TaxTMI 
TaxTMI 
TaxTMI 
2014 (4) TMI 1075
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.... acres, which was acquired for Bhushan Limited. It had also applied for grant of lease of mining of iron ore for use in the proposed plant. These applications were favourably considered by the State Government which agreed to accord due priority to Bhushan Limited for grant of suitable iron ore areas and also agreed to recommend the proposal to the Government of India for grant of a Coal Block. Even a MOU was entered into between the State Government and Bhushan Limited containing the commitment of the State Government to recommend to the Central Government, grant of iron ore mines for its use in the proposed plant. For this purpose area earmarked for recommendation were Thakurani area with 96 million tonnes iron ore reserves and Keora Area, District Sundargarh for additional 128 million tonnes of iron ore; both for 50 years requirement of the plant. Though various statutory and other permissions required for setting up of the plant were granted and the plant was also set up, but due to some in-fight between the family members who owned Bhushan Limited, it faced difficulties in getting the grant of iron ore lease. 3.In so far as granting of mining lease of iron ore reserves in the....
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.... which certain subsequent developments which have taken place after the passing of the judgment dated 12.3.2012 are traversed. It is highlighted that there are certain other and legal proceedings filed by them are pending at various stages in the High Court or in this Court and the area claimed by them in those legal proceedings overlap with the area which is the subject matter of grant to BPSL. A reference is also made to subsequent judgment in the case of Sandur Manganese & Iron Ore v. State of Karnataka; (2010) 13 SCC 1 which has changed the legal position thereby making it difficult for the State to recommend the case of the petitioner. It is also stated that the issue which is dealt with by this Court in Sandur Manganese (Supra) was not raised in the Writ proceedings/ Civil Appeal of the BPSL. On the basis of the aforesaid averment prayer made in the I.A. reads as under:- "Pass appropriate directions with regard to implementation of the directions contained in final order and judgment dated 14.3.2012 passed by this Hon'ble Court in Civil Appeal No. 2790 of 2012 in so far as it relates to the mining lease applications of the petitioner for an additional 128 million tonnes ....
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.... 15th May, 2002 and has declared that the said MOU was and had always been executed by the State Government in favour of Bhushan Power & Steel Ltd., which had set up its steel plant at Lapanga. As indicated hereinbefore, although, the MOU was entered into by the State Government with the Bhushan Group for setting up a steel plant at Lapanga, at a later stage, BSSL also laid claim under the MOU for setting up a separate steel plant at Mehramandali and a suggestion was also made for execution of a fresh MOU between the State Government and BSSL to this effect." 8. It is the case of the BSL in the present Writ Petition that BSL was a part of the then Bhushan Group. It executed a MOU dated 15.5.2002 with the State of Orissa. Consequent to a family settlement, M/s. Bhushan Steel and Strips Ltd. (BSSL) executed a separate MOA dated 3.11.2005 in which the State of Orissa had identical duties and obligations as those contained in 2002 MOU. On 12.4.2007, BSSL was re-named as BSL herein. It is thus claimed that BSL is identically situated as BPSL and, therefore, the benefit given to BPSL vide judgment dated 14.3.2012 needs to be extended to the BSL as well. The direction in the nature of ma....
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....tare in respect of BPSL. It is also stated that even when recommendation in respect of BPSL in Thakurani area is made by the State Government and approved by the Union of India, recommendation of Jindal Steel is still pending with the State Government. It is thus, pleaded that the case of the petitioner, Jindal Steel, is squarely covered by judgment dated 14.3.2012 passed in C.A. NO. 2790 of 2012 and benefit thereof be extended to this petitioner as well. WRIT PETITION (C) NO. 837 OF 2013 12. This Writ Petition is filed by Shri Mahavir Ferro Alloys Pvt. Ltd. It has also proposed to set up a 0.35 MTPA Captive Integrated Steel Plant with additional facilities and 60 MW Captive Power Plant in Sundargarh district had an overall investment of Rs. 435 crores. This petitioner claims that pursuant to MOU entered into with the State Government for grant of mining leases, it had submitted its application in this behalf. However, more than 10 years have elapsed but the State Government has not recommended its case, primarily because of status quo orders passed by this Court in C.A. NO. 2790 of 2012. It is pointed out that for this reason this petitioner has already filed I.A. No. 2 in I.A. ....
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....dergarh, to meet a requirement of 1.6. million tonnes for 50 years. 15. It is not necessary to set out the detailed facts which have been noted in judgment dated 14.3.2012, pertaining to the grant of permissions by various authorities enabling BPSL to get the land, electricity, permission for installation of a Captive Power Plant etc. etc. Armed with those permission, the BPSL set up the plant in Lapanga in the district of Sambalpur, Orissa. BPSL claims that is has invested Rs. 25,000 crores in this project. It is further mentioned that for running of this steel plant, uninterrupted supply of iron ore is essential. This plant was set up in a backward area of Orissa persuant to the scheme of the State Government. It is for this reason that the State Government agreed to grant mining rights of iron ore reserves, keeping in view a total requirement of 200 million tonnes over a period of 50 years for the smooth running of the said plant. For this reason MOU dated 15.5.2002 was entered into. Since the grant of mining lease is by the Central Government under the Mining Act, State Government which is a recommendatory authority had agreed to recommend the case of the BPSL. There was deadl....
