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2012 (4) SCC 246
SUPREME COURT OF INDIA
ALTAMAS KABIR & SURINDER SINGH NIJJAR, JJ.
BHUSHAN POWER & STEEL LTD. & ORS. - Appellants
VERSUS
STATE OF ORISSA & ANR. - Respondents
Civil Appeal No.2790 of 2012 (Arising out of SLP (C) No. 8567 of 2008)
Decided on : 14-03-2012.
(b) Mineral Concession Rules, 1960 – Rule 59(2) – Government allotting mining block to appellant in exercise of power under rules 59(2) and recommending the same to Central Government – Later revoking the same on the ground that the relinquished block not notified as available – Allotting blocks to other parties – No reason to deny same benefits to appellants. (Para 33)
Facts of the case:
Appellant and State Government entered into MOU to set up steel plant.
The appellant’s group underwent reorganization and the internal disputes led the Government to ask appellant to execute fresh MOU.
Group’s disputes settled and parties agreeing to subsistence of the MOU.
MOU was although acted upon by the appellant and the Government.
Government insisted for fresh MOU.
Government cancelled the allotment of mining block denying benefit of rule 59(2) of the MC Rules to the appellant while extending the benefits to others.
High Court accepted the demand of the Government for fresh MOU.
Finding of the Court:
Impugned judgment cannot be sustained.
Result: Appeal allowed.
JUDGMENT
Altamas Kabir, J.-Leave granted.
2. With the intention of setting up an integrated steel plant in the State of Orissa, Bhushan Limited, entered into discussions with the State Government in 2001 in that regard. Pursuant to such discussions, Bhushan Limited applied to the Industrial Development Corporation of India (IDCO) for acquisition of land measuring 1250 acres, for setting up the proposed plant in the identified villages of Thelkoloi, Dhubenchhabrar and Khariapalli (Lapanga) in the District of Sambalpur. On 13th November, 2001, Bhushan Limited applied to the Industrial Promotion and Investment Corporation of Orissa Ltd. (IPICOL) for appraisal and recommendation for acquisition of land for the aforesaid purpose to IDCO. Bhushan Limited also addressed two letters to the Collector, Sundergarh and Collector, Keonjhar on 28th November, 2001, applying for grant of lease for mining of iron ore for use in the proposed plant. The applications were received in the Collector's office on 3rd December, 2001, 4th December, 2001 and 1st March, 2002. On the basis of such applications filed by Bhushan Limited, a meeting was held on 27th March, 2002, between the Chief Secretary, Government of Orissa and Bhushan Limited, in which the Government agreed to accord due priority to Bhushan Limited for grant of suitable iron ore areas and also agreed to recommend the proposal of Bhushan Limited to the Government of India for grant of a Coal Block.
3. Thereafter, meetings were held between Bhushan Limited and the representatives of the State Government and one such meeting was held on 24th April, 2002, under the Chairmanship of the Chief Minister, relating to the setting up of the steel plant at Lapanga. The said meeting was confirmed by IDCO and the Water Resources Department and it was decided to prepare a Memorandum of Understanding (MOU) to be signed by the parties for setting up of a 1.2 million tonnes steel plant under Phase-I and a 2.8 million tonnes steel plant in Phase-II in Lapanga, in the District of Sambalpur. The MOU contained the commitment of the State Government to recommend to the Central Government grant of iron ore mines to the Appellant for its use in the plant to be set up at Lapanga. As far as the grant of the iron ore mines is concerned, the State Government agreed to make the following recommendations to the Central Government:
(a) For grant of 96 million tonnes iron ore reserves in Joda Barbil Sector of Keonjhar (Thakurani area) for 50 years requirement of the plant.
(b) For additional 128 million tonnes of iron ore reserves in Keora, District Sundergarh, to meet a requirement of 1.6 million tonnes for 50 years.
The total requirement of 200 million tonnes was split up into two parts, i.e., 96 million tonnes and 128 million tonnes respectively, and the same were to be met from the Thakurani mines situated in the Joda Barbil sector and from the Keora area of Sundergarh District.
4. Pursuant to the aforesaid understanding, on 16th May, 2002, the Government of Orissa addressed two letters to the Government of India, in its Ministry of Steel and Ministry of Coal, for allotment of Jamkhani and Bijahan Coal Blocks to Bhushan Limited. In aid of the decision to set up the steel plant, the Department of Energy issued a No Objection Certificate (NOC) for setting up of a power plant at Thelkoloi in the name of Bhushan Limited and, on 5th July, 2002, the State Government conveyed its approval for acquisition of 632.28 acres of private land and 634.94 acres of Government land in identified villages under Rengali Tehsil of Sambalpur District, for establishment of the steel plant. Several meetings took place between the Principal Secretary and the representatives of Bhushan Limited, where even the Joint Secretary of Mines was present and assurances were given to Bhushan Limited to send the proposal for grant of mining lease in favour of Bhushan Limited to the State Government by the first week of September, 2002. On 22nd October
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