TaxTMI 
TaxTMI 
1988 (8) TMI 420
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....ery innocuous manner as public interest litigation. The number of parties inflated both under the orders of the Court and on application to be added. Apart from the Governments of the Union and of Uttar Pradesh, several governmental agencies and mining lessees appeared in the proceedings. What initially appeared to be two simple applications for limited relief got expanded into a comprehensive litigation requiring appointment of committees, inspection and reports in them from time to time, serious exercises on the part of the mine owners before the committees, filing of affidavits both original and further, and lengthy arguments at the Bar.These also necessitated several comprehensive interlocutory directions and orders. These two writ petitions are being disposed of by this common judgment. On August If, 1983, this Court appointed a Committee for inspection of the mines with a view to securing assistance in the determination as to whether safety standards laid down in the Mines Act of 1952 and the Rules made thereunder have been followed and whether there was any danger of landside on account of quarrying operations particularly during the rainy season, and if there was any ....
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....v Committee and the Working Group were unanimous in their view that the lime stone quarries classified in category A by the Bhargav committee Report and category I by the Working Group were suitable for continuance of mining operations. So far as the lime stone quarries in category C of the Bhargav Committee Report are concerned, they were regarded by both the Bhargav Committee and the Working Group as unsuitable for continuance of mining operations and both were of the view that they should be closed down. The only difference between the Bhargav Committee and the Working Group was in regard to lime stone quarries classified in category B." This Court had also appointed an Expert Committee consisting of Prof. K.S. Valdia, Mr. Hukum Singh and Mr. D.N. Kaul to enquire and investigate into the question of disturbance of ecology and pollution and affectation of air, water and environment by reason of quarring operations or stone crushers and setting up of lime stone kilns. Mr. Kaul and Mr. Hukum Singh submitted a joint report with reference to various aspects indicated in their order of appointment while Prof. Valdia submitted a separate report. In the order of March 12. 1985, this ....
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....dance with the scheme and if so, subject to what conditions and if it cannot be allowed to be operated, the reasons for taking that view. The Bandyopadhyay Committee in making its report will take into account the various aspects which we had directed the Bhargav Committee and the Kaul Committee to consider while making their reports including the circumstances that the particular lime stone quarry may or may not be within the city limits of Mussoorie and also give an opportunity to the concerned lessee to be heard, even though it be briefly. " Several mining lessees submitted their schemes which were examined by the Committee but none of them was cleared. Objections against rejection of the schemes had been filed before this Court by many of the aggrieved lessees. It was directed in the aforesaid order of 12th March, 1985, that until the Bandyopadhyay Committee cleared the particular mines for operation, mining activity in regard to all mines covered within the purview of examination by that Committee would stop. This Court, however, allowed A category mines located outside the city limits to operate. While directing closure of the Shasradhara area B category mines and all t....
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....y utilised only in special industries having regard to its quality and should not be wasted by being utilised for purposes for which this special grade lime stone is not required. Keeping these aspects in view, the Government of India in the Ministry of Environment and Forests, Department of Environment, Forests and wildlife, constituted a Committee to examine the working of the lime stone mining operations in the Doon Valley by its memorandum No. J-20012/48/86-1A, dated 30th of December, 1986, which was also called the Working Group. Shri D.N. Bhargava was nominated as Chairman and the Committee had three other members, namely, Shri V.C. Verma, Director General, Mines Safety, Dhanbad; Prof. B.D. Dhar, Department of Mining Engineering of the Banaras Hindu University, Varanasi; and Shri R. Mehta, Principal Scientific Officer, Department of Environment, Forest and Wildlife, New Delhi. Shri Verma was substituted by Shri N. Mishra, Deputy Director General, Northern Zone. The terms of reference of the Committee were: (i) Whether the operations are being carried out on scientific lines? (ii) Whether the limestone quarried is being supplied to end-users as stipulated by the Supre....
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....reached the top and mining operations have been started but not work on reclamation of mined out area has yet commenced. A proper disposal yard for stocking debris must be provided so that the present practice of disposing it near the camp office on the bank of the violet is prevented. Details of arrangements for controlling dust both in mining and crushing operations are not available." UPSMDC is the largest of the working mines and apart from the fact that it belongs to the Government of Uttar Pradesh, it has also the largest of investment. It has been claimed before us on its behalf that it operates most scientifically and satisfies all the requirements appropriate fOr ecological and environmental safeguards. The Report of the Committee, extracted above, negatives all these claims. (ii) We shall now refer to M/S Punjab Lime and Limestone Company which has two mines both of which are working. Lease No. 14 covers 44.5 hectares and is a lease for 20 years from 1966; as such it has already expired. Lease No. 96 is for 28.92 hectares and would expire in December, 1989. Lease No. 14 had two areas and this Court disallowed mining in the Northern block. The Committee found that 16.4 ....
