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2023 Supreme(Pat) 608

IN THE HIGH COURT OF JUDICATURE AT PATNA
PARTHA SARTHY, J.
M/s Eklavya Stone and Mines Pvt. Ltd. – Appellant
Versus
The State of Bihar – Respondent
Civil Writ Jurisdiction Case No.17349 of 2022
Decided on : 21-03-2023

Advocates:
Advocate Appeared:
For the Appellant :Mr. P.N. Shahi, Mr. Gopal Bohra, Advocate
For the Respondent:Ms. Sangh Mitra Ghosh, Mr. Naresh Dixit, Mr. Brij Bihari Tiwary, Advocate

The main legal point established in the judgment is that the amended Rule 56, which came into effect in 2021, cannot be applied retrospectively to violations that occurred before its enactment.

Headnote:

Illegal Mining - Environmental Clearance - The Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation) (Amendment) Rules, 2021 - Rule 56

Fact of the Case:

The petitioner was accused of unauthorized extraction of stone beyond the permitted limit and was ordered to pay a penalty. The petitioner challenged the order on the grounds that the amended Rule 56, under which the penalty was imposed, could not be applied retrospectively to the alleged excess mining in 2020.

Finding of the Court:

The court found that the amended Rule 56, which came into effect in 2021, could not be applied retrospectively to the violation that occurred in 2020. The court quashed the order imposing the penalty, citing that it was not sustainable under the amended rules.

Issues: The main issue was the applicability of the amended Rule 56 to the alleged excess mining in 2020 and whether the penalty order was sustainable under the amended rules.

Ratio Decidendi: The court held that the amended Rule 56 could not be applied retrospectively to the violation in 2020 and that the penalty order was not sustainable under the amended rules.

Final Decision: The writ application was allowed, and the order imposing the penalty was quashed, with liberty for the respondents to proceed against the petitioner in accordance with the law.

JUDGMENT :

Heard Mr. P.N. Shahi learned senior counsel for the petitioner, Ms. Sangh Mitra Ghosh, learned counsel for the respondent State of Bihar and learned counsel for the Mines Department.

2. The petitioner has filed the instant application for the following relief(s) :

    “(i) For quashing/setting aside the order contained in Letter No. 3176 dated 08.11.2022 passed by the Mining Development Officer, Nawada, whereby and whereunder a sum of Rs. 61,61,33,325/-has been imposed towards unauthorized extraction of 5794196 CFT stone against the annual production capacity as approved in the Environmental Clearance under Rule 56 of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation) Amended Rules, 2021 and a direction has been issued to pay the aforesaid amount within 15 days failing which a certificate case shall be lodged against the petitioner.

(ii) After quashing of the aforesaid the respondent may be directed to grant consequential benefit.

(iii) For any other consequential relief or reliefs for which the petitioner will be found entitled in the facts and circumstances of the present case.”

3. The case of the petitioner in brief is that pursuant to a notice inviting tender published (NIT) published on 12.12.2014 to auction seventeen blocks for the purpose of stone mining, one V.K. Roadlines Pvt Ltd submitted its tender for stone mining with respect to lands measuring an area of 12.36 acres, bearing Khata no.888, Plot no.4256, Block no.9 situated at Mauza Bhadokhara, Circle Nawada, P.O. Mufassil, District Nawada. Being the highest bidder for Block no.9, in token of settlement of the mining lease for the said Block, the Assistant Director, Mines, Nawada issued a letter of intent (LOI) contained in letter no. 116 dated 10.2.2015 (Annexure-1) in favour of M/s V.K. Roadlines Pvt. Ltd. Environmental clearance was granted by the State Environment Impact Assessment Authority (SEIAA) on 27.6.2017. A mining agreement was entered into between the State of Bihar and M/s V.K. Roadlines Pvt. Ltd on 28.7.2017 and the agreement (Annexure-4) was registered on 31.10.2017. By letter no. 264 dated 5.11.2018 (Annexure-7) issued under the signature of the Principal Secretary, SEIAA, Bihar, on clearance being granted, by letter no. 924 dated 30.7.2018 (Annexure-5), the mining lease in favour of M/s V.K. Roadlines Pvt. Ltd was transferred in favour of the petitioner. Subsequently by letter no. 264 dated 5.11.2018 issued under the signature of the Principal Secretary, SEIAA, Bihar, the environmental clearance granted to V.K. Roadlines was also transferred in favour of the petitioner.

4. It is the case of the petitioner that the petitioner started to carry out the mining operation on transfer of the lease following the rules and directions of the authority concerned. The lease was for a term of five years starting on 28.7.2017.

5. The respondent authorities of the Mines Department issued a show cause notice to the petitioner stating therein that against the environmental clearance of 6,38,400 TPA in the calendar year 2020, the petitioner in violation of Rule 18(3) and 47(2)(c) of The Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation) (Amendment) Rules, 2019, had in the year 2020 illegally mined a total quantity of 8,70,800 tones of stone. As such the petitioner was asked to file his reply within three days. The petitioner submitted his reply. The respondent authorities issued a further show cause notice contained in letter no. 1002 dated 17.6.2022 (Annexure-11) stating that the petitioner had clearly violated Rule 18(3) and 47(2)(H) of the Bihar Minerals (Concession, Prevention of Illegal Mining, transportation & Storage) Rules, 2019 and was asked to show cause as to why recommendation be not made to the Collector for cancellation of the lease for the remaining period. The petitioner submitted his reply by le

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