IN THE HIGH COURT OF ALLAHABAD
SIDDHARTHA VARMA, SHEKHAR B. SARAF, JJ.
Maa Vindhya Stone Crusher Company – Appellant
Versus
State of U.P. and Another – Respondents
Writ C No.25003 of 2023
Decided on : 21-11-2023
Mining Lease - Violation of Rules - Uttar Pradesh Minor Minerals (Concession) Rules, 2021 - Rules 3 and 58
Fact of the Case:
The petitioner was granted a mining lease for 10 years but received a notice alleging illegal mining outside the leased area. The District Magistrate cancelled the lease and blacklisted the petitioner without considering their reply, leading to a writ petition.
Finding of the Court:
The Court found that the District Magistrate violated the principles of natural justice by not waiting for the petitioner's reply, and set aside the order cancelling the lease.
Issues: Violation of natural justice, cancellation of mining lease without considering the petitioner's reply.
Ratio Decidendi: Non-compliance with the principles of natural justice is sufficient to set aside an order, as observed in previous judgments.
Final Decision: The order cancelling the lease was set aside, and the petitioner was given the opportunity to submit a fresh reply and receive a personal hearing within a specified timeframe.
JUDGMENT :
1. The petitioner was granted a mining lease for 10 years commencing from 15.7.2016 and ending on 14.7.2026 for the purpose of mining and crushing stone. The petitioner for the purposes of conveyance etc. was also issued Form -MM-11 and regularly OTPs were provided for effective use of the MM-11 Forms.
2. On 17.7.2023, while the petitioner was still operating his mines as per the mining lease dated 15.7.2016 he received a notice on his E-mail Id where the allegation was that illegal mining had been done by him outside the area for which the mining lease was granted and, therefore, he had violated the Rules 3 and 58 of the Uttar Pradesh Minor Minerals. (Concession) Rules, 2021. This notice itself had raised a demand of Rs. 1,70,06,000/-. As the petitioner was finding the notice arbitrary, he filed the instant writ petition.
3. When the writ petition was filed, this Court had asked the learned Standing Counsel to take instructions. However, on 10.8.2023, this Court directed the petitioner to file a reply to the notice. This order was passed in the presence of the learned Standing Counsel. The order dated 10.8.2023 itself says that the learned Standing Counsel was to inform the Court as to under what provision of law the OTP of the petitioner had been stopped. For the sake of convenience the order dated 10.8.2023 is being reproduced here as under:-
"Place this case on 21.8.2023 as fresh. On that date learned Standing Counsel may inform as to under what provision of law the OTP of the petitioner has been stopped without there being any order to that effect. In the meantime, the petitioner may reply to the notice.
If the petitioner files a reply, his right to challenge the show-cause notice shall still be there."
4. The petitioner, it has been averred in the writ petition which was amended after 10.8.2023 that the petitioner had served the order of this Court along with the reply on the District Magistrate. It has been stated that after the order dated 10.8.2023 was loaded on the website of the High Court on 11.8.2023, he could serve the order only on 14.8.2023 as 12.8.2023 was a second Saturday and 13.8.2023 was a Sunday. It has been stated that on 14.8.2023 the District Magistrate did not accept the reply and informed the petitioner that since an order had already been passed on 14.8.2023 vis-a-vis the notice dated 17.7.2023 and the lease of the petitioner had been cancelled along with the order of blacklisting for two years, there was no requirement to take the reply. The petitioner, thereafter, filed an amendment application which was allowed. The order dated 14.8.2023, thus, is also challenged in this writ petition.
5. On 5.10.2023 when it was brought to the notice of the Court that the order of cancellation of the lease of the petitioner had been passed on 14.8.2023 without considering the reply, the Court had directed the District Magistrate, Sonbhadra, to file his personal affidavit. It may be stated that the petitioner had brought to the notice of the Court the fact that after the order dated 10.8.2023 was passed, the petitioner had made all efforts to file the reply as early as possible. In fact, in the writ petition it has been categorically explained why the order of this Court was served only on 14.8.2023. It has been informed by the petitioner that when it came to knowledge of the petitioner that the District Magistrate on the 14.8.2023 itself had passed the order, he had challenged the same on the ground that the order was passed in gross violation of the principles of natural justice. The Court, upon being informed about the manner in which the order was passed, on 5.10.2023, had passed the following order :-
“A show cause notice was issued to the petitioner on 17th July, 2023 with regard to some illegal mining. It was emphatically stated in the show cause notice that either the petitioner pays the amount of Rs.1,70,00,000/ or he would show cause. While the show cause notice was yet to be replied to and a punish
AI
The cancellation of the mining lease was found to be in accordance with the statutory provision of Rule 25(5) of the Orissa Minor Mineral Concession Rules, 2004.
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The Deputy Commissioner exceeded jurisdiction by terminating a mining lease without proper delegation and violating natural justice principles.
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