JUDGMENT M. H. BEG, J. :— The seventeen appeals before us by the State and by the Director of Industries of Haryana, after certification under Article 133 (1) (a) (b) of the Constitution, are directed against a judgment of the High Court of Punjab and Haryana on Writ Petitions of owners of lands and lessees of mineral rights in land seeking reliefs in the nature of Mandamus to enforce fundamental rights conferred by Article 31 (2) and to restrain the Government of Haryana from taking any action to implement two notifications: (i) No. 1217-2-1-B-II-74/7622 dated the 20th February 1974; and, (ii) No. GIG/SP/Auc/1173/3075-C dated the 22nd February, 1974, after declaring void 1656 the Haryana Minerals (Vesting of Rights) Act, 1973 (hereinafter referred to as the Haryana Act). 2. Under the notification of 20th February, 1974, the State Government purported to acquire rights to Saltpetre, a minor mineral, in the land described in a schedule appended to the notification issued in exercise of power conferred by Section 3, sub-section (i) of the Haryana Act. By the notification of 22nd February, 1974, the State Govt. announced to the general public that certain saltpetre bearing areas in the State of Haryana, mentioned therein, would be auctioned on the dates given there. The notifications have not been placed before us. But, from the averments in the statements on behalf of the State and on behalf of some of the respondents in the affidavits supporting their respective cases in proceedings for a stay of the operation of the High Courts judgment, it appears that the intention of the State was to acquire Saltpetre deposits in lands whose owners had granted mining leases claimed by petitioners in the High Court to be subsisting. The auctions advertised were probably of fresh lessee rights. Whether the auctions were to be of ownership or lessee rights in lands, the result was that one owner or one lessee was to be substituted by another in each case as a result of acquisition and sale. The State was to get the difference between the price of acquisition and amount realised on sale of each part sold. The apparent effect of mere change of owners or lessees was that the State of Haryana would benefit financially from the acquisitions and sales, although the object of the Haryana Act was said to include conservation as well as "scientific exploitation" of mineral resources. The apparent effect of mere change of owners or lessees was that the State of Haryana would benefit financially from the acquisitions and sales, although the object of the Haryana Act was said to include conservation as well as "scientific exploitation" of mineral resources. The case of the appellant State also seemed to be that the owners of lands had "haphazardly" created lessee rights in contravention of the Punjab Minor Minerals Concession Rules, 1954, made under the provisions of the Mines and Minerals (Regulation of Development) Act 67 of 1957 (hereinafter referred to as the Central Act). Learned Counsel for the appellant State contended that the Haryana Act was only meant to supplement and not supplant the Central Act. The State claimed to be dealing with lessee rights under the Central Act and not under the Haryana Act at all. 3. The case of the petitioners in the High Court was: Firstly, that the Haryana Act was beyond the competence of the State Legislature inasmuch as the field on which this Act operated was necessarily occupied already by the provisions of the Central Act enacted under entry No. 54 of th Union List (List I) of the Seventh Schedule to the Constitution which reads as follows: "54. Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest." Secondly, that the purported acquisition under the Haryana Act offended the provisions of Article 31 (2) inasmuch as it was neither for a public purpose nor for adequate compensation, the provision for compensation in the Act being, according to the petitioners, illusory. 4. A Division Bench of the High Court allowed the Writ Petitions and quashed the impugned notifications after declaring the Act to be ultra vires. It also held that the Haryana Act violated Article 31 (2). It found the compensation provided by the Haryana Act to be grossly low and illusory, although its view was that, judging from the statement of reasons and objects of the Haryana Act, a public purpose was made out. The stated reasons and objects of the Haryana Act showed that the acquisition was to be made to protect the mineral potentialities of the land and to ensure their proper development and exploitation on scientific lines. The stated reasons and objects of the Haryana Act showed that the acquisition was to be made to protect the mineral potentialities of the land and to ensure their proper development and exploitation on scientific lines. If this was the actual purpose behind the Haryana Act it did not materially differ from that which could be said to lie behind the Central Act. 5. The real question, however, was not whether any of the purposes of the two Acts were common but 1657 whether the provisions of the Central Act so operated as necessarily to exclude, in carrying out their objects, the operation of the State Act. The High Court had held that, in view of the declaration contained in Section 2 of the Central Act, and decisions of this Court in the Hingir-Rampur Coal Co. Ltd. v. State of Orissa, (1961) 2 SCR 537 ; State of West Bengal v. Union of India, (1964) 1 SCR 371 ; State of Orissa v. M. A. Tulloch and Co., (1964) 4 SCR 461 and Baijnath Kedia v. State of Bihar, (1970) 2 SCR 100 the field covered by the impugned Act was already fully occupied by the Central Legislation so that the State Act had to be held to be inoperative and void for repugnancy. 6. 6. Section 2 of the Central Act lays down: "It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided." Section 3 (a) of this Act says: " minerals includes all minerals except mineral oils;" Section 3 (c) reads: " mining lease means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose"; Section 3 (d) enacts: " mining operations means any operations undertaken for the purpose of mining any mineral;" Section 3 (e) elucidates: " minor minerals means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the official Gazette, declare to be a minor mineral" Section 3 (g) indicates: " prospecting licence means a licence granted for the purpose of undertaking prospecting operations;" Section 3 (h) enacts: " prospecting operations means any operations undertaken for the purpose of exploring, locating or proving mineral deposits;" Section 3 (i) lays down: "the expressions, mine and owner, have the meanings assigned to them in the Mines Act, 1952." 