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2022 Supreme(Ori) 466

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R. Sarangi, G. Satapathy, JJ.
Sgs Mines And Industries Pvt. Ltd, Jharkhand & Anr. – Appellants
Versus
State of Odisha & Ors. – Respondents
W.P(C) No. 4504 of 2017 (In the matter of an application under Articles 226 and 227 of the Constitution of India.)
Decided On : 21-09-2022

Advocates appeared:
M/s. S. Nanda, A. Mahanta and K. Ray, Advocates, for the Appellant; Mr. P.P. Mohanty, Addl. Govt. Advocate [O.Ps.No.1-2] Mr. P.K. Parhi, ASGI [O.P. No. 3], for the Respondent

Headnote:(A) Mines and Minerals (Development and Regulation) Act, 1957 - Section 15 - Odisha Minor Mineral Concession Rules, 2016 - Rule 4(12) - Writ petition for prospecting license declared ineligible under new rules - Ultra vires claim rejected; rules not inconsistent with Constitution. (Paras 1, 29, 58)

(B) Right and Eligibility - No vested right created for pending applications until prospecting license granted - Delay not constituting grounds for accrued rights. (Paras 20, 24, 58)

(C) Regulatory Framework - New rules aim for transparency in mineral concessions through competitive bidding; not arbitrary or unjust. (Paras 25, 26)

Facts of the case:
The petitioner company sought a prospecting license for granite over an area of 19.90 Hectares, claiming eligibility under prior rules which became inapplicable with the enactment of new rules. (Paras 1, 2, 58)

Findings of Court:
No irregularity or illegality found in disqualifying pending applications under the new rules; no fundamental rights violated. (Paras 26, 58)

Issues: Whether the new amendment rules rendered the applicant ineligible for the prospecting license; argument of accrued rights due to application pending processing. (Paras 1, 58)

Ratio Decidendi: The court reasoned that legislative and regulatory compliance necessitated the ineligibility of pending applications under new rules with competitive introduction, thereby reinforcing the necessity for adhering to updated provisions. (Paras 26, 58)

Result: Writ petition dismissed.

JUDGMENT

Dr. B.R. Sarangi, J. - This is a writ petition, by means of which, a direction has been sought to the opposite parties to grant prospecting license to the petitioner-company for decorative stone (granite) over an area 19.90 Hectare in village-Gunthapada in the district of Ganjam, by declaring Rule-4(12) of the Odisha Minor Mineral Concession Rules , 2016 (OMMC Rules, 2016) as ultra vires to the provisions of Mines & Minerals (Development & Regulation) Act, 1957 (MMDR Act, 1957) and Article 19(1)(g) of the Constitution of India, so far as it relates to grant of prospecting license for Granite field under the provisions of Odisha Minor Mineral Concession Rules , 2004 read with Granite Conservation and Development Rules, 1999 (GCD Rules, 1999), and by further declaring Rule 4(4) of the OMMC Rules, 2016 as inconsistent with and repugnant to Rule-4 of the GCD Rules, 1999, so far as it prescribes reconnaissance permit prior to grant of prospecting license and Rule-4(12) renders applications for prospecting license prior to commencement of the Rules as ineligible, being ultra vires to Articles-14, 19(1)(g) and 21 of the Constitution of India.

2. To succinctly put, the factual matrix of the case, is that petitioner no.1 is a company incorporated under the Companies Act, 1956 and is engaged in the business of production of granite. Petitioner no.2 is Director of the petitioner-company and representing it in this writ petition. The petitioner-company filed an application for grant of prospecting license for granite over an area 19.90 Hectare in village-Gunthapada of district-Ganjam in prescribed Form 'A' under Rule-9 of the OMMC Rules, 2004 before the Director of Mines- Opposite Party No.2, along with application fees of Rs.1000/-, as stipulated in the OMMC Rules, 2004, which was also duly received by the department and receipt of acknowledgement was issued in prescribed Form 'C'. On receipt of the said application, the Mining Officer, Ganjam Circle, Berhampur, on 20.04.2016, requested to the Tahasildar, Aska and Divisional Forest Officer, Ghumusara, Bhanjanagar to submit their report with regard to nature of land involved. Whereafter, the Tahasildar, Aska and DFO, Ghumusara in turn directed their subordinates, namely, Revenue Inspector and Range Officer respectively to furnish the details of the land. On 12.08.2016, the Range Officer furnished a report to its superior and in turn the same was forwarded to the Mining Officer for further action. On 22.08.2016, the Revenue Inspector and Range Officer furnished the details of the land. The DFO, Ghumusara, South Division, vide letter dated 28.09.2016, submitted his report in respect of the subject land. Although the Revenue and Forest authorities furnished their respective reports, from revenue point of view and forest point of view, the law requires that if upon directions to submit report the same are not received within a period of two months, it shall be deemed that the concerned authorities do not have any objection. Therefore, despite lapse of two months, even though the concerned authorities did not furnish their reports, but still the petitioner-company's application was not forwarded for further action, it is deemed that the said authorities did not have any objection.

2.1 It appears that the entire exercise has been taken up by the Department in active consideration of the application of the petitioner-company under the provisions of OMMC Rules, 2004 and had the application been processed strictly in accordance with the time frame prescribed under the OMMC Rules, 2004, the petitioner could have been granted the lease much prior to commencement of the OMMC Rules, 2016. When the application dated 08.04.2016 of the petitioner- company for grant of prospecting license was under active consideration, the State of Odisha in the Department of Steel and Mines, in exercise of powers conferred under Section 15 of the MMDR Act, 1957 and in supersession of the provisions contained u

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