IN THE HIGH COURT OF JUDICATURE AT PATNA
RAJIV ROY, J.
CWJC No.2498 of 2021
(6.7.2023)
Banshidhar Construction
Pvt. Ltd. ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Bihar Mineral (Concession, Prevention of Illegal Mining, Transportation and Storage) Rules, 2019 – Rules 14, 22 and 24 – Mining lease – Alleged discrimination in matter of grant of proportionate remission in royalty in lieu of COVID restriction imposed upon mining activity – Representation preferred by petitioner firm to either extend period of lease and/or grant remission for thirty days/twenty-nine days should have been considered and appropriate decision taken vis-à-vis decision taken accordingly – No decision was taken despite the fact that representation was preferred at least four months before lease period came to an end – Decision has to be taken and natural consequences be followed within a period of three months – Writ Petition allowed. (Paras 22, 23, 26 and 27)
Rajiv Roy, J.—Heard Mr. Suraj Samdarshi, learned counsel for the petitioner and Mr. Naresh Dixit, learned Special P.P. for the Mines.
2. The writ petition has been preferred for the following reliefs:—
(i) for issuance of a writ, order or direction in the nature of mandamus commanding the Respondents to extend the lease term by 30 days in accordance with Clause 5 Part IX of the Agreement dated 04.04.2020 or alternatively to grant proportionate remission in royalty for 30 days, in lieu of restriction Imposed upon mining activity during the COVID 19 pandemic from 23.03.2020 till 20.04.2020;
(ii) this Hon'ble Court may adjudicate and hold that the action of the Respondent Authorities in granting remission in royalty to sand mining lease holders in the state of Bihar for the period during which mining activity was restricted on account of COVID 19 lockdown, but not granting the same benefit to the Petitioner, is completely illegal, arbitrary, discriminatory and non-est in the eyes of law;
(iii) this Hon'ble Court may further adjudicate and hold that the action of the Respondent Authorities in this matter is fraught with arbitrariness on account of the fact that the Respondent have adopted a pick and choose method in granting remission in royalty to different mining lease holders;
(iv) this Hon'ble Court may further adjudicate and hold that in light of the Clause 5 Part IX of the Agreement dated 04.04.2020, the petitioner is entitled for extension of lease period by 30 days in lieu of restriction imposed upon mining activity during the COVID 19 pandemic from 23.03.2020 till 20.04.2020;
(v) this Hon'ble Court may adjudicate and hold that the action of the Respondents in not considering the representation of the petitioner is an act of unreasonableness and arbitrariness on the part of the Respondents;
3. Learned counsel for the petitioner has straightaway taken this Court to the lease agreement between the State Government and the petitioner firm dated 06.04.2016 by which pursuant to the application made by the petitioner firm, the tracts of land situated at Mauja Sadhil, Circle Madanpur in the district of Aurangabad (Khata 28, Thana 839, Plot 1168 (Part), Block No. 1 containing of an area of 13.32 acres) was settled for a period of five years. He has further taken this Court to Part 5 of the said agreement which deals with the rent and royalty reserved by the lease.
4. The paragraph 1 of the said Part 5 read as follows:
“Rent and royalties reserved by this Lease.
1. Rate and mode of payment of auctioned amount- The lessee shall pay the total auctioned lease amount of Rs 21.51 Cores for five years. The lessee shall pay 20% of the auctioned amount by 31st January every year. The lessee has already paid the 1st installment i.e 20% of the auctioned amount Rs 4.30 Cores.
The bid amount shall be deposited in yearly basis in equal installments and the installment shall be deposited before 31st January as given below—
2nd installment- before 31st January 2017
3rd installment- before 31st January 2018
4th installment- before 31st January 2019
5th Installment- before 31st January 2020”
5. It is his submission that the petitioner firm diligently paid all the installments right from 2016 to 2020 and the lease period was for the period 2016 to 2021.
6. He further took this Court to a letter issued by the Ministry of Mines, Government of India, New Delhi addressed to all the Principals Secretaries/Directors/ Commissioners of the State Government dated 05.05.2020 and the same is incorporated here-in-below for the proper appreciation.
“F.No. 16/53/2020-M.VI
Government of India
Ministry of Mines
Shastri Bhawan,
Dr. Rajendra Pd. Road,
New Delhi-110001
Dated:- 5th May, 2020
To
The Principal Secretaries/Directors/Commissioners of the State Governments (As per list attached)
Sub:—Invocation of force majeure clause in the Mineral Development and Production Agreement signed by the lessees and the State Governments.
Sir,
I am directed to bring your kind notice about the unprecedented
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