CENTRAL COALFIELDS LTD. vs STATE OF JHARKHAND .

The Supreme Court upheld the legal position that under Section 3 of the Coal Mines (Nationalisation) Act, 1973, the rights over coal mines vest absolutely in the Central Government, thereby negating any claims by the State Government for surface rent under the Bihar & Orissa Public Demands Recovery Act, 1914. The Court confirmed that the Certificate Officer's proceedings against Central Coal Fields Limited were invalid as they ignored the statutory provisions and the objections raised by the Company. Consequently, the Court dismissed the appeals against the High Court's order, affirming the Single Judge's decision to set aside the interim order requiring payment of surface rent.