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2012 Supreme(SC) 350
Supreme Court of India
S.H. KAPADIA, CJI., AFTAB ALAM & SWATANTER KUMAR, JJ.
State of Andhra Pradesh & Others
Versus
Obulapuram Mining Company Private Limited & Others
SLPs.(C).Nos. 7366-67 of 2010 with W.P.(C).No. 562 of 2009
Decided On : 04-05-2012
The court permitted the sale of mined minerals via e-auction while exempting captive consumption and supply to subsidiaries. It also emphasized the preservation of official documents relevant to committee reports and authorized empowered committees to implement rehabilitation and reclamation plans.
Headnote:(A) Mining Law - Sale of mineral ore - E-auction - Captive consumption - Disposal of mineral ore mined under leases - Permission granted for sale through e-auction provided that captive consumption and supply to subsidiary companies are exempted.
(B) Administrative Law - Preservation of evidence - Direction to statutory authorities and government departments to preserve documents specifically referred to and relatable to a report submitted by an empowered committee.
(C) Environmental Law - Rehabilitation and reclamation - Implementation of plans - Liberty granted to an empowered committee to take all requisite and necessary steps for the implementation of rehabilitation and reclamation plans.
Facts of the case:
A dispute involving mining leases was pending before the court. In the course of proceedings, a report was submitted by an empowered committee, necessitating the preservation of specific documents by state authorities and the customs department. Additionally, a request was made to allow the sale of mined manganese ore under specific mining leases via e-auction, with an exception for captive use and supply to subsidiary companies.
Findings of Court:
The court directed the preservation of documents referred to in the report of the empowered committee. It further clarified that the empowered committee is authorized to take all necessary steps for the implementation of the rehabilitation and reclamation plan. Regarding the sale of minerals, the court allowed the sale through e-auction, exempting captive consumption and supply to subsidiary companies.
Issues: Whether the sale of mined minerals could be conducted via e-auction with exemptions for captive use, and whether state authorities should be directed to preserve documents related to a committee report.
Ratio Decidendi: The court exercised its discretion to ensure the preservation of evidence related to reports by specialized committees and balanced the requirement for transparent mineral sale via e-auction with the operational requirements of the mining entity regarding captive consumption.
Result: Prayer granted.
Legal Category Hierarchy
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administrative law
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central empowered committee
- powers and functions
- document preservation
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central empowered committee
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practice and procedure
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orders and directions
- hearing and reservation of orders
- grant of prayers
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orders and directions
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environmental law
- rehabilitation and reclamation
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mining law
-
e-auction
- exemptions for captive consumption
-
e-auction
Judgment :
In re: CRC Report dated 20-4-2012
We have heard Mr. V. Giri, learned Senior Counsel for Mr. B.S. Yeddyurappa; Mr. C.S. Vaidyanathan, learned Senior Counsel for M/s. Jindal Steels and Mr. C.U. Singh, learned Senior Counsel for M/s. South West Mining Limited from 12.55 p.m. till 1.55 p.m.
Hearing concluded. Orders reserved.
The learned counsel undertake to give common compilation by 5.00 p.m. tomorrow i.e. 5-5-2012.
In re: CEC Report dated 27-4-2012
The report of the Central Empowered Committee dated 27-4-2012, will be taken up in due course. However, in the meantime, we direct the Lokayukta, Karnataka; State of Karnataka and Customs Department to preserve documents, which are specifically referred and relatable to the CEC Report dated 27-4-2012. The Central Empowered Committee will furnish the list of documents to these authorities.
In re; Rehabilitation and reclamation
In continuation of this Court’s order dated 20-4-2012 (State of
A.P. v. Obulapuram Mining Co.(P).Ltd., (2013) 8 SCC 216), we clarify that with regard to the implementation of rehabilitation and reclamation plan, liberty is given to the Central Empowered Committee to take all requisite/necessary steps.
In re; Response in IA No. 7 of 2011 in W.P.(C).No. 562 of 2009
Having heard the learned counsel on both sides, we grant the following prayer:
“(d) Alternatively to (c) above, the manganese ore mined by SANDUR in Mining Leases Nos. 2580 and 2581 be sold through e-auction but the captive consumption and supply to its subsidiary companies may be exempted from e-auction.”
