2017 Supreme(Jhk) 49
IN THE HIGH COURT OF JHARKHAND AT RANCHI
APARESH KUMAR SINGH, J.
Bishnu Chandra Choudhary – Petitioner
Versus
The State of Jharkhand & Others – Respondents
W.P. (C) No. 3887 of 2015
Decided On : 13-01-2017
For the Petitioners: Mr. Indrajit Sinha, Bibhash Sinha and Krishanu Ray.
For the Respondent: Mr. Rajesh Kumar.
Headnote:Mineral Concession Rules, 1960–Rule 27–petitioner’s lease was terminated, it was challenged on the basis of violation of principles of natural justice – it was contended that the finding of the court were recorded without paying attention to the reply of the petitioner – the show cause issued to the petitioner was not having counter affidavit with it – the show cause was without relevant documents regarding the charges – so the termination of lease was in prejudice to the petitioner – it was considered by the court that violation of principle of natural justice does not always make the order null and void, but the order must not cause prejudice to the party – the respondents failed to state the reasons of the order in their counter affidavit – the respondent while passing the order failed to comply with the principles of natural justice which cause serious prejudice to the petitioners – the decision held not proper and bad in law – accordingly impugned order quashed with issuance of direction.
As per the third principle of natural justice, the reasons must be stated in support of decision – if it is stated before the court that the principle of natural justice were not followed, the court is duty bound to consider the observance of the Rule was necessary for the decision on the facts of the case – the order to upheld it proper, it must be on the touchstone of prejudice or the test of fair hearing – it is the duty of the administrative/quasi – judicial authority to record its finding on the basis of application of mind.
1. Heard counsel for the parties.
2. The respondent-Department of Mines and Geology has by the impugned communication (Annexure-12) bearing memo no. 1716 dated 11th August, 2015 terminated the lease of the petitioner after the matter was remanded in the previous writ petition being W.P. (C) No. 4801 of 2014 vide judgment dated 21st February, 2015 in the following terms:-
“8. In view of aforesaid, I am of the opinion that one opportunity is required to be given to the petitioner for defending lease-deed executed in his favour and accordingly, order contained in letter dated 03.09.2014 is hereby quashed. The matter is remanded back to the respondent no. 2 for taking a decision afresh, after granting adequate opportunity to the petitioner for presenting his case including production of evidence in support of his defence. The petitioner is directed to submit his reply to show-cause dated 28.04.2014 within a period of two weeks and a decision may be taken by the respondent no. 2 within next six weeks. The writ petition is allowed in the above terms. I.A. No. 222 of 2015 also stands disposed of.”
3. Challenge to the impugned order has been made primarily on the grounds of violation of principles of natural justice and lack of fairness in the decision making process. It is inter-alia alleged that:
(i) The impugned order has been passed on the grounds which were not part of the show cause dated 28th April, 2014 (Annexure-7).
(ii) The impugned order merely incorporates the charges levelled in the show cause without any finding upon consideration of the reply submitted by the petitioner on 09th March, 2015.
(iii) Not only the show cause but the impugned order also lacks in specific instances of the violations alleged.
(iv) It also refers to a report of the Assistant Mining Officer, Jamshedpur bearing letter no. 1261 dated 04th April, 2015 which was not part of the show cause and in fact has been taken into account after the submission of show cause by the petitioner on 09th March, 2015.
(v) It is urged that the respondents have sought to justify their action on the basis of the averments made in the counter affidavit and additional documents filed on 06th December, 2016 by way of an affidavit which were un-disputably not part of the show cause notice. By way of the Additional documents brought on record on 06th December, 2016, the respondents have sought to defend their action based on the enquiry report of the Committee of the Legislative Assembly which were conducted behind the back of the petitioner.
(vi) The lease in question is a statutory lease, entered in Form-K under the Mineral Concession Rules, 1960 (hereinafter to be referred to MCR). The show cause is not in consonance with the provisions of the Rule 27(5) of MCR where under power to terminate lease for failure to remedy the breach of the terms and conditions of the lease are to be exercised by the State. Rule 27(5) of the MCR stipulates a 60 days notice to remedy the breach and only thereafter the order of termination of lease may be passed if the lessee fails to satisfy or remedy the breach alleged. The show cause was also lacking in this regard. Judgment of the Apex Court in the case of Mohinder Singh Gill vs. Chief Election Commr. New Delhi & Others, (1978) 1 SCC 405 also relied upon in a recent judgment rendered in the case of State of Punjab vs. Bandeep Singh & Others, (2016) 1 SCC 724 have been cited in support of the contention that the reasons contained in the impugned order cannot be supplemented through subsequent affidavits filed in the instant proceedings.
4. According to the petitioner, the impugned order is not a reasoned order in the eye of law as it does not show any application of mind. Reliance has been placed on the judgment rendered by the Apex Court in Kranti Associates Private Limited & Another vs. Masood Ahmed Khan and Others, (2010) 9 SCC 496, para-47. The impugned decision has entailed serious adverse consequence and also caused prejudice to the pet