IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
M/s Ali & Company Saw Mill, through its proprietor, Nazrul Hoda - Petitioner
Versus
The State of Jharkhand, through the Principal Secretary, Forest, Environment and Climate Change Department & Ors. - Respondents
W.P.(C) No. 2008 of 2020
Decided On : 22-03-2023
Saw Mill License - Revocation - Bihar (now Jharkhand) Saw Mills (Regulation) Act, 1990 - Section 7, Section 10 - The court discussed the revocation of the saw mill license under Section 7 of the Act, 1990 and the forfeiture of security amount under Section 10. The court emphasized that the revocation of the license cannot be ordered to be renewed/restored after a significant lapse of time, especially when the law relating to issuance of saw mill license has evolved.
Fact of the Case:
The petitioner's saw mill license was revoked due to the recovery of illegal forest produce during a raid. The petitioner appealed the revocation up to the Hon’ble Supreme Court, citing the acquittal of its proprietors in a related criminal complaint case. However, the court found that the petitioner failed to satisfy the appellate authority about the legality of the seized timber and that the revocation of the license cannot be ordered to be renewed/restored after a significant lapse of time.
Finding of the Court:
The court found that the petitioner failed to make out any case to warrant interference with the impugned orders, including the revocation of the saw mill license and the dismissal of the appeal.
Issues: The main issue was whether the revocation of the saw mill license and the subsequent refusal to restore/renew the license were justified under the Bihar (now Jharkhand) Saw Mills (Regulation) Act, 1990.
Ratio Decidendi: The court's decision was based on the failure of the petitioner to satisfy the appellate authority about the legality of the seized timber and the significant lapse of time between the revocation of the license and the application for restoration/renewal.
Final Decision: The present writ petition was dismissed as devoid of merit.
JUDGMENT :
1. The present writ petition has been filed for quashing the order as contained in memo No. 908 dated 21.03.2020 (Annexure-12 to the writ petition) passed by the respondent No.3 whereby the petitioner’s saw mill license earlier cancelled by the respondent No.4 vide order as contained in letter No. 2007 dated 01.09.1999 has been held proper as per the provisions of the Bihar (now Jharkhand) Saw Mills (Regulation) Act, 1990 [hereinafter referred to as ‘the Act, 1990’]. Further prayer has been made for quashing the order dated 16.07.2001 (Annexure-6 to the writ petition) passed by the respondent No.2 whereby the petitioner’s appeal being Appeal Case No. 03/2001 preferred against the order of revocation of its saw mill license was dismissed. The petitioner has also prayed for quashing letter No. 2007 dated 01.09.1999 (Annexure-4 to the writ petition) issued by the respondent No.4 whereby the saw mill license granted to the petitioner was revoked in terms with Section 7 of the Act, 1990 on the ground that in course of raid, illegal forest produce were recovered from the petitioner’s saw mill premises and it was found violating the provisions of Section 10 of the Act, 1990 as well as the security amount deposited by it was also forfeited. The petitioner has finally prayed for directing the respondent authorities to restore/renew license of its saw mill situated at Haldi Pokhar, P.S-Kuwali, District-East Singhbhum.
2. Heard learned counsel for the parties and perused the relevant materials available on record.
3. The petitioner’s saw mill license was revoked by the respondent No.4 vide the order as contained in letter No. 2007 dated 01.09.1999 on the ground that during raid in the saw mill premises, various illegal forest produce were recovered. The petitioner thereafter challenged the said order of revocation of its saw mill license by preferring an appeal being Appeal Case No. 03/2001 before the respondent No.2 which was dismissed vide order dated 16.07.2001. The petitioner subsequently filed a writ petition being W.P.(C) No. 5274/2001 before this Court which was dismissed vide order dated 27.03.2003. Aggrieved with the said order, the petitioner preferred L.P.A. No. 346/2003 and learned Division Bench of this Court vide order dated 18.08.2004, dismissed the said L.P.A affirming the order dated 27.03.2003 passed by learned Single Judge. Thereafter, the petitioner preferred Special Leave to Appeal (Civil) No. 10207/2005 before the Hon’ble Supreme Court which was also dismissed on the ground of delay as well as on merits vide order dated 14.11.2005.
4. In the meantime, a criminal complaint being C/3 Case No. 24/1999 was also instituted against Nazrul Hoda and Nurul Hoda (the proprietors of the petitioner-company) under Sections 26/33/41/42 of the Indian Forest Act, 1927. However, the aforesaid proprietors of the petitioner-company were acquitted in the said complaint case vide judgment dated 05.06.2003 passed by the Judicial Magistrate, 1st Class, Jamshedpur. Thereafter, the petitioner made an application before the respondent No.4 for recalling the order dated 01.09.1999 as late as on 09.05.2017 as well as for restoration of its saw mill license. When no decision was taken by the respondent No.4 in this regard, the petitioner preferred another writ petition being W.P.(C) No. 7364/2017 before this Court which was disposed of vide order dated 31.07.2018 directing the respondent No.4 to take appropriate decision on the petitioner’s application dated 09.05.2017 in accordance with law. However, the respondent No.3 vide impugned order dated 21.03.2020, has declined to restore the petitioner’s saw mill license observing that the same was earlier cancelled after following the due process as provided under the Act, 1990.
5. Considering the aforesaid litigation history of the present case, it would be evident that the revocation of the petitioner’s saw mill license vide order dated 01.09.1999 was tested up to the Hon’ble Supreme Court.
Existing saw mills can be relocated within 5kms of a forest if prior permission is obtained; revocation of licenses must adhere to established legal frameworks.
The authority has the power to cancel a license under Section 7(5)(C) of the Bihar Saw Mill (Regulation) Act, 1990, and the pendency of a criminal case does not preclude confiscation proceedings.
A saw mill license cannot be renewed if there is no saw mill existing and functioning in the name of the applicant.
Administrative discretion must align with principles of fairness and legality; untraceable offences cannot bar rehabilitation eligibility for operational saw mills under applicable regulations.
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