Per, Shree Chandrashekhar, J. - A writ petition was filed by the appellant – Central Coalfields Ltd. seeking quashing of order dated 26.12.2012 in Certificate Case No. 06B/0102 by which the appellant was directed to pay an amount of Rs. 60,61,038.00 towards the cost of sand and interest thereupon. The writ petition was allowed setting-aside the impugned order dated 26.12.2012 subject to condition that the appellant shall deposit Rs. 25,00,000/- with the State Exchequer within a period of one month. Aggrieved by the direction to pay the amount of Rs. 25,00,000/, the appellant has preferred the present Letters Patent Appeal.

2. The brief facts of the case are that, the appellant, a Public Sector Undertaking is a Government Company within the meaning of Section 615 of the Companies Act and it is engaged in the business of mining coal. The appellant – company raises sand from nearby area for filling up the mines after extraction of the coal and for that purpose necessary permission is taken, from time to time, from the competent authority for raising sand as and when required. The appellant adhoc/advance payment of royalty from time to time and from the said amount, the royalty for sand which is removed by the appellant – company is adjusted by the Department of Mines. The appellant – company vide demand draft no. 820683 dated 25.09.1998 had deposited a sum of Rs. 2,00,000/ vide letter dated 07.10.1998 and it had also applied for extension of permission for lifting sand beyond the period 30.09.1998. The appellant thereafter, removed 1875.58 cubic meters of sand in presence of Resident Magistrate on trial and run basis, in anticipation of grant of permission and after lifting the sand, the appellant duly informed the respondent – authorities vide letter dated 26.02.1999 in this regard. However, a Certificate Case bearing no. 06B/0102 on requisition of certificate claiming an amount of Rs. 25,35,999/ was initiated against the appellant and vide order dated 26.12.2012, the claim for Rs. 25,35,999/ with interest for illegal extraction of 50,719.87 M.T. sand was held justified and the appellant was directed to make payment of Rs. 60,61,038/. Aggrieved, the appellant approached the writ court and as noticed above the learned Single Judge vide order dated 20.11.2013 directed the appellant – CCL to pay an amount of Rs. 25,00,000/ which was to be adjusted towards the future cost of sand extracted by the appellant.

3. We have heard the learned counsel for the parties and perused the documents on record.

4. Mr. A. K. Das, the learned counsel appearing for the appellant – CCL has submitted that in the Certificate Proceeding the appellant appeared and informed the Certificate Officer that much prior to the requisition, the appellant had already deposited the royalty for 50,719.87 M.T. of sand and therefore, the claim of penalty by way of cost of sand and interest was not maintainable. The Certificate Officer accordingly, vide order dated 07.05.2007 directed the Requisitioning Officer to verify the records and produce evidence in respect of the sand lifted by the appellant – CCL. However, the Requisitioning Officer failed to produce any record and without ascertaining the actual facts, the Certificate Officer ordered payment of an amount of Rs. 60,61,038.00. It is submitted that since the order dated 26.12.2012 was passed without affording opportunity of hearing to the appellant, the learned Single Judge was pleaded to quash order dated 26.12.2012, however, the learned Single Judge committed error in law in directing the appellant to deposit an amount of Rs. 25,00,000/- with the State Exchequer. The contention thus, is that, at this stage when defence of the appellant – company has still to be verified and the claim of the respondent yet has not been found correct, without having adjudicated the rival claims of the parties, the learned Single Judge could not have ordered the appellant to deposit an amount of Rs. 25,00,000/-.

5. Mr. Shadab B