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IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Mahadev Enclave Private Limited – Petitioner
Versus
The State of Jharkhand – Respondent
W.P. (C) Nos. 3809, 3810, 3811, 3880, 3885, 3886 of 2021
Decided On : 16-11-2022
Refund - Sand Mining Project - Minor Mineral Concession Rules, 2004 - W.P. (C) No. 3809 of 2021, W.P. (C) No. 3810 of 2021, W.P. (C) No. 3811 of 2021, W.P. (C) No. 3880 of 2021, W.P. (C) No. 3885 of 2021, W.P. (C) No. 3886 of 2021 - Rule 12 of the Minor Mineral Concession Rules, 2004 - National Green Tribunal order - Refund of security deposit and bid amount - Quashing of impugned orders
Fact of the Case:
The petitioner participated in an auction process for the allotment of Sand Ghats and deposited security money and 40% of the highest bid amount. Environmental clearances were granted, and lease deeds were executed. However, due to an order by the National Green Tribunal, the environmental clearances were withdrawn, and the petitioner was directed to stop excavation. The petitioner requested a refund, but the authorities cancelled the allotments and forfeited the deposits.
Finding of the Court:
The court found that the cancellation and forfeiture of deposits were illegal and arbitrary as the petitioner was not at fault for the withdrawal of environmental clearances. The court also noted that the impugned orders violated the principles of natural justice.
Issues: The main issue was the legality of the cancellation of Sand Ghats allotment and the forfeiture of the security deposit and bid amount.
Ratio Decidendi: The court held that the petitioner was entitled to a refund of the security deposit and bid amount due to the withdrawal of environmental clearances, and the impugned orders were quashed. The petitioner was granted liberty to file separate applications for the release of the deposits, specifying the excavation period.
Final Decision: The writ petitions were disposed of with the liberty and direction for the refund of the deposits and the quashing of the impugned orders.
ORDER :
1. W.P. (C) No. 3809 of 2021 has been filed for issuance of direction upon the respondent authorities to refund the proportionate amount of security deposit of Rs. 2,17,004/- and 40% of the highest bid amount deposited by the petitioner as earnest money for three financial years i.e. 2015-16, 2016-17 and 2017-18 amounting to Rs. 8,68,052/- total Rs. 10,85,056/- with respect to ‘Vade Sand Ghat Mining Project’ on Geruwa River, situated over plot No. 78, at Village Vade in the District of Godda, measuring an area of 10.27 acres. Further prayer has been made for issuance of direction upon the respondent authorities to make payment of interest @ 18% per annum on the amount refundable to the petitioner towards proportionate security deposit and 40% of the highest bid amount from the date of deposit till the date of actual payment. The petitioner has also prayed for quashing and setting aside the order as contained in letter No. 1434/M, dated 03.12.2016 issued by Deputy Commissioner, Godda-respondent No. 3, whereby settlement of the Vade Sand Ghat made in favour of the petitioner has been cancelled by forfeiting the security deposit and 40% of the highest bid amount deposited by it.
2. W.P. (C) No. 3810 of 2021 has been filed for issuance of direction upon the respondent authorities to refund the proportionate amount of security deposit of Rs.10,41,930/- and 40% of the highest bid amount of Rs. 41,67,721/- deposited by the petitioner as earnest money; total Rs. 52,09,651/- with respect to ‘Sahikitta Sand Ghat Mining Project’ on Geruwa River situated over plot No. 37/461, at Village Sahikitta in the District of Godda, measuring an area of 5.74 Acres. Further prayer has been made for issuance of direction upon the respondent authorities to pay interest @ 18% per annum on the amount refundable to the petitioner towards proportionate security deposit and 40% of the highest bid amount from the date of deposit till the date of actual payment. The petitioner has also prayed for quashing and setting aside the order as contained in letter No. 1437/M dated 03.12.2016 issued by respondent no. 3, whereby settlement of the Sahikitta Sand Ghat made in favour of the petitioner has been cancelled by forfeiting the security deposit and 40% of the highest bid amount deposited by it.
3. W.P. (C) No. 3811 of 2021 has been filed for issuance of direction upon the respondent authorities to refund the proportionate amount of security deposit of Rs. 66,345/- and 40% of the highest bid amount of Rs. 2,65,381/- deposited by the petitioner as earnest money; total Rs. 3,31,726/- with respect to ‘Kala Dumaria Sand Ghat Mining Project’ on Geruwa River situated over plot Nos. 9, 10, 12, 33, 34, 35, 30, 60 to 65 and 66/298, at Village Kala Dumaria in the District of Godda, measuring 6.90 acres. Further prayer has been made for issuance of direction upon the respondent authorities to pay interest @ 18% per annum on the amount refundable to the petitioner towards proportionate security deposit amount and 40% of the highest bid amount, from the date of deposit till the date of actual payment. The petitioner has also prayed for quashing and setting aside the order as contained in letter No. 1438/M, dated 03.12.2016 issued by the respondent no. 3, whereby settlement of Kala Dumaria Sand Ghat made in favour of the petitioner has been cancelled by forfeiting the security deposit and 40% of the highest bid amount deposited by it.
4. W.P. (C) No. 3880 of 2021 has been filed for issuance of direction upon the respondent authorities to refund total amount of security deposit of Rs. 16,88,000/- and 40% of the highest bid amount of Rs. 67,52,000/- deposited by the petitioner as earnest money; total Rs. 84,40,000/- with respect to ‘Hanwara Sand Ghat Mining Project’ on Geruwa River situated at Village Hanwara in the District of Godda, measuring 14.14 acres. Further prayer has been made for issuance of direction upon the respondent authorities to pay interest @ 18% per annum o
The government's decision must conform to the principles of reasonableness and be free from arbitrariness, bias, and mala-fides. The order of forfeiture of security deposit cannot be passed in violat....
Petitioners entitled to seek refund of Earnest Money and Security Deposit due to State's alleged delays in environmental clearance processing.
Judicial consistency demands adherence to prior rulings, ensuring prompt resolution of claims related to security deposits and sand ghat allotments.
The main legal point established is the requirement for administrative actions to adhere to principles of natural justice and fairness, ensuring that decisions are made after considering all relevant....
The contractor's entitlement to refund for inability to extract sand is governed by the specific clauses of the Government Resolution, and the contractor's responsibility to factor in natural calamit....
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