IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
Hemant Gupta, CJ, Vijay Kumar Shukla, J.
Ramkumar Sahu - PETITIONER
Versus
State of Madhya Pradesh & others - RESPONDENTS
Writ Petition No. 18818 of 2017, Writ Petition No. 19320 of 2017
Decided On : 15-02-2018
Confiscation - Mines and Minerals - Section 15, Section 23C of the Mines and Minerals (Development and Regulation) Act, 1957 - Summary of Acts and Sections
Fact of the Case:
The court considered the challenge to a Notification issued by the State Government in exercise of powers conferred by Sub-section (1) of Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 substituting Rule 53 of Madhya Pradesh Minor Mineral Rules, 1996. The challenge was based on the argument that the State Government had conferred power of seizure and confiscation on the officers of the State instead of judicial courts established and governed by the Code of Criminal Procedure.
Finding of the Court:
The court found that the provisions of Rule 53 of the Rules enacted by the State fell within the legislative competence of the State Government in terms of Sections 15 and 23C of the Act. The court also clarified that the confiscation of the tools and vehicles in terms of Rule 53 is not a punishment and is distinct from the provisions of imposition of penalty including confiscation and imprisonment in terms of Section 21 of the Act.
Issues: The issues involved in the case were the constitutional validity of the provisions of Rule 53 of the Rules and the separation of judicial and executive functions in the context of confiscation of minerals and vehicles used for illegal extraction and transportation.
Ratio Decidendi: The court held that the confiscation under Rule 53 is not a punishment and is in addition to the offence contemplated under Section 21 of the Act to meet the problem of illegal extraction and transportation of minerals. The court also emphasized that the object of such confiscation proceedings is to stop the menace of illegal transportation of minerals, which has attained gigantic proportions.
Final Decision: The court dismissed the writ petitions, finding that the provisions of Rule 53 of the Rules were within the legislative competence of the State Government and were distinct from the provisions of imposition of penalty and imprisonment under Section 21 of the Act.
Hemant Gupta, CJ.
The question of fact and law involved in both these writ petitions being common, they were heard together and are being disposed of by a common order. However, for the sake of convenience, the facts are taken from W.P. No.18818/2017 (Ramkumar Sahu vs. State of Madhya Pradesh & others).
2. The challenge in both the writ petitions is to the Notification issued by the State Government in exercise of powers conferred by Sub-section (1) of Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 substituting Rule 53 of Madhya Pradesh Minor Mineral Rules, 1996 (for short “the Rules”) published on 18.05.2017 in Madhya Pradesh Gazette. By such amendment, in case of unauthorized extraction and transportation of minor minerals, the penalty is contemplated to be imposed in a graded manner as well as the seizure and confiscation of tools, machines and vehicles used. The substituted provisions read as under:-
"53. (1) Penalty for un-authorized extraction and transportation.-Whenever any person is found extracting or transporting minerals or on whose behalf such extraction or transportation is being made otherwise then in accordance with these rules, shall be presumed to be a party to the illegal mining/transportation, then the Collector or any officer authorized by him not below the rank of Deputy Collector shall after giving an opportunity of being heard determines that such person has extracted/transported the minerals in contravention of the provisions of these rules, then he shall impose the penalty in the following manner, namely:-
(a) On first time contravention, a penalty of minimum 30 times of the royalty of illegally extracted/transported minerals, shall be imposed but it shall not be less than ten thousand rupees.
(b) On second time contravention a penalty of minimum 40 times of the royalty of illegally extracted/transported minerals, shall be imposed but it shall not be less than twenty thousand rupees.
(c) On third time contravention, a penalty of minimum 50 times of the royalty of illegally extracted/transported minerals shall be imposed but it shall not be less than thirty thousand rupees.
(d) On third time or subsequent contravention, a penalty of minimum 70 times of the royalty of illegally extracted/transported minerals, shall be imposed but it shall not be less than fifty thousand rupees.
(2) Forfeiture of minerals in cases of illegal excretion and transportation.-
In respect of the Forfeiture/discharge of the mineral extracted/transported illegally the Collector or any other officer authorized by him not below the rank of the Deputy Collector shall take an appropriate decision. Provided that seized minerals shall not be discharged till the penalty imposed as above is not paid. In case of forfeiture, the seized mineral shall be disposed of through a transparent auction/tender procedure as prescribed by the State Government.
(3) Forfeiture/Discharge of the seized tools, machines and vehicles etc. and disposal of forfeited material through Auction/ Tender.-
(a) In case of illegal extraction, the Collector or any other officer not below the rank of a Deputy Collector, authorized by him shall take an appropriate decision in respect of forfeiture/discharge of tools, machines and vehicles used. Provided that the tools, machines, vehicles and other material so seized shall not be discharged till the penalty imposed as above is not paid. In case of forfeiture, the seized materials shall be disposed of through a transparent auction/tender procedure as prescribed by the State government.
(b) In respect of Forfeiture/Discharge of vehicle carrying mineral extracted/transported without any transit pass the Collector or any other officer not below the rank of Deputy Collector authorized by him shall take an appropriate decision. Provided that tools, machines, vehicles and other materials shall not be discharged till the penalty imposed as above is not paid.
In case of forfeiture the seized material shall
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