IMPORTANT POINT
The statutory rules must be complied.

JUDGMENT

Madan B. Lokur, J.

1. This is a classic case of someone (the petitioner in this case) apparently having influence in high places, using that influence to violate the law and get a benefit that would ordinarily not be granted to anybody else. We cannot say with any degree of certainty how high is the reach of the petitioner but it is quite apparent from the facts of the case, that the reach is pretty high.

2. The only real issue before us arising out of the judgment and order dated 1st June, 2017 passed by the High Court of Punjab and Haryana in a writ petition filed by the petitioner is whether the petitioner should be allowed to surrender the mining lease granted to it and if so, under what conditions, if any.

3. The facts of the case reveal that a joint venture (for short JV) was formed between the petitioner and Karamjeet Singh and Co. Ltd. (for short KJSL). The JV was formed on or about 18th September, 2012 but the terms of the arrangement or partnership are not available on the record of the case.

4. Be that as it may, it transpires that on 30th November, 2013 the Mines and Geology Department of the Government of Haryana issued an auction notice for the grant of several mining leases. One of the quarries sought to be auctioned for mining purposes was the Dadam quarry in District Bhiwani from which stone could be extracted. The reserve price (or dead rent or royalty) mentioned for this quarry in the auction notice was Rs. 6.25 crores per annum and the lease period was for 10 years. The JV of the petitioner and KJSL gave the highest bid for this quarry in the auction conducted on 30th December, 2013. Some of the terms and conditions of the auction need mention.

5. Condition No. 4 provided that the period of the lease shall commence with effect from the date of environmental clearance by the competent authority as required under the EIA notification dated 14th September, 2006 issued by the Ministry of Environment and Forests of the Government of India as amended from time to time or on expiry of a period of 12 monthsfrom the date of acceptance of the highest bid or the issuance of a letter of intent, whichever is earlier.

6. Condition No. 7 provided that all prospective bidders were expected and presumed to have surveyed the areas to make their own assessment for the potential of the areas for which bids are to be offered.

7. Condition No. 19 provided that after acceptance of the highest bid by the State Government and on the issuance of a letter of intent, its holder shall execute an agreement in form ML-1 appended to the Haryana Minor Mineral Concession, Stocking, Transportation of Minerals and Prevention of Illegal Mining Rules, 2012 (for short the Rules) within a period of 90 days of the grant of a letter of intent.

8. Condition No. 36 provided that no transfer of the lease shall be permissible for the first 5 years of the grant. However, on submission of an application, in accordance with the provisions of the Rules and after satisfying itself, the State Government may allow inducting other partners or shareholders to the extent of 49% of the total shareholding of the original lease holder. It may be mentioned that the petitioner had a 49% share while KJSL had a 51% share in the JV.

9. As mentioned above, the auction was held on 30th December, 2013 and the JV was the highest bidder for the Dadam quarry in District Bhiwani with a bid of Rs. 115 crores per annum towards dead rent or royalty whichever is higher. At this stage, it may also be mentioned that the admitted position is that the JV was qualified to participate in the auction, but the petitioner by itself was not qualified to participate in the auction. The relevance of this will become apparent at a later stage.

10. As required by Rule 55(3)(iii) of the Rules, the JV deposited Rs. 28.75 crores with the State Government towards 25% of the annual bid amount as security deposit.

11. On 3rd January, 2014 the JV received a letter of intent from the Director, D