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2016 Supreme(Ori) 140
IN THE HIGH COURT OF ORISSA, CUTTACK
INDRAJIT MAHANTY AND B.K.NAYAK, JJ.
M/s Jindal Steel & Power Ltd. and another - Petitioners
Versus
State of Odisha & others - Opp. Parties
W.P.(C). No.12119 of 2014
Decided On : 08-04-2016
For the Appellant :M/s. Sanjit Mohanty (Sr. Advocate) S. Nanda, R.R. Swain & J.K. Naik.
For the Respondent:M/s. S.P. Mishra (Advocate General) & M.S. Sahoo (A.G.A)
The transfer of right, title, and interest in the property to the buyer under the Sale of Goods Act, 1930, and the validity of Environmental Clearance for transportation of processed ore were the central legal principles established in the judgment.
Headnote:
Mining Operation - Transportation of Processed Ore - Mines and Minerals (Development & Regulation) Act, 1957, Sale of Goods Act, 1930 - Section 33 - Environmental Clearance - OMPTS Rules - [Summary of Acts and Sections]
Fact of the Case:
The petitioners, M/s Jindal Steel and Power Limited, entered into an agreement with Sarda Mines Pvt. Ltd. to purchase Lump Ore (RoM) and sought permission to transport the processed ore. The Deputy Director of Mines directed stoppage of transportation, leading to the present challenge.
Finding of the Court:
The court quashed the order directing stoppage of transportation and rejected the representation, directing the grant of permission to transport the processed ore to the petitioners' plant.
Issues: The key issue was the definition of 'mining operation' and the validity of Environmental Clearance for transportation of processed ore.
Ratio Decidendi: The court held that the petitioners, as buyers, were no longer governed by the Mines and Minerals Act after the transfer of right, title, and interest in the property. The court also emphasized the validity of Environmental Clearance and the applicability of the Sale of Goods Act, 1930.
Final Decision: The writ application was allowed, and the court directed the grant of permission to transport the processed ore to the petitioners' plant.
JUDGMENT :
I. Mahanty, J.
In the present writ application, the petitioners-M/s Jindal Steel and Power Limited (hereinafter referred to as “M/s M/S JSPL”) have entered into an agreement with Sarda Mines Pvt. Ltd. (hereinafter referred to as ‘SMPL’) to purchase Lump Ore (RoM) from SMPL. Pursuant to such agreement, the petitioners-M/s JSPL had sought for permission from the State of Odisha and the State Government vide letter dated 27.03.2004 permitted the petitioners to purchase Iron Ore in the form of RoM from SMPL (lessee) of Thakurani Iron Ore Mines Block-B. It is further stated that the M/s JSPL had been procuring Iron Ore (RoM) from SMPL and have paid the total amount of royalty and other taxes on the purchase of said Iron Ore (RoM) and thereafter, processed the same at its processing plant located within the leasehold area of SMPL and such RoM on being processed into Lump Ore and Fines, was stored at the despatch point within the leasehold area of the mine. Such processed Iron Ore/Fine were being despatched by M/s JSPL to its Pelletisation Plant located at Deojhar, Odisha and Integrated Steel Plant at Raigarh, Chhattisgarh. Such transportation of ore was being permitted by the mining authority till 31.3.2014, on which date, the Deputy Director of Mines (DDM) Joda called upon the petitioners to stop transportation of ore.
2. The M/s JSPL addressed various letters to the appropriate authorities seeking permission to remove such Ore and Fines. By letter/order dated 23.6.2014 under Annexure-1, the petitioners’ representation dated 12.5.2014 under Annexure2 seeking grant of permission for transporting Iron Ore procured from SMPL on which royalty had already been paid and admittedly, the processed Iron Ore i.e. Lump Ore and Fines have been stored at the despatch point situated within the leasehold area of SMPL, was rejected. This letter/order dated 23.6.2014 (under Annexure-1) rejecting the petitioners’ representation is the subject matter of challenge in this writ petition.
3. It would be appropriate to take note of the following facts:
(i) The petitioners are engaged in the business of manufacture of steel and steel products at Pelletisation Plant at Deojhar, Odisha and an Integrated Steel Plant at Raigarh in the State of Chhattisgarh.
(ii) This representation had come to be filed for the sole purpose of seeking permission to transport the Lump Ore and Fines which have been produced by processing of RoM by the petitioners purchased from SMPL.
(iii) The SMPL (lessee) has been granted the mining lease vide mining lease dated 14.8.2001 and the said lease remains valid for 20 years i.e. till 13.8.2021. The SMPL (mining lessee) possessed a valid Forest Clearance and Environment Clearance and the respective clearances are noted as hereunder:
(a) The Ministry of Environment and Forest, Govt. of India (in short “MoEF”) vide Letter dtd.21.06.2001 conveyed its approval for diversion of 865.276 Ha. of forest land out of the total lease hold area of 947.046 Ha. of SMPL, under Section 2 of the Forest (Conservation) Act, 1980. Under the said approval SMPL was permitted to conduct mining operation in 249.276 Ha. (where 94.024 Ha. is broken up prior to 25.10.1980, 155.252 Ha. is to be broken up afresh in phases) and 616 Ha. interspersed area to be maintained as forest out of the total diverted forest land of 865.276 Ha; And
(b) Environment Clearance (in short “EC”) was granted by MoEF vide Letter dtd.22.09.2004 for 4 MTPA Iron Ore (lumps) with a validity for 20 years. The said EC dated 22.9.2004 is co-terminus with the period of the mining lease.
Copies of Forest Clearance and Environment Clearance have been annexed as Annexures-17 and 18 respectively.
4. The SMPL had sought for permission from the State Government (O.P. Nos.2 and 3) to sell the Iron Ore (RoM) on ex-mine basis within the leasehold area to M/s JSPL for crushing and sizing as per conditions specified therein. The State Government while granting approval under letter dated 27.03.2004 and 5
