Hon'ble Supreme Court relying upon its earlier decision in the case of State of A.P. v. Duvvuru Balarami Reddy reported at AIR 1963 SC 264 upheld that subsoil rights do not form part of surfacial rights of land. The pattedar/owner of the land is entitled only for the surfacial rights and subsoil rights normally vest in the State.
The aforesaid finding was given in the case of K. Thippanna Alias Thippeswamy Vs. Varalakshmi And Anr., while deciding that in a decree for partition of land belonging to joint family, a party (plaintiff) cannot claim as of right a share in extracted minerals stored by defendants on the land in absence of any evidence that he was co-licensee under Mines and Minerals (Development and Regulation) Act, 1957. The relevant portion of the judgement is as under:-
"12. Even assuming for the sake of arguments that there is iron ore extracted from and stored on the decree scheduled property by the (defendant) appellant herein, in our opinion, the respondent is not entitled, as of right, to a share in the iron ore by virtue of her being a co-sharer in the decree scheduled property. It must be remembered that the suit was for partition of the suit scheduled property, on the ground that the same is the joint family property of the 1st respondent's father and the appellant herein. The plaint schedule does not deal with the subsoil rights of the various items of landed property included therein. It is well settled in law that subsoil rights do not form part of surfacial rights of the land. The pattedar / owner of the land is entitled only for the surfacial rights and subsoil rights normally vest in the State (See State of Andhra Pradesh Vs Duvvuru Balarami Reddy and others, AIR 1963 SC 264). Therefore, assuming for the sake of arguments that the appellant herein did, in fact, win the mineral from the decree scheduled property, the respondent is not entitled for the share in the same on the ground that she is entitled for a half share of the surface of the property from out of which, the iron ore was (allegedly) extracted.
Extraction of the minerals is governed in this country by the Provisions of the Mines and Minerals Development and Regulatory Act, 1957, which requires a license to be acquired by any person interested in carrying on the mining activity. Such a license is granted under the said Act, subject to various rules and regulations and including a requirement of payment of royalty on the part of the licensee as the mineral essentially belongs to the State. Without any pleading or proof in this regard to the effect that the respondent is a licensee under the provisions of the above mentioned Act, the respondent is not entitled, automatically, to claim a share in the mineral alleged to have been extracted by the appellant herein."