Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2022 Supreme(Jhk) 163

IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Prahlad Das Mohta & Ors. - Petitioners
Versus
The State of Jharkhand & Ors. - Respondents
W.P. (C) No.5639 of 2019 With W.P.(C) No.5608 of 2019 With W.P.(C) No.5609 of 2019 With W.P.(C) No.5644 of 2019 With W.P.(C) No.5645 of 2019 With W.P.(C) No.1727 of 2020 With W.P.(C) No.1743 of 2020 With W.P.(C) No.1752 of 2020 With W.P.(C) No.1821 of 2020 With W.P.(C) No.1831 of 2020 With W.P.(C) No.1837 of 2020 With W.P.(C) No.1851 of 2020 With W.P.(C) No.2020 of 2020 With W.P.(C) No.2023 of 2020 With W.P.(C) No.2026 of 2020 With W.P.(C) No.2844 of 2020 With W.P.(C) No.2845 of 2020 With W.P.(C) No.2855 of 2020 With W.P.(C) No.2856 of 2020 With W.P.(C) No.2861 of 2020 With W.P.(C) No.2865 of 2020 With W.P.(C) No.2879 of 2020 With W.P.(C) No.2916 of 2020 With W.P.(C) No.2917 of 2020 With W.P.(C) No.2930 of 2020 With W.P.(C) No.2951 of 2020 With W.P.(C) No.72 of 2021 With W.P.(C) No.74 of 2021 With W.P.(C) No.82 of 2021 With W.P.(C) No.90 of 2021
Decided On : 02-03-2022

Advocates Appeared:
For the Petitioner: Mr. Shankar Lal Agarwal.
For the State : M/s. Rajiv Ranjan, A.G., Mohan Kumar Dubey, A.C. to A.G. & Deepak Kumar Dubey, A.C. to A.A.G.II.

The Court emphasized the importance of observing the principles of natural justice in administrative decision-making processes, and ruled that penalty cannot be imposed solely on the basis of an audit report. The Court also clarified that the availability of an alternative remedy does not operate as a bar when fundamental rights are sought to be enforced, there is a failure in observing the principles of natural justice, or the orders or proceedings are wholly without jurisdiction.

Headnote:
Natural Justice - Penalty for Running Brick Kilns - Jharkhand Minor and Mineral Concession Rules, 2004 - Rule 30, 31, 54(8) - Rules 2(5), 2(11) - [SUMMARY]
Fact of the Case:

The petitioners sought to quash demand notices for penalty imposed for running brick kilns without obtaining permits. They argued that the notices were issued without prior notice or opportunity of hearing, in violation of natural justice principles. The respondents contended that the petitioners had alternative remedy available by filing an appeal against the notices.
Finding of the Court:

The Court found that the demand notices were issued without affording the petitioners an opportunity of hearing, in violation of natural justice principles. The Court also noted that the respondents did not pass appropriate orders, depriving the petitioners of the opportunity to file appeals. The Court held that the petitioners suffered prejudice due to the lack of opportunity of hearing and the arbitrary method of determining penalties.
Issues: Violation of natural justice principles, availability of alternative remedy, arbitrariness in determining penalties
Ratio Decidendi: The Court held that a prior show-cause notice granting a reasonable opportunity of being heard is an essential element of all administrative decision-making processes. The Court also emphasized that penalty cannot be imposed solely on the basis of an audit report, and the competent authority must apply its own independent mind and pass a reasoned order. The Court further ruled that the availability of an alternative remedy does not operate as a bar when the writ petitioner seeks enforcement of fundamental rights, there is a failure in observing the principles of natural justice, or the orders or proceedings are wholly without jurisdiction.
Final Decision: The impugned letters/memos were quashed and set aside, and the certificate cases filed against the petitioners for realization of the demand were also quashed. The matter was remanded to the concerned District Mining Officers to pass appropriate orders in accordance with law after providing due opportunity of hearing to the petitioners. The writ petitions were disposed of accordingly.

JUDGMENT :

1. This case is taken up through video conferencing.

2. The present batch of writ petitions have been preferred for quashing the demand notices issued against the petitioners, whereby penalty has been levied against them, alleging that they were running brick kilns without obtaining no objection certificate/licence from the concerned district mining office. The petitioners have also sought direction to the respondents to refund the amount paid by them under Rule 2 of the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015.

3. The impugned notices and the mode of calculation of penalty in the respective writ petitions are reproduced herein below for ready reference:-

Case No.	District	Impugned letters	Mode of calculation of penalty
W.P.(C) No. 5639 of 2019	West Singhbhum, Chaibasa	Letter No. 834/M dated 05.09.2019	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 5608 of 2019	West Singhbhum, Chaibasa	Letter No. 835/M dated 05.09.2019	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 5609 of 2019	West Singhbhum, Chaibasa	Letter No. 831/M dated 05.09.2019	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 5644 of 2019	West Singhbhum, Chaibasa	Letter No. 837/M dated 05.09.2019	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 5645 of 2019	West Singhbhum, Chaibasa	Letter No. 830/M dated 05.09.2019	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 72 of 2021	Seraikella Kharsawan	Letter No. 429/M dated 24.08.2020	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 74 of 2021	Seraikella Kharsawan	Letter No. 427/M dated 24.08.2020	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 82 of 2021	Seraikella Kharsawan	Letter No. 426/M dated 24.08.2020	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 90 of 2021	Seraikella Kharsawan	Letter No. 428/M dated 24.08.2020	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 2879 of 2020	Seraikella Kharsawan	Letter No. 441/M dated 24.08.2020	Pathai @ Per 1000 MP/Rs.500/-
W.P.(C) No. 1821 of 2020	Dhanbad	Memo No. 1061 dated 18.07.2019 & Memo No.783 dated 16.05.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 1831 of 2020	Dhanbad	Memo No. 626 dated 22.04.2020	Only amount to be paid is mentioned
W.P.(C) No. 1837 of 2020	Dhanbad	Memo No. 1021 dated 17.06.2020	Only amount to be paid is mentioned
W.P.(C) No. 1851 of 2020	Dhanbad	Memo No. 1721 dated 21.11.2019 & Memo No. 681 dated 27.04.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 2020 of 2020	Dhanbad	Memo No. 1071 dated 18.07.2019 & Memo No. 838 dated 27.05.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 2023 of 2020	Dhanbad	Memo No. 119 dated 24.01.2020 & Memo No. 598 dated 17.04.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 2026 of 2020	Dhanbad	Memo No. 1036 dated 16.07.2019 & Letter No. 708 dated 20.05.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 2844 of 2020	Dhanbad	Memo No. 1070/M dated 18.07.2019 & Memo No. 854/M dated 30.05.2020	400 bricks=1M3 brick earth Market Price @ Rs.70/Cubic Meter & Royalty @ Rs.30/- Per Cu. Meter Total Rs.100/- Per Cu Meter
W.P.(C) No. 2845 of 2020	Dhanbad	Memo No. 816/M dated 22.05.2020	Only amount to be paid is mentioned
W.P.(C) No. 2855 of 2020	Dhanbad	Memo No. 1314/M dated 06.09.

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2022 Supreme(Jhk) 163

Cases Referred (15)