The State's duty to ensure accuracy in auctioned mining areas and provide hindrance-free access to mining sites justifies refund in case of discrepancies or hindrances.

JUDGMENT

M.S. Ramachandra Rao, J. (Oral) - In this Writ Petition, petitioner is seeking refund of amount of security and earnest money of Rs.6,07,82,390/- along with compound interest at the rate of 24% per annum from the date of deposit till the date of realization.

2. The State of Punjab has issued an auction notice with regard to certain sites of mining on 13.6.2017 vide Annexure P1. Petitioner was successful for the mining area of Ailgran. Provisional approval was issued to the petitioner vide Annexure P2 on 7.7.2017 for Rs.6,07,82,390/- paying the yearly contract money.

3. Thereafter, the General Manager-Cum-Mining Officer wrote to the Director, Ministry of Environment and Forest, New Delhi vide Annexure P3 dt. 28.8.2017 for transfer of environmental clearance certificate in favour of the petitioner. The same was however effected only on 27.12.2017 vide Annenxure P4.

4. According to the petitioner, the Government of India had granted the environmental clearance to the Government of Punjab for a period of five years vide letter dt.28.6.2013. The clearance, therefore, lapsed on 28.6.2018, and so the petitioner could not do mining.

5. The petitioner completed all the formalities as required as per guidelines of the Mines and Minerals Regulation and Development Act, 1957, and the Punjab Minor Mineral Rules, 2013.

6. The petitioner contends that he discovered that material to be mined in the area allotted to the petitioner was much less than what was projected in the auction notice, and he made a representation Annexure P7 dt.16.2.2018 to respondent No. 1 for reassessment from the concerned department regarding the material available at the site.

7. The State of Punjab then wrote to the Deputy Commissioner vide Annexure P8 dt.4.5.2018 directing the Site Appraisal Committee to visit, and report within ten days, by taking along the petitioner.

8. Thereafter, the Site Appraisal Committee visited the spot, and inspection was carried out, and the report was prepared, and sent to the Deputy Commissioner.

9. The petitioner contends that the said report indicates that the total mineable material available was only 7861.8081 tons while in the auction notice the respondent had indicated that the available mineral was 23,000 tons per annum, which could be mined. He also contends that the said report indicated that most of the area mentioned in the auction notice was not even mineable.

10. The petitioner therefore made representation (Annexure P-10) on 21.9.2018 to respondent No. 1 to take action in accordance with the latest site appraisal report. In the meantime, the environmental clearance, which was granted by the Government of India itself expired in June, 2018, and fresh clearance was not obtained.

11. The petitioner, therefore, seeks refund of the amount of Rs.6,07,82,390/- from the respondents since petitioner's representation Annexure P-12 dt. 8.4.2019 seeking the said refund was not disposed of. Reply was filed by the Executive Engineer-Cum-District Mining Officer, Rupnagar (respondent No. 5) opposing grant of relief to the petitioner.

12. There is no denial in the reply about the findings recorded in Annexure P-9 by the mining Site Appraisal Committee as to the quantum of mineral available in the site which was allotted to the petitioner in the auction.

13. It is contended by the respondents that the petitioner had raised the issue after lapse of more than seven months from the date of grant of provisional acceptance of his bid through a letter dt. 16.2.2018, and so the petitioner was at fault in making request for reassessment belatedly. It is contended that petitioner should have made such request for reassessment immediately after provisional acceptance. It is stated that the petitioner's contract needs to be cancelled as he is late in applying for final acceptance.

14. It is also contended that a Site Appraisal Committee calculated total available material as Rs. 1.2 lakh tons as extractable quantity of 23,000 tons, and that the site was