TaxTMI 
TaxTMI 
2013 (3) TMI 613
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.... interested private parties in terms of Rule 59 of the Mineral Concession Rules, 1960 for grant of prospecting licenses and mining leases in respect of the said blocks. The exercise was, it appears, intended to boost the economy of the State by ensuring optimum utilisation of its mineral reserves and in the process generating employment opportunities for the predominantly tribal population inhabiting the two districts of the State. The invitation to apply for leases and to set up steel plants was open to all leading steel manufacturers. 4. In response to the advertisement notice applications were received from different parties including one filed by respondent-Mesco Steels Ltd. These applications appear to have been evaluated, culminating in a conditional recommendation made by the State Government in favour of the respondent-company. One of the conditions which the State Government imposed in exercise of its power under Rule 27 (3) of the Mineral Concession Rules, 1960 required that the lessee shall set up two full-fledged Steel Plants within a reasonable time to be intimated by the lessee at the time of issue of the terms and conditions for the grant of the proposed mining le....
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...., District Jajpur, Orissa which was expected to be commissioned by April/May, 1999. The State Government eventually sanctioned the grant of a lease in favour of the respondent-company to the extent indicated earlier in terms of its order dated 17th March, 1999. 7. By a letter dated 19th June, 2000 addressed to the respondent-company the State Government pointed out that the company had failed to submit the required mining plan and obtain the approval of Ministry of Environment and Forest, Government of India, in regard to forest land involved in the proposed mining lease despite extension of time allowed to the respondent-company by the Government in terms of its letter dated 11th October, 1999. The State Government further pointed out that on account of the company's inaction in the matter of setting up the proposed two steel plants, IDCO had initiated action for cancellation of allotment of 3100 acres of land allotted in favour of MESCO Kalinga Steel Plant, the sister concern of the respondent-company, for the proposed steel plant, captive power plant and township. The letter in that backdrop invited the respondent-company for a personal hearing in terms of Rule 26(1) of the M....
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....mn 7 of the D.L.C. report to which effect an affidavit had also been filed before this Court by the State Government. It was also mentioned that the Mining Officer had reported that an area measuring 692.6953 hectares out of the surveyed and demarcated area of 802.6678 hectares came under forest land which attracted the provisions of Forest Conservation Act, 1980. Clearance from the Ministry of Environment and Forests, Government of India, was, therefore, absolutely necessary for execution of any mining lease in respect of the said area and till such time this essential pre-condition was not fulfilled, the execution of the lease deed was not legally permissible. By another letter dated 19th September, 2006, the Director of Mines recommended re-allocation of resources based on the requirement of iron ore for the existing steel plant set up by the respondent-company. It was further recommended that the respondent-company should not be permitted to carry on any trading activity in iron ore removed from the area to be allocated in its favour based on its actual requirement for the existing unit. 10. Aggrieved by the said inter-departmental communication the respondent-company filed ....
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....U.U. Lalit, learned senior counsel, made a three-fold submission before us. Firstly, he contended that the writ petition filed by the respondent-company was manifestly premature as the Government had not taken any final decision that could have been challenged by the respondent-company nor was the writ petition, according to the learned counsel, maintainable against a mere inter-departmental letter dated 19th September, 2006, which did not by itself finally decide any right or obligation of the parties so as to furnish a cause of action to the respondent to challenge the same in the extra ordinary writ jurisdiction of the High Court. Secondly, it was contended that even if the letter could be described as a final decision taken by the State Government in regard to the reduction of the lease area, the respondent-company ought to have taken recourse to proceedings under Section 30 of the Act before the Central Government instead of rushing to the High Court in a writ petition. Thirdly, it was contended that the very issue of a show cause notice to the respondentcompany suggesting reduction of the lease area after assessment of the actual requirement by reference to the plant already ....
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....vedi that the requirement of an approved mining plan which was one of the conditions for the grant of lease had already been complied with while the execution of a lease deed could be made subject to the clearance of the project and the grant of a no objection by the Ministry of Environment and Forest under Section 2 of the Forest (Conservation) Act, 1980. The order passed by the High Court could to that extent be modified, argued Mr. Dwivedi. Inasmuch as the High Court had not taken note of the requirement of such clearance being essential not only under the Act aforementioned but also because of the directions issued by this Court in T.N. Godavarman Thirumulkpad v. Union of India & Ors. (1997) 2 SCC 267, it had no doubt committed a mistake but that did not warrant, setting aside of the entire order passed by the High Court. 13. We have given our anxious consideration to the submissions made at the bar. The following questions, in our opinion, arise for determination: (1) Whether the writ petition filed by the respondentcompany was premature, the same having been filed against an inter-departmental communication that did not finally determine any right or obligation of the p....
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....vour of the respondent so as to render the process of issue of show cause notice for hearing the respondent-company an exercise in futility. On the contrary, the issue of the show cause notice setting out the reasons that impelled the Government to claim resumption of a part of the proposed lease area from the respondent-company clearly suggested that the entire process leading up to the issue of the show cause notice was tentative and no final decision on the subject had been taken at any level. It is only after the Government provisionally decided to resume the area in part or full that a show cause notice could have been issued. To put the matter beyond any pale of controversy, Mr. Lalit made an unequivocal statement at the bar on behalf of the State Government that no final decision regarding resumption of any part of the lease area has been taken by the State Government so far and all that had transpired till date must necessarily be taken as provisional. Such being the case the High Court was in error in proceeding on an assumption that a final decision had been taken and in quashing what was no more than an inter-departmental communication constituting at best a step in the ....
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.... by the respondent-company, we may to the credit of Mr. Dwivedi, learned senior counsel appearing for the respondent-company, mention that he did not seriously challenge the validity of the notice on the ground of jurisdiction. Mr. Dwivedi fairly conceded that the State Government could, in appropriate situations, exercise the option of recalling or modifying its recommendations but contended that the present case did not present a situation that could justify such a recall. 18. We do not propose to make any comment or express any opinion to the merits of the show cause notice. So long as the notice is not without jurisdiction as indeed it does not appear to be so, the question whether the grounds taken in the same provide a good basis for proposed action can be left open for the Government to decide. All that we need say is that learned counsel for the parties made detailed submissions in regard to the grounds given in the notice and the validity thereof from their respective points of view and in support of their respective versions. Some of these grounds and submissions were quite attractive also. But so long as the matter is yet to be examined by the State Government, we con....