ivil Appeal No 390 of 1981
From the Judgment and Order dated 318
1979 of the Patna High Court in CWJC No 262 of 1979 R
MK Ramamurthy AK Nag and Mrs Naresh Bakshi for the Appellants
Jaya Narayan and Pramod Swarup for the Respondents
The Judgment of the Court was delivered by SABYASACHI MUKHARJI J
This appeal is directed against the judgment and order of the High Court of Patna Ranchi Bench dated 3 1st August 1979
It involves the question of the right of ex intermedi aries to get compensation for the minerals which were not exploited by the exlandlords on the date of vesting the estate under Bihar Land Reforms Act 1950 hereinafter referred to as the Act 
Raja Nilkanth Narayan Singh of Sawagarh estate was the exlandlord whose estate vested by virtue of the notification under the Act with effect from 4th November 1951
The petitioners before the High Court and the appellants herein are the successors in interest being the grandson and the daughter in law of the late Nilkanth Narayan Singh
The estate of the ex landlord comprised inter alia tauzi Nos
14 and 15 of the District Collectorate of Dhanbad within the aforesaid tauzis
These were vast areas of mineral bearing lands owned by the ex proprietor of the estate
Some part of the said area 227 was being worked by the lessees under the leases granted to them who paid royalty to late Nilkanth Narayan Singh afore said who it might be stated died in November 1969 in a state of jointness with other appellants
The case of the appellants is that compensation in respect of the coal bearing area having coal reserves ie minerals has not yet been paid by the State of Bihar al though the estate had vested in it as early as in November 195 1
So far as the mines that were being worked out or the minerals which were the subject matter of leases granted by the ex landlord are concerned there was no dispute
The appellants are entitled to and have not been denied compen sation in respect thereof under the Act and the Rules
The controversy is only on the question whether the ex landlord or his successor in interest is entitled to compen sation for the minerals which were not the subject matter of any lease granted in favour of any lessee
However it appears there is no dispute on the question that had such minerals been the subject matter of a lease the ex interme diary would have been entitled to compensation in respect thereof in the manner provided under the Act to be computed as prescribed by the Rules
The High Court after an exhaustive discussion of the different provisions of the Act came to the conclusion that ex intermediary is not entitled to the compensation as claimed for and as such dismissed the application under Article 226 of the Constitution
Being aggrieved by the said decision the appellants after obtaining a certificate under Article 1331 of the Constitution have come up to this Court
The expression mines  used in the Act or in the Rules had a distinct connotation namely those minerals that were unworked and unexcavated reserves while excavated mines had been worked
The question therefore involves as the High Court rightly pointed out not only the mines but with miner als located beneath the earth and neither being worked by ex intermediary on the date of vesting nor being the subject matter of lease in favour of any third party
The fights of the parties have to be worked out under the provisions of the Act
The Act in question was an Act which was passed to provide for the transference to the State of the interests of proprietors and tenure holders in land and of the mortgages and lessees of such interests including interests in trees forests fisheries jalkars  ferries 228 hats  bazars  mines and minerals and to provide for the constitution of a Land Commission for the State of Bihar with powers to advise the State Government on the agrarian policy to be pursued by the State Government consequent upon such transference and for other matters connected therewith
On an analysis of the scheme of the Act it appears that section 3 of the Act provides for the notification vesting an estate or tenure in the State
It provides inter alia that the State Government may from time to time by notifi cation declare that the estates or tenures of a proprietor or tenure holder specified in the notification have passed to and become vested in the State
There was appropriate notification passed in this case
On issuance of the notifi cation the estates become vested in the State
Section 4 deals with the consequences of vesting
It provides that notwithstanding anything contained in any other law for the time being in force or in any contract on the publication of the notification notwithstanding anything to the con trary certain consequences as mentioned in section 4 would follow
Such consequences are mentioned in clauses a b c d and e and other sub clauses of section 4 of the Act
Section 9 deals with the mines worked by intermediary and it provides that with effect from the date of vesting all such mines comprised in the estate or tenure as were in operation at the commencement of the Act and were being worked directly by the intermediary shall notwithstanding anything contained in the Act be deemed to have been leased by the appropriate Government to the intermediary and he shall be entitled to retain possession of those mines as a lessee thereof
The terms and conditions of the said lease would be such as would be agreed upon between the State Government and the intermediary provided that all such terms and conditions shall be in accordance with the provisions of any Central Act for the time being in force
Section 10 deals with the consequences of subsisting leases of mines and minerals and provides for vesting of the same
Section 23 deals with computation of net income for the purpose of preparing compensation assessment roll of the net income of the intermediary
Section 24 deals with the rates of compen sation and provides that after the net income had been computed under section 23 the Compensation Officer should for the purpose of preparing compensation assessment roll proceed to determine the amount of compensation to be pay able in respect of the transference to the State of the interests of each intermediary
The table is set out in the section
Section 25
is important and deals with the compu tation of compensation payable for mines and minerals
The relevant portion of it provides inter alia as follows 25
