Rajiv Kumar Trading Company vs State of Haryana

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(P&H) 3338

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
LISA GILL, RITU TAGORE, JJ.
M/s. Rajiv Kumar Trading Company – Petitioner
Versus
State of Haryana & Ors. – Respondents
CWP NO. 4211 of 2023(O&M)
Decided On : 29-03-2023

Advocates Appeared:
Mr.R.S.Khosla, Sr. Advocate with Ms. Bhavti Pujara, Advocate; For the Petitioner
Mr. Ankur Mittal, Addl.AG., Haryana with Mr. Saurabh Mago, AAG., Haryana.

Headnote:(A) Haryana Minor Mineral Concession, Stocking and Transportation of Minerals and Prevention of Illegal Mining Rules, 2012 - Rule 95 and Rule 97(3) - Deactivation of e-Rawaana Portal of mineral dealer due to alleged illegal practices - Allegations led to FIRs and subsequent cancellation of dealer license without proper hearing. The Director's failure to record reasons prior to suspension contravenes the procedural safeguards in Rule 97(3). (Paras 10, 19, 22)

(B) Administrative action - The authority must document satisfaction for taking interim measures, especially when serious consequences follow. Rule 97(3) stipulates the requirement for due process in interim actions against mineral dealers. (Paras 16, 21)

Facts of the case:
The petitioner, a mineral dealer, faced e-Rawaana Portal deactivation allegedly due to illegal activities, leading to registration of FIRs and cancellation of the dealer's license. Petitioner contended that actions were taken without proper procedure.

Findings of Court:
The court found that the Director acted without sufficient record or justification, mandating that interim measures be duly documented.

Issues: The proceedings questioned whether the suspension of the e-Rawaana Portal and cancellation of the dealer license violated procedural fairness under applicable rules.

Ratio Decidendi: The court emphasized that for any interim order, the Director must demonstrate due consideration and compliance with procedural law.

Result: Writ petition disposed of; petitioner directed to pursue appeal under Rule 109.

Table of Content
1. petitioner's claim and incidents leading to deactivation. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. court's initial observations on procedural fairness. (Para 7 , 8 , 9 , 10)
3. arguments regarding unfair cancellation of mdl. (Para 11 , 12)
4. legal provisions governing mineral dealer's licenses. (Para 13 , 14 , 15 , 16 , 17 , 18 , 19)
5. directive on handling interim orders and appeal process. (Para 20 , 21)
6. conclusion and directives for future actions. (Para 22 , 23 , 24)

JUDGMENT

Lisa Gill, J. (Oral)

Petitioner in this writ petition claims to be a proprietorship concern engaged in the business of sale of minor minerals at District Yamuna Nagar, Haryana.

2. Present writ petition has been filed as the petitioner is aggrieved of deactivation of its e-Rawaana Portal which is stated to be in violation of the provisions of the Haryana Minor Mineral Concession, Stocking and Transportation of Minerals and Prevention of Illegal Mining Rules, 2012 (for short 'the State Rules').

3. It is stated that the petitioner was granted Mineral Dealer License (MDL) No. DMG/HY/MDL-1111 dated 12.05.2020 by respondent no.2-Director General, Mines and Geology, Department, Govt., of Haryana. License was granted for the purpose of stock and sale of minerals. Said license, valid from 12.05.2020 to 12.05.2025 was granted for the purpose of stock and sale of minerals. Petitioner was registered with the e-Rawaana Portal system of Mines and Geology Department, Haryana. It is stated that petitioner was conducting its business in consonance with and in terms of the applicable rules and conditions of the license. Minerals were purchased by the petitioner only from authorized mining contractors of the department and all purchase was made through e-Rawaana Portal account of petitioner as was the sale of minerals.

4. It is stated in communication dated 20.01.2023, Annexure P-5, from Assistant Mining Engineer, Mines & Geology Department, Yamuna Nagar to the Director, Mines & Geology Department, Haryana, Panchkula that owner of vehicle, registration number of which is mentioned therein, complained that e-Rawaana was issued by the petitioner on 01.01.2023 for his vehicle whereas said vehicle had never been loaded with mineral from District Yamuna Nagar. Similar complaint qua petitioner was received from owner of another vehicle. Statedly, illegal practice of e-Rawaana to vehicles which were physically not present and showing dispatch/sale of minerals were being issued by the petitioner, which resulted in registration of FIR No. 269 dated 09.12.2022.

5. It is stated that in an unjustified manner, a case was registered on 09.12.2022 under Sections 120-B, 420 IPC, at Police Station Buria, District Yamuna Nagar. As per FIR, secret information was received to the effect that petitioner was selling boulder, gravel and sand by loading minerals in vehicles from a place other than the place fixed at village Mukarampur, whereas issuance of e-Rawaana Pass as well as loading of minerals in vehicles is shown to be done at village Mukarampur and subsequently e-Rawaana Pass is cancelled. Inspection was carried out by the department on 09.12.2022 and FIR registered with the allegations that e- Rawaana Portal system of the Mining Department was being misused and petitioner was indulging in unlawful enrichment by causing loss to the State Exchequer. Premises were inspected by the CM Flying Squad. Respondent no.3 i.e., the Assistant Mining Engineer, vide communication dated 16.12.2022 requested for closure/deactivation of e-Rawaana Portal of the petitioner. Another FIR i.e., FIR No. 9 dated 10.01.2023, under Sections 420 , 468, 471 IPC was registered at Police Station Buria, District Yamuna Nagar, wherein allegations of misuse of registration details of vehicles of the complainant therein were raised.

6. Show cause notice dated 27.01.2023, Annexure P-6, was issued by the Director, Mines and Geology, Haryana. It is stated that reply to said notice was submitted by the petitioner o