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2017 Supreme(Pat) 1612

IN THE HIGH COURT OF JUDICATURE AT PATNA
Hon’ble RAJENDRA MENON, CJ and ANIL KUMAR UPADHYAY, J.
Puspa Singh & Anr. (in 15965)
M/s Jai Mata Di Enterprises (in 15988)
Sri Rajendra Singh (in 16058)
Bihar Truck Owner Association (in 16139)
Westlink Trading Private Limited (in 16257)
M/s Champion Group of Company (in 16436)
M/s Aditya Multicom Private Limited (in 16527)
M/s Mahadev Enclave Pvt. Ltd. (in 17125)
Md. Israil (in 17413)
Versus
State of Bihar & Ors. (in all)
CWJC No. 15965, 15988, 16058,16139, 16257, 16436, 16527, 17125, 17413 of 2017. Decided on 27th, November, 2017.

Advocates Appeared:
1995(2) SCC 402 – Referred.
M/s Vinod Kantha, Sanjeev Kumar, Priya Ranjan (in 15965); Mr. Satyabir Bharti (in 15988); M/s Y.V. Giri, Ashok Kumar, Bibhuti Narayan (in 16058); Mr. Naresh Dikshit (in 16058); M/s Ajay Kumar Thakur, Babita Kumari, Krishna Chandra, Avinash Kumar (in 16139);M/s P.K. Shahi, Mrigank Mauli, Prince Kumar Mishra, Sanket (in 16257); M/s Shashi Anugrah Narain, Sanjeev Kumar, Priya Ranjan (in 16436); Mr. Suraj Samdarshi (in 16527); M/s Ajit Kumar Sinha, D. Bharuka, Gautam Kumar Kejriwal, Alok Sangwar (in 17125); Mr. Sanjeev Ranjan (in 17413) For the Petitioner; Mr. Lalit Kishore (in 15965, 15988, 16139, 16527 ), M/s Kaushal Kumar Jha, Krishna Chandra (in 16058); M/s Lalit Kishore, Naresh Dixit (in 16257 17125); M/s Kaushal Kumar Jha, Amish Kumar (in 16436); Mr. Pushkar Narayan Shahi (in 17413); For the State; Mr. Naresh Dikshit (in 16436), For Mines; Mr. Anshay Bahadur Mathur (in 17125), For the Respondent No. 6.

Headnote:

Bihar Minor Mineral Rules, 2017 – Rules 75 and 89 – Mines and Minerals (Regulation and Development) Act, 1957 – Rule 18 read with Rules 28 and 29 – Validity of Rules, 2017 – Provisions in statutory rule regulating sale and trade have been incorporated which directly contravenes law laid down by Supreme Court in case of Kavery Chetty (1995(2) SCC 402 – That apart, under Rule-89, offences have been made non-compoundable whereas under M.M.R.D. Act all offences under the Act are compoundable and various other regulatory measures incorporated in the Rule, has effect of taking away the rights available to a person under Code of Criminal Procedure and Indian Penal Code and various other statutory provisions and even punishments imposed in most of provisions are contrary to provision for penalty contained in M.M.R.D. Act – Bihar Minor Mineral Rules, 2017 stayed in its totality until further orders – In view of stay of New Bihar Minor Mineral Rules, 2017, other existing Rules will come into force for the time being. (Paras 2 to 5)

ORDER

Even though we had proposed to deal with the matters and decide the petitions finally, but on going through the detailed arguments advanced by various counsels for the petitioners and considering the submissions made by the learned Advocate General and on going through various provisions of the impugned Rule in question, prima facie, we find that many of the provisions of the Rule have been incorporated in contravention to not only Section 15 of the M.M.R.D. Act, the law laid down by the Hon'ble Supreme Court in the case of State of T.N. vs. M.P.P. Kavery Chetty, 1995(2) SCC 402, we find that provisions in the statutory rule regulating the sale and trade have been incorporated which directly contravenes the law laid down by the Hon’ble Supreme Court in the case of Kavery Chetty (supra). We further find that the provisions pertaining to penalty, i.e. Chapter-9, Rule-75, provides for imposing punishment for a period of five years with fine whereas under the M.M.R.D. Act and the provisions for penalty contemplated under Section 21 thereof, the maximum term for imprisonment can be only two years or with fine. The term of imprisonment of five years, prima facie, seems to be contrary to the provisions of the M.M.R.D. Act. Similarly, Section 77 of the Act, which permits drawing of presumption with regard to commission of offence and shifting of the burden on the offender, seems to be contrary to the provisions of the Evidence Act. That apart, under Rule-89, the offences have been made non-compoundable, whereas under the M.M.R.D. Act all offences under the Act are compoundable and various other regulatory measures incorporated in the Rule, has the effect of taking away the rights available to a person under the Code of Criminal Procedure and Indian Penal Code and various other statutory provisions and, therefore, even punishments imposed in most of the provisions are contrary to the provision for penalty contained in the M.M.R.D. Act.

2. That being the position, we deem it appropriate to hear the parties at length on various issues involved in the matter and, prima facie, being satisfied that the Rule in question violates various provisions of the M.M.R.D. Act and even the doctrine of severity may not apply in the facts and circumstances of the case.

3. We admit this appeal and direct for stay of the new Bihar Minor Mineral Rules, 2017 in its totality until further orders.

4. Immediately after pleadings are completed, learned Counsel for the parties are granted liberty to mention the matter and we shall take up the case for final hearing out of turn.

5. In view of the stay of the New Rules, i.e. Bihar Minor Mineral Rules, 2017, the other existing Rules will come into force for the time being.

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