2022 Supreme(Jhk) 1038
IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAVI RANJAN, SUJIT NARAYAN PRASAD, JJ.
M/s D.M. Minerals Private Limited, through its Director Shantanu Joshi, son of Ram Gopal Joshi - Petitioner
Versus
Union of India through Secretary, Ministry of Mines and Ors. - Respondents
W.P.(C) No.7285 of 2019 With W.P.(C) No.6883 of 2019
Decided On : 29-06-2022
For the Petitioners: Mr. Indrajit Sinha, Mr. Ankit Vishal.
For the Respondents: Mr. P.A.S. Pati, Mr. Piyush Chitresh, Mr. Rajiv Sinha, A.S.G.I.
Headnote:
Constitution of India, 1950 - Article 226 - Mines & Minerals (Development & Regulation) Act, 1957 - Mineral Concession Rules, 1960 - Section 3, (e), 9A - Lease deed - Rate of mineral has been enhanced - Issuance of an appropriate writ(s) issued by Department of Mines & Geology, as unconstitutional and ultra vires by which rate of dead rent for China Clay has been enhanced – Held, It is evident from proposition of law that an order would be said to suffer from unreasonableness and arbitrariness where there is lack of reason or reason which has been stated in counter affidavit before Court of Law is absent before decision making authority - Court in view of aforesaid fact, is not hesitant in holding that decision of State authority in enhancing dead rent so far as it relates to China Clay, same suffers from principle of unreasonableness and arbitrariness, therefore, same is required to be quashed and set aside - Court is conscious of fact that State Government has got power to enhance dead rent but, is only interfering on ground that no cogent reason has been reflected based upon study of issue, since decision has been taken, therefore, deems it fit and proper to remit matter before State Government/competent authority to take a fresh decision on issue - Petitions disposed of.
JUDGMENT :
[Sujit Narayan Prasad, J.]
1. Both these writ petitions since having the same issue, as such, have been heard together and are being disposed of by this common judgment/order.
2. Both the writ petitions have been filed under Article 226 of the Constitution of India praying for the following reliefs :
“(a) For issuance of an appropriate writ(s), order(s) or direction(s) declaring that part of the notification no. Kha.Ni.(Niti)-04/2018-1509/M dated 16.09.2019 (Annexure-4) published in the Jharkhand Gazette Extraordinary no.730 dated 19.09.2019 issued by the Department of Mines & Geology, Government of Jharkhand, as unconstitutional and ultra vires by which the rate of dead rent for China Clay has been enhanced to Rs.40,000/- per acre/year;
(b) Upon declaring that part of notification no. Kha.Ni.(Niti)- 04/2018-1509/M dated 16.09.2019 published in the Jharkhand Gazette Extraordinary no.730 dated 19.09.2019 as unconstitutional an ultra vires be further pleased to quash and set aside the same and consequently restrain the respondents from giving effect to or acting pursuant to that part of the notification no. Kha.Ni.(Niti)- 04/2018-1509/M dated 16.09.2019 published in the Jharkhand Gazette Extraordinary no.730 dated 19.09.2019 by which the rate of dead rent for the mineral China Clay has been enhanced to Rs.40,000/- per acre/year.”
3. The brief facts of the case as per the pleading made in the writ petition which requires to be enumerated, reads as hereunder:
According to the petitioners, the mineral-China Clay was initially a major mineral and was governed by the provisions of the Mines & Minerals (Development & Regulation) Act, 1957, hereinafter referred to as “the Act, 1957”, and the Mineral Concession Rules, 1960, hereinafter referred to as “the Act, 1960”.
The Central Government, in exercise of power conferred by Clause (e) of Section 3 of the MMDR Act, declared the China Clay to be a minor mineral vide a notification bearing no.SO 423(E) dated 10.02.2015. Further fact of the case is that the lease deed was executed between the petitioners’ company and the Government of Bihar in relation to mineral-China Clay for an area of 38.400 hectares so far as it relates to W.P.(C) No.7285 of 2019 for a period of 10 years w.e.f. 09.01.1979 and 68.615 hectares of land so far as it relates to W.P.(C) No.6883 of 2019 w.e.f. 14.11.1963. The license lease had also been extended. However, on 10.02.2015, China Clay was notified as a minor mineral, as such, the lease of the petitioners were extended in terms of the Jharkhand Minor Minerals Concession Rules.
The case of the petitioners is that, so far as the major minerals are concerned, the payment of royalty and dead rent is governed by Section 9 or Section 9A, as the case may be, read with 2nd Schedule or 3rd Schedule appended to the Act. The grievance of the petitioners is that the rate of dead rent for China Clay was increased by the Central Government to Rs.2,000/- per acre but subsequently came under the category of minor mineral from major mineral. The State of Jharkhand resorting to the provisions of Jharkhand Minor Concession Rules, issued a notification on 19.09.2019, whereby the rates of royalty and dead rent of various minor minerals have been increased from Rs.2,000/- per acre to Rs.40,000/- per acre/per year. In the backdrop of such enhancement of the dead rent, the instant writ petitions have been filed questioning the decision of the authority of the State of Jharkhand for raising the rate in such an exorbitant manner.
4. Mr. Indrajit Sinha, learned counsel for the petitioners submits that since the quantum of dead rent has been enhanced from Rs.2,000/- per acre to Rs.40,000/- per acre that too without any valid reason, therefore, the same requires to be struck down. He further submits that by virtue of an order passed by this Court in the instant writ petitions, that