Computation of compensation payable for mines and minerals
229 1 The Compensation Officer shall prepare in the prescribed form and in the prescribed manner compensation assessment roll containing in respect of every intermediary in receipt of royalties on account of mines and minerals or directly working mines comprised in the estate or tenure a his gross income and net income from such royalties b his gross income from mines worked directly by him and the amount deemed to be his net income from royalties in respect of such mines c the amount of compensation payable to him under the provisions of this Act for mines and minerals and d such other particulars as may be pre scribed Then sub section 2 of section 25 deals with the prepara tion of compensation roll for clause a of sub section 1 and sub section 3 deals with the preparation of compensa tion roll for clause b of sub section 1
Sub section 4 deals with the question whether after net income from royal ties have been computed under sub sections 2 and 3 the Compensation Officer should proceed to determine the amount of compensation to be payable to the intermediary in the manner and in accordance with the principles laid down therein
While we are on the provisions of the Act and the Rules reference may be made to Bihar Land Reforms Rules 195 1 hereinafter called the Rules  and Rule 25 E deals with the procedure for determining the approximate amount of compensation or annuity
It provides as follows 25 E Procedure for determining the approximate amount of compensation or annuity
1 The approximate amount of compensation in respect of the intermediary interests other than that payable for mines and minerals shall be the approximate net income arrived at in the manner laid down in rule 25 C multi plied by the appropriate multiple referred to in Sec
241 and the approximate amount of annuity shah be equal to the approximate net income
2 The approximate amount of compensation or annuity payable for mines and minerals com prised in the estate or 230 tenures of an intermediary shall be worked out after considering the report to be obtained from the Mining Officer of the existing re serves in the mines or minerals and the proba ble income therefrom in the future
3 The approximate amount of the total com pensation or annuity payable to the intermedi ary shall be arrived at by adding the approxi mate amount of compensation or annuity payable for mines and minerals to the approximate amount of compensation or annuity in respect of his other interests Provided that if no such informa tion regarding the existing reserves in the mines or minerals and the probable income therefrom in the future is available the approximate amount of compensation or annuity shall be calculated only on the basis of the net income from the intermediary interests other than mines or minerals in accordance with sub rule 1 Provided further that the deduction allowed under clause c and cc of Sec 4 shall be recovered by deduction from the approximate amount of compensation payable to the intermediary under this rule
 It is clear from the facts brought out by the High Court that all the mines comprised in the estate or tenure of ex intermediary which were worked out directly by him although vested as a result of the provisions of section 4A were deemed by legal fiction to be subsequently settled by the State Government in favour of the ex intermediary and that ex intermediary should be deemed in law to be statutory lessee under the State Government in respect of the mines which have been worked out by him
It is clear from several provisions of the Act including section 9 that there is no section dealing with the minerals at all
In this connection sections 9 and 10 may be borne in mind
Section 25 of the Act envisages compensation to be payable for mines and minerals and provides that ex interme diary shall be paid for the payment to the ex intermediary who is in receipt of royalties on account of mines and minerals or directly working mines in the estate or tenure consisting of his gross income namely income of exinterme diary gross and net income from royalty and his gross income 231 from mines worked directly by ex intermediary and the amount deemed to be the net income from royalties of his mines under clause c of sub section 1 of section 25 the amount of compensation payable to him under the provisions of the Act for mines and minerals
On behalf of the State Government it was contended that this item under clause c of section 251 was nothing additional or extra than clause a plus clause b of sub section 1 of section 25 and he supported this submission by reference to sub sections 2 3 and 4 of section 25
According to the State Rule 25 E of the Rules does not carry the matter any further
On the other hand counsel for the appellants Mr Ramamurthy submitted that where there are minerals which were not tapped and not exploited by the ex intermediary acquisition of source of income for the intermediary would be acquisition of property and no statute should be so read as would amount to specially in the background of the constitutional provisions prevailing in 1950 when this Act was passed as taking away right of property without payment of compensation
It was urged that there was no provision for compensation for this purpose
If it is so read as contended for by the respondent for this valuable property of the appellants such construction which would amount to exproprietary legislation should be avoided
On the other hand it was submitted that there was no ques tion of expropriation
The property was not in existence
It was acquisition of a right which might be a source of income and property if tapped but it was not an existing right
The Rules and the sections must be harmoniously con strued
Here the legislature was acquiring the estate of ex intermediary
For all the existing sources of his income and which were being exploited compensation has been pro vided for
But for fight which might become a source of income which had not been exploited no compensation has been provided
Where a statute provides for the assumption and enforcement of an existing right liability it will not be construed as extending that liability or creating a new one unless it does so in clear terms
See in this connection Halsbury s Laws of England 4th Edition Vol
44 page 556 paragraph 904
