The court ruled that a recommendation by the State does not constitute a vested right or letter of intent under the MMDR Act, and the amended provisions apply prospectively.

JUDGMENT :

Per, Sujit Narayan Prasad, J.

Prayer

In the present writ petition under Article 226 of the Constitution of India the petitioner-Firm has prayed for the following reliefs:

a. For issuance of an appropriate writ, order or direction, declaring that Section 10A(1) of the Mines and Minerals (Development & Regulation) Act, 1957 (as amended by Mines and Minerals (Development & Regulation) Amendment Act, 2015) is unconstitutional and ultra vires the Article 14 of Constitution of India.

b. For issuance of further appropriate writ, order or direction, including writ in the nature of certiorari, for quashing the letter issued by the Ministry of Mines, Government of India, bearing No.5/89/2010-MIV dated 12.11.2015, by which the proposal for grant of prospecting licence for Iron Ore and Manganese Ore over an area of 71.914 Ha. in Mauja Barabaljori and Merelgarha, District West Singhbhum in favour of the petitioner for a period of three years has been declared as ineligible in the light of Section 10A (2) of the Mines and Minerals (Development & Regulation) Act, 1957 (as amended by Mines and Minerals (Development & Regulation) Amendment Act, 2015) (hereinafter to be referred as 'MMDR Act') and has been closed;

c. For issuance of further appropriate writ, order or direction, declaring that the application/proposal of the petitioner for grant of mineral concession is otherwise eligible in terms of Section 10A(2)(c) of the MMDR Act, for the reason that the State Government has communicated its approval in terms of Section 5(1) of the MMDR Act and has recommended for grant of prospecting licence vide its letter dated 13.8.2010 prior to coming into force of the Amendment Act.

Factual Matrix

2. The brief facts of the case as per the pleadings made in the writ petition are that the petitioner-Firm is incorporated on or about 16.02.2005 and established its industry at village Kuchidih within the district Saraikela (Jharkhand) under the provisions of Companies Act, 1956.

3. The Petitioner-Firm is an integrated steel plant which commenced production in April, 2006. On 18th July 2005 the petitioner-Firm entered into a Memorandum of Understanding with the Government of Jharkhand whereby and whereunder the Government of Jharkhand agreed to provide all assistance to the petitioner in procuring iron ore and industrial minerals in accordance with the need of the petitioner’s proposed integrated steel plant.

4. On the date of entering into the Memorandum of Understanding (MOU) between the petitioner-Firm and the State Government, i.e., on 18th July 2005 the petitioner-Firm has not set up its establishment but on the assurance of the State Government the petitioner-Firm invested a sum of Rs.400 crores to set up the said integrated Steel Plant in Jharkhand State. Thereafter the petitioner-Firm applied for a Mining Lease of Iron ore over an area of 177.70 acres in the Mouza Barabaljori, West Singhbhum, Jharkhand but the State authorities has granted “Tati Buru” Block for the mining to the petitioner-firm which was claiming by Indian Iron and Steel Company Limited on lease.

5. Being aggrieved, the petitioner-Firm approached this High Court by filing writ petition being W.P (C ) No.2846 of 2007 before this Court in which this Court directed the State authority to allot a alternative iron ore block to the petitioner-Firm whereupon on 3rd April, 2008, the Secretary, Department of Mines and Geology, Government of Jharkhand was directed to appear in Court to explain the position of the Government and it was further directed that no further recommendation would be made in the meantime.

6. On 15th April 2008, the Secretary, Department of Mines and Geology, Government of Jharkhand appeared in Court and stated that the petitioner could opt for the allotment of any other iron ore block whereupon the same would be considered and disposed of before 25.5.2008. The State authority assured that the same will be allotted to it before 25.5.2008 but thereafter the State authority