permanent tenures, the inapplicability of authorities concerning temporary lessees, the absence of express reservation, and the evidentiary record of quarrying without objection, the court concluded that underground rights belonged to the Goswamis' permanent tenure.

Holding and Implications

Holding:
APPEAL ALLOWED; PLAINTIFF'S SUIT DISMISSED

Consequences and immediate implications (as stated in the opinion):

  • The court held that the underground rights in the village appertain to the Goswamis' permanent debutter tenure and not to the plaintiff (the zemindar).
  • Because of that holding, the plaintiff's claim in the suit fails and the appeal by the mukarraridars is allowed; the plaintiff's suit is dismissed with costs in both Courts.
  • The court explicitly stated it was unnecessary to decide whether those underground rights had passed from the Goswamis to the mukarraridars under the alleged mukarrari; that is, the further question whether the rights passed to the appellants was not determined.

Broader doctrinal implication expressed by the court (as articulated in the opinion): the court articulated the legal position that, in the absence of express reservation, permanent tenure-holders in this Province possess underground rights (mines and minerals) as part of their tenures because such tenures carry essentially all rights of proprietorship except the nominal quit-rent. This was the legal reasoning applied to resolve ownership of the underground rights in the present case.

Final order (as recorded): The decree of the Lower Court (which had awarded the plaintiff Rs. 2,000 against most defendants except the Goswamis) was set aside, the appeal was allowed, and the suit was dismissed with costs in both Courts. Pratt J. concurred in the judgment.

    Sriram Chakravarti v. Hari Narain Singh Deo

    1. This suit relates to village Petana, which is situated within the ancestral zemindari of the plaintiff Kumar Jyoti Prasad Singh Deo. It is held by the third group of defendants, who are called the Groswamis, as a permanent debutter tenure subject to a rent of about Rs. 23 paid to the zemindar. It is held as a makarrari maurusi tenure under them by a large number of persons, who composed the second group of defendants known as the Chakravartis and Namtirthas, and these mukarrnndars gave a lease of the village to the first group of defendants, known as Messrs. Mylne & Co., from May 1894 to June 1899, in order that these defendants might work the coal mines discovered in the village.

    2. In 1898 the plaintiff learnt of these mining operations, and instituted this suit against Messrs. Mylne & Co. in July 1900 to have his underground rights in the village declared, to get khas possession of the same, to obtain an injunction against the Company and to recover compensation for the coal taken. In September 1900 and February 1901 the plaintiff added the Gos-wamis and the mukarraridars as co-defendants. The Subordinate Judge decreed the suit and awarded the plaintiff Rs. 2,000 damages against all the defendants except the Goswamis. Against his decision this appeal has been preferred by most of the mukarraridars.

    3. The objections taken before us to the Subordinate Judge's decision are, that the appellants have held this village as a mukarruri for about eighty years; that they own all the underground rights in it, and have exercised those rights for upwards of twenty-six years; and that the plaintiff never claimed those rights before ho gave notice in this case. Now it is true that the plaintiff had not claimed the underground rights, until ho learned that Mylne & Co. were digging out the coal in 1898, and it is also true that the Chakravartia and Namtirthas have held this village in. mukarrari for many years; though it is not clear how long they have held it, because the two deeds of the year 1822, which they have produced, are spurious in our opinion.

    4. The real questions here are two, (1) whether the underground rights are included within the mukarari tenure, which the Chakravartis and Namtirthas possess in this village, and (2) whether they have acquired such rights by openly exercising them for about twenty-six years.

    5. With regard to the latter question we are of opinion that the mukarraridars have not proved any title by prescription to the underground rights. They have adduced evidence to show that they have been granting quarrying rights for over twenty years, but the statements are general. No papers, accounts or trustworthy particulars have been put in; and there is nothing definite to show anything more than that the mukarraridars have at times allowed mere surface quarrying for ironstone and geri stone (which appear to be different things) for the purposes of the old country methods of smelting, etc., until the railway opened up that part of the country. There is no evidence regarding the extent, publicity or continuity of such operations, to establish the mukarraridars' acquisition by prescription of the underground rights claimed.

