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IN THE HIGH COURT OF JUDICATURE AT PATNA
PURNENDU SINGH, J.
CWJC No.11678 of 2023
(2.5.2024)
M/s Balaji Enterprises ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Government Contract – Tender – Re-auction of Stone Block – Nowadays, ecological imbalances and consequent environmental damage has become alarming due to reckless mining operations – Imposing reasonable restriction in interest of general public and reasonable restriction on exercise of rights enshrined under Article 19(1)(g) is unassailable in view of Article 19(6) of Constitution of India – Any development has to be sustainable – Rights of petitioner to carry on mining operations are subjected to directives under Article 48A and fundamental duties enshrined under Article 51A(f) and 51A(g) which are also supreme and cannot be violated under guise of rights under Article 19(1) (g). (Paras 18 and 21)
Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019 – Rule 28 – Re-auction of Stone Block – Geo-coordinates play a crucial role in obtaining environmental clearance for mining projects – Geo-coordinates help establish baseline data about environmental conditions of proposed mining site before any operations begin – Geo-coordinates play a vital role in environmental clearance process for mining projects by providing accurate spatial information that is essential for assessing environmental impacts, planning operations, ensuring regulatory compliance, and promoting sustainable mining practices – In absence of same, it becomes difficult to determine suitability of a specific area for the purpose of mining – Petitioner had applied for issuance of Environmental Clearance Certificate after having submitted required clearances but till date matter has been kept pending by department due to want of geo-coordinate details in DSR – Despite there being delay and laches on part of petitioner, respondents too erred in not issuing geo coordinates of concerned Stone Block in DSR which also added to duration of delay in obtaining environmental clearance – A writ is not remedy for enforcing contractual obligation – Equally, existence of alternative remedy does not affect jurisdiction of Court to issue writ – In case at hand, extra-ordinary jurisdiction is being invoked by this Court on the ground that order passed by Mines Commissioner and District Magistrate are arbitrary – Contract for mining lease did not come into existence and security deposit could not be forfeited when transaction fell through for no fault on part of petitioner – Impugned orders set aside – Competent authority-cum-District Magistrate directed to finalize DSR and, thereafter, extend time and issue work order followed by final settlement of contract of lease within a period of six weeks. (Paras 27, 28, 32, 33, 38, 51 and 52)
Government Contract – 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 – Legal right that can be enforced must ordinarily be right, who complains of infraction of such right and approaches Court for relief as regards the same – It may be defined as an advantage, or a benefit conferred upon a person by rule of law – 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. (Paras 41 and 44)
Purnendu Singh, J. – Heard Mr. Suraj Samdarshi alongside Jai Vardhan Narayan, learned counsel appearing on behalf of the petitioner, Mr. Gyan Prakash Ojha, learned GA-7 appearing on behalf of the State and Mr. Naresh Dixit, learned Spl. P.P appearing on behalf of Mines Department.
2. The petitioner has prayed for following relief(s) in paragraph no. 1 of the writ petition: –
“I. Issuance of directions, orders or writs in the nature of certirorari setting aside the order dated 14.07.2023 passed by the Mines Commissioner, Department of Mines and Geology, Bihar in Appeal No. 01/2023 whereby and whereunder the Appeal filed by the petitioner agianst the order dated 23.01.2023 passed by the Collector, Sheikhpura was rejected and the order passed by the Collecotr, Sheikhpura was upheld cancelling the princpal approval vis-a-vis Letter of Intent (LOI) for stone Block No. 27 situated at Mauza Hazaratpur Mandro Chandi, Thana Sheikhpura, District-Sheikhpura in an utmost arbitrary manner against the spirit of Rule 28 of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Sotrage) Rules, 2019 without appreciating the fact that the petitioner had taken all necessary steps for grant of Environmental Clearance and is not responsible for delay in execution of the formal lease and a security deposit in the tune of Rs. 2,90,00,000/- (Two Crore Ninety Lakh) has also been ordered to be forfeited and the Collector, Sheikhpura has further been directed to take necessary steps for re-auction of the Stone Block No. 27 situated at Mauza Hazaratpur Mandro Chandi, Thana Sheikhpura, District-Sheikhpura as per the present applicable rules and regulations.
II. Issuance of directions, ordes or writs in the nature of mandamus directing the respondents not to annul the settlement of Block Stone of the petitioner firm by cancelling the Principal Approval vis-a-vis Letter of Intent (LOI) for Stone Block No. 27 situated at Mauza Hazaratpur Mandro Chandi, Thana Sheikhpura, District-Sheikhpura and allow the petitioner to submit the environmental clearance, payment of instalments and other payments and all other necessary documents so that Form B be executed in between the Petitioner and the Respondent in accordance with law.
III. Any other relief or reliefs for which the petitioner may be deemed entitled to.”
BRIEF FACTS
3. The petitioner is a proprietorship firm registered under the Ministry of Micro, Small and Medium Enterprises having (Registration No. UDYAM-BR-08-0002321) and is running in the name of M/s Balaji Enterprises,
4. Pursuant to a Notice Inviting Tender (NIT) issued under the seal and sign of the District Magistrate, Sheikhpura for settlement of 9 Stone Blocks, the petitioner had participated in the auction proceeding conducted on 18.03.2017, in which, he was declared the highest bidder for Stone Block No. 27, situated at Mauza Hajratpur, Mandro Chandi appertaining to Khata no. 296 and Plot No. 2068 (P) areas 12.50 acres at District Sheikhpura, at a highest bidding amount of 29 crores.
5. A Letter of Intent (LOI) vide Letter No. 783 dated 21.09.2017, was issued in favour of the petitioner by the District Magistrate, Sheikhpura. As per the terms and conditions of the Letter of Intent (LOI), the Stone Block was settled in favour of petitioner for 5 years from the date of execution of lease deed. Further, the petitioner was required to make payment of 10% of the bid amount as security deposit, submission of Form B within 120 days from the date of LOI, mining plan, environmental clearance and other payments as per the LOI (Annexure -P2). However, Environmental Clearance could not be granted due to non submission of DSR.
6. It is the specific case of the petitioner that the District Magistrate, Sheikhpura has passed order contained in Memo No. 73 dated 23.01.2023, annulling the “In Principal Approval” granted in favour of the petitioner for Stone Block No. 27 situated at Mauza Hajratpur, Mandro Chandi appertaining to Khata no. 296 Plot
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