Union Of India (Uoi) vs Karam Chand Thapar And Brs. (Coal Sales) ...

The Supreme Court addressed the obligations of the Coal Company under the Coal Mines (Conservation and Development) Act, 1974, specifically 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 statutory powers granted to the Central Government under Sections 3 and 4 of the Act to enforce compliance with stowing operations, thereby affirming the contractual nature of the royalty obligation.