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PETITIONER: ICHCHAPUR INDUSTRIALCO-OPERATIVE SOCIETY LTD.

       Vs.

RESPONDENT: THE COMPETENT AUTHORITY, OIL & NATURAL GAS COMMISSION & ANR.

DATE OF JUDGMENT:       19/12/1996

BENCH: KULDIP SINGH, S. SAGHIR AHMAD

ACT:

HEADNOTE:

JUDGMENT:                       J U D G M E N T S.SAGHIR AHMAD, J.      Leave granted. 2.   Water is  a mineral  within the  meaning of  Mines Act, 1952 read  with Section  2(ba) of the Petroleum and Minerals Pipelines (Acquisition  of Right  of User in land) Act, 1962 (for short,  the Act)  or not  is the question raised by the respondent in this appeal. 3.   Appellant owns  survey plot  nos. 780, 781, 913/2, 914, 893, 918/223,  924/2, 923,  926 of  moja Ichchapur,  Tehasil Choryasi, District  Surat which  were  notified  on  23.6.83 under Section  3(1) of  the Act.  For acquiring the right of user in  those plots  to enable the respondent no.2, namely, the oil  and Natural Gas Commission, in whom the rights were ultimately  vested,   to  lay   pipelines  for  transporting Petroleum from  one place  to another,  a  Notification  was issued under  Section 3(1)  of  the  Act  on  23.6.83.  This Notification was  followed  by  Notification  dated  16.1.84 issued under  Section 6(1)  of the Act and the right of user in  the   aforesaid  land  stood  acquired  for  laying  the pipelines. It  was also  indicated in that Notification that the right  of user  in the  said  lands  shall,  instead  of vesting in  the Central  Government, vest  in  the  Oil  and Natural Gas Commission. 4.   In pursuance  of the  aforesaid notifications,  Oil and Natural Gas Commission (for short, ONGC) laid down pipelines in  the  aforesaid  plots  of  land  for  transportation  of Petroleum from Utran Terminal to Kribhco Terminal. 5.   The right  of user  having vested  in  the  ONGC,  they initially laid  one 12"  Gas pipeline  through the said land (30 metres  wide) for  transportation of  the Gas.  The  Gas processing plant  is said  to be located at Hazira and south basin. Gas  is being  processed at that plant since 1988 for being supplied  to various  consumers. In  order to  run the aforesaid plant  efficiently and  effectively,  water  is  a commodity which  is vitally  required. Water  was  initially drawn for  that purpose  from KRBC  canal division  but when ONGC was  informed that  no  further  water  would  be  made available  from  the  canals  due  to  Kakarprra  Irrigation Project, the ONGC decided to draw water from the alternative

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sources through  their own pipelines which they thought they would lay  down underneath  the land  of which  the right of user had already vested in them. Accordingly, a notice dated 6.10.94 was  issued under  Section 8  of the  Act for laying pipelines to  carry water  for effective  working of the Gas processing plant. The pipeline was to pass through a stretch of land of 13 Kms. out of which the land owners/occupiers of 11 kms.  did not  raise any  objection  whatsoever  but  the appellant  who  is  concerned  only  with  2  Kms.  of  land challenged the  notice  on  the  ground  that  the  proposed pipelines were  not being laid for transporting petroleum or any other  mineral but  for transporting water which was not permissible under the Act. This contention has been rejected by the  Gujarat High Court which was of the opinion that the action of  ONGC in  laying down  the proposed  pipeline  for transporting water  was fully  covered by  the provisions of the Act  specially as  the right of user of the land through which the  pipeline was  proposed to  be carried had already vested in the ONGC. 6.   The appellant  has again  raised this  question in this appeal while  ONGC has  raised  an  additional  ground  that "WATER" for  which the pipelines have been laid is a mineral and since  "Minerals" could be validly carried through those pipelines, "Water"  could also  be  carried  or  transported through them. 7.   Whether "Water"  is a mineral or not was not decided by the High  Court as  it was  of the  opinion that carrying of water through  the pipelines  would be covered by the phrase "any  other   act  necessary  for  the  utilisation  of  the pipeline" used  in Section 7(1)(ii) of the Act on the simple logic that:-      (i)  Pipeline  earlier   laid  were           meant, and, are being utilised           for transportation of Gas.      (ii) This  Gas is  processed at the           Gas processing plant.      (iii) For running of Gas processing           plant, water is necessary           otherwise the plant will not           run and Gas will not be           available.      (iv) If  water was  carried through           the new  pipelines to  run the           plant, it  would amount  to an           act  for  the  utilisation  of           pipelines  for  transportation           of the Gas.      8.   Section     2(ba)      defines           "Minerals" as under:-           "2(ba).   "minerals" have  the           meanings assigned  to them  in           the  Mines   Act,  1952,   and           include   mineral   oils   and           stowing  sand   but   do   not           include petroleum."      9.   "Petroleum" has  been  defined           in Section 2(c) as under:-      "2(c).    "petroleum" has the same      meaning as in the Petroleum Act,      1934, and includes natural gas and      refinery gas."      10.  Section 3  of the Act provides      as under:-      "3 Publication  of notification for      acquisition.-

