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2023 Supreme(Gau) 1039

IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Devashis Baruah, J.
Bishnu Pratim Borah, S/o Sri Jadav Chandra Borah – Petitioner
Versus
The State of Assam Rep. By The Commissioner And Secretary To The Govt Of Assam, Forest And Environment Deptt. And Ors. – Respondents
WP(C)/7111 of 2019
Decided On : 15-09-2023

Advocates:
Advocate Appeared:
For the Petitioner:Mr. P. Hazarika, Advocate, Mr. B.K. Bora, Advocate.
For the Respondent:Mr. R.R. Gogoi, Advocate.

Headnote:

Assam Minor Mineral Concession Rules, 2013 - Rule 52(1), 58, 59, 60 - Challenging imposition - Grant of mining contract for collection of Sand and Gravel - Whether Petitioner can be imposed or directed to pay 10% of dead rent/royalty/contract money on account of reclamation and restoration work as well as 10% on account of D.M. Fund as was sought to be done by impugned notice – Held, Petitioner submits that said amount on account of reclamation and restoration work fees as well as D.M. Fund have been subsequently enhanced from time to time - Court makes it clear that Petitioner would be liable to pay in view of Rule 58 and 59 of the Rules of 2013 read with Letter of Intent as well as Agreement entered into by and between the parties the additional amount of 10% of contract amount on account of Mines and Mineral Development, Restoration and Rehabilitation Fund which is to be used for purpose of reclamation and restoration works - Petitioner would not be liable to pay any amount on account of D.M. Fund for reasons abovementioned - Writ petition disposed.

JUDGMENT :

Devashis Baruah, J.

The instant writ petition is filed by the Petitioner challenging the imposition of 10% reclamation and restoration work fees of Rs.42,500/- and 10% of D.M. Fund of Rs. 42,500/- from the Petitioner in addition to the other amounts to which the Petitioner is liable to pay as per the Letter of Intent (LOI).

2. The facts involved in the instant case is that a Re-Sale Notice was issued on 23.03.2015 by the Divisional Forest Officer, Lakhimpur Division from intending eligible tenderers for grant of mining contract for collection of Sand and Gravel in an area of 5.20 Hector of Durpang Sand & Gravel Mining Contract Area for 7 years with an assessed quantity of 10,500.00M3 of Sand and 10,500.00M3 of Gravel. The reserved price of the mining contract area was fixed at Rs.34,76,000/-and the earnest money was fixed at Rs.3,48,000/-@ 10% on the reserved price of the mining contract area. The Petitioner participated in the said tender process and was adjudged as the highest bidder at Rs.1,19,00,000/-.

3. Pursuant thereto, the Principal Chief Conservator of Forests & Head of Forest Force, Assam issued a Communication on of 4th August, 2016 thereby directing the Divisional Forest Officer to issue the provisional Letter of Intent (LOI) to the Petitioner being the successful bidder for granting the mining contract in respect to the mining area Durpang S & G area for 2015-22 (7 years) for the quantity 10500 cubic metre of sand and 10500 cubic metre of gravel at the offered price of Rs.1,19,00,000/-. It was also mentioned that the Letter of Intent holder shall be liable to pay other Government dues as and when necessary.

4. Thereupon a Letter of Intent was issued on 16.08.2016 by the Divisional Forest Officer, Lakhimpur Division to the Petitioner. In the Letter of Intent amongst others, it was also mentioned that the lessee/the contractor was awarded to operate the area hence, he/she would be liable to deposit/pay an additional amount equal to 10% of the due dead rent/royalty/contractor money alongwith the installments towards the “Mines and Minerals Development, Restoration and Rehabilitation Fund” alongwith the quarterly installments of the dead rent/contract money in advance. Further to that, it was also mentioned that the Petitioner, who was the Letter of Intent holder shall prepare a mining plan alongwith the mining closure plan (progressive and final) including Environmental Impact Assessment duly approved by an officer authorized by the Director, Geology & Mining in that behalf within 45 days from the date of issuance of the LOI ensuring scientific and systematic mining and environmental safeguards. In the Schedule to the Letter of Intent, the boundaries of the mining area, the yearly contract money (for the 1st year), security 25% of the due dead rent/contract money, one month dead rent, sale tax (for the 1st year) as well as the income tax (for the 1st year) were duly mentioned.

5. The Petitioner thereupon submitted the Mining Plan under Rule 52(1) of the Assam Minor Mineral Concession Rules, 2013 (in short the ‘Rules of 2013’) which was approved by the Director, Directorate of Geology & Mining, Assam on 05.09.2016.

6. It is further relevant to mention that the Petitioner had also entered into an agreement with the Respondent Authorities in the Format as stipulated in Form MC-I. It is relevant to mention that a perusal of the said agreement amongst others stipulates at Clause No. 4 of Part III that the Petitioner who is the contractor shall also pay an additional amount equal to 10% of the due contract money alongwith the amount of instalments on account of dead rent or royalty towards the fund.

7. The case of the Petitioner is that for the 1st to the 4th kist, there was no demand made by the Respondent Authorities towards the 10% of the Mines and Minerals Development, Restoration and Rehabilitation Fund as well as also for 10% on account of D.M. fund. However, while issuing the notice for the 5th kist on 21.06.2018

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