7. Sections 4 to 9 of the Central Act deal with general restrictions on projecting and mining operations. Section 4 indicates that all prospecting and mining operations will be governed by the Central Act. But, Section 4A, introduced by Section 2 of the Central Act 56 of 1972, lays down: "4A (1) Where the Central Government after consultation with the State Government, is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do, it may request the State Government to make a premature termination of a mining lease in respect of any mineral, other than a minor mineral, and, on receipt of such request, the State Government shall make an order making a premature termination of such mining lease and granting a fresh mining lease in favour of such Government company or corporation owned or controlled by Government as it may think fit." 8. Section 5 concerns restrictions on the grant of prospecting licences or mining leases. It shows that these will be granted by the State Government and the Central Government was to give its approval in certain specified cases only. Section 5 concerns restrictions on the grant of prospecting licences or mining leases. It shows that these will be granted by the State Government and the Central Government was to give its approval in certain specified cases only. Sec. 6 indicates areas for which a prospecting licence or mining lease or more than one licence or lease may be granted in any one State. The Central Government could make exceptions to this rule. Section 7 limits duration of a prospecting licence, which is evidently to be granted by the State Government, to one year for mica and two years for other minerals, subject to renewal, and, in the case of scheduled minerals, subject to approval by Central Government for each grant or renewal. Similarly, Section 8 provides periods of grant and renewal of leases by the State Government. Section 9 deals with Royalties in respect of mining leases. Section 9A is concerned 1658 with the dead rent to be paid by the lessee to the State Government subject to the regulation of it by the Central government. 9. Sections 10 to 12 of the Central Act contain procedure for obtaining prospecting licences or mining leases in land in which mineral rights vest in the Govt. It is true that it is not specified here in which Govt. rights to minerals in any land vest. But, the machinery provided for applications and for maintaining the registers of applications for prospecting licences and mining leases shows that it is the State Government which will be concerned with this matter subject to the provisions of Sections 10 to 12 of the Act. 10. Rules for regulating the grant of prospecting licences and mining leases are to be made by the Central Govt. according to the detailed provisions of Section 13 and Section 13A. Section 14, however, lays down: "14. The provisions of Sections 4 to 13 (inclusive) shall not apply to quarry leases, mining leases, or other mineral concessions in respect of minor minerals." Section 15 makes it clear that it is the State Govt. which has the power to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of "minor minerals" and for purposes connected therewith. 11. Section 16 (1) of the Central Act enacts: "16 (1) (a). which has the power to make rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of "minor minerals" and for purposes connected therewith. 11. Section 16 (1) of the Central Act enacts: "16 (1) (a). All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment act, 1972, if in force at such commencement, shall be brought into conformity with the provisions of this Act, and the rules made thereunder, within six months from such commencement, or such further time as the Central Government may, by general or special order, specify in this behalf. (b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, have vested, on or after the 25th day of October, 1949, in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform, such mining lease shall be brought into conformity with the provisions of this Act and the rules made thereunder within six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, or within such further time as the Central Government may, by general or special order, specify in this behalf." Section 16 (2) provides for rules to be made by the Central Government to carry out the purposes of Section 16 (1). 12. Special powers of Central Govt. in respect of mining operations in certain lands are provided for in Section 17. Clause (1) of this Section reads:- "17 (1). The provisions of this Section shall apply in respect of land in which the minerals vest in the Government of a State or any other person." Clause (2) of Section 17 provides for undertakings by the Central Govt. , in consultation with the State Govt., of prospecting or mining operations "in any area not already held under any prospecting licence or mining lease........". Section 17 (3) makes the Central Govt. liable in such cases to pay the State Govt. , in consultation with the State Govt., of prospecting or mining operations "in any area not already held under any prospecting licence or mining lease........". Section 17 (3) makes the Central Govt. liable in such cases to pay the State Govt. prospecting fee, royalty, surface rent, or dead rent, as the case may be, at the same rate at which it would have been payable under this Act, if such prospecting or mining operations had been undertaken by a private person under a prospecting licence or mining lease. Section 17 (4) contains powers of the Central Govt., in consultation with the State Government, to prohibit grant of prospecting or mining leases in any area specified in a notification. 13. Section 18, dealing with the development of minerals, enacts: "18 (1) It shall be the duty of the Central Government to take all such steps as may be necessary for 1659 the conservation and development of minerals in India, and for that purpose the Central Government may, by notification in the Official Gazette, make such rules as it thinks fit. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the opening of new mines and the regulation of mining operations in any area; (b) the regulation of the excavation or collection of minerals from any mine; (c) the measures to be taken by owners of mines for the purpose of beneficiation of ores, including the provision of suitable contrivances for such purpose; (d) the development of mineral resources in any area; (e) the notification of all new borings and shaft sinkings and the preservation of bore-hole records, and specimens of cores of all new bore-holes; (f) the regulation of the arrangements for the storage of minerals and the stocks thereof that may be kept by any person; (g) the submission of samples of minerals from any mine by the owner thereof and the manner in which and the authority to which such For Citation : AIR 1976 SC 1654 = (1976) 3 SCR 688 =(1977) SCC 340. 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