UNION OF INDIA vs KARAM CH.THAPAR&BRS.(COAL SALES)LTD&ORS.

The Supreme Court addressed the obligations of the Coal Company under the Coal Mines (Conservation and Development) Act, 1974, particularly regarding the payment of royalty for sand extracted for stowing operations. The Court held that the obligation to pay royalty is contractual, arising from the mining lease, and is owed to the Central Government as the successor of the dissolved Coal Board. The Court emphasized the definitions and powers conferred by Sections 3 and 4 of the Act, affirming the Central Government's authority to regulate coal mining operations and enforce compliance with conservation measures.