But here there is no question of interpreting any law which will expose the Act to constitutional infirmi ty
The right was not existing at the time of vesting no question therefore arises of depriving ex intermediary of any right without compensation
The basic principle of construction of every statute is to find out 232 what is clearly stated and not to speculate upon latent imponderables
The scheme of the Act does not support the appellant
Moreover section 251a  b deal with inde pendent items and sec
251c is a combination of two
The other sub sections make it quite clear
Compensation for the acquisition of a source which when exploited might become property or income is not necessary
Ownership is a bundle of rights for all the elements of existing ingredients of bundle of rights and for the existing bundle of rights compensation has been provided for
The statute is not bad on that ground
It is not for the court to provide for compensation where legislature has thought it fit not to do so
The view which we are taking in view of the fact that compensation for existing rights has been provided for would not expose this statute to the vice of the unconstitutionality as exproprietary
Had there been such a possibility other considerations might have been there
The Act has been incorporated in Item I of the 9th Schedule of the Constitu tion
How the respondent authorities treated this question in the initial stage is irrelevant
It is well settled that a statute must be read as a whole fairly and reasonably
It must be so read if possible and warranted by the context to give effect to the manifest intent of the framer
So read we find that the statute does not provide for any compensa tion for the minerals not exploited
That does not make the Act unconstitutional
So be it
In that view of the matter we are of the opinion that the High Court was right and the appeal must therefore fail and is accordingly dismissed
In the facts and circumstances of the case however we make no order as to costs
PSS Appeal dismissed


Summary:
Section 3 of the Bihar Land Reforms Act 1950 provides for vesting of an estate or tenure in the State by notifica tion
Under section 9 from the date of such vesting all mines comprised in the estate or tenure as were in operation at the commencement of the Act and were being worked directly by the intermediary were deemed to have been leased to the intermediary and he was entitled to retain possession there of
Section 10 provides for vesting of subsisting leases of mines and minerals
Section 25 provides for computation of compensation payable to the intermediary in respect of royalties on account of mines and minerals or directly working mines comprised in the estate or tenure
Rule 25 E of the Bihar Land Reforms Rules 1951 deals with the proce dure for determination of the amount of compensation or annuity
The estate of the ex landlord comprising vast areas of mineral bearing lands was vested in the State by virtue of a notification under section 3 of the Act with effect from 4th November 1951
Some part of the said area was being worked by the lessees under the leases granted to them who paid royalty to him
The ex landlord died in 1969
His successors in inter est the appellants herein filed writ petition before the High Court claiming compensation in respect of the coal bearing area having coal reserves vested in the State
The High Court came to the conclusion that the ex intermediary was not entitled to the compensation as claimed and dis missed the petition
225 In this appeal by certificate it was contended for the appellants that where there are minerals which were not tapped and not exploited by the ex intermediary acquisition of the source of income for the intermediary would be acqui sition of property that there was no provision for compen sation for this purpose in the Act and the statute was therefore exproprietary in nature
For the respondents it was contended that there was no question of expropriation
The property being not in existence it was acquisition of a right which might be a source or  income and property it  tapped but it was not an existing right
Dismissing the appeal the Court HELD 1
A statute must be read as a whole fairly and reasonably
It must be so read if possible and warranted by the context to give effect to the manifest intent of the framer
So read it cannot be said that the Bihar Land Reforms Act 1950 provides for any compensation for the minerals not exploited
That does not make the Act unconsti tutional
232D 2
The Rules and the sections must be harmoniously construed
In the instant case the legislature was acquir ing the estate of an ex intermediary
For all the existing sources of his income and which were being exploited com pensation has been provided for
But for a right which might become a source of income which had not been exploited no compensation has been provided
Where a statute provides for the assumption and enforcement of an existing right or liability it will not be construed as extending that li ability or creating a new one unless it does so in clear terms
231F Halsbury s Laws of England 4th Edition Vol
44 page 556 paragraph 904 referred to
In the instant case there is no question of interpreting any law which will expose the Act to constitutional infirmi ty
The right was not existing at the time of vesting no question therefore arises of depriving the ex intermediary of any right without compensation
231G 3
The basic principle of construction of every statute is to find out what is clearly stated and not to speculate upon latent imponderables
The scheme of the Act does not support the appellant that it is exproprietary in nature
Section 251a and b deal with independent items and section 251c is a combination of the two
The other sub sections make it quite clear
Compensation for the acquisition of a source which 226 when exploited might become property or income is not neces sary
Ownership is a bundle of rights and for the existing bundle of rights compensation has been provided lot
231 H 232B 4
It is not for the court to provide for compensation where legislature has thought it fit not to do so
The fact that compensation for existing rights has been provided for would not expose the statute to the vice of unconstitution ality as exproprietary
Had there been such a possibility other considerations might have been there
The Act has been incorporated in Item 1 of the 9th Schedule of the Constitu tion 232C