    6. The first of the two questions, which we have stated, remains then as the chief question, and it really comes to this, viz., to which party do the underground rights belong, to the zemindars or to the permanent tenure-holders. There is no claim explicitly asserted by the superior tenure-holders, the Goswamis; hence, if the underground rights are not reserved to the zemindars, but are included within the permanent tenure, the same reasons, which would assign those rights to the Goswamis the superior tenure-holders as against the zemindar, would equally assign those rights to the mukarraridars if their alleged mukarrari under the Goswamis is valid.

    7. Now the validity of the mukarrari was not raised by the issues framed in this suit, nor was any decision pronounced regarding it. The Subordinate Judge, however, in discussing the first issue, has expressed himself as doubtful as to its validity on the grounds, that the title-deeds and rent receipts are spurious, and that the sale-certificate and kobala by which the Chakravartis acquired their share in it have been withheld. Before us nothing has been said against the validity of the mukarrari, and it has been treated as being a valid permanent tenure; but it is unnecessary to consider whether it is valid or not, because, if the Goswamis' tenure is valid and if it includes the underground rights, the plaintiff's claim must fail. A contest in that event might lie between the Goswamis and the mukarraridars, though the Goswamis have not questioned the validity of the mukarrari in this suit, but the conflicting claims (if any) between thorn are irrelevant in this suit. The plaintiff's claim is contested by the mukarraridars, who rely necessarily on the validity of the Goswamis' tenure as the foundation of the validity of their own mukarrari.

    8. The essential point then is, whether the Goswamis' tenure is valid, for, if it stands as a valid tenure between the plaintiff and the contesting defendants, and if the underground rights appertain to it as against the zemindari, the 'plaintiff's claim must fail, whatever may be the conflicting claims of the several defendants among themselves.

    9. Now no issue was raised in the lower Court regarding the validity of the Goswamis' tenure, and in fact it was never questioned. They, or rather the mukarraridars, went further however and asserted that the Goswamis' property in the village was a mughali debutter estate, which existed before the Permanent Settlement, and had been treated as a dependent taluk, which paid its Government revenue (about Rs. 23) through the zemindar, the plaintiff's predecessor. The Subordinate Judge decided that it was not a mughali estate, but was part of the plaintiff's semindari, and that the annual sum paid was truly rent. He however held, in deciding the fourth issue, that it was a valid permanent tenure at a fixed rental, for he says that the Raja (that is, the plaintiff's predecessor) allowed the Goswamis to hold the village at a quit-rent of Rs. 22-15-6 pies. We entirely concur in these findings, which have not been controverted before us. The Goswamis' tenure without dispute is a permanent one created by the plaintiff's predecessor a long time ago; it is a debutter property held in the name of the idol Gopinath Jiu; and its rental is fixed at Rs. 22-15-6 pies in perpetuity.

    10. The question for decision, therefore, resolves itself into this--Did the ground rights pass with the tenure when it was created, or were they reserved to the zemindari? Admittedly there was no express reservation; but it is contended by the plaintiff that such rights would not appertain to the tenure, and by the mukarraridars that there was no thought of reservation and every right in the land was included in the tenure.

    11. Both parties have cited the case of Prince Mahomed Buktyar Shah v. Rani Dhojamani (1905) 2 C.L.J. 20, and the learned Counsel who has appeared for the mukarraridars appellants has relied on the case In re Punnanandas Jeewandas (1882) I.L.R. 7 Bom. 109, especially on the observations at page 117. In truth those cases have no application to the present case, for they deal solely with the rights of persons who possess temporary interests in the land, and the rights of lessees for years, and it is well established that such persons have no right to the minerals underlying their land, and can only work mines, quarries or pits, which are open when they come into possession of the land. In this case we are dealing solely with the rights of tenants, who possess heritable-and transferable interests in the land in perpetuity; for without dispute the Goswamis' tenure is of that kind, although as debutter it is subject to some restrictions on the exercise of those rights. No decision has been cited which is in point.

