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IN THE HIGH COURT OF JUDICATURE AT PATNA
PURNENDU SINGH, J.
CWJC No.13213 of 2023
(9.2.2024)
M/s Starnet Marketing Private Ltd. ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 – Rule 28 – Constitution of India – Article 226 – Stone mining lease – Cancellation of settlement and forfeiture of security deposit on the ground that even after lapse of 6 years 7 months, petitioner has failed to produce Environmental Clearance and installment amount and other amount as well as other important documents – Petitioner had already submitted requisite documents having been approved by competent authority in regard to mining plan including Progressive Mine Closure Plan – Required presentation before EAC has also been made by petitioner and requisite public hearing had also been undertaken by competent authority and suggestions have been duly accepted and incorporated for working improvement of site – Minimum distance from wild life sanctuary has been approved without any objection – Earnest money and security deposit has been deposited by petitioner – Loss quantified could not be held to be rational considering fact that different authorities have delayed in issuing respective certificate and 'No Objection' or grant of consent letter to petitioner in spite of fact that petitioner had fulfilled all conditions and had also deposited percentage of total bid amount – Delay was also result of COVID-19 pandemic – Writ is not remedy for enforcing contractual obligation – Equally, existence of alternative remedy does not affect jurisdiction of Court to issue writ, but ordinarily it would be a good ground for refusing to exercise jurisdiction under Article 226 of Constitution of India – In case at hand, extraordinary jurisdiction is being invoked by this Court on the ground that order passed by competent authority and revisional authority has already been quashed and right has accrued in favour of petitioner. (Paras 22, 29, 30 and 36)
Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 – Rule 28 – Indian Contract Act, 1872 – Section 74 – Stone mining lease – Cancellation of settlement and forfeiture of security deposit – Letter of intent merely indicates a party's intention to enter into a contract with other party in future – A letter of intent is not intended to bind either party ultimately to enter into any contract – In present case, contract for mining lease did not come into existence – Earnest money was deposited and security amount was also deposited for guaranteeing due performance of contract – Letter of Intent (LOI) and "In Principal Sanction Order" has already been issued in favour of petitioner – Already more than six years have lapsed and no third party right has been created – Competent Authority is required to take decision for issuing modified D.S.R. expeditiously without further delay. (Paras 39, 41, 43, 48 and 49)
Words and Phrases – Legal right – A "legal right", means an entitlement arising out of legal rules – It may be defined as an advantage, or a benefit conferred upon a person by rule of law – Legal right that can be enforced must ordinarily be right of Appellant himself who complains of infraction of such right and approaches Court for relief – Expression, "person aggrieved" does not include a person who suffers from a psychological or an imaginary injury; a person aggrieved must necessarily be one whose right or interest has been adversely affected or jeopardized. (Para 34)
Purnendu Singh, J. – Heard Mr. Suraj Samdarshi, learned counsel appearing on behalf of the petitioner; Mr. Brij Bihari Tiwary, learned counsel appearing on behalf of the Mines Department and Mr. Gyan Prakash Ojha, learned GA-7 for the State.
2. In the present writ petition, main challenge is made to the order dated 24.02.2023 passed by the Competent Authority-cum-Collector, Kaimur contained in Memo No. 182 and for setting aside the order dated 11.08.2023 passed by the Mines Commissioner, Bihar-cum-Additional Chief Secretary, Department of Mines & Geology, Government of Bihar, Patna, by which, ‘In-Principal approval/settlement’ has been cancelled and further, the security deposit of Rs. 51,50,000/- has been forfeited allegedly on the ground that even after lapse of 6 years 07 months, petitioner has failed to produce the Environmental Clearance and the installment amount and other amount, as well as, other important documents for execution of ‘Form-B’ violating the rules as provided under Rule 28 of the 2019 Rules. The petitioner is aggrieved by the arbitrary order dated 11.08.2023 passed by the Additional Chief Secretary, Department of Mines and Geology, who has upheld the order passed by the Competent Authority.
3. Apart from the above main grievance of the petitioner, in paragraph no. 1 of the writ petition, the petitioner has prayed for following relief(s): –
“I. Issuance of directions, orders or writs in the nature of certiorari setting aside the order dated 11.08.2023 passed by the Mines Commissioner, Biharcum- Additional Chief Secretary, Department of Mines & Geology, Government of Bihar, Patna in Appeal No. 02/2023 (M/S Starnet Marketing Private Ltd. vs. Collector Kaimur and Others) whereby and whereunder the order dated 24.02.2023 passed by the Collector, Kaimur vide Memo No. 182 has been upheld and the Appeal filed by the petitioner has been rejected affirming the order of the Collector and the security deposit in the tune of Rs. 51,50,000 deposited by the petitioner has been ordered to be forfeited and the in-principal approval of the Madurna Stone Mining Project (Stone Block No. 01) situated at village Madurna, Thana Bhabhua, District Kaimur, Bihar, total area admeasuring 8.937 hectares and with an approximate production 495285.12 PPA has also been ordered to be annulled which was settled in the name of the petitioner subsequent to competitive bidding process held on 24.05.2016 for which the Initial Letter of Intent (LOI) was issued by the competent authority on 26.07.2016 vide Letter No. 1033.
II. Issuance of directions, orders or writs in the nature of mandamus directing the Respondents to forthwith issue work order in favour of the petitioner in the light of the order passed in C.W.J.C. No. 17521 of 2022 whereby it was directed that as and when the petitioner shall approach the authority, a decision on the petitioner’s request shall be taken in accordance with the law, also accounting for the communication dated 27.05.2022 annexed as (Annexure 27) Page 116 of the writ petition.
III. Issuance of directions orders or writs in the nature of mandamus directing the respondents to forthwith take appropriate steps in procuring the Environmental Clearance Certificate since the petitioner had completed all the necessary formalities and procedures for obtaining the same and the aforesaid Environmental Clearance Certificate in an utmost arbitrary manner has not been issued in favour of the petitioner.
IV. Issuance of directions orders or writs in the nature of mandamus directing the Respondents to forthwith enable and grant sufficient time to the petitioner for execution of formal lease after submitting the Environmental Clearance Certificate obtained from the concerned authority as the Competent Authority is empowered under Rule 28 to permit the execution of the formal lease even after the expiry of 180 days if the Collector is satisfied that the person to whom such lease has been granted is not responsible for the delay and the
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