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2021 Supreme(Pat) 871

IN THE HIGH COURT OF JUDICATURE AT PATNA
MOHIT KUMAR SHAH, J.
Amarnath Singh @ Amar Nath Singh – Petitioners
Versus
The State of Bihar through the Principal Secretary, Mines and Geology Department, Government of Bihar, Vikas Bhawan, Bailey Road, Patna. - Respondents
Civil Writ Jurisdiction Case No.2787 of 2020
Decided On : 16-12-2021

Advocates:
Advocate Appeared:
For the Petitioner:-Mr. Ajit Kumar, Mr. Rajeev Kumar Singh,
For the Mines Department : Mr. Naresh Dixit
For the State :-Mr. Gyan Praksh Ojha, Mr. Uday Shankar Pandey, Advocate
For the S.L.E.I.A.A. :Mr. Kumar Ravish, Advocate
For the Respondent:Mr. Suraj Samrdarshi, Advocate

Headnote:

Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 – Rule 77(2) – Auction of Sand Ghats – Petition seeking refund of earnest money, security money and other amounts deposited by petitioner for settlement of Sand Ghat – Since respondent Mines Department had received full amount of security deposit, earnest money, processing fees etc. from petitioner, it was obliged to issue work order to petitioner and execute mining lease but in an arbitrary and illegal manner, same was obliterated – Mines Department never intended to either issue any work order or execute mining lease qua petitioner herein but had still clandestinely got security deposit, earnest money and processing fees etc. deposited from petitioner, apparently only with a view to usurp and misappropriate same resulting in its unjust enrichment at cost of petitioner and to his detriment – State Mining Department has miserably failed to comply with its statutory obligations not only under Tender Document but also under Act, 1957, Rules, 2019 and Bihar Sand Mining Policy, 2019 – Intention of respondent-State was deceitful and dishonest from very inception – In case respondent-State/respondent Mines Department knew that neither work order could be issued to petitioner nor mining lease could be executed in his favour, it should not have accepted the amount from petitioner herein – Wrongdoer ought not be permitted to make profit out of his own wrong – Obligation had been casted on respondent-State/respondent Mines Department, not only to prepare mining plan and obtain environmental clearance but also to issue work order to petitioner, who is a successful bidder and execute a mining lease in his favour, more so after respondent-State/respondent Mines Department had got security money, earnest money and other amounts deposited from petitioner for the purposes of settlement of sand Ghats in question for a period of five years – Mines Department directed to refund security money, earnest money and processing fees along with 9% interest. (Paras 13, 14 and 18)

JUDGMENT :

The present writ petition was initially filed for quashing the letter dated 27.12.2019 issued by the respondent Special Secretary-cum-Director, Mines & Geology Department, in exercise of Rule 77(2) of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 (hereinafter referred to as ‘the Rules, 2019’) whereby the settlement period of settlees of sand ghat in the State of Bihar, which was ending on 31.12.2019, had been extended till 31.10.2020, as also to direct the respondents to allow the petitioner to conduct the mining activity at the Aurangabad Sone sand ghat bearing no. 32. The petitioner had also prayed to hold that the settlement term of the respondent no. 8 cannot be extended and no other person can be allowed to conduct mining of sand in the District of Aurangabad without having obtained an environmental clearance from the competent authority. Subsequently the petitioner had also prayed for quashing the decision of the Government of Bihar dated 29.12.2020 whereby the settlement period of the existing settlees of sand ghat in the State of Bihar has been extended till 30.03.2021. However, with the efflux of time, the petitioner has now confined his relief and only seeks a direction upon the respondent authorities to refund the earnest money, security money and other amounts deposited by the petitioner for the settlement of sand ghat no. 32 in the Aurangabad district pursuant to the auction held in the year 2019, inasmuch as despite repeated request made by the petitioner, the respondent authorities have failed to issue work order in favour of the petitioner. In such view of the matter, the writ petition has accordingly stood amended by an order dated 22.06.2021 passed by this Court in the present case.

2. The brief facts of the case according to the petitioner are that in light of the new sand policy, 2013 the respondent Department of Mines and Geology, Government of Bihar (herein after referred to as the "respondent Mines Department") had issued a notification dated 22.07.2014 by which criteria and procedure for settlement of sand mines for the period 01.01.2015 to 31.12.2019 was published in the official gazette. The State Government had then, in exercise of its power conferred by section 15 of the Mines & Minerals (Development & Regulation) Act, 1957, had amended the Bihar Minor & Minerals Concession Rules, 1972 to bring it in consonance with the new sand policy, 2013 and the amendment had come into effect from 11.08.2014. In view of the fact that the settlement of the earlier successful bidders was in light of the aforesaid policy of the State Government, an advertisement was published on behalf of the Mines & Geology Department for settlement of sand ghats by auction for a period of five years i.e. from 01.02.2015 to 31.12.2019. The settlement of the successful bidders ended on 31.12.2019 and for the period 2013-19, private respondent no. 8 was the settlee for the district of Aurangabad. In the meantime, the State Government formulated the Bihar Sand Mining Policy, 2019 which was notified on 14.08.2019 and was made applicable with immediate effect. The respondents then came out with the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 which was published in the gazette on 17.09.2019. The respondents had then published a notice inviting e-auction for settlement of 40 sand ghats in the district of Aurangabad. The e-auction was held on 26.12.2019 and the auction of 16 sand ghats was finalized. The petitioner had also participated in the auction process and was declared highest bidders “for Aurangabad Sone sand ghat No. 32”. The Mineral Development Officer, Aurangabad had then issued letter dated 30.12.2019, directing the petitioner to deposit a sum of Rs. 3,20,50,000/-being the auction amount, qua the settlement of the sand ghat in question. Nonetheless, the Special Secretary-cum-Director, Mines & Geology Department, b

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