HIGH COURT OF ALLAHABAD
B.M.Lal, R.K.Mahajan
RAMESHWAR
Versus
ZILA ADHIKARI
Decided On : 19 February 1996
Civil Misc. W. P. No. 3659 of 1996
MINERAL CONCESSION - RENEWAL OF PERMIT - INTERPRETATION OF RULE 55 OF U. P. MINOR MINERALS (CONCESSION) RULES, 1963 - MAXIMUM PERIOD FOR EXCAVATION IS THREE MONTHS - RENEWAL OF PERMIT NOT PERMITTED AFTER EXCAVATION OF PERMITTED QUANTITY - RENEWAL AGAINST PUBLIC INTEREST.
Fact of the Case:
Petitioner was granted a permit to excavate "morum" for three months. Before the expiry of the permit period, the petitioner had excavated the entire permitted quantity. Despite this, the respondent authorities renewed the permit for an additional month. The petitioner challenged the renewal of the permit, arguing that it was illegal and against the provisions of Rule 55 of the U. P. Minor Minerals (Concession) Rules, 1963 (the Rules).
Finding of the Court:
The court held that the renewal of the permit was illegal and against the provisions of Rule 55 of the Rules. The court interpreted Rule 55 to mean that the maximum period for excavation is three months, and that the permit expires once the permitted quantity of "morum" is excavated, whichever is earlier. The court further held that the renewal of the permit was not in the public interest, as it deprived other potential bidders of the opportunity to participate in the tender process.
Issues: Whether the renewal of the permit was legal and in accordance with the provisions of Rule 55 of the Rules.
Ratio Decidendi: The court relied on the plain interpretation of Rule 55 of the Rules, which states that the permit is valid until the date of expiry specified in the permit or till the permitted quantity of "morum" is removed, whichever is earlier. The court also relied on the principles of public interest and transparency in public contracts, as laid down by the Supreme Court in various judgments.
Final Decision: The court allowed the petition and quashed the impugned order renewing the permit. The court also directed the Secretary (Mining), Government of U. P. to take necessary action in the matter.
The petitioner has moved this writ petition seeking a writ in the nature of certiorari quashing the impugned order dated 22-1-1996 passed by the respondent No. 1 (annexure No. 2 to the writ petition) and he also seeks a writ in the nature of mandamus commanding the respondent No. 1 not to allow the respondent No. 3 to to excavate "morum" as the renewal of permit dated 22-1-96 is bad in law and not in consonance with the Rule 55 of the U. P. Minor Minerals (Concession) Rules, 1963 (hereinafter referred to as the Rules ).
2. This writ petition has arisen out from the following facts. Admittedly the petitioner was granted permit on 8-11-1995 for three months to excavate 45755 cubic meter "morum" on payment of royalty of Rs. 5,49,060 from 8-11-1995 to 7-2-1996, in area Koro Kanak, pargana Muttor, district Fatehpur. At the time of grant ing permit there were other applicants also who competed with the petitioner.
3. It is alleged that on 6-1-1996 Mining Inspector inspected the area and found that Sri Gopi Nishad, respondent No. 3 had excavated 1908 cubic meter "morum" more than that he was permitted to excavate and the report was submitted on 10-1-1996 to the respondent No. 1. On 11-1-1996 an order was issued to the respondent No. 3 asking him to stop excavation immediately and deposit Rs. 22,896 for excess excavation of morrum than mentioned in the original permit. A copy of the aforesaid letter dated 11-1-1996 (annexure No. 1 to the writ petition) was also sent to the S. H. O. PS Lalauli, Fatehpur with a direction to stop the mining operation of Sri Gopi Nishad, respondent No. 3. The aforesaid letter was received by the respondent No. 3 on 12-1-1996. It appears that according to allegation in para No. 7 of the writ petition Sri Gopi Nishad stopped excavation as a result of police intervention on 12-1-1996. It is alleged that according to Rule 55 of the Rules ex cavation had been completed of the requisite quantity allowed in the original per mit. A new permit under Rule 55 or extension of the same could not have been allowed and as such the order dated 22-1-1996 (annexure No. 2 to the writ petition) allowing the respondent No. 3 by Zila Adhikari, Fatehpur, respondent No. 1 is illegal, arbitrary and collusive and deserves to be quashed.
4. The respondent No. 3 filed counter-affidavit and stated that he had filed objections on 12-1-1996 against the reports of the mining Inspector and later on he also filed an application dated 12-1-1996 before the District Magistrate, Fatehpur to grant him mining permit vide annexure No. CA-1 and CA-2 of the counter-af fidavit. It is also alleged that mining permit was issued to respondent No. 3 for 10,000 cubic metres "morrum" on payment of royalty of Rs. 1,40,000 vide annexure No. CA-3 to the counter- affidavit and the respondent No. 3 deposited the amount and he is entitled to excavate morrum upto 7- 2-1996. The plea of respondent No. 1 that fresh application could not be invite as the period of three months has not expired as envisaged under Rule 55 of the Rules as it was to come to an end on 7-2- 1996. Since the Government was to suffer a loss to permit was given again for a month considering that the State would suffer a loss of huge royalty. The permit holder was allowed on the same permit upto 7- 2-96 to excavate more quantity of "morrum on payment of royalty as per Rules. There is interesting development in this case that Rameshwar has filed an application that he has not filed the petition and nor engaged the counsel. Learned counsel for respondent No. 3 has argued that the application has been filed by imposter so it should be rejected outrightly. The only short question for determination is the interpretation of Rule 55 of the Rules.
5. The plea of the petitions is that once the excavation of requisite quantity of "morrum" is complete, permit expires and the maximum period for excavation is three months and if earlier it is excavated new permit cannot be issued or The
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