IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
ARUN DEV CHOUDHURY, J.
Jaydeep Goala S/o Late Dinesh Prasad Goala – Appellant
Versus
The State Of Assam And Ors. – Respondents
WP(C) 3295 of 2022
Decided on : 22-04-2024
Mining Contract Renewal - Assam Minor Mineral Concession Rules, 2013 - Rule 18, 19, 20
Fact of the Case:
The petitioner challenged the rejection of their application for renewal of a mining contract and the decision to put the mining area into a fresh E-auction sale. The court considered the provisions of the Assam Minor Mineral Concession Rules, 2013 and the previous order directing the competent authority to consider the renewal application.
Finding of the Court:
The court found that the competent authority failed to consider the petitioner's application for renewal in accordance with Rule 20(1)(vi) of the Rules, resulting in a violation of the petitioner's rights under Article 14 of the Constitution of India.
Issues: The issues revolved around the interpretation and application of Rule 19 and Rule 20 of the Assam Minor Mineral Concession Rules, 2013, specifically regarding the discretion of the competent authority to renew a mining contract and the criteria for renewal.
Ratio Decidendi: The court held that the word 'may' in Rule 19 cannot be construed as 'shall' or 'must', and the principle of ejusdem generis does not apply to the phrase 'such other matters' in Clause-(vii) of Rule 20(1). The petitioner has a vested and concluded right to have their renewal application considered in terms of Clause-(vi) of Rule 20(1).
Final Decision: The impugned speaking order dated 26.04.2022 was set aside and quashed, with a direction to the competent authority to consider the renewal application afresh within six weeks. The e-auction notice was not to be given effect until such determination is made. The writ petition was disposed of with parties bearing their own costs.
1. Heard Mr. P Mahanta, learned counsel for the petitioner. Also heard Mr. D Gogoi, learned standing counsel for the Environment and Forest Department and Mr. K Gogoi, learned CGSC for the respondent No. 4.
2. The petitioner has inter alia assailed a speaking order dated 26.04.2022 passed by the respondent no. 2 whereby the application submitted by the petitioner for renewal of the mining contract in respect of the mining contract area viz. “Chiri River Minor Mineral [Sand] Unit-2” [‘the Mining Contract Area’, for short] has not been considered and a decision has been taken to put the said Mining Contract Area into a fresh E-auction sale. The petitioner has also assailed a Long E-auction Notice published by the respondent no. 4 on 29.04.2022 whereby, online bids have been invited to settle the same Mining Contract Area under the provisions of the Assam Minor Mineral Concession Rules, 2013 [‘the 2013 Rules’, for short].
3. The petitioner earlier approached this court by filing a writ petition being WP(C) 919/2022 assailing an NIT dated 08.01.2022 and corrigendum dated 07.02.2022 for fresh settlement of the mine in question. The further challenge was an order dated 19.01.2022, whereby the petitioner was asked to remove his men and machinery from the mining site at the end of kist period i.e. on 16.02.2022. The said writ petition was disposed by an order 11.02.2022 by waiving the period of 18 months (prior to expiry of an existing contract) prescribed under Rule 19(1) of the 2013 Rules for seeking renewal of contract with a further direction to the competent authority, i.e. the respondent No. 2 to consider the application of the petitioner for renewal within the parameter prescribed under Rule 19 and Rule 20 of the 2013 Rules. It was further provided in the said order that till the disposal of the application for renewal, tender process initiated by E-auction notice dated 08.01.2022 in respect of the Mining Contract in question shall not be given effect to.
4. Thereafter, the respondent authority considered the renewal application filed by the petitioner and the by the impugned order dated 26.04.2022 rejected the claim of the petitioner for renewal of the mining contract and such order is under challenge in the present writ petition.
5. Argument advanced by Mr. P. Mahanta, learned counsel for the petitioner:
II. The competent authority while passing the impugned order, has considered only the aspect of revenue, that too, on the basis of a report from a Sub-ordinate authority. It is the bounden duty of a competent authority to exercise its discretion while deciding the matter of renewal after having a satisfaction that the contractor has undertaken mining operation strictly in accordance with the terms and conditions of the grant etc. However, evidently such determination/satisfaction is absent in the impugned order dated 26.04.2022.
III. The impugned order does not disclose that the competent authority either have considered the aspects outlined under Clause (i) to (vi) of Rule 20(1) of the 2013 Rules.
IV. The phrase “such other matters” used in clause (vii) of rules 20(1) is to be read as ejusdem generis with the previous clauses i.e. clause (i) to Clause (vi) and therefore, the revenue cannot be the sole consideration/satisfaction for rejection of renewal.
V. Mr. Mahanta, also argues that the petitioner is having a vested right for consideration of his renewal application in terms of Clause-(vi) of Rule 20(1) of the Rules, 2013 inasmuch as the petitioner has raised issues of investment and non return of benefit for reasons beyond the control of the petitioner and also for reasons attributable to inaction of the respondent authorities.
VI. In support of the aforesaid contentions, Mr. Mahanta, learned counsel relies on the decision of the Hon’ble Ap
Commissioner of Police Vs. Gordhandas Bhanji reported in AIR 1952 SC 16
Monnet Ispat and Energy Ltd Vs. Union of India reported in (2012) 11 SCC 1
Union Bank of India Vs. Pijush Kanti Nandy reported in (2009) 8 SCC 605.
The main legal point established in the judgment is that the word 'may' in Rule 19 of the Assam Minor Mineral Concession Rules, 2013 does not create an obligation to renew a mining contract, and the ....
Point of Law : Principles of natural justice which is the “useless formality” theory is squarely applicable in as much as, on the admitted or indisputable facts the authorities could have come only t....
The renewal clause in a mining lease deed provides a vested right to renewal, independent of the rules' repeal, and the doctrine of frustration is not applicable to concluded transfers.
The court affirmed the authority's discretionary power to deny renewal of a mining lease based on lessee's violations under the Granite Conservation and Development Rules, emphasizing lawful discreti....
Rule 18 (21) of Rules, 1986, which provide for alternate consequences of breach of conditions of lease.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.