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ORISSA HIGH COURT
OMEGA ENTERPRISES JHARSUGUDA – Appellant
Versus
STATE OF ODISHA – Respondent
JUDGMENT :
HARISH TANDON, CJ.
1. The petitioner has challenged the several demand notices issued by the authorities claiming the additional charges in respect of Sarandamal Stone Quarry solely on the ground that the foundation of the levy of the additional charges taking shelter under Rule 39 of the Odisha Minor Mineral Concession Rules, 2016 (for short “the OMMC Rules”) is per se illegal.
2. Undisputedly, on the basis of an application of the petitioner, the lease of the said Sarandamal Stone Quarry under Lakhanpur Tahasil was executed in favour of the petitioner for a period of five years from the year 2018 to 2023. The petitioner observed all the formalities and the paraphernalia, required in execution of the lease deed to operationalize the Stone Quarry, including the payment of additional charges contemplated under Rule 32(3) of the OMMC Rules. According to the petitioner, the impugned demand notices are per se illegal, infirm and liable to be quashed and set aside as the authority cannot invoke a particular provision of the statute, which is not applicable to the persons like the petitioner.
3. On the other hand, a plea of demur is taken by the learned Additional Standing Counsel
The court held the authority's demand for additional charges under Rule 39 was illegal as it applies only to government organizations, ruling that extension of such provisions to private leaseholders....
The imposition of additional charges under the Odisha Minor Mineral Concession Rules is restricted to government organizations, rendering demands against private lessees illegal.
The court reaffirmed the authority of state governments to impose penalties under minor mineral concession rules, emphasizing that such penalties are lawful per Sections 14, 15, and 21 of the MMDR Ac....
The court validated the authority of the state to impose penalties for unauthorized quarrying, establishing compliance with statutory rules as per the MMDR Act.
Administrative authorities must apply the principle of equality under Article 14, ensuring consistent and fair treatment, particularly in cases of similar circumstances and rights related to governme....
The issuance of a demand notice without providing an opportunity for a hearing violates the principles of natural justice, necessitating its annulment and remand for proper inquiry.
Subordinate legislation must align with the parent Act; regulations exceeding authority are invalid. Royalty payment under mining laws can only be for minerals actually removed or consumed.
Point of Law : MMDR Act, 1957, though takes away power of State to make laws under Entry 23 of List II, by S.15 of MMDR Act, power to regulate quarry leases, mining leases or other mineral concession....
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