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    (1)  Whenever  it  appears  to  the      Central  Government   that  it   is      necessary in  the  public  interest      that for the transport of petroleum      [of any minerals] from one locality      to another  locality pipelines  may      be laid  by that  Government or  by      any   State    Government   or    a      Corporation  and   that   for   the      purpose of laying such pipelines it      is necessary  to acquire  the right      of user  in any  land  under  which      such pipelines may be laid, it may,      by  notification  in  the  Official      Gazette, declare  its intention  to      acquire the right of user therein.      (2) Every  notification under  sub-      section  (1)  shall  give  a  brief      description of the land.      (3) The  competent authority  shall      cause   the    substance   of   the      notification  to  be  published  at      such places  and in  such manner as      may be prescribed."      11.  Section 5  and  6  provide  as      under:      "5.  Hearing of  Objections - . (1)      Any person  interested in  the land      may, within  twenty-one  days  from      the date  of the notification under      sub-section  (1)   of  section   3,      object  to   the  laying   of   the      pipelines under the land.      (2)  Every  objection   under  sub-      section (1)  shall be  made to  the      competent authority  in writing and      shall set  out the  grounds thereof      and the  competent authority  shall      give the objector an opportunity of      being heard  either in person or by      a legal practitioner and may, after      hearing  all  such  objections  and      after making  such further inquiry,      if any,  as that  authority  thinks      necessary, by order either allow or      disallow the objections.      (3)  Any   order    made   by   the      competent  authority   under   sub-      section (2) shall be final."      "6.  Declaration of  acquisition of      right  of  user.  -  (1)  Where  no      objections under sub-section (1) of      Section 5  have been  made  to  the      competent  authority   within   the      period specified  therein or  where      the   competent    authority    has      disallowed  the   objections  under      sub-section (2)  of  that  Section,      that authority  shall, as  soon  as      may be,  [either make  a report  in      respect of  the land section (1) of      section  3,   or   make   different      reports  in  respect  of  different      parcels  of   such  land,   to  the      Central Government  containing  his

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    recommendations on  the objections,      together with  the  record  of  the      proceedings held  by him,  for  the      decision of  that  Government]  and      upon receipt  of such  report,  the      Central Govt.  shall [if  satisfied      that  such  land  is  required  for      laying   any   pipeline   for   the      transport  of   petroleum  or   any      mineral,] declare, by notification,      in the  Official Gazette,  that the      right  of  user  in  the  land  for      laying  the   pipelines  should  be      acquired       [and       different      declarations may  be made from time      to time  in  respect  of  different      parcels of  the land  described  in      the notification  issued under sub-      section   (1)    of   section    3,      irrespective of  whether one report      or different reports have been made      by the  competent  authority  under      this section].      (2)  On  the   publication  of  the      declaration under  sub-section (1),      the right  of  user  [in  the  land      specified   therein]   shall   vest      absolutely    in     the    Central      Government    free     from     all      encumbrances.      (3)  Where in  respect of any land,      a  notification   has  been  issued      under sub-section  (1) of section 3      but [no  declaration in  respect of      any parcel  of land covered by that      notification  has   been  published      under this section] within a period      of one  year from  the date of that      notification,   that   notification      shall cease  to have  effect on the      expiration of that period.      (4)  Notwithstanding       anything      contained in  sub-section (2),  the      Central  Government  may,  on  such      terms  and  conditions  as  it  may      think  fit  to  impose,  direct  by      order in writing, that the right of      user in  the land  for  laying  the      pipelines shall, instead of vesting      in  the  Central  Government  vest,      either on  the date  of publication      of  the  declaration  or,  on  such      other date  as may  be specified in      the   direction,   in   the   State      Government   or   the   corporation      proposing to  lay the pipelines and      thereupon the right of such user in      the  land  shall,  subject  to  the      terms and  conditions  so  imposed,      vest in  that State  Government  or      corporation, as  the case  may  be,      free from all encumbrances." 12.  There  is   no  dispute  between  the  parties  that  a Notification under  Section 3  of the Act was duly published which was subsequently followed by Declaration under Section

