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2023 Supreme(All) 2163

IN THE HIGH COURT OF ALLAHABAD
MAHESH CHANDRA TRIPATHI, J.J. MUNIR, JJ.
Principal Secretary Geology & Mining and others - Applicants
Versus
Vinay Kumar Singh - Opposite Party
CIVIL MISC REVIEW APPLICATION NO. 525 OF 2022.
Decided On : 12-05-2023

Advocates appeared:
For the Applicant : Pradeep Kumar Tripathi
For the Opposite Party : Jai Singh Parihar

Headnote:(A) Writ of Mandamus - Refund of Mining Lease Deposit - A mining lease was granted but the petitioner was unable to commence operations due to a boundary dispute with another state - Authority's failure to hand over possession entitled petitioner to a refund with interest - Observations included July 18, 2019 Court order, which highlighted the need for dispute resolution and cessation of royalty claims pending resolution. (Paras 3, 8, 13)

(B) Review Application - Scope - Errors apparent on the face of the record can be rectified in a review - Modification of previous orders may be allowed if substantial changes in circumstances arise. (Paras 4, 5)

Facts of the case:
The petitioner was granted a mining lease on February 13, 2019, but faced restrictions due to a boundary issue with another state that hindered operations. The petitioner had filed several representations seeking redress but received no action from the State.

Findings of Court:
The State failed to meet its obligations regarding possession of the mining site, warranting a full refund of the deposit with interest at 6% per annum.

Issues: The main issues involved the failure of authorities to resolve the boundary dispute and the legality of claiming lease payments without permitting operations.

Ratio Decidendi: The court emphasized that the State's inaction rendered the mining lease unenforceable, necessitating the return of funds deposited by the petitioner.

Result: Review application allowed in part, entitling the petitioner to a refund after deducting amounts for already excavated sand.

Table of Content
1. review application background and mining lease details. (Para 1 , 2 , 3)
2. petitioner's actions and representations made. (Para 4 , 5 , 6)

JUDGMENT

Mahesh Chandra Tripathi, J.

Heard Mr. Pradeep Kumar Tripathi, learned Counsel for the applicants and Mr. Shashi Nandan, learned Senior Advocate assisted by Mr. Jai Singh Parihar, learned Counsel for the opposite party.

2. This review application has been filed for reviewing the judgement and order dated 30.09.2022 passed in Writ - C No. 37749 of 2019, Vinay Kumar Singh v. State of U.P. and others, wherein the Division Bench had proceeded to allow the petition with following observations/directions :

    1. The prayer made in the present petition is for direction to the respondents to refund the amount of 726,65,66,666/- along with interest deposited by the petitioner as the State after awarding the mining lease to the petitioner had not been able to earmark the site and hand over the possession to enable the petitioner to carry out mining operations.

    2. The facts of the case in brief are that a mining lease for total area of 25 hectares in parts of Khasra/Gata No.05 & 09 situated in village-Bilharka, Tehsil-Naraini, District-Banda was executed in favour of the petitioner by the State on February 13, 2019 for carrying out excavation of 5,00,000 cubic meter of sand at the rate of 7527/- per cubic meter for a period of five years on payment of royalty of 726,35,00,000/- for the first year and for subsequent years, with 10% annual increase.

    3. When the petitioner reached at the spot to start mining operations, he was not permitted to do so by the authorities of the State of Madhya Pradesh as some part of leased area was found to be within the State of M.P. Aggrieved, the petitioner filed representation dated February 23, 2019 before District Magistrate, Banda, however, no action was taken thereon. He moved another representation dated March 18, 2019 to the Director, Geology and Mining, U.P. Despite the representations made by the petitioner, demand notice dated April 3, 2019 for a sum of T6,58,25,000/- towards next installment of royalty was issued. Thereafter again, the petitioner moved representation dated April 5, 2019 addressed to the District Magistrate, Banda as well as the Director, Geology and Mining. Another representation dated April 15, 2019 addressed to the Chief Secretary, State of U.P. was also submitted. Owing to inaction on part of the State, the petitioner approached this Court by filing Writ C No. 18794 of 2019 with the following prayers :-

    "(i) To issue a writ of mandamus, order or direction in the nature of Mandamus commanding and directing the State Government U.P., alongwith the State of M.P. settle the boundary dispute in Ken River in Village Bilharka, Tahsil Naraini, District Banda U.P. either through Round Table conference or G.P.S. Survey Methodology and permitting the petitioner to carry mining work in the allotted lease area without illegal interference by State of M.P.

    (ii) To issue a writ of Mandamus, order or direction in the nature of writ of Mandamus commanding and directing the respondents permitting the petitioner to start mining operation in his allotted mining area within map and further directing the State of U.P. till the State of U.P. is not able to settle the dispute with State of M.P., where the boundary dispute is created and the petitioner is not permitted to carry mining operation, the State of U.P. be restrained to realize installment, due Royalty amount and further realization of Royalty and future installment be suspended till petitioner is not permitted to carry mining operation or till the boundary dispute is settled, whichever is earlier.

    (iii) To issue a writ of mandamus, order or direction to the respondents State of U.P. and its subordinate officials (respondent No.1 to 5) either get the area released from the State of M.P. and hand over to the petitioner or return the entire deposited money by the petitioner with 9% int

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