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....ank of Bhitarli river and the lease expired on 2nd December, 1982. The Committee found that he had no environment management plan. The working plan submitted by the Iessee did not show any plantation area. The last of the working mines which the Committee visited is that of Shri C.G. Gujaral. The Iease was for 24.16 hectares and expired on 17th December, 1983. The Committee found that the Iease area contained very good forest. The rolling of scree/debris along the slopes had left not only ugly scars but also resulted in destruction of the green cover. The debris flow has also choked the Sansaru nullah which once used to be a perennial stream. There was no environmental management plan. In fact the Committee came to the conclusion that the working of this mine was not conducive to the environmental conservation. We have in another part of this judgment indicated our conclusion that mining activity as a whole should be stopped in the Doon Valley but for the reasons indicated therein, we have also come to the conclusion that the three mining lessees who have been operating under valid lease may be permitted to work subject to such conditions as have been indicated. Keeping the r....
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....ew that the lime stone quarries falling within category A of the Bhargav Committee Report and/or category 1 of the Working Group Report and falling outside the city limits of Mussoorie, should be allowed to the operated subject, of course, to the observance of the requirements of the Mines Act, 1952, the Metalliferous Mines Regulations, 1961 and other relevant statutes, rules and regulations. Of course when we say this, we must make it clear that we are not holding that if the leases in respect of these lime stone quarries have expired and suits or writ petitions for renewal of the leases are pending in the courts, such leases should be automatically renewed. It will be for the appropriate courts to decide whether such leases should be renewed or not having regard to the law and facts of each case. So, far as the lime stone quarries classified in category A in the Bhargav Committee Report and category 1 in the Working Group Report and falling within the city limits of Mussoorie are concerned, we would give the same direction which we are giving in the next succeeding paragraph in regard to the lime stone quarries classified as category B in the Bhargav Committee Report." The arg....
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....ning leases outside the city Iimits were only exempted from further scrutiny and not released from the proceedings. Our order of 18th December, 1986, left certain aspects to be considered by the State and immediately the Central Government responded by appointing the second Working Group. We would like to reiterate what we have already said in the order of 19th of October, 1987, that the examination by this Court when it made the order of 12th March, 1985, omitted to consider the impact of the Forest (Conservation) Act of 1980 which was then a statute in force. If the provisions of the Conservation Act had been noticed and impact thereof for the continuance of mining activity had been considered, perhaps the Court would have made no exemptions and no mining may have been permitted. Besides, if the Court really intended to release the A category mines outside the city limits, it could very well pronounce that in clear terms. In view of what we have indicated above, it is difficult to accept the stand taken by some of the lessees and by Mr. Nariman appearing for the intervener that a final order has been by this Court in regard to the A category mines outside the city limits of....
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....vision has been made by law but that rule is not attracted in the present situation in these cases. Besides it is a rule of practice and prudence and not one of jurisdiction. The contention against exercise of jurisdiction advanced by Mr. Nariman for the intervener and reiterated by some of the lessees before this Court must stand overruled. We shall now briefly indicate reasons in support of our conclusion mentioned in the order of October 19, 1987, that mining in this area should be stopped. Kalidas, the greatest of the Indian poets, sang the praises of the Himalayas in 'Meghadoot' by describing it as the loftiest mountain on earth surface located on the north of the country. The Himalayan ranges apart from operating as a natural seal on the northern border against intruders, have influenced the climate, culture, ecology and environment of the sub continent. These are the ranges from where originate several perennial rivers like the Ganges and the Yamuna. These two rivers which mingle at Allahabad and later flow into the Bay of Bengal as one river have built up what is known as the gangetic belt-the most fertile part of lndia. The lcgendary tradition of our culture is deepl....
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....equest of the past generations to the present. Lime stone deposits if excavated and utilised get exhausted while if forests are exploited, there can be regeneration provided reafforestation is undertaken. Trees, however, take time to grow and ordinarily a 15 to 25 year period is necessary for such purpose. We have already indicated that several expert Committees appointed by this Court have opined generally against continuing the mining activity in the Valley. The Second Working Group found in as late as 1987 that limited mining in the on-going mines was not congenial to ecological and environmental discipline. This Court by its order on October 19, 1987, (AlR 1987 SC 2426) called the Union of India: "..... to place before the Court on affidavit the minimum total requirement of this grade of lime stone for manufacture of quality steel and defence armaments. The affidavit should also specify as to how much of high grade ore is being imported into the country and as to whether other indigenous sources are available to meet such requirement. This Court would also require an affidavit from responsible authorities of the Union of lndia as to whether keeping the principles of ecolo....
