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Hindustan Copper Limited Through Its General Manager Mines Sri Deb Kumar Choudhury Vs. State of Jharkhand Through Its Secretary Department of Mines and Geology and Ors - Court Judgment

SooperKanoon Citation
CourtJharkhand High Court
Decided On
AppellantHindustan Copper Limited Through Its General Manager Mines Sri Deb Kumar Choudhury
RespondentState of Jharkhand Through Its Secretary Department of Mines and Geology and Ors
Excerpt:
.....of the mineral concession rule, 1960, the state government was  required   to   issue   notice   to   the   applicant/lessee   directing   the  applicant to supply the omission or furnish the document which  was   required   for   consideration   of   the   renewal   application  however,   no   notice   as   contemplated   under   rule   26   (3)   was  issued   to   the   petitioner.     for   the   first   time,   in   the   counter­ affidavit filed in the present proceeding, the respondent­state of  jharkhand has raised  a plea that the application for 3rd renewal  of the mining lease is incomplete. faced with this situation, the .....
Judgment:

1 IN THE HIGH COURT OF JHARKHAND AT RANCHI     W.P. (C) No. 4991 of 2014   ­­­­­­ Hindustan Copper Limited,  a Government of India Enterprise, Kolkata, West Bengal …  Petitioner                                     Versus 1. State of Jharkhand through its Secretary,      Department of Mines and Geology,     Government of Jharkhand, Ranchi  2. Dy. Secretary to the Government,      Department of Mines and Geology,      Government of Jharkhand, Ranchi  3. Assistant Mining Officer, East Singhbhum      Jamshedpur  ... Respondents   ­­­­­­­    CORAM : HON'BLE MR. JUSTICE SHREE CHANDRASHEKHAR     ­­­­­­     For the Petitioner     : Mr. R. Venkatramani, Sr. Advocate      Mr. A.K. Mehta, Advocate      Mr. Alok Kumar, Advocate For the Respondents    : Mr. Ajit Kumar, A.A.G. For the Intervenor     :Mr. Indrajit Sinha, Advocate        ­­­­­­ C.A.V. on 21/11/2014          Pronounced on  28/11/2014 Challenging orders dated 03.09.2014 and 06.09.2014 and  seeking  a  direction  upon  the  respondents to  immediately  and  forthwith  grant   extension   allowing  the   petitioner  to   work   the  mines for a period of atleast 1 year or any lesser period within  which the renewal of mining lease be executed in favour of the  petitioner, the present writ petition has been filed.  2. The petitioner is engaged in the business of raising  Copper  ore from Surda Copper Mines, in respect of which, the  predecessor in interest of the petitioner was granted a mining  2 lease   at   Mosabani   on   16.6.1939.   Under   Section   3(1)   of   the  Indian   Copper   Corporation   (Taking   Over   of   Management)Act,  1972   the   management  and  undertaking  of   the  Indian   Copper  Corporation   Limited was taken over   and stood transferred to  and   vested   in   the   Central   Government   with   effect   from  21.09.1972. Vide Gazette Notification dated 25.09.1972 all the  properties, assets/liabilities and obligations stood vested in the  Hindustan Copper Limited. The first renewal of Surda Copper  Mine was  with effect from 16.06.1984 for a period of 20 years.  On   05.06.2004,   the   petitioner   submitted   application   for   2nd  renewal of the mining lease which was granted by executing a  formal lease  dated 22.02.2007 w.e.f 16.06.2004 for a period of  10 years. The petitioner submitted application under  the Water  (Prevention & Control of Pollution) Act, 1974 and under  the Air  (Prevention  &  Control of Pollution) Act, 1981 for “consent to  operate”   which   were   duly   granted.   Two   years   before   the   3rd  renewal for the Surda Copper Mine became due on 16.06.2014,  the petitioner submitted its application on 18.03.2013. Before  that, on 21.06.2012,  the petitioner submitted its revised Form­I  before the Expert Appraisal Committee for capacity expansion  and   lease   renewal   and,   the   proposal   was   taken   up   for  consideration   in   28th   meeting   of   the   Expert   Appraisal  Committee.   The   minutes   of   the   28th   meeting   of   the   Expert  3 Appraisal   Committee   dated   21.06.2012   was   uploaded   on   the  official   website   of the  Ministry  of Environment  and Forest  on  21.07.2012.     A   draft   Environment   Impact   Assessment   Report  was   got   prepared   by   the   petitioner   from   MECON.   The  Jharkhand State Pollution Control Board directed the petitioner  to   make   its   technical   presentation   on   30.04.2013   and  accordingly,   the   petitioner   made   technical   presentation   for  Environment Impact Assessment plan for Surda Mining Lease.  The petitioner­company also again approached the Ministry of  Environment and Forests, Government of India vide letter dated  02.01.2014   and   12.03.2014   for   prescribing   T.O.R.   for  environmental   clearance   for   capacity     expansion   of   Surda  Copper Mines.  3. A   counter­affidavit   has   been   filed   on   behalf   of  respondent nos. 1­3 stating that the application for 3rd renewal  of the mining lease for Surda Copper Mines was submitted on  18.03.2013,   which   is   under   consideration   of   the   State  Government.  In view of the amendment in Rule 24 A (6) of the  Mineral Concession Rules, 1960, a direction was issued to the  petitioner to stop mining operations.  The application submitted  by the petitioner was not accompanied with copies of permission  under Forest Conservation Act, 1980 and “consent to operate”  from Jharkhand State Pollution Control Board, Ranchi.   In the  4 supplementary   counter­affidavit,   the   respondent­State   of  Jharkhand  has pointed out that the project of the petitioner has  been   de­listed   by   MoEF   and   the   Jharkhand   State   Pollution  Control Board has refused to renew “consent to operate” order.

