JUDGMENT :

Heard Mr. S.B. Upadhyay, learned Senior Counsel assisted by Mr. Suraj Samdarshi, learned counsel for the petitioner, Mr. Naresh Dixit, learned Special Public Prosecutor for the Department of Mines and Geology, Government of Bihar and Mr. Gyan Prakash Ojha, learned G.A.-7 for the State of Bihar.

2. The petitioner has put to challenge a communication issued vide Memo No. 2985 dated 07.07.2021 by the District Magistrate-cum-Collector, Bhojpur, whereby a demand of Rs. 1,39,50,39,924/-has been raised against second, third and fourth installments of royalty for the extended period of settlement (01.04.2021 to 30.09.2021).

3. Further, the petitioner seeks a declaration by this Court that it is not liable to pay second, third and fourth installments of the royalty as it had already surrendered its settlement, which cannot be treated to be in contravention of Rule 50 (1) of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 (‘2019 Rules’ for short). The petitioner’s surrender of settlement has been rejected by the respondents with reference to Rule 50 (1) of 2019 Rules. The petitioner is, therefore, seeking declaration that said rejection is not justified as Rule 50 (1) of 2019 Rules does not have any application in respect of extension granted under Rule 77 (2) of the said Rules.

4. Facts of the case, which are not in dispute, are that the petitioner, pursuant to an auction notice for a period of five (05) years (from 2015 to 2019), had applied for settlement of Sand Ghats and, upon having become the highest bidder, work order was issued for mining activities at the sand ghats in the district of Bhojpur for the year 2015. For the subsequent years, i.e. 2016, 2017 and 2018, separate work orders were issued. The period of agreement ended on 31.12.2019. In the meanwhile, the Government of Bihar came out with a new Bihar Sand Mining Policy, 2019, notified on 14.08.2019. Further, in exercise of the powers conferred under Section 15 read with Section 23-C and Section 26 of the Mines and Minerals (Development and Regulation) Act, 1957, the State Government framed the 2019 Rules repealing Bihar Minor Mineral Concession Rules, 1972 and Bihar Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2003 and Bihar Minor Minerals Rules, 2017. A copy of 2019 Rules has been brought on record by way of Annexure-4 to the writ application. The Rules came into force with effect from its publication in the Official Gazette on 17.09.2019. Chapter-V of 2019 Rules deals with settlement of sand as minor minerals. Rules 29 A(1) of the 2019 Rules lays down mode of settlement. Chapter XII of the said Rules deals with cancellation of mineral concession, which has been defined under Rule 2 (15) as a mining lease or settlement in respect of minor minerals permitting, inter alia, the mining of minor minerals in accordance with the provisions of the Rules. Rule 50 under Chapter XII of the Rules gives exit option for a mineral concession holder within the meaning of Rule 2 (XVII) of the Rules. Rule 50 of 2019 Rules contemplates, inter alia, that a mineral concession holder may opt to exit the business upon giving six months’ notice to the Collector. Rule 77 of 2019 Rules confers upon the State Government power to relax operation of any provision of the Rule. Sub Rule (2) of Rule 77 is a non obstante clause and reads as under :-

“77(2) Notwithstanding anything contained in these rules, the State Government, in such case as it deems proper in public interest, may grant a mining lease/mining settlement and may also authorize the grant of a quarrying permit or movement permit to any person on terms and conditions other than those prescribed in these rules for reasons to be recorded in writing: Provided that the State Government may grant a mining lease/settlement/in any area under its jurisdiction to any Government Department or State owned Corporation on terms and conditions other than those presc