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2024 Supreme(Raj) 1164

IN THE HIGH COURT OF RAJASTHAN
NUPUR BHATI, J.
Shyam Siroya - Petitioner
Versus
Union of India and Anr. – Respondents
S.B. Civil Writ Petition No. 2478 of 2019
Decided On : 26-02-2024

Advocates Appeared:
For the Petitioner: Mr. B.S. Sandhu with Mr. Chirag Kalani and Lokesh Menaria.
For the Respondents: Mr. Mukesh Rajpurohit, Dy.S.G. and Mr. D.S. Jasol.

The court emphasized the necessity of adhering to procedural requirements in administrative actions, particularly the right to a hearing and jurisdictional limits post-mineral classification changes.

Headnote:(A) Constitution of India - Article 226 - Rajasthan Minor Mineral Concession Rules, 1986 - Rule 18 (21) (a) and Rule 27 (5) - Writ petition challenging the impugned order dated 06.07.2018 - The court found that the petitioner was not afforded an opportunity of hearing as mandated by the rules, and the impugned order was quashed. The respondents were directed to impose a penalty not exceeding twice the advance dead rent. (Paras 12, 14, 16)

(B) Jurisdiction - The court held that the revisional authority lacked jurisdiction to adjudicate the revision after the conversion of the mineral from major to minor, thus rendering the impugned order invalid. (Paras 12, 14)

Facts of the case:
The petitioner challenged the cancellation of the mining lease, alleging lack of notice and consideration of medical conditions affecting compliance. The court noted the failure to follow mandatory procedures in the cancellation process.

Findings of Court:
The impugned order was quashed, and the respondents were directed to determine the penalty based on the advance dead rent within a specified timeframe.

Issues: The main issues included the failure to provide notice and the jurisdiction of the revisional authority post-conversion of the mineral type.

Ratio Decidendi: The court emphasized the necessity of adhering to procedural requirements and the jurisdictional limits of the authority in enforcing penalties under the rules.

Result: Writ petition allowed.

Judgement Key Points

Key Points from the Judgment

  • The writ petition under Article 226 challenges the impugned order dated 06.07.2018 passed by respondent No.2, seeking to set it aside with consequential directions. (!) (!) [1]
  • The controversy is covered by a prior order dated 07.10.2023 in SBCWP No.9763/2014, where the court quashed similar orders due to failure to provide opportunity of hearing under Rule 26 of the Rules of 1960, non-consideration of extension application within time limit, and ignoring medical conditions. [2]
  • Respondents failed to afford mandatory opportunity of hearing under Rule 18(21)(a) of Rajasthan Minor Mineral Concession Rules, 1986 and Rule 27(5) of Mineral Concession Rules, 1960; notice dated 05.05.2014 claimed but not proven served, while earlier notice dated 29.06.2010 was replied to. [3][8][9][10][11]
  • No inspection after notice dated 29.06.2010, and cancellation order dated 26.08.2014 issued after four years alleging violations. [3][4]
  • Mineral (Quartz) converted from major to minor via notification dated 10.02.2015, depriving revisional authority (Joint Secretary, Ministry of Mines) of jurisdiction to pass impugned order under Mineral Concession Rules, 1960. [4][12]
  • Petitioner's medical condition (major heart surgery) prevented mine operations, but not considered by respondents. [5][13]
  • Rule 27(5) of Mineral Concession Rules, 1960 requires notice to remedy default within 60 days before determining lease. [9] (!) (!)
  • Rule 18(21)(a) of Rajasthan Minor Mineral Concession Rules, 1986 mandates 15 days' notice to remedy breach before determination or penalty not exceeding twice annual dead rent. [10] (!)
  • Impugned order quashed due to procedural non-compliance, lack of jurisdiction post-conversion, and non-consideration of medical issues; respondents at liberty to impose penalty not exceeding twice advance dead rent from 2019, to be determined within three months. [14]
  • Writ petition allowed; stay and pending applications disposed of. [14][15]

ORDER :

(Nupur Bhati, J.)

The present writ petition has been preferred under Article 226 of the Constitution of India claiming following reliefs :-

    "(i) the impugned order dated 06.07.2028 (Annex-12) passed by the respondent No.2 may kindly be set aside with all consequential directions.

    (ii) the respondent State of Rajasthan may kindly be directed to decide the revision petition (Annex-11) filed by the petitioner independently and expeditiously without being influenced by the order dated 06.07.2018 (Annex 12)

    (iii) costs of the writ petition may kindly be awarded to the petitioner."

2. At the outset, learned counsel for the petitioner submits that the controversy involved in the present writ petition is squarely covered by the order dated 07.10.2023 passed in SBCWP No.9763/2014 : Smt. Chandra Kala Bilochi v. The Union of India and Ors. The relevant part of the order is reproduced hereunder :-

    "12. As per the provisions or Rule 26 of the Rules of 1960, It is mandatory for the respondents to afford opportunity of hearing to the petitioner. However, in the present case, if the notices has not been served upon the petitioner, then, the petitioner has been deprived of such opportunity of being heard. Furthermore, if the statement of the respondents that the petitioner was duly served upon notice dated 25.03.20211, is believed, then, the application filed by the petitioner seeking extension of time dated 07.04.2011 (Annexure-4) was within a period of 30 days as prescribed under Rule 26(3) of the Rules of 1960. The impugned order dated 07.07.2011, further reflects that the said application filed by the petitioner has not been duly considered while revoking the sanction of mining lease. Also, the Revisional Authority in its order dated 31.01.2014 (Annexure-11), has failed to consider the aspect; firstly, that the petitioner was willing to make compliance of the notice dated 01.06.2010 and secondly, that the petitioner had filed an application for extension of time well within a period of 30 days from the date of notice dated 25.03.2011 and further, the medical record and the illness suffered by the petitioner, has also not duly been considered by the respondents.

    13. As an upshot of the discussion made hereinabove, this Court is of the firm opinion that the present writ petition deserves to be allowed, particularly when the petitioner had duly deposited the advance dead rent for a period of six months on 09.06.2010 and the petitioner had also purchased the non-judicial stamp, worth Rs.1,200/- and had duly submitted the application dated 07.04.2011 (Annexure-4) for extension of time for compliance of the notice dated 01.06.2010 and on account of serious illness, the petitioner could not make compliance of the notice dated 01.06.2010.

    14. The impugned orders dated 31.01.2014 (Annexure-11), passed by the Mining Department and the order dated 19.05.2010 (Annexure-1) passed by the Directorate of Mines & Geology, Udaipur, are hereby, quashed and set aside qua the petitioner.

    15. The respondents would be at liberty to impose penalty, not exceeding twice the amount of advance dead rent upon the petitioner w.e.f. order dated 19.05.2010 (Annexure-1) and the terms laid down therein. The said amount of advance dead rent, shall be determined within a period of one month from the date of receipt of certified copy of this order and the petitioner shall deposit the said amount within one month thereafter.

    16. The writ petition is allowed in the above terms. Stay application as well as all other pending applications are disposed of accordingly.

    17. No order as to costs."

3. Learned counsel for the petitioner submits that firstly, the respondents while passing the impugned order, failed to afford the petitioner an opportunity of hearing which is mandatory as per Rule 18 (21) (a) of the Rajasthan Minor Mineral Concession Rules, 1986 as well as Rule 27 (5) of the Mineral Concession Rules, 1960. He further submits that as the respondents passed an order dated 26.0

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