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2025 Supreme(Jhk) 1320

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
M.S. Ramachandra Rao, C.J., Deepak Roshan, J.
M/s Hill Movement - Petitioner
Versus
The State of Jharkhand through its Secretary, Department of Mines and Geology and ors. - Respondents
W.P. (C) No. 88 of 2024
Decided On : 06-02-2025

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Prashant Pallav, Advocate, Mr. Parth Jalan, Advocate
For the Respondent: Mr. Gaurav Raj, A.C. to A.A.G.-II

The Deputy Commissioner exceeded jurisdiction by terminating a mining lease without proper delegation and violating natural justice principles.

Headnote:(A) Mines and Minerals (Development and Regulation) Act, 1957 - Section 4A(2) - Jharkhand Minor Mineral Concession Rules, 2004 - Rule 22(5) - Writ petition challenging termination of mining lease - Order quashed as issued without jurisdiction and in violation of natural justice principles - No notification delegated authority to Deputy Commissioner to prematurely terminate mining lease - Alternative remedy principle does not apply in blatant natural justice violations. (Paras 11, 12, 16)

Facts of the case:
The petitioner challenged the Deputy Commissioner's 08.09.2023 order terminating a mining lease citing lack of proper show-cause notice service. The termination was alleged to violate principles of natural justice.

Findings of Court:
The Deputy Commissioner acted without jurisdiction, lacking delegated power, and violated natural justice by serving inadequate notice.

Issues: Whether the Deputy Commissioner had the authority to terminate the mining lease and whether the principles of natural justice were observed.

Ratio Decidendi: The court affirmed that the Deputy Commissioner acted beyond authority without proper delegation and in violation of procedural fairness. Alternative remedies do not bar the writ when jurisdictional issues arise.

Result: Writ petition allowed; order quashed, with rights reinstated until original lease expiry and costs awarded.

Table of Content
1. details on the issuance of notices and relevant dates. (Para 1 , 2 , 3 , 4)
2. court's observation on respondents' failure to file counter affidavit. (Para 5 , 6 , 7)
3. violation of principles of natural justice outlined. (Para 8 , 9 , 10)
4. discussion of legal authority concerning lease termination. (Para 11 , 12)
5. judgment on jurisdiction and natural justice principles. (Para 13 , 14 , 15 , 16)
6. final decision and orders given to the petitioner. (Para 17 , 18 , 19)

JUDGMENT :

M.S. Ramachandra Rao, C.J.

1. In this Writ petition, the petitioner has assailed the order dt. 08.09.2023 passed by the Deputy Commissioner, Sahibganj. According to the petitioner, this order has been communicated to the petitioner through an email dt. 29.09.2023 of the District Mining Officer, Sahibganj.

2. According to the petitioner, in this email, as attachments, show- cause notices dt. 04.01.2022 and 07.02.2022 were enclosed and in paragraph 8 of the writ petition, this is specifically adverted to.

It is contended that the show-cause notices dt. 04.01.2022 and 07.02.2022 were never served on the petitioner prior to the passing of the impugned order on 08.09.2023 by the Deputy Commissioner, Sahibganj.

3. The Writ petition had been filed on 09.01.2024 and was initially listed on 29.04.2024, on which date, it was adjourned to 30.4. 2024.

4. On that day, a Division Bench of this Court recorded an additional ground also pleaded by the petitioner based on Clause (2) to Section 4 A of the Mines and Minerals (Development and Regulation) Act, 1957 which authorizes the State Government to prematurely terminate a mining lease.

It is recorded therein that petitioner contended that there has to be a notification in the Official Gazette authorising a person to do an act or all acts on behalf of the State Government; that such power has to be conferred by the State Government on the Deputy Commissioner by issuing such a notification; but without issuing such a notification, the Deputy Commissioner had exercised the power of the State Government to prematurely terminate the mining lease of petitioner invoking sub-rule (5) of Rule 22 of the JHARKHAND MINOR MINERAL CONCESSION RULES , 2004.

The Court had directed the matter to be posted to 9.5.2024 by permitting the counsel for respondents to counter affidavit on this point.

5. When the matter was listed on 20.1.2025, this Court noted that the respondents had not chosen to file a counter affidavit from 30.4.2024 till that date; and as a last chance, granted one more week’s time to the respondents to file a counter affidavit in the matter.

It was made clear that if counter affidavit was not filed by that date, the right of the respondents to file counter affidavit shall stand forfeited. Matter was then adjourned to 06.02.2025 i.e. today.

6. However, the counsel for the respondents states that the counter affidavit has not been filed in spite of the peremptory order passed on 20.1.2025 and seeks further time to file a counter affidavit.

7. Since the respondents had ample time to file the counter affidavit from 30.4.2024 to 6.2.2025 and, in spite of having been given ample opportunities to file a counter affidavit, have refrained from doing so, in view of the order dt. 20.1.2025, their right to file a counter affidavit stands forfeited.

8. The allegation of the petitioner that the notices dt. 04.01.2022 and 07.02.2022 were not served to the petitioner prior to the order dt. 08.09.2023 as alleged in paragraphs 8 and 16 of the Writ petition, remained unrebutted. Therefore, we hold that the impugned order has been passed in brazen violation of principles of natural justice.

9. Moreover, the notice dt. 07.02.2022 gives a mere seven days, though Rule 22(5) of the JHARKHAND MINOR MINERAL CONCESSION RULES , 2004 mandates the period of 30 days to file a reply to a show-cause notice. This also vitiates the impugned order.

10. An officer of the rank of the Deputy Commissioner is expected to know this provisions of the law

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