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6 with  the result  that the  right of  user of  the land in question vested  in the  ONGC. The  question which  is being canvassed before  us now  is that new pipelines for carrying another commodity  cannot be  laid unless fresh Notification under Section  3 followed  by a Declaration under Section 6, which too  is made  after following the procedure prescribed under Section  4 and  5, are  issued or  the land  itself is acquired under the Land Acquisition Act for this purpose. We shall consider this question, if need be, later as we intend to take  up the other question, namely, the question whether "Water" is a "Mineral" or not, first. 13.  This  question   arises  in   view  of  the  provisions contained in  Section 7 of the Act which provides that where the right  of the  user, in  any land,  has  vested  in  the Central Government or in any State Government or Corporation under Section  6, it shall be lawful by those authorities to enter upon the land and lay pipelines or to do any other act necessary for the laying up of pipelines. 14.  Clauses (ia)  and (ii)  of Sub-section  (1)  which  are relevant are reproduced below:-      "(ia)     for laying  pipelines for      the  transport   of  petroleum,  it      shall  be  lawful  for  any  person      authorised    by     the    Central      Government or such State Government      or corporation to use such land for      laying pipelines  for  transporting      any mineral  and where the right of      user in  any land has so vested for      laying pipelines  for  transporting      any mineral, it shall be lawful for      such person  to use  such land  for      laying pipelines  for  transporting      petroleum or any other mineral; and      (ii)      such land  shall be  used      only for  laying the  pipelines and      for     maintaining,     examining,      repairing, altering or removing any      such pipelines  or  for  doing  any      other act  necessary for any of the      aforesaid  purposes   or  for   the      utilisation of such pipelines." 15.  A perusal of the above would indicate that if the right of user  of the land has vested in the Government for laying pipelines for  transporting petroleum, it shall be lawful to lay pipeline  for transporting  minerals. It  also  provides that where  the right  of user  of a  land has vested in the Government  for   laying  pipelines   for  transporting  any mineral,  it   would  be   lawful  to   lay  pipelines   for transporting petroleum  or any  other mineral  including the mineral for  the transportation  of which  the right of user had already vested. The two rights, namely, the right to lay pipeline for  Petroleum and  the right  to lay  pipeline for minerals have  been linked together. If one is acquired, the other also becomes available. 16.  Clause  (ia)   was  introduced  in  Section  7  by  the Petroleum Pipelines  (Acquisition of  Right of User in Land) Amendment Act, 1977 (Act 13 of 1977) with effect from 3rd of February, 1977.  BY the same Amending Act, the definition of "Minerals" contained  in Clause  (ba) of  Section 2 was also introduced in  the parent  Act. "Mineral"  was  not  earlier defined and  so also  the right  to lay  down pipelines  for carrying "Mineral"  was also  not available  in the original Act. The  Statement of  Objects and Reasons for amending the parent Act  by Act  13  of  1977  provides,  inter-alia,  as

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under:-      "The      Petroleum       Pipelines      (Acquisition of  Right of  user  in      Land)  Act,  1962  was  enacted  to      empower the  Central Government  to      acquire the  right of  user in  any      land  if   it   appears   to   that      Government that it is necessary, in      the   public   interest,   to   lay      pipelines under  such land  for the      transport of  petroleum  (which  is      defined to  include natural gas and      refinery gas)  from one locality to      another. When  the legislation  was      enacted,    petroleum    (including      natural gas  and refinery  gas) was      the  only   commodity   for   which      transportation  through   pipelines      was   contemplated.   Technological      advance has  since made it possible      to  transport   in  bulk,   mineral      (besides     petroleum)     through      pipelines. It is therefore proposed      to amend  the  Act  to  enable  the      acquisition of the right of user in      land also  for laying pipelines for      the transport  of minerals (besides      petroleum)  from   one   place   to      another." 17.  In view  of the  availability  of  right  to  lay  down pipelines for  transporting a  "Mineral" after the amendment of the  Act,  the  respondents  can  legally  lay  down  the pipelines through  the land  in question  for  carrying  and transporting "Water" provided "Water" is a "Mineral" 18.  The definition  of "Minerals"  which  we  have  already quoted above  would indicate that the meaning given to it in the Mines  Act, 1952  is to  apply here also on the basis of classic   principle   of   Legislation   by   Reference   or Incorporation which  is a legislative device adopted for the sake of  convenience in order to avoid verbatim reproduction of the  provisions of  the earlier  Act into  the later. The provisions so  incorporated become  part and  parcel of  the later Act as if they had been bodily transposed into it. 19.  On this  principle, the definition of "Minerals" as set out in  this Mines  Act, 1952  shall be  deemed to have been bodily lifted  and incorporated  into  this  Act.  We  have, therefore, to  look to that Act of find out the true meaning of the  word "Minerals" which is defined in Section 2(jj) as under:-      2(jj).    "minerals"   means    all      substances which  can  be  obtained      from the  earth by mining, digging,      drilling,  dredging,  hydraulicing,      quarrying or by any other operation      and includes  minerals oils  (which      in turn  include  natural  gas  and      petroleum)." 20.  The  definition   would  indicate  that  "Minerals"  as substances which can be obtained from the earth by employing different technical  devices  indicate  in  the  definition, namely, "mining,  digging, drilling, dredging, hydraulicing, quarrying". These  words are  followed by  the words "by any other operation".  On account of the vicinity of these words with the  previous words,  namely, mining, digging, drilling etc., they  have to  be understood  in the  same sense  and,

