Advocates:
['HS SANDHU', '', 'ASHOK CHOUDHARY', 'SANJEET PUROHIT', 'RR KANWAR']

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT

JODHPUR

S.B. Civil Writ No. 11615/2018

M/s Sangiarai Royalties, Through Its Proprietor Abhimanyu Singh

S/o Babaru Bhan Singh , Age 44 Years R/o Dhani Tejsingh Pura,

Hadla Rawalotan, Hadla Bhatiyan, Tehsil- Kolayat, District-

Bikaner

----Petitioner

Versus

1.

State Of Rajasthan, Through The Principal Secretary,

Mines And Geology Department, Secretariat, Government

Of Rajasthan, Jaipur

2.

The Director, Mines And Geology Department Khanij

Bhawan , Udaipur

3.

The Mining Engineer, Mines And Geology Department,

Bikaner

----Respondents

For Petitioner(s)

:

Mr. B.S. Sandhu & Mr. Sanjeet

Purohit.

For Respondent(s)

:

Mr. R.R. Kanwar, GC.

HON'BLE MR. JUSTICE SANDEEP MEHTA

Judgment

21/08/2018

The respondent Smt. R.R. Kanwar, learned Government

Counsel put in appearance on behalf of the respondents through

caveat. Pleadings have been completed and the matter is ripe for

consideration.

With the consent of the learned counsel for the parties, final

arguments have been heard on the writ petition.

The instant writ petition under Article 226 of the Constitution

of India has been preferred by the petitioner firm named M/s

Sangiarai Royalties for assailing the order (Annexure-11) dated

02.08.2018 issued by the Mining Engineer, Mines And Geology

Department, Bikaner whereby, the contract dated 01.04.2018

(2 of 10)

[CW-11615/2018]

effective from 01.04.2018 to 31.03.2020 awarded to the petitioner

by the State Government for Royalty Collection and Excess Royalty

collection of the minerals dispatched to specified mining areas of

Tehsil Kolayat, District Bikaner was cancelled.

Brief facts relevant and essential for disposal of the writ

petition are reproduced herein below:

Pursuant to the advertisement dated 31.01.2018 issued by

the Mines And Geology Department, State of Rajasthan in this

behalf, the petitioner filed its bid for collection of royalty from the

mining operations at the Tehsil Kolayat, District Bikaner. The bid

submitted by the petitioner to the tune of fifty crore rupees was

ranked highest and accordingly, the royalty collection contract was

awarded to the petitioner from 01.04.2018 to 31.03.2020. An

agreement (Annexure-3) was executed between the Government

of Rajasthan and the petitioner on 26.03.2018. As per terms and

conditions of the contract, the petitioner deposited a huge amount

in excess of rupees 4 crores as the first installment and the

remaining amount was payable in monthly installments.

Simultaneously, while executing the contract, the petitioner also

submitted a bank guarantee to the tune of rupees 5 crores with

the Mining Engineer, Bikaner. It appears that just after the

contract period had commenced, certain misunderstandings arose

between the Central Government and State Government regarding

dump mining and overburden mining from the mines without

procuring the environmental clearance. Accordingly, the

Directorate of Mines And Geology issued a circular dated

01.05.2018 restraining the mine owners from removing the

overburden and dump mineral from their mines till a definite

guideline was received from the Ministry of Environment, Forest

(3 of 10)

[CW-11615/2018]

and Climate Change (hereinafter referred to as ‘the MOEFCC’).

The petitioner started raising a grievance regarding these

restrictions inmposed upon them which had direct impact on the

royalty collection under the contract because the quantity of the

minerals being transited through the operational area was

drastically reduced thereby adversely effecting the royalty

collection of the petitioner. The Mining Engineer, Bikaner issued a

letter (Annexure-7) dated 13.07.2018 to the petitioner intimating

that it should not charge royalty on the overburden minerals and

rather should inform the department regarding any clandestine

attempt of transportation of such mine