IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT NAGPUR
A.S. Chandurkar, Pushpa V. Ganediwala, JJ.
M/s. Jai Gajanan Shri Gajanan Building Material Suppliers - Petitioner
Versus
State of Maharashtra, In the Ministry of Revenue and Forest and ors. – Respondents
Writ Petition No.5480 of 2021
Decided On : 13-01-2022
Constitution of India, 1950 – Article 226 - E-auction – Power of High court to issue writs - Petitioner is in business of excavation and transportation of sand - Under revised excavation policy document such excavation is permissible through e-auction -Respondent no.2 and thereafter has issued e-auction notices and invited bids for excavation of sand from various Sand-Ghats in district - Petitioner being desirous of participating in that auction process found that environmental clearance was yet to be obtained by respondents on date of e-auction – Held, Court in its earlier judgment has considered this very aspect including action of respondents of issuing e-auction notices prior to grant of environmental clearance - Aspect of deposit of 1/4th bid amount while submitting bid and return of that amount on cancellation of auction for want of environmental clearance has also been considered by this Court - Court find that since it is mandatory to obtain environmental clearance prior to permitting excavation of concerned minor mineral, rationale behind directing authorities to first obtain such environmental clearance and then issue e-auction notices would continue to apply even in context of revised policy - No useful purpose would be served by first issuing an e-auction notice and subsequently proceeding to cancel work in question for want of environmental clearance - It is rightly submitted on behalf of petitioner that on acceptance of a bid, 25% of bid amount has to be deposited within 48 hours and remaining 3/4th amount has to be deposited within a period of one month from that date - Thus, if environmental clearance is not received after a period of one month from date of e-auction a bidder would be required to deposit entire bid amount only to be subsequently told that for want of environmental clearance excavation would not be permissible pursuant to his successful bid - This would result in undue hardship and would also restrict a prospective bidder from participating in other e-auctions at other mining sites as his funds would unnecessarily remain locked - On contrary, e-auction notices issued after receiving environmental clearance would present a clear picture before a prospective bidder and it would also indicate specific period for which mining lease would be granted - Court do not find any merit or justification whatsoever in contentions putforth by respondents for issuing e-auction notices even prior to receipt of mandatory environmental clearance - Court find that observations made by this Court and reasons that weighed it in (supra) are relevant even with regard to revised policy notwithstanding fact that earlier policy has now ceased to operate – Ordered accordingly.
JUDGMENT :
A.S. Chandurkar, J.
Rule. Rule made returnable forthwith and heard learned Counsel for the parties.
2. The petitioner is in the business of excavation and transportation of sand. Under the revised excavation policy document dated 03-09-2019 such excavation is permissible through e-auction. The respondent no.2 on 18-11-2021 and thereafter on 09-12-2021 has issued e-auction notices and invited bids for excavation of sand from various Sand-Ghats in the district of Akola. The petitioner being desirous of participating in that auction process found that environmental clearance was yet to be obtained by the respondents on the date of the e-auction. It is the case of the petitioner that as per the policy decision dated 03-09-2019 it was necessary for the respondents to have obtained environmental clearance prior to issuing the e-tender notice as excavation without such environmental clearance was not permissible. Since according to the petitioner, the e-auction was being held in the absence of the appropriate environmental clearance, he has approached to this Court raising a challenge to the e-auction notices.
3. Mr. V.S. Kukday, learned Counsel for the petitioner submitted that pursuant to the judgment of the Hon'ble Supreme Court in the case of Deepak Kumar etc vs State of Haryana and others, reported in 2012 AIR(SC) 1386, it was mandatory for the respondents to have permitted excavation activities only after obtaining the environmental clearance from the competent authority. Referring to the Government Resolution dated 03-09-2019 and specially Clause (VII) thereof he submitted that in the absence of such environmental clearance, excavation was not permissible. Despite this mandatory requirement, the respondent no.2 proceeded to issue e-auction notices in the absence of environmental clearance. Inviting attention to the judgment of this Court in Writ Petition No.6305/2013 (Khemchand Nemichand Kosare vs State of Maharashtra and others) decided on 02-07-2014 it was submitted that this very question of issuing e-tender notices prior to obtaining environmental clearance was considered. At that relevant time, the policy dated 12-03-2013 was in operation and as per Clause 4(D) therein excavation was not permissible unless environmental clearance was obtained. It was after considering the aforesaid policy that this Court had quashed the e-auction notices as they were issued before receipt of environmental clearance. Inviting attention to the impugned auction notices as well as the revised policy dated 03-09-2019 it was pointed out that while submitting the bids, 25% of the bid amount was required to be deposited within a period of 48 hours from the auction and the balance amount was to be deposited within a period of one month from the date of the auction. Conducting e-auction prior to obtaining environmental clearance resulted in uncertainty since the petitioner was not in a position to gather as to which Sand-Ghat would receive environmental clearance as per the prevailing policy. On the contrary, if the auctions were held after obtaining environmental clearance the position would become clear which would facilitate participation in the e-auction. There was no justifiable reason to disregard the mandatory requirement as prescribed by the Hon'ble Supreme Court and thereafter incorporated in the revised policy dated 03-09-2019. On this count, it was submitted that the impugned notices proposing to conduct e-auction in the absence of environmental clearance were liable to be set aside.
4. Ms. N.P. Mehta, learned Assistant Government Pleader for the respondents opposed the aforesaid submissions and relied upon the affidavit in reply filed by the respondent no.2. It was submitted that pursuant to various directions issued in Public Interest Litigation No.110/2018 and Public Interest Litigation No.65/2018, the State Government has formulated a revised policy dated 03-09-2019. By following the law laid down by the Hon'ble Supreme Court i
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