Order(Oral)

Per: Arun Monga, J.

In I.A. No.1/2019:-

1. The matter comes upon an application under Section 5 of the Limitation Act, 1961, seeking condonation of delay in filing the appeal.

2. For the reasons stated in the application, the delay of 14 days in filing the appeal is condoned. The application stands disposed of, accordingly.

In D.B. Special Appeal (Writ) No.282/2019:-

1. The present Special Division Bench Appeal arises out of the judgment and final order dated 08.12.2016 passed by the learned Single Judge in S.B. Civil Writ Petition No. 10566/2015, whereby the writ petition was allowed and the orders dated 13.05.2013 passed by the Mining Engineer, Mines & Geology Department, Pratapgarh whereby the mining lease of the respondent was cancelled and the possession of the mining lease was taken over and dated 26.08.2015, passed by Joint Secretary, whereby the order dated 13.05.2013 was affirmed, were set aside, with a consequential direction to the appellants to restore possession of the leased mining area to the respondent–lessee.

2. The relevant facts, in brief, are that the respondent was granted a mining lease for minor mineral (marble) in the year 1996 for a period of twenty years under the Rajasthan Minor Mineral Concession Rules, 1986 (hereinafter referred to as “the 1986 Rules”). During the subsistence of the lease, the respondent carried on mining operations.

2.1 During the audit of records of the Office of the Assistant Mining Engineer, Banswara, conducted by the Accountant General, Rajasthan in the year 2011–12, an objection was raised alleging violation of Rule 15 of the 1986 Rules, on the premise that the respondent had entered into a partnership firm. Acting upon the said audit objection, the department initiated proceedings and issued communications culminating in a notice dated 12.10.2012, followed by a demand notice dated 15.10.2012, raising a demand of Rs. 18,25,99,209/-.

2.2 The respondent challenged the said demand notice by filing writ petition being S.B. Civil Writ Petition No.11607/2012.

2.3 Thereafter, the department proceeded independently and after considering the matter, respondent No.4- Mining Engineer passed an order dated 13.05.2013, cancelling the mining lease on the alleged violation of Rule 15 of the 1986 Rules and directing resumption of possession.

2.4 Thereafter, the respondent filed revision petition before the Joint Secretary, Mining Department which was dismissed vide order dated 26.08.2015. The respondent thus, challenged the orders dated 13.05.2013 and 26.08.2015 by filing S.B. Civil Writ Petition No.10566/2015.

2.5 Meanwhile, the learned Single Judge allowed the petition No.11607/2012 and set aside the demand notice dated15.10.2012, vide order dated 02.12.2016.

2.6 Subsequently, The learned Single Judge, vide order dated 08.12.2016, allowed the writ petition, holding that the entire action of the department was founded solely upon the audit objection, which had subsequently been withdrawn by the Accountant General, Jaipur vide letter dated 23.02.2016. Consequently, the demand notice as well as the orders cancelling the lease were quashed, and the appellants were directed to restore possession of the lease area to the respondent. The relevant extract of impugned order is reproduced herein below:

It is not disputed before this Court that the said mining lease was cancelled in pursuance to the same audit objections on the basis of which, the demand notice dated 15.10.2012 was issued and has since been set aside. It is also not disputed that the mining lease was cancelled on the basis of the same audit objections which have been dropped by the Accountant General, Jaipur. Thus, the very basis of the cancellation of the lease deed does not survive.

In view of the admitted position, the present writ petition is allowed and the order dated 13.5.2013 as well as the order dated 26.8.2015 are set aside with a direction to the respondents to restore the possession of the lease to t