1999 (5) TMI 598 - SC - Indian Laws

Supreme Court orders fresh show cause notice & hearing in cancellation case

SAHI RAM Versus AVTAR SINGH & OTHERS Versus STATE OF BIHAR

The Supreme Court directed the Central Government to issue a fresh show cause notice to the respondent within six weeks, detailing all factual material ... - Issues involved: The issues involved in this case include the violation of principles of natural justice by the State of Haryana, the termination of a mining lease, the restoration of the lease by the learned Single Judge without further inquiry, and the subsequent appeal by Sahi Ram challenging the restoration of the lease.Violation of Principles of Natural Justice:The respondent filed a writ petition challenging the revisional order of the Central Government under section 30 of the Mines & Mineral Act, 1957, which terminated the mining lease granted to the appellant. The learned Single Judge held that the State of Haryana violated principles of natural justice by not providing adequate notice to the respondent before terminating the lease. However, instead of remitting the matter back to the State of Haryana, the learned Judge restored the lease without directing further inquiry, which was confirmed in the LPA.Appeal by Sahi Ram:Sahi Ram, who was granted a lease of major mineral during the proceedings, filed an appeal contending that the respondent was guilty of severe breaches, and the orders of the State Government and the Central Government were correct. Arguments were presented by both parties' counsels, and it was suggested that the matter should be referred back to the Central Government for a fresh show cause notice to be issued to the respondent.Fresh Show Cause Notice by Central Government:The Supreme Court directed the Central Government to issue a fresh show cause notice to the respondent within six weeks, outlining all factual material relied upon in the cancellation order of the State of Haryana and the revision order of the Central Government. The notice should also be accompanied by copies of all relevant documents. The Central Government was instructed to allow the appellant, Sahi Ram, to file objections and give a hearing to both parties before passing a reasoned order within four months.Decision and Further Proceedings:The Central Government was tasked with determining whether the breaches and irregularities were committed by the respondent or another party. After the Central Government's decision, the aggrieved parties could file objections in the Court. The matter was listed for further proceedings on a specified date, with the status quo to be maintained until then.