Central Coalfields Ltd vs State Of Jharkhand & Ors

The Supreme Court held that under Section 3 of the Coal Mines (Nationalisation) Act, 1973, the rights over coal mines vest in the Central Government, thereby precluding the State Government from claiming surface rent under the Bihar & Orissa Public Demands Recovery Act, 1914. The Court emphasized that the Certificate Officer's actions were invalid as they ignored the objections raised by the Central Coal Fields Limited and failed to provide an opportunity for a fair hearing. The Court upheld the Single Judge's order, thereby confirming that the proceedings against the Company were without jurisdiction and quashing the demand for payment of surface rent.