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therefore, if  "Minerals" are  obtained from  earth "by  any other operation"  such operation should be an operation akin to the  device or  operation involved  in  mining,  digging, drilling etc.  Another significant feature of the definition is the  use of  words "substances which can be obtained from the earth"  which  indicate  that  the  "Minerals  need  not necessarily be embodied in the earth or lie deep beneath the surface of  the earth.  They ay  be available  either on the surface of  the earth  or down  below. If  the "Mineral"  is available on  the surface,  the  operation  which  would  be obviously  employed   would  be   dredging,   quarrying   or hydraulicing or any other similar operation. The definition, therefore, is  very wide  in terms  but in spite of its wide connotation, every  substance which  can be  obtained  earth would not be a "Mineral". 21.  Learned counsel  for the  appellant contended  that  we should  not   enter  into  the  exercise  of  analysing  the definition of  "Mineral" to  find out  whether "Water" would fall within  that definition  or not,  as the  only  meaning which can  be assigned  to "Water"  is the common meaning as understood by  a common  man does  not treat  "Water"  as  a mineral,  but   treats  it  as  the  most  common  commodity available free  of cost  like "fresh air" and other gifts of nature which  are available  in plenty to all living beings, including human  beings on  the surface of the earth. We are not prepared to accept this contention. 22.  Water undoubtedly  covers more than seventy per cent of the earth’s  surface. It  fills the oceans, rivers and lakes and is  in the  ground and  in the  air we breathe. In fact, "Water" is  everywhere. Without  "Water", there  can  be  no life. Great  Civilisations have  risen where  water supplies were plentiful. They have fallen when these supplies failed. In the  "World Book  Encyclopedia", Vol.  21, it  is further sated about "Water’ is under:      "People have  worshiped  rain  gods      and prayed  for rain.  Often,  when      rains have  failed to  come,  crops      have withered  and  starvation  has      spread across a land. sometimes the      rains have  falln too  heavily  and      too  suddenly.   The  rivers   have      overflowed  their  banks,  drowning      everything and  everyone  in  their      paths.      Today, more  than  ever,  water  is      both slave and master to people. We      use  water   in   our   homes   for      cleaning,  cooking,   bathing   and      carrying away  wastes. We use water      to irrigate dry farmlands so we can      grow more  food. Our  factories use      more water  than any other mineral.      We use  the water in rushing rivers      and   thundering    waterfalls   to      produce electricity.      Our demand  for water is constantly      increasing. Every  year, there  are      more people in the world. Factories      turn out more and more products and      need more  than more water. We live      in a world of water. But almost all      of it  - about  97 per cent - is in      the oceans. This water is too salty      to be  used for  drinking,  farming      and about 3 per cent of the world’s

