M J Antony: Legal heirs can pursue mining lease

The Supreme Court has dismissed two appeals moved by Kalinga Mining Corporation and ruled that legal heirs of a person who applied for mining lease can pursue the application even after the death of the original applicant. The dispute started in 1965 soon after the Odisha government opened 438 acres in Keonjhar district for mining manganese and iron ore. Six persons applied for the lease. One of them died during the protracted litigation over the lease in the high court and the Supreme Court. Her legal heirs wanted them to be substituted in her place. Kalinga opposed it contending that on the death of the original applicant, her application for mining lease abated and the legal heirs cannot pursue the application. The high court rejected the objection. The Supreme Court upheld the high court view interpreting Rule 25A in the Mineral Concession Rules 1991.

Cheque bounce case quashed
A cheque issued towards security in business transactions is not covered under Section 138 of the Negotiable Instruments Act dealing with bounced cheques, the Supreme Court stated in the case, Vijay vs Laxman. Laxman was a village milkman who supplied milk to a dairy owner. The latter used to demand security in cheque in advance. When they fell out, the dairy owner immediately deposited the cheque which bounced due to insufficiency of funds. The payee then filed a criminal case. The magistrate sentenced the milkman to one year's prison and imposed a fine of Rs 1.20 lakh. The district court upheld the sentence. However, the Madhya Pradesh High Court set aside the order. The Supreme Court also quashed the conviction and acquitted the villager as the cheque was not given in discharge of a legal debt and the factual evidence was against the complaining party.

Higher compensation for injuries

The Supreme Court last week raised the compensation fourfold for a boy who met with a road accident when he was 8 years old in 2001. He suffered severe injuries to the degree of 16 per cent and made him terminally incapable of using his faculties fully. The Motor Accident Claims Tribunal awarded him Rs 77,000 only. The Karnataka High Court raised it to Rs 1 lakh. The Supreme Court directed Oriental Insurance Co to pay Rs 4 lakh. In the judgment Michael vs Oriental Insurance Co, the court said: "He suffered a dreadful accident in which he suffered severe injury in his right leg which virtually created a deformity for the rest of his life. His age was a very relevant factor while determining the compensation for such physical disaster."

Diamond firm loses land
The Supreme Court last week set aside the Rajasthan High Court order which had asked the state industrial development and investment corporation to return the land acquired for Diamond & Gem Development Corporation Ltd to the latter. The land was acquired for a ‘public purpose’ and given to the diamond corporation for develop an industrial estate for manufacturing gem stones. The lease deed was executed in 1989 with a condition that the project should be completed in five years. However, the construction was not completed even 10 per cent in the timeframe. Therefore the state corporation cancelled the allotment of land to the diamond company. The latter moved the high court against the cancellation. The high court quashed the cancellation. The state corporation approached the Supreme Court. It stated that the high court should not have heard and allowed the writ petition when other remedies like arbitration and review application before the competent authority.

Daily wagers get higher amount
The Supreme Court has raised the compensation for daily wage workers, though it held that they were not entitled to reinstatement or backwages in the case, Rajkumar vs Jalgaon Municipal Corporation. The workers were engaged for several years in the 1990’s. However, they were terminated after a project was complerted. They moved the labour court. It held that their termination was illegal and ordered the corporation to reinstate them. The corporation moved the Bombay High Court. It quashed the order of the labour court stating that “no remedy was available to the workers since they were not the workers appointed on regular vacant posts by due process of selection.” The high court then awarded Rs 10,000 to each worker. Against that, the employees approached the Supreme Court. It upheld the ruling of the high court but raised the compensation to Rs 50,000.

Foreign award valid
The Bombay High Court has stated that the foreign arbitral award in the dispute between M/s Louis Dreyfus Commodities Asia Pte Ltd and Govind Rubber Limited is enforceable and the Singapore company has become entitled for its enforcement. It rejected the argument of the Indian company that the Singapore Commodity Exchange did not have jurisdiction to appoint any arbitrator on behalf of the two firms. It had argued that the proceedings before the Singapore Commodity Exchange was without jurisdiction and only the courts in India had jurisdiction. According to the award, the Indian company was directed to pay $716,283 for breach of contract.