Retrospective validating amendment upheld, ending separate claims for coal stock compensation and accounting relief.

The retrospective amendment to the Coking Coal Mines (Nationalisation) Act, 1972, together with the validating provision in the 1986 Amendment Act, was held to remove the basis of the earlier judgment by deeming compensation to include the value of coal in stock and by validating past compensation and accounting statements notwithstanding contrary judicial directions. The Court recognised that the Legislature has plenary power to enact retrospective validating law, provided the defect identified by the earlier decision is cured. As the amendment altered the legal foundation on which separate relief had been granted, the prior judgment no longer governed the claim for separate credit or payment for coal or coke in stock.

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Issues: Whether the retrospective amendment to the Coking Coal Mines (Nationalisation) Act, 1972 and the validating provision in the 1986 Amendment Act removed the basis of the earlier judgment so as to exclude the value of coal in stock from the compensation payable and the accounts to be taken.

Analysis: The amendment inserted sub-section (2) in Section 10 with retrospective effect from the appointed day and declared that the compensation payable to the owner shall be deemed always to have included the amount payable in respect of coal in stock or other assets on the date immediately before the appointed day. Section 19 further provided that notwithstanding any judgment, decree, order or direction to the contrary, the compensation and statements of accounts prepared under the nationalisation law shall be treated as valid as if the amended provisions had been in force at all material times. The Court held that the Legislature had plenary power to enact retrospective law and to validate prior action, provided the defect pointed out by the earlier decision was removed. Since the amendment changed the legal basis on which the earlier relief had been granted, the prior judgment could no longer govern the claim for separate credit of the stock of coal or coke.

Conclusion: The retrospective validating amendment was effective and the claim for separate accounting or payment for the stock of coal or coke was negatived.

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