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....iginal leases of the working mines are over. It is time to turn to the contention relating to forests. Air and water are the most indispensable gifts of Nature for preservation of life. Abundant sun-shine together with adequate rain keeps Nature's generating force at work. Human habitations all through the Ages have thrived on river banks and in close proximity of water sources. Forests have natural growth of herbs which provide cure for diseases. Our ancestors knew that trees were friends of mankind and forests were necessary for human existence and civilization to thrive. It is these forests that provided shelter for the 'Rishies ' and accommodated the ancient 'Gurukulas'. They too provided food and sport for our forefathers living in the State of Nature. That is why there is copious reference to forests in the Vedas and the ancient literature of ours. In ancient times trees were worshiped as gods and prayers for up-keep of forests were offered to the Divine. In the Artharva Veda (5.30.6) it has been said: "Man's paradise is on earth; This living world is the beloved place of all ; It has the blessings of Nature's bounties ; Live in a lovely spirit." In due cour....
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....relevant amendments in Uttar Pradesh. Laying the railway track and providing sleepers therefor required clearing of forest areas and cutting down of trees. During the Second World War Indian forests were very badly mauled for various defence purposes. By the time India became independent it had about 2 per cent of the earth's land area, 1 per cent of productive forest area 15 per cent of world's population and 10 per cent of world's animal life-a situation indicative of the fact that there was acute deficit of forest area. The Government of lndia declared its National Forest Policy in 1452 which laid down that forests should occupy 33 per cent of the land surface as against 23 per cent then attention was intended to the bestowed for expansion of forests in each of the Five-Year Plans that followed with a view to rehabilitating the forests. The demand occasioned by the growing population and the spread of economic development and consequent demand of timber as raw material as also feul led a excessive exploitation of the forests and consequent clearing of forest areas notwithstanding the declared of National Forest Policy. It is interesting to note that the national per cap....
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.... million tonnes of soil is washed away every year in floods. With that go 6.0 million tonnes of nutrients-more than the amount that is applied in the form of fertilisers." We shall now deal with legislative measures to preserve the forests and impact of such provisions on mining after briefly referring to the legislative power in regard to forests. "Forest" was initially a State subject covered by Entry 19 in List II of the Seventh Schedule: In 1976, under the 42nd Amendment the entry was deleted and entry 17-A in the Concurrent List was inserted. The change from the State List to the Concurrent List was brought about following the reallsation of the Central Government that forests were of national importance and should be placed in the Concurrent List to enable the Central Government to deal with the matter. The same amendment of the Constitution brought in Article 48-A in Part IV providing thus: "The State shall endeavour to protect and improve the environment and to safeguard the forests and wild life of the country." Article 51-A in Part IV-A of the Constitution inserted by the same amendment provided a set of fundamental duties and clause (g) runs thus: "It shal....
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....n laid in Chapter II in respect of reserved forests. Section 3 vests power in the State Government to reserve forests. The process for reservation of forests starts with section 4 and ends up with the final declaration under section 20. Section 27 vests power in the State Government to declare a forest to be no longer reserved. As noticed earlier, notwithstanding the regulatory provisions in the Forest Act of 1927 and the Government's National Forest Policy of 1952, forests generally got rapidly depleted. To meet this alarming situation the Forest (Conservation) Ordinance of 1980 was promulgated by the President and the Ordinance was followed by the Forest (Conservation) Act of 1980. The statement of objects and reasons, as far as relevant, point out: "Deforestation causes ecological imbalance and leads to environmental deterioration. Deforestation had been taking place on a large scale in the country and it had caused widespread concern. With a view to checking further deforestation the President promulgated on the 25th October, 1980, the Forest (Conservation) Ordinance, 1980. The Ordinance made the prior approval of the Central Government necessary for dereservation of f....
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....ewal of the quarry leases. It will lead to further deforestation or at least it will not help reclaiming back the areas where deforestations have taken place. In that view of the matter, in the facts and circumstances of the case, in our opinion, the ratio of the said decision State of Bihar v. Banshi Ram Modi, [ 1985] 3 SCC 643 cannot be made applicable to support the appellants' demands in these cases because the facts are entirely different here. The primary purpose of the Act which must subserve the interpretation in order to implement the Act is to prevent further deforestation. The Central Government has not granted approval. ......" The ratio of the decision of this Court in Stare of Rajasthan v. Hari Shankar Rajindra Pal, [l965] 3 SCR 402 has obviously no application to the facts of this case. In Banshi Ram Modi' case (supra) what was being considered was extension of the leases for another mineral which was found while exploitation, under the existing mining lease was undertaken. We agree with the view expressed by Brother Mukharji that the Conservation Act of 1980 applies to renewal as well and even if there was a provision for renewal in the lease agreement on exercis....
