Section 1. Short title, extent and commencement

1. Short title, extent and commencement.— (1) This Act may be called the Coal Bearing Areas (Acquisition and Development) Act, 1957. (2) It extends to the whole of India, except the State of Jammu and Kashmir*. (3) It shall come into force on such date[1] as the Central Government may, by notification in the Official Gazette, appoint. 1. Subs. by Act 51 of 1957, s. 5, for "granted by a State Government" (w.e.f. 12-6-1957). Provided that where two or more leases had been granted in relation to any land covered previously by one prospecting licence, only so much of the expenditure aforesaid as bears to the total expenditure the same proportion as the area under the mining lease in respect of which the rights have been acquired bears to the total area covered by the mining leases shall be payable under this clause; (ii) any reasonable and bona fide expenditure of the nature referred to in clauses (i), (ii) and (iii) of sub-section (1) actually incurred in relation to the lease, together with the salami , if any, paid for obtaining the lease; (iii) the expenditure, if any, incurred by way of payment of dead-rent or minimum royalty during any year or years when there was no production of coal; (iv) interest on any such expenditure referred to in clauses (i), (ii) and (iii) as has actually been incurred[1] [up to] the year in which the rights under the lease are acquired, interest being calculated in the following manner, that is to say,— interest at the rate of five per centum per annum in respect of the expenditure incurred during each calendar year for the first five years commencing from the year in which such expenditure was incurred plus interest at the rate of four per centum per annum in respect of each subsequent year after the expiration of the first five years and ending with the year in which the rights under the lease are acquired: Provided that the total sum payable under this clause shall not exceed one-half of the total amount referred to in[2] [clauses (i), (ii) and (iii)]. (3) Where the rights under a mining lease acquired under section 9 relate only to a part of the land covered by the mining lease, the amount of compensation payable shall be such as bears to the total compensation which would have been payable if the rights of the mining lessee in respect of the entire land had been acquired, the same proportion which the area of the land in respect of which the rights are acquired bears to the total area of the land covered by the mining lease. (4) Where a mining lease ceases to have effect for any period under clause (b) of section 5, there shall be paid by way of compensation for the period during which the lease so ceased to have effect, a sum equivalent to five per centum of any such expenditure as is referred to in clauses (i) and ( iii sub-section (2) for each year during which the lease remains suspended.