1996 (12) TMI 416 - SC - Indian Laws

Supreme Court affirms water as 'mineral' under Mines Act, 1952, granting ONGC right to lay pipelines.

Ichchapur Industrial Cooperative Society Ltd. Versus Competent Authority, Oil & Natural Gas Commission and Ors.

The Supreme Court upheld the Gujarat High Court's judgment, determining that water qualifies as a 'mineral' under the Mines Act, 1952. It was concluded ... - Issues Involved:1. Whether water is a mineral within the meaning of the Mines Act, 1952 and the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962.2. Whether the ONGC can lay pipelines for transporting water under the existing right of user acquired for transporting petroleum.Issue-wise Detailed Analysis:1. Whether water is a mineral within the meaning of the Mines Act, 1952 and the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962:The appellant challenged the notice issued by ONGC for laying pipelines for water transportation, arguing that water is not a mineral and thus cannot be transported under the Act. The Gujarat High Court rejected this contention, holding that the action of ONGC was covered by the provisions of the Act. The Supreme Court examined whether water qualifies as a 'mineral' under the Act.Section 2(ba) of the Act defines 'minerals' as having the same meaning as in the Mines Act, 1952. The Mines Act, 1952 defines 'minerals' in Section 2(jj) as all substances obtained from the earth by mining, digging, drilling, dredging, hydraulicing, quarrying, or any other operation. The Supreme Court noted that the definition is wide and includes substances not necessarily embedded in the earth but obtainable through similar operations.The Court referred to Rutley's Elements of Mineralogy, which defines a mineral as a substance with a definite chemical composition and atomic structure formed by inorganic processes. According to this definition, water, snow, and ice are considered minerals due to their chemical composition. The Court concluded that water, being obtainable by drilling, falls within the definition of 'mineral' under the Act.2. Whether the ONGC can lay pipelines for transporting water under the existing right of user acquired for transporting petroleum:The appellant argued that new pipelines for transporting water could not be laid without fresh notifications under Sections 3 and 6 of the Act or acquiring the land under the Land Acquisition Act. The Supreme Court considered Section 7 of the Act, which allows the laying of pipelines for transporting petroleum or any other mineral if the right of user has vested in the government or a corporation.Section 7(1)(ia) permits the use of land for laying pipelines for transporting any mineral if the right of user for transporting petroleum has been acquired. The Court noted that the right to lay pipelines for petroleum and minerals are linked, and acquiring one right makes the other available. The Court endorsed the Gujarat High Court's view that carrying water through new pipelines is an act necessary for the utilization of the pipeline under Section 7(1)(ii) of the Act.The Court emphasized that the project under the Act is of national importance, and individual inconvenience must yield to national interest. Thus, the ONGC's action of laying pipelines for water transportation was permissible without further notifications or declarations.Conclusion:The Supreme Court upheld the Gujarat High Court's judgment, concluding that water is a mineral under the Act and that ONGC can lay pipelines for transporting water under the existing right of user acquired for transporting petroleum. The appeal was dismissed without any order as to costs.