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....arious aspects at different times. An order made by this Court to nullify the decrees in such circumstances would not be violative of the principles of natural justice. Apart from the notice contained in the Court's Order of 19th October, 1987, where it had been specifically stated that this Court was of the view that mining in the Doon Valley area should be totally stopped. the position was also made clear to different parties in course of the hearing which continued for several weeks. We, therefore, hold that if any decree or order has already been obtained from any court relating to renewal of these Ieases, the same shall stand vacated and similarly any appeal or other proceeding taken to obtain a renewal or against orders/decrees renewal shall also become nonest. We shall now turn our attention to the consideration as to whether mining should be totally stopped outright or in a phrased manner. In our order dated 14th October, 1987, we had categorically indicated that mining in this area has to be stopped but instead of outright closing down total mining operations we were of the view that mining activity may have to be permitted to the extent it was necessary in the inter....
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....Meghalaya. The deposits outside U.P. have not, however, been prospected/explored in detail. Detailed exploration of these deposits is necessary for the preparation of mining and environmental manageement plants before definite assessment of the extent of production of LD-grade from these deposits can be determined. Jaisalmer being the most favoured deposit should be explored on priority. All the same. prima facie availability pattern of the LD-grade limestone from various deposits is in given in Table III Location 1989-90 1994-95 1999-2000 Gotan 400 800 800 Jaisalmer'r 200 800 1000 Lambidhar 240 450 450 Barkot - - 1000 Solan - 500 1000 Meghalya - 200 500 Katni/Satna 2000 2500 3000 Total 3840 5250 7750 Requirement 3130 5240 7750 Surplus, Deficit (-290) (Subject to broad gauge link with Jaisalmer) 3.5 Data furnished by the six mine owners whose quarries are operating shows that a total of 1,73.768 tonnes has been supplied to the steel plants from Dehradun-Mussoorie area during 1986 which is approximately 25% ....
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.... the technical group constituted by the State and Union Governments since 1979 have consistently recommended only controlled mining in this area. The Technical Expert Committee constituted by the Honourable Supreme Court under the Chairmanship of Shri D.N. Bhargav examined all the operating quarries and came to the conclusion that all of them, to a larger of smaller extent, have violated the statutory provisions relating to mines. Conditions in some of the mines were considered to be so bad that 20 of these were closed immediately in 1983. The Committee, under the Chairmanship of Shri D. Bandy-opadhyaya examined the Mining and Environmental Management Plans prepared by parties and came to the unanimous conclusions that none of there plans are satisfactory. Therefore, the Bandyopadhyaya Committee strongly recommended that none of the mines reviewed by it should be allowed to operate. It is relevant to reiterate here that closure of these mines has been recommended by the Bandyopadhyaya Committee not just on the ground that they are located within the Mussoorie city limits but after due consideration of the environmentaI implications, status of preparedness of mining and Environmenta....
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....e area could be permitted to a limited extent, perhaps as pleaded in the earlier affidavit, has been dealt with. This affidavit stated. "5.2 Now that high grade low silica limestone is also available in the extensive deposits covering large areas in the State of Rajasthan which can meet the requirements of the steel industry which also includes Defence requirements, there is justification for disconstinuance of the existing mining operation in the Dehradun-Mussoorie area and, in fact, complete closure of the said mines in this area." It is fact that while in the first affidavit, controlled and limited mining was suggested, in the second affidavit filed after a gap of about three months total stoppage of mining activity in this area has been stressed. Counsel appearing on behalf of the State of Uttar Pradesh and UPSMDC offered serious criticism against this changed stance and we were called upon to reject the second affidavit also. We do not find any justification in this plea for rejection of the affidavit. This Court in its order of 19th October, 1987, had in clear terms indicated what aspects were exactly required to be answered by the affidavit of the Union of India. Since th....
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....s been indicated. Even before any of these two affidavits was filed this Court in its order of 19th of October, 1987, had clearly indicated that mining activity in this area should he totally stopped. The view expressed in the second affidavit is in accord with what this Court has stated. On assessment of the factual position, we do not think there is any substance in the argument advanced on behalf of the Uttar Pradesh Government, UPSMDC or any other mine owner which would Justify our rejecting the second affidavit. We would like to add that this is not a case of a somersault as contended on behalf of the State Government of 'Uttar Pradesh nor has it been occasioned by any illegitimate consideration. The point which still remains to be dealt with is whether mining activity should be totally stopped immediately. It is the accepted-position by all parties that low silica content limestone is necessary for manufacturing class steel. The earlier LD process is being abandoned by new factories and even some are switching over to new methods but for quite some time there would be demand for low cilica content limestone for manufacture of steel by the LD process. The alternate so....
