2017 Supreme(Chh) 169
IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K. Agrawal, J.
Jindal Steel & Power Limited and Ors. - Petitioners
Versus
State of Chhattisgarh, Through Collector, Mineral Resources Department and Ors. - Respondents
WPC No. 1504, 2573, 5, 245, 393, 1506, 1606, 1626, 2851, 2894, 3176 of 2016, 107, 333, 383, 411, 458, 464 of 2017
Decided On : 24-11-2017
For the Petitioners:Mr. Bhaskar Payashi, Ms. Shruti Choudhary, Mr. Sumesh Bajaj, Mr. Harsh Wardhan, Mr. Shailendra Dubey, Mr. Maneesh Sharma, Mr. Amrito Das, Mr. Rahul Sharma, Mr. Rohit Sharma, Mr. Shobhit Koshta, Mr. Himanshu Sharma, Mr. Suyash Dhar, Mr. Himanshu Sinha, Ms. Priyanka Mehta, Mr. Chandradeep Prasad and Mr. Shivang Dubey, Advocates.
For the Respondents: Mr. Shashank Thakur, Mr. B. Gopa Kumar, Mr. Shailendra Shukla, Mr. Vaibhav Shukla, Mr. Rahul Kumar
Headnote:
Mines and Minerals (Development and Regulation) Act, 1957 - Section 9C - Petitioners seek to challenge memo - Union of India by amendment in introduced an amendment by Amendment Act 10 of inserting Sections 9B and 9C providing for establishment of District Mineral Foundation and National Mineral Exploration Trust respectively and contribution to be made to said Trusts - In this batch of writ petitions Court is concerned with National Mineral Exploration Trust (NMET), as question of contribution towards District Mineral Foundation has already been decided by Their Lordships of the Supreme Court in Transferred Case - liability of payment towards the NMET Fund accrues from on all royalty payments therefore amount due towards NMET Fund needs to be collected from lessee with effect -Held, Careful perusal would show that contributions to the DMF are required to made by the holder of a mining lease or a prospecting license-cum-mining lease in the case of coal lignite and sand for stowing and it will be with effect from October when the rates were prescribed by the Central Government or with effect from the date on which the DMF was established by the State Government by a notification whichever is later - learned State counsel, would submit that the DMF was established by State Government in Chhattisgarh by a notification which was issued on therefore contributions will be payable by petitioners with effect from - In view of above writ petitions stand finally disposed of in terms of judgment of Supreme Court in Federation of Indian Mineral Industries and contributions will be payable by petitioners with effect from - No order as to costs - Writ petitions are allowed
1. In this batch of writ petitions, in which common question of law and fact is involved therefore they are clubbed together and are being decided by common order, the petitioners seek to challenge the memo/letter dated 14-9-2015 by which the Secretary to the Government of India, Ministry of Mines, has directed that contribution towards the National Mineral Exploration Trust (NMET) established under Section 9C of the Mines and Minerals (Development and Regulation) Act, 1957 needs to be collected from the lessee with effect from 12-1-2015.
2. Essential facts requisite to adjudicate the lis between the parties are as under: -
(Facts of W.P.(C)No.1504/2016 are taken for adjudication)
2.(1) The Union of India by amendment in the Mines and Minerals (Development and Regulation) Act, 1957 (for short, 'the MMDR Act') introduced an amendment by Amendment Act 10 of 2015 inserting Sections 9B and 9C providing for establishment of District Mineral Foundation and National Mineral Exploration Trust, respectively, and contribution to be made to the said Trusts.
2.(2) In this batch of writ petitions, the Court is concerned with the National Mineral Exploration Trust (NMET), as the question of contribution towards District Mineral Foundation has already been decided by Their Lordships of the Supreme Court in Transferred Case (Civil) No.43/2016 (Federation of Indian Mineral Industries and others v. Union of India and another 2017 SCC OnLine SC 1237).
2.(3) The Central Government in accordance with Section 9C (1) to (4) of the MMDR Act, framed rules known as the National Mineral Exploration Trust Rules, 2015 (for short, 'the NMET Rules'), which came into force with effect from 14-8-2015, in exercise of its rule making power conferred under Section 13 (1) of the MMDR Act. The Central Government also simultaneously constituted a Trust called as the National Mineral Exploration Trust with a governing body and executive committee with effect from 14- 8-2015 and brought into force from the same date. Thereafter, the Secretary to the Government of India, Ministry of Mines, by its demi-official letter dated 14-9-2015 informed to the Chief Secretary of the State of Chhattisgarh that since the amended provisions of the MMDR Act came into force from 12-1-2015, the liability of payment towards the NMET Fund accrues from 12-1-2015 on all royalty payments, therefore, the amount due towards the NMET Fund needs to be collected from the lessee with effect from 12-1-2015. In compliance of the said memo/demi-official letter, recovery notices have been issued by the respondents directing that NMET is payable @ 2% of the royalty applicable from 12-1-2015.
2.(4) In the aforesaid background, the demi-official letter dated 14-9-2015 and the demand notice dated 21-1-2016 have been called in question in this batch of writ petition stating inter alia that the rules indicating the manner of payment of contribution towards NMET have come into force with effect from 14-8-2015 and the NMET has been constituted with effect from 14-8-2015 and therefore no contribution towards the NMET can be recovered prior to 14-8-2015 and as such, the demand notice issued on that count and the consequent recovery are liable to be quashed.
2.(5) The Supreme Court by its order dated 30-8-2017 passed in Transferred Case (Civil) No.43/2016 (Federation of Indian Mineral Industries v. Union of India and another), has given liberty to the parties to approach the High Court so far as the NMET is concerned.
3. No return has been filed on behalf of the respondents, though opportunity was granted from time to time to file counter-affidavit.
4. Mr. Bhaskar Payashi and Ms. Shruti Choudhary, learned counsel, opening argument on behalf of the writ petitioners, would submit that prescription of the date of recovering contribution of NMET from 12-1-2015 is contrary to the facts and law declared by the Supreme Court in Federation of Indian Mineral Industries (supra). They would also submit that under Section 9C