4. Heard the learned counsel for the parties.

5.   Mr.   R.   Venkatramani,   the   learned   Senior   counsel  appearing   for   the   petitioner   submitted   that,   though   the  petitioner   applied   for   3rd   renewal   of   the   mining   lease   well  within   time   and   in   the   meantime,   a   favourable   report   from  Indian   Bureau   of   Mines   has   also   been   received   by   the   State  Government, an order in terms of Section 8 (3) of the Mines and  Mineral (Development and Regulation) Act, 1957 has not been  issued  by   the   respondent­State   of  Jharkhand.   It  is  submitted  that the requirement under any other enactment including the  Forest   Conservation   Act,   1980   cannot   be   made   a  pre­condition   for   taking   a   decision   on   the   application   under  Section 8 (3) of the M.M.D.R., Act 1957.  6. Mr.   Ajit   Kumar,   the   learned   Additional   Advocate­ General submitted that in view of the judgment in “M.C. Mehta   Vs.   Union   of   India”  reported   in  (2004)   12   SCC   118,   before  renewal of a mining lease is granted,  a lessee is required to seek  prior environment clearance. The application submitted by the  petitioner­company is not accompanied with the environmental  5 clearances and therefore, no decision on the application  seeking  3rd renewal of Surda Copper Mines can be taken by the State  Government.   7. In reply, the learned Senior counsel for the petitioner  submitted that, once a favourable report from Indian Bureau of  Mines is received indicating that it would be in the interest of  mineral  development  to  grant  renewal  of  the  mining  lease   in  favour of  the  petitioner, all that is required to do is that, the  State   Government   would   issue   an   express   order   authorising  grant   of   renewal   of   the   mining   lease.     Since   the   scheme   of  M.M.D.R. Act and the Rules made thereunder do not postulate  any condition­precedent except, as contained in the Act and the  Rules, the  insistence  of the respondent­State of Jharkhand for  producing   environmental   clearances   and   “consent   to   operate”  order   from   the   Jharkhand   State   Pollution   Control   Board,   is  beyond the power conferred upon the State  Government under  the M.M.D.R. Act or the Rules made thereunder.