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    water is  not easily  available  to      people  because  it  is  locked  in      icecaps and  other glaciers. By the      year 2000,  the  world  demand  for      fresh water  may be  double what it      was in  the 1980’s.  But there will      still be  enough to  meet  people’s      needs.      There is  as much  water  on  earth      today as  there ever  was - or ever      will be."      In the  book titled  "Earth"  by  Frank  Press  of  the Massachusetts Institute  of Technology and Raymond Siever of Harvard University, it is stated :      "Water  dissolves  minerals  during      weathering,   then    carrier   the      dissolved materials away - into the      ground  or  into  rivers,  most  of      which  ultimately  empty  into  the      ocean. The  movement of the Earth’s      waters from  one place  to  another      and the  dissolved loads carried by      them  are  parts  of  a  continuous      overall pattern"  hydrologic cycle.      Groundwater      accumulate      by      infiltration of  water  into  soils      and bedrock  and reappears  at  the      surface  in   springs  and  streams      beds. Groundwater  levels, and thus      water infiltration and pumping from      wells.  The  evolution  of  surface      waters ad  the ocean are related to      the  escape   of  gases   from  the      interior."      On account  of its  abundance, the  common man does not think that  "Water" could  also be  treated or utilised as a mineral. 23.  But there  are subterranean  waters  which  lie  wholly beneath the  surface of  the earth  and which either ooze or seep through  the surface strata without pursing any defined course  of   channel  (percolating  waters)  or  flow  in  a permanent and regular but invisible course, or lie under the earth in  a more  or less  immovable body, as a subterranean lake. This  water can  be obtained  only by  the process  of "Drilling" which,  according  to  Chambers  Dictionary  also includes "Boring". 24.  Now, if  it is  a substance  which can be obtained from the earth  by the  process of drilling. It would immediately fall within  the definition  of "Mineral" set out and placed in  this   Act.  Even   otherwise,  Rutley’s   Elements   of Mineralogy, 26th  Edition, brought out by H.H. READ, F.R.S., Professor Emeritus  of Geology  in the  Imperial College  of Science  and   Technology  and  the  University  of  London, "Mineral" is defined as under:-      "A mineral  is a substance having a      definite chemical  composition  and      atomic structure  and formed by the      inorganic processes of nature."      25.   On    the   basis   of   this      definition, Rutley says:-      "Again, water,  snow and  ice  come      within the  definition  since  they      are naturally occurring homogeneous      inorganic substances  of a definite      chemical composition.

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26.  We have,  however, taken  the aid of Rutley’s book only to indicate that in Mineralogy, water is treated, on account of its  chemical composition,  a mineral.  If, therefore, it falls within  the definition of "Mineral" as set out in this Act, it should not surprise anyone, not even the common man, as it is a substance which can also be obtained by a process of drilling  and notwithstanding  that it  is  available  in plenty and  everywhere, it  is to  be treated  more valuable than any other "Mineral." 27.  In Civil  Appeal No.  10538 of  1983, decided  by us on 17.12.96, we  have already indicated the Rule to Interpret a "Definition" and have stressed that the Definition has to be read in  the context in which it is used and the purpose for which  the   Act  was  made.  We  observed  that  where  the definition clause  is preceded  by  the  words  "unless  the context  otherwise  requires",  the  definition  has  to  be interpreted in the light of the context in which it is used. We observed:-      "This implies  that  a  definition,      like any  other word  in a statute,      has to  be read in the light of the      context and  scheme of  the Act  as      also the  object for  which the Act      was made by the legislature." 28.  If the  question is  examined in  this  background,  it would be  noticed that the definition of "Mineral" which has been bodily  lifted from  the Mines  Act, 1952  and has been placed in  the Petroleum and Minerals Pipelines (Acquisition of Right  of  User  in  Land)  Act,  1962  was  deliberately introduced by  Amending Act  No. 13  of 1977  so that  while carrying Petroleum through the pipelines, any other minerals may also  be carried  through it.  If, therefore,  water  is treated as  a "Mineral" it would be permissible for the ONGC to carry  it through  any other pipeline without any further Notification or Declaration under Section 3 or 6 of the Act. This  interpretation   which  is   in  consonance  with  the scientific definition  of a "Mineral", serves the purpose of the Petroleum  and Minerals  Pipelines (Acquisition of Right of User  in Land)  Act, 1962.  The contention of the learned counsel for  the appellant that "Water" should be understood in the  same sense in which it is understood by a common man cannot, therefore,  be accepted.  This  Act  is  an  Act  of Parliament intended  to deal  with the particular technology and the  commodities involved therein. We are, therefore, of the view that in this Act, "Water" has been used in both the senses, namely  that (i)  it is a mineral; and (ii) the most common, readily and freely, available substance on earth. 29.  That apart,  on the  second question,  we fully endorse the view  taken by  the Gujarat  High Court  in holding that carrying of  "Water" through  the new  pipelines would be an act for  the utilisation  of the pipeline within the meaning of "Section 7" of the Act and, therefore, permissible. 30.  The whole  Project  under  the  Act  is  a  Project  of national   importance   and,   therefore,   any   individual inconvenience has to yield to the national interest. 31.  We do  not find any infirmity in the judgment passed by the Gujarat  High Court  and dismiss the appeal, but without any order as to costs.