IN THE HIGH COURT OF UTTARAKHAND AT NAINITAL
Alok Singh, J.
THDC India Ltd. & Anr. - Petitioner
Versus
State of Uttarakhand and others - Respondent
Writ Petition Nos. 832 & 826 (MS) of 2013 and 1399 (MS) of 2008
Decided On : 26.05.2014
Mining Operations - Tehri Dam Construction - Mines and Minerals (Development and Regulation) Act, 1957, Section 3(d), 4, 21 - The court discussed the definition of 'mining operations' under Section 3(d) and the requirement to obtain a mining lease under Section 4. It emphasized that the excavation for the purpose of raising underground construction without the intention to extract minerals does not amount to mining operations, and thus, the mining lease/license was not required. The court also referred to a Supreme Court case to support the ownership of subsoil/mineral wealth following the ownership of the land.
Fact of the Case:
The State Government sought to recover royalty and penalty from the petitioners for illegal mining of minerals within Tehri Dam and Koteshwar Dam areas without obtaining the required mining lease/license under the Mines and Minerals Act.
Finding of the Court:
The court held that the excavation for the purpose of raising underground construction without the intention to extract minerals does not amount to mining operations. It quashed the orders/notices issued by the State Government for the imposition of penalty and recovery of royalty.
Issues: The main issue was whether the excavation for the construction of the dams amounted to 'mining operations' under the Mines and Minerals Act, and whether the State Government could levy royalty and penalty for the same.
Ratio Decidendi: The court emphasized that the requirement to obtain a mining lease is necessitated only when excavation is done for the purpose of extracting minerals. It also highlighted the principle that the ownership of subsoil/mineral wealth should normally follow the ownership of the land.
Final Decision: The court allowed all the writ petitions, holding that the State Government is not competent to levy or recover any royalty and penalty from the petitioners for the excavation of the dam sites for the purpose of construction.
Alok Singh, J.
Learned counsel for the petitioners submits that he does not want to press CLMA Nos. 4954/2014, 5305/2014, 4966/2014 and 4967/2014, therefore, same are dismissed as not pressed.
2. In all the writ petitions identical questions of law and fact are involved, therefore, with the consent of learned counsel for the parties, all the writ petitions were heard together and are being disposed of by this common judgment.
3. About 6 decades ago, Tehri Dam for the purpose of generating electricity was dreamed of. After different surveys, the site was finalized and lands of different habitants were acquired for the purpose of construction of Tehri Dam. Land so acquired was handed over to Tehri Dam Project. Earlier, entire project was going on under the supervision and management of Irrigation Department of Uttar Pradesh. Initial construction work was done by the Irrigation Department of U.P., however, in the month of July, 1988, the Tehri Hydro Development Corporation was constituted/incorporated. THDC, Government of India and Government of Uttar Pradesh, agreed that 12% of the generated electricity shall be supplied to the State of U.P. free of cost. For the purpose of construction of Tehri Dam, huge chunk of land was dug and ultimately, Tehri Dam, as dreamed of, came into existence. The State Government decided to recover the royalty and penalty from the petitioners saying petitioners were involved in illegal mining of minerals within Tehri Dam and Koteshwar Dam areas without taking mining lease/license, as required under Section 4 of the Mines and Minerals (Development and Regulation) Act, 1957, therefore, were liable to pay royalty and penalty under Section 21(5) of the Act. Feeling aggrieved, petitioners have approached this Court by way of filing present writ petitions.
4. The short question involved in all the petitions is, as to whether digging of the land for the purpose of underground construction or for the purpose of construction of dam would amount to “mining operations”?
5. Section 3 (d), 4 and 21 of the Act, 1957 are being reproduced hereunder:
“3 (d) "mining operations" means any operations undertaken for the purpose of winning any mineral;
Section 4 - Prospecting or mining operations to be under licence or lease
(1) [No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, as the case may be, of a mining lease, granted under this Act and the rules made thereunder]:
Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the terms and conditions of a prospecting licence or mining lease granted before the commencement of this Act which is in force at such commencement:
[Provided further that nothing in this sub-section shall apply to any prospecting operations undertaken by the Geological Survey of India, the Indian Bureau of Mines, [the Atomic Minerals Directorate for Exploration and Research] of the Department of Atomic Energy of the Central Government, the Directorates of Mining and Geology of any State Government (by whatever name called), and the Mineral Exploration Corporation Limited, a Government company within the meaning of section 617 of the Companies Act, 1956:]
[Provided also that nothing in this sub-section shall apply to any mining lease (whether called mining lease, mining concession or by any other name) in force immediately before the commencement of this Act in the Union Territory of Goa, Daman and Diu.]
[(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with the provisions of this Act and the rules made thereunder.]
(2) [No reconnaissance permit, prospecting licence or mining lease] shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder.
[(3) Any St
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