    12. Reference has also been made to Section 108, Clause (o) of the Transfer of Property Act, which, when read with the definition of "lease" in Section 105, declares that a lessee in perpetuity cannot work mines or quarries not open when the lease was granted; but those sections do not apply to tenures of the kind concerned in this case as explained in Section 117. The provisions of Clause (o) of Section 108 cannot even by analogy be safely applied to those tenures, for that clause prohibits a lessee from pulling down buildings or felling timber, and yet it is well known that a permanent tenure-holder is not ordinarily restrieted in those ways (see Section 10 of the Bengal Tenancy Act). Moreover, Clause (p) of Section 108 prohibits a lessee from erecting any permanent structure without the landlord's consent; and yet it is a common-place in the land law of this country that permanent tenure-holders can ordinarily build such structures on their lands without the zemindar's consent. It is only when there is an express stipulation depriving a permanent tenure-holder of such rights, that he is debarred from exercising them. It is obvious therefore that permanent tenure-holders have rights which go very far beyond what the Transfer of Property Act allows to ordinary lessees. The inference would rather be that such tenure-holders possess, in addition to those rights, which have been noticed, the right of working mines and quarries also.

    13. The Transfer of Property Act therefore does not help us in this matter. We have been referred to "Bainbridge on Mines and Minerals," especially to p. 40 of the fifth edition, regarding the rights of landlords and tenants and the reservations of minerals; but no benefit can be drawn therefrom, nor does the law of England furnish a safe guide in this case, for the laud-laws here are so widely different from the land-laws there, that no useful comparison can be made between them.

    14. The question then must be decided solely upon a consideration of the nature of such permanent tenures as settled by the land-law of this country. Now, when such tenures are created, the zemindar invests the tenure-holder with every right that can appertain to him short of the quit rent due to the proprietorship; the tenure is permanent, heritable and transferable, its rental is as fixed as the Government revenue that the zemindar pays; and the tenant can do what he likes with it, short of altogether destroying it; in short it has all the rights of proprietorship except the name; and the zemindar (in the absence of express conditions) has really divested himself of everything except the nominal proprietorship, and has turned his right practically into a perpetual annuity of the amount of the rental. He has no right of reversion. In such a state of their respective rights there is no basis for holding that the underground rights have not passed as part of the tenure. To hold otherwise would be to hold that a tenant in perpetuity can never work mines, because they do not belong to his tenure, and that the landlord can never work them, because he has no reversion and no right to enter on the land for that purpose. In the absence of any express warrant for such a view, I cannot assent to such an unreasonable proposition. In my opinion the underground rights belong to permanent tenures. When the landlord created the tenure, he made over the land with all its capabilities to the tenant, and merely imposed on the tenure the rental that he thought best in the circumstances. When neither of them knew of undiscovered materials of value within the land and the idea of reserving anything never entered their minds, it certainly cannot be held that there was any such reservation in the grant, nor that a distinction can be afterwards drawn between various rights that may exist in the land for the purpose of qualifying the original grant and of importing into it what neither party could then imagine.

    15. The fact that the land was agricultural when the tenure was created, and that the tenure is classed as an agricultural one, does not derogate from the rights conveyed in the tenure, because no restriction was put on the use of the land and the tenure-holder's use of it is not limited to agriculture; he can build on it and apply it to other non-agricultural purposes. There is no distinction in law or in common usage in this country between the surface of land and the underlying strata, except when it has been created of recent years, either by the law as in the Land Acquisition (Mines) Act, XVIII of 1885, or by contract. When a man obtains permanent possession of land with heritable and transferable rights, then, in the absence of any reservation, he obtains it with all rights attaching to it from the centre of the earth to the sky. If a permanent tenure-holder can use the surface, which is agricultural land, for non-agricultural purposes, there is no reason why his rights in the subjacent strata should be less or different. It is impossible to import into contracts stipulations that the law did not attach to them, that are not naturally inherent in them, and that the parties themselves had no conception of at the time of contracting. I am decidedly of opinion therefore that, whore a tenure is permanent, the tenure-holder possesses all the underground rights, unless there is something express to the contrary.

