2014 Supreme(Raj) 1074
RAJASTHAN HIGH COURT
Sangeet Lodha, J.
Sudarshan Kumar Purohit - Appellant
Versus
State of Rajasthan & Ors. - Respondent
S.B. Civil Writ Petition No. 10114 of 2008.
Decided On : 4-03-2014
For the Petitioner:Amit Vyas for D.D. Thanvi, Advocates.
For the Respondent: Suman Porwal, Deputy Government Counsel.
Under Rule 18(18) of the Rajasthan Minor Mineral Concession Rules, 1986, the surrender of a mining lease must be accepted with immediate effect if there are no outstanding dues or pending proceedings against the lessee.
Headnote:
MINING LEASE - SURRENDER - RULE 18(18) OF RAJASTHAN MINOR MINERAL CONCESSION RULES, 1986 - INTERPRETATION - SURRENDER OF MINING LEASE WITH IMMEDIATE EFFECT - CONDITIONS - OUTSTANDING DUES - PENALTY - RECOVERY FROM SECURITY DEPOSIT.
Fact of the Case:
The petitioner, a lessee of a mining lease, applied for surrender of the lease with immediate effect under Rule 18(18) of the Rajasthan Minor Mineral Concession Rules, 1986 (the Rules). The application was accepted after a period of six months from the date of notice, resulting in the petitioner's liability to pay dead rent for the intervening period. The petitioner challenged this decision, arguing that there were no outstanding dues or pending proceedings against them at the time of the application.
Finding of the Court:
The court found that there were no outstanding dues or pending proceedings against the petitioner at the time of the application for surrender. The penalty imposed on the petitioner was created after the application was filed and the alleged liability of penalty could have been recovered from the security deposit. The court held that the action of the respondents in deferring the acceptance of the application for surrender of mining lease with immediate effect was contrary to the provisions of Rule 18(18) of the Rules.
Issues: 1. Whether the surrender of mining lease can be accepted with immediate effect under Rule 18(18) of the Rules if there are no outstanding dues or pending proceedings against the lessee. 2. Whether the penalty imposed on the petitioner after the application for surrender was filed can be considered as an outstanding due.
Ratio Decidendi: The court interpreted Rule 18(18) of the Rules and held that the surrender of mining lease must be accepted with immediate effect if there are no outstanding dues or pending proceedings against the lessee. The court further held that the penalty imposed on the petitioner after the application for surrender was filed cannot be considered as an outstanding due.
Final Decision: The court allowed the writ petition, quashed the orders of the revisional authority and the Superintending Mining Engineer, and directed that the application for surrender of mining lease be treated as accepted with immediate effect from the date of application.
JUDGMENT
1. - This writ petition is directed against order dated 19.11.08 passed by the Deputy Secretary, Department of Mines, Government of Rajasthan, Jaipur, whereby the revision petition preferred by the petitioner against order dated 16.7.08 of Superintending Mining Engineer, Jaipur, accepting the application dated 22.12.07, preferred by the petitioner surrendering the mining lease w.e.f. 22.6.08, stands dismissed.
2. The relevant facts are that a mining lease granted initially in favour of M/s. Mahendra Company Limited for excavation of marble at village-Saradhana, Tehsil-Bewar, District-Ajmer, was transferred in favour of the petitioner vide order dated 28.7.01. The petitioner vide an application dated 22.12.07, submitted before the Superintending Mining Engineer, Jaipur surrendered the mining lease with immediate effect in terms of Rule 18(18) of the Rajasthan Minor Mineral Concession Rules, 1986 (for short "the Rules"). It is submitted that as on the date of making the application for immediate surrender of the mining lease, neither any dues were outstanding nor any proceedings regarding breach of any condition of the mining lease was pending against the petitioner. Pending consideration of the application preferred, vide order dated 2.6.08 issued by the Mining Engineer, Ajmer, penalty of forfeiture of 10% of the amount of security deposit quantified at Rs. 4,910/- was imposed upon the petitioner for alleged late deposit of difference security amount. Accordingly, keeping in view the outstanding dues against the petitioner, the application preferred for surrender of lease was accepted vide order dated 16.7.08 passed by the Superintending Mining Engineer, after a period of six months from the date of notice i.e. w.e.f. 22.6.08 and consequently, the petitioner has become liable to pay the dead rent for the period from 22.12.07 to 22.6.08. In these circumstances, aggrieved by the order dated 16.7.08, the petitioner preferred revision petition before the State Government, which stands dismissed by the Deputy Secretary, Mines, Government of Rajasthan, by the order impugned. Hence, this petition.
3. Learned counsel for the petitioner submitted that the revisional authority has seriously erred in rejecting the revision petition preferred by the petitioner against the order dated 16.7.08 passed by the Superintending Mining Engineer accepting the application preferred by the petitioner for surrender of mining lease after expiry of six months from the date of making the application. Learned counsel submitted that admittedly, as on 22.12.07, neither any dues were outstanding nor any other proceeding regarding breach of condition of mining lease was pending against the petitioner and therefore, the authority concerned was under an obligation to accept the surrender of mining lease with immediate effect as mandated by Rule 18(18) of the Rules. Learned counsel submitted that the penalty was imposed vide order dated 2.6.08 after procuring the letter dated 31.5.08 from the Mining Engineer, Ajmer regarding alleged non removal of the deficiencies pointed out. Learned counsel submitted that admittedly, the amount of dead rent and the late fee in terms of the deficiencies pointed out at serial no.1 & 3 were deposited by the petitioner and even the penalty imposed could have been recovered from the security deposit of the petitioner and therefore, even otherwise, the respondents could not have deferred the acceptance of the application preferred by the petitioner for surrender of mining lease with immediate effect. Accordingly, it is submitted that the order impugned passed by the respondent authority without considering the correct factual position and the law applicable, is ex facie illegal and arbitrary and therefore, order impugned deserves to be set aside.
4. On the other hand, learned Deputy Government Counsel appearing for the respondents submitted that on the date of submission of application, an amount of Rs. 35989/- was due against
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