8. I   have   carefully   considered   the   submissions   of   the  learned counsel for the parties and perused the documents on  record.  9.              Before adverting to the rival contentions, the order  passed   in   W.P.(C)   No.   5368   of   2014   titled  “Steel   Authority   of   India Limited Vs. the State of Jharkhand and Others”   in which  6 the   scheme   of   M.M.D.R.   Act   and   M.C.   Rules   have   have   been  discussed, may usefully be noticed.  It has been held in the said  case ;  10  “   .........A   conjoint   reading   of   Section   8(3),   Rule   24A   and   the   legislative   intent   running   through the scheme of the MMDR Act, 1957, leaves   no   manner   of   doubt   that   once   the   State   Government   forms   an   opinion   that   it   is   in   the   interest   of   mineral   development   that   an   existing   mining   lease   should   be   renewed,   the   State   Government   would   be   under   a   statutory   duty   to   pass   an   express   order   under   Section   8(3)   of   the   MMDR Act, 1957.........”  10. The petitioner submitted its application   seeking 3rd  renewal of the Surda Copper Mines and in terms of Rule 26 (3)  of the Mineral Concession Rule, 1960, the State government was  required   to   issue   notice   to   the   applicant/lessee   directing   the  applicant to supply the omission or furnish the document which  was   required   for   consideration   of   the   renewal   application  however,   no   notice   as   contemplated   under   Rule   26   (3)   was  issued   to   the   petitioner.     For   the   first   time,   in   the   counter­ affidavit filed in the present proceeding, the respondent­State of  Jharkhand has raised  a plea that the application for 3rd renewal  of the mining lease is incomplete. Faced with this situation, the  learned counsel for the   respondent­State of Jharkhand   relied  on paragraph nos. 76 and 77 of the M.C. Mehta case, which are  reproduced below:

76.   “In Rural Litigation and Entitlement Kendra   7 v.   State   of   U.P   agreeing   with   views   expressed   in   Ambica Quarry Works it was held that the FC Act   applies to renewals as well and even if there was a   provision   for   renewal   in   the   lease   agreement   on   exercise of the lessee’s option, the requirement of the   Act had to be satisfied before such renewal could be   granted.   In   State   of   M.P.   v.   Krishnadas   Tikaram   these two decisions were relied upon and it was held   that   even   the   renewal   of   lease   cannot   be   granted   without   the   prior   concurrence   of   the   Central   Government.   It   is   settled   law   that   the   grant   of   renewal is a fresh grant and must be consistent with   law.

77.  We are unable to accept the contention that   the notification dated 27­1­1994 would not apply   to   leases   which   come   up   for   consideration   for   renewal   after   issue   of   the   notification.   The   notification   mandates   that   the   mining   operation   shall not be undertaken in any part of India unless   environmental clearance by the Central Government   has   been   accorded.   The   clearance   under   the   notification   is   valid   for   a   period   of   five   years.   In   none   of   the   leases   the   requirements   of   the   notification were complied with either at the stage   of initial grant of the mining lease or at the stage of   renewal.   Some   of   the   leases   were   fresh   leases   granted  after   issue of  the notification.  Some were   cases   of   renewal.   No   mining   operation   can   commence without obtaining environmental impact   assessment in terms of the notification.”