    16. The position of the permanent tenure-holder as against the zemindar is very similar to that of the zemindar as against the State. By Hindu law the sovereign is entitled to a share of all the minerals. If when the British Government converted the zemindars into proprietors, and made no reservation of mines or minerals, the zemindars acquired all rights thereto, then by parity of reasoning it would follow that, when zemindars created permanent tenures with all the substantial rights of proprietorship, it must be held that the right to mines and minerals passed to the tenures.

    17. This view of the rights to mines and minerals has been well expressed in Mitra's "Land Law of Bengal," where it is said at p. 393, "that I think a person, holding under a permanent lease in which there is no reversion to the landlord, has the right to open mines, and if he does so, his act, unless there is an express covenant to the contrary, does not amount to legal waste. When the lease is granted by a proprietor not for any specified purpose and he reserves only the right to receive the quit-rent in perpetuity, such a use of the land cannot affect him. Permanent leases are practically conveyances of land, and it seems to me that the lessees have full right to use the lands demised as they please, provided there is ample security for the proprietor's dues. Primd facie the owner of the surface is entitled ex jure naturae to everything beneath or within it. The working of mines does not, as a rule, permanently injure the land or destroy it to the detriment of the landlord's interest. The same thing may be said as to the working of quarries." And again at page 395, "According to the law as laid down by the great law-giver of ancient India, the king is entitled to a half share of hidden treasures underneath the earth and of minerals as his share for the protection afforded by him to his subjects.... The Anglo-Indian Government has, by the permanent settlement, accepted fixed sums as revenue in lieu of all the rights it had either as proprietor of the soil or as the proprietor of its subjects. It reserved no right whatsoever, except as to treasures under the Treasure Trove Act. Minerals must necessarily pass with the right to the surface. The present theory of the proprietary right of the Government is not consistent with the Hindu theory of the king's right to a share of the produce or of hidden treasures and minerals, and the Anglo-Indian Government, having accepted and acted upon the theory of the proprietorship of the soil, cannot now claim a share of the minerals on the latter theory. The transfer to permanent tenure-holders of the right which the zemindars derived from the Government necessarily conveys the right to the minerals underneath."

    18. In this case however the tenure-holders' position is still clearer, for it is in evidence that iron-smelting and other mineral operations have been carried on for a long time past according to country methods; that surface pits and quarries have been worked for those purposes; and that the tenure-holders have exorcised all the quarrying rights without objection from the zemindar. As such quarrying rights are not modern nor unknown, the exercise of them might interfere with the purely agricultural use of the land and certainly furnished an additional source of income, yet it is not contended on the plaintiff's behalf that he made any reservation of them or ever objected to the tenure-holders' granting quarrying rights. If then the landlord made no reservation of known rights other than agricultural, it is impossible to suppose that he reserved underground rights, of which no one had any conception.

    19. I hold, therefore, that the underground rights in this village appertain to the Goswamis' permanent tenure, and not to the plaintiff, and the plaintiff's claim therefore must fail. It is unnecessary to pursue the inquiry into the further question whether those rights have passed with the mukarrari to the appellants. For these reasons the appeal is allowed and the plaintiff's suit is dismissed with costs in both Courts.

    Pratt J.

    20. I concur in the judgment which has been delivered by my learned brother. At first I was inclined to doubt whether the grant of a permanent tenure should be held to include mines, when not expressly reserved. But in this Province the grantors of such tenures consider that they have parted with all their interests in the soil and are entitled only to the quit-rent reserved. Section 103 of the Transfer of Property Act does not apply to agricultural holdings, and the common law of England regarding the mining rights of lessees for a term cannot, I think, be made applicable to permanent tenures in the rural parts of Bengal.

    21. The result is that the decree of the Lower Court will be set aside and the suit be dismissed with costs in both Courts.

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    Sriram Chakravarti v. Hari Narain Singh Deo
    (Jul 28, 1905)