The main legal point established is that the suspension of licenses and permits should be based on a proper inquiry and cannot be arbitrary or based on subsequently clarified observations.

JUDGMENT :

S. Muralidhar, J.

1. Heard Mr. Pinaki Misra, learned Senior Advocate assisted by Mr. A.R. Mohanty, learned counsel for the Petitioners and Mr. A.K. Parija, learned Advocate General assisted by Mr. P.K. Muduli, learned Additional Government Advocate for the State-Opposite Parties.

2. Petitioner No. 1 is a Company engaged inter alia in the business of manufacturing sponge iron, pellet and other steel products in the State of West Bengal, which has two manufacturing units, such as Unit-I and Unit-II. Unit-I is engaged in manufacturing of sponge iron and Captive Power and was issued with a licence on 7th April 2016, by the Joint Director of Mines Joda, Keonjhar, Odisha, which was valid till 6th April, 2021. It was a licence for procurement of Iron ore and coal for processing, end-use and sale of residuals outside the State of Odisha. Unit-II manufactures iron ore pellet and beneficiation of iron ore, for which a licence was issued on 7th April 2016, valid till 6th April, 2021. This licence was for procuring iron ore and manganese for processing, end-use and sale of residuals outside the State. Both the licences stand renewed for further period and the copies of renewed licences have been enclosed with the petition. Incidentally, the renewal was granted on 20th February 2021.

3. There are three monthly return forms, such as Form-A and Form-E under the Orissa Minerals (Prevention of Theft, Smuggling and Illegal Mining and Regulation of Possession, Storage, Trading and Transportation) Rules 2007 (in short 2007 Rules') and Form-L under MCDR Rule, 2017 ('2017 Rules') that were required to be submitted by Petitioner No. 1. Noticing certain discrepancies in the figure in those returns, a show-cause notice (SCN) was issued to Petitioner No. 1 by the Joint Director of Mines, Joda, Keonjhar (Opposite Party No. 3) on 6th January, 2021. The licences were suspended and the transit permits were also cancelled.

4. In response to the SCN, on 12th January 2021, the Petitioner filed a reply enclosing a verified tabulated chart giving the month-wise procurement of iron ore. Another SCN was issued on 25th January 2021 seeking to rescind rescission of the transit permits/licenses. Petitioner No. 1 again filed a reply on 29th January 2021, wherein it pointed out that there was a bona fide clerical error in filling out the figures in the forms.

5. On 10th February 2021, after examining the reply, Opposite Party No. 3 wrote the following letter to Petitioner No. 1:

"xx xx xx

In inviting a reference to the subject cited above, I am to say that in pursuance to letter No. 1123/DM. dt. 10.02.2021 of Director of Mines, Odisha and affidavit submitted by you on 10.02.2021, the suspension order issued for both the units (license code No. 071813429531 & No. 071813429631) vide this office letter No. 87/Mines dtd. 06.01.2021 is hereby revoked.

Further you are instructed to rectify the discrepancies notice in Form-N and Form-L immediately and not to repeat such type of mistake in future."

6. It appears that two days thereafter i.e. on 12th February 2021, the Director of Mines, Government of Odisha (Opposite Party No. 2) wrote a letter to Opposite Party No. 3 inviting reference to the 25th meeting of Reconstituted EAC (Industry-I) of the Ministry of Mines, Government of India (held on 25th-27th November, 2020). The letter noted that a 'fresh observation' had been made by REAC, which prima facie pointed to "irregularities committed by the various entities of the Rashmi Group of Companies and their promoters", which were under investigation of the Ministry of Environment of Forest and Climate Change (MoEF and CC). It then observed "Besides, it is alleged that, there is land transfer by various entities amongst themselves and it is not possible to know where exactly the trade licensee is actually stocking the ore procured. Till the time it is clearly established whether any entity of Rashmi Group has diverted the iron ore fines procured from Odisha to Rashmi Cement Lt