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....te within the Bhushan Group, which could have led to the rethinking on the part of the State Government, have now been laid to rest by virtue of the settlement arrived at between the Bhushan Limited (now BPSL) and BSSL. The State Government has also accepted the said position. In addition to the above, the action taken by the State Government appears to us to be highly unreasonable and arbitrary and also attracts the doctrine of legitimate expectation. There is no denying the fact that the Appellants have altered their position to their detriment in accordance with the MOU dated 15th May, 2002. whatever may have been the arrangement subsequently arrived at between the State Government and BSSL, the original MOU dated 15th May, 2002, continued to be in existence and remained operative". 17. In so far as reserve of 96 million tonnes of iron ore in Thakurani mines are concerned, the State Government had made the recommendation to the Central Government, which has also approved the same in favour of the BPSL. The dispute now relates to Keora mines for a reserve of 128 million tonnes. 18. Respondents/ Contemners do not dispute (and in fact there is no scope for any dispute) that the a....
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....er Rule 59(1) of the Mineral Concession Rules, 1960 deserve simultaneous consideration. As per the mandate of Section 11(4) of the MMDR Act, the State Government may grant a mining lease over a notified area to such one of the simultaneous applicants after considering the matters specified in sub-section (3) of Section 11. The process of simultaneous consideration of the applications filed over Khajhurdihi R.F. In Sundergarh and Rakma, Marsuanand Tiriba of Keonjhar district had remained stalled due to the various stay orders passed in litigations concerning such area. Subject to the orders, if any, passed by this Hon'ble Court in this application, the process of simultaneous consideration of applications will take considerable time in view of the large number of overlapping applications over the areas in question. Each of these applicants is required to be given an opportunity of personal hearing and credentials of these applicants are required to be evaluated for assessment of relative merits in terms of Section 11(3) of the MMDR Act." 19. It is thus, argued that the developments narrated above and the statutory mandate embodied in Section 11(4) of the MMDR Act, 1957 have c....
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....oner was not eligible. On the other hand, the Division Bench of Karnataka High Court upheld the right of the petitioner which became final. 11. Question is whether it is open to the respondent to take at this stage this volte-face step. It is seen that all through Government was a party, when the direction was given in LA. No. 3 filed by the petitioner, it was not brought to out notice that the petitioner was not eligible for promotion, in contradiction with Dasegowda, or any other. When the claim inter se had been adjudicated and the claim of the petitioner had become final and that of Dasegowda was negatived, it is no longer open to the Government to go behind the order and truncate the effect of the orders passed by this Court by hovering over the rules to get round the result, to legitimise legal alibi to circumvent the orders passed by this Court. Thus, it is clear that the concerned officers have deliberately made concerted effort to disobey the orders passed by this court to deny the benefits to the petitioner. So, we are left with no option but to hold that the respondent has deliberately and wilfully, with an intention to defeat the orders of this Court, passed the impugn....
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.... parties, which has become final. Even when the Civil Appeal was being heard, certain other parties claiming their interest in these very lands had moved intervention applications which were dismissed. At that time also it was mentioned that there are 195 applicants. However, notwithstanding the same, this Court issued firm directions to the State Government to recommend the case of the petitioners for mining lease in both the areas. In view of such categorical and unambiguous directions given in the judgment which has attained finality, merely because another judgment has been delivered by this Court in Sandur Manganese case, cannot be a ground to undo the directions contained in the judgment dated 14.3.2012. In so far as law laid down in Sandur Manganese (Supra) is concerned, that may be applied and followed by the State Government in respect of other applications which are still pending. However, that cannot be pressed into service qua the petitioner whose rights have been crystallised by the judgment rendered in its favour. It cannot be re-opened, that too at the stage of implementation of the said judgment. 25. We would like to place on record the arguments of learned Senior ....
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....ne. It is exercised in a summary manner in aid of the administration of justice, the majesty of law and the dignity of the courts. No such act can be permitted which may have the tendency to shake the public confidence in the fairness and impartiality of the administration of justice". 27. As a consequence, we hold that the Respondents/ Contemners are in contempt of orders dated 14.3.2012 passed by this Court in not complying with the directions in respect of Keora area. However, we are giving one final opportunity to them to purge the contempt by transmitting requisite recommendations to the Central Government. It would be for the Central Government to consider the said recommendations on its own merits and in accordance with law. In case the recommendation is sent within one month from the date of copy of receipt of this order, we propose not to take any further action and the respondents/ contemners shall stand discharged from this Contempt Petition. However, in case the respondents do not purge in the manner mentioned above, it would be open to the petitioners to point out the same to this Court by moving appropriate application and in that event the Contemners shall be procee....