11. A reading of paragraph no. 77 makes it clear that,  “no   mining   operation   can   commence”   without   obtaining  environmental   impact   assessment   in   terms   of   the   Notification  dated 27.01.1994 which was superseded by 2006 Notification.  The   Notification   dated   14.09.2006   provides   that   the  construction   of   new  projects  or  activities  or  the   expansion  or  modernization   of   existing   projects   or   activities   shall   be  “undertaken”   in   any   part   of   India,   only   after   the   prior  8 environmental   clearance   from   the   Central   Government   or   the  State   Level   Environment   Impact   Assessment   Authority,   is  obtained.     The   requirement   under   the   notification   dated  14.09.2006   appears   to   be   in   consonance   with   the   direction  issued   by   the   Hon'ble   Supreme   Court   in   M.C.   Mehta   Case.  Though,   it   cannot   be   denied   that   requirement   of   seeking  environmental   clearance   is   applicable   in   cases   of   renewal   of  mining lease however, from a reading of the judgment of the  Hon'ble   Supreme   Court   and   from   the   language   of   2006  Notification   it   appears   that   a   lessee   is   required   to   obtain  necessary   environmental   clearances,   before   it   “commences   its  operation”.   No doubt, there is no express requirement under  the   M.M.D.R.   Act   or   the   Rules   made   thereunder   for   seeking  “prior”   environmental   clearance   for   grant   of   renewal   of   the  mining lease, it is an admitted position that no mining operation  can   be   permitted   without   obtaining   “prior”   environmental  clearance. An order in terms of Section 8 (3) of M.M.D.R. Act,  1957 is a pre­condition for grant of renewal of mining lease and  there is a   live connection between the two stages. Technically,  at the stage of  issuing an order under Section 8 (3) of M.M.D.R.  Act, the requirement of seeking prior environmental clearance  may not be insisted upon however, an  express  order  in terms  of Section 8(3) of M.M.D.R. Act is required to be issued by the  9 State Government  for authorising  renewal of mining lease and  a mining lease cannot be renewed without prior approval of the  environment clearance. The natural corollary of this would be  that no order under Section  8(3) of M.M.D.R. Act can be passed  without prior environment clearance.     Since, the mining lease  cannot   be   renewed in  the  absence  of   environment  clearance  granted to the lessee,  an order under Section 8(3) of M.M.D.R.  Act cannot be issued in vacuum or in anticipation of grant of  environment clearance. As noticed above, in M.C. Mehta case  the Hon'ble Supreme Court has held that at the time of renewal  of lease, the prior concurrence of the Central   Government is  mandatory. In  “Ambica   Quarry Works etc. Vs. State of Gujrat &   Others” reported in AIR 1987 SC 1073, the renewal of the lease  was refused on the ground that after coming into force of the  Forest   Conservation   Act,   1980,   the   same   cannot   be   granted  without   approval   of   the   Central   Government.   The   Hon'ble  Supreme Court has observed thus;  “Where the State Govt. rejected the application   made   after   coming   into   force   of   the   Act,   for   renewal   of   mining   lease,   rejection   being   in   conformity with the purpose  of the Act, was not   open  to challenge notwithstanding the fact that   R.18(b) (i) of the Gujarat Minor Mineral Rules,   1966, provided for renewal of lease.”  12. In    “Divisional   Forest   Officer   and   others   Vs.   S.   Nageswaramma”,  reported  in  (1996)   6   SCC   442,  it   has  been  10 held that Section 2 of Forest Conservation Act, 1980 prohibits  the mining operation if the mines are situated within the forest  area. There is no dispute that the renewal of mining lease for  Surda   Copper   Mines   is   sought   for   non­forest   purpose.   The  leased   area   falls   within   the   reserved   forest   is   an   admitted  position. Thus, grant of mining lease without prior environment  clearance is totally prohibited.

13. Further, I find that though a favourable report from  IBM has been received by the State Government however, as  noticed hereinabove, the State Government is required to form  an opinion that, it is in the interest of the mineral development  and it is necessary to do so, then only, the State Government  can   authorise   the   second   and   subsequent   renewal   of   the  mining lease.  There is no prayer in the writ petition seeking a  direction upon the respondent­State of Jharkhand for taking a  decision in terms of Section 8 (3) of M.M.D.R. Act, 1957 on the  application filed by the petitioner seeking 3rd renewal of the  mining lease for Surda Copper Mines.  14. In  view of the  aforesaid discussion, prayer of the  petitioner cannot be granted at this stage.   The petitioner has  claimed that  it holds all existing mining leases for Copper ore  reserves in India and it is the only Copper mining company in  India.  It is a “zero debt” Public Sector Company in which the  11 holding of the Central Government is 90%.  The Sudra mines is  an   underground   mine   and   mining   is   done   for   captive  consumption.     It  is  asserted that  stoppage  of  work  in   Sudra  mines will cause stoppage of concentrator plant and effect the  functioning of smelter plant.   In so far as, the mining by the  petitioner in Surda Copper Mines is concerned,   it stands on  entirely different footing in as much as, it is the only vertically  integrated Mine in India. The mining operation is conducted  about 470 metres under the ground, below the surface area. An  abrupt   and   sudden   closure   of   mines   may   turn   out   to   be  catastrophic,   once the underground mine  is inundated   with  water.  15. In view of the peculiar facts of the case, I am of the  opinion that  it would serve the ends of justice if, a direction is  issued   that   once   the   petitioner   produces   necessary  environmental clearances, a decision in terms of Section 8 (3)  of   the   M.M.D.R.,   Act   1957   would   be   taken   by   the   State  Government, within a period of 2 weeks.  16. The   writ   petition   is   disposed   of   in   the   aforesaid  terms.     (Shree Chandrashekhar, J.)                                  Jharkhand High Court, Ranchi                      dated 28/11/2014                     Amit/A.F.R


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