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....e intervener, Mr. Sibbal for the Uttar Pradesh Government, Mr. Yogeshwar Prasad for the UPSMDC, Dr. Singhvi for some of the mine owners and similar contentions advanced by other counsel of different mine lessees that there would be a total stalemate in the manufacture of drugs and sugar, as also steel, in case mining activity is stopped; yet we would accept this position that these would be hard-hit if mining activity in this area is stopped all of a sudden. With the pressing demand in the market and discovery of useful limestone deposits in other parts of the country apart from what has been indicated in the second affidavit of the Union of India the trade would adjust itself as every economic activity does. We are, however, of the view that the position should be monitored and the switch-over from the present position to a total ban should be spread over a period and not be sudden. We have already taken note of the fact that for different reasons several mines are closed down and only six, as indicated in another part of this judgment. are working. Now that we have found that some mining activity for some more time in this area may be permitted under strict regulation, we have....
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....d by the Bandyopadhyay Committee and that Committee did not clear any. So far as the first five mines are concerned, they are either within the municipal limits or within the forest area. We do not think it appropriate to allow them to operate until their lease periods lapse particularly when we have reached the conclusion that mining operation in this area should close down. An exception has to be made in the case of the mine being lease No. 99 where the lease period has to expire in 1990. The lease is of 15 acres of land and another 100 acres are from some private source. Mr. Jain appearing for the lessee had undertaken before us that over the 100 acres, there would be no mining operation and the lessee would immediately restore vegetation over the area and full forest growth will be available in regard to the 100 acres. The mine is neither within forest nor municipal area and minerals from this area would be removed not through the city limits. He has also assured us that immediately after the lease period is over, which would be about a year and half from now, the 15 acres would also be subject to real forestation by the lessee. He has agreed to file a undertaking in this Court....
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.... to the community, interests of individual citizens may be over-looked. We are satisfied that this situation attracts that principle to operate and even if some of the mine owners are worse affected than some others, permission to reopen the mines located in the forests and within municipal limits cannot be granted with a view to compensating them for being placed at par with the less affected group. It is perhaps necessary to indicate why these three ongoing mines whose original lease period has not lapsed are being permitted to continue mining. We have already taken note of the position that UPSMDC is a public sector undertaking of the State of Uttar Pradesh and there has been a huge investment by the State in this establishment. It gives sizeable output. Though certain defects have been pointed out in its activities by the Working Group, we are of the opinion that if appropriately controlled, mining activities can be regulated and simultaneously reafforestation can be activised. So far as R.K. Oberai is concerned, the Working Group has found least objection against it. The lease of Punjab Lime & Limestone Company shall have life of a little more than one year. All these three....
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....nment as also reafforestation in the area of mining by expending money from the fund. In the event of expenses exceeding the contribution by these three respective lessees, the Committee shall report to this Court for directions. On the expiry of their respective leases, they shall not be entitled to carry mining operation and by operation of this judgment shall have to wind up. No application for renewal shall be entertained from them. These three lessees as also any other lessee shall not be entitled to any compensation for closing down of the mines under orders of this Court. In the Order of 12th March, 1985, a three-Judge Bench of this Court had indicated that the mine owners who had been displaced should be rehabilitated. There is no material on record if any alternate provision has been made either by the State of Uttar Pradesh or the Union of India. On-going leases have been terminated under orders of this Court without provision for compensation. Indisputably displacement has been suffered by these lessees and the sudden displacement must have up-set their activities and brought about substantial inconvenience to them. The Court has no other option but to close down the ....
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....r the time being in the Ministry of Steel and Mines at New Delhi. The Ministry of Environment and Forest is directed to deposit a sum of Rs. 3 Lacs in the Registry of this Court within four weeks from today to be transferred to the Committee for the purpose of the Committee subject to appropriate accounts to be rendered to the Ministry concerned. The Committee is directed to make an initial report on the problem and the manner it proposes to tackle it within eight weeks from today. On the basis of such report, further directions shall be made. The laws in force shall have to be kept in view and the above-named members are directed to extend full cooperation with zeal and a sense of under-standing of the problems so that rehabilitation can be done as a part of the environmental programme. The Court is of the view that a Monitoring Committee is necessary for reafforestation of the areas as also for overseeing the running of the three mines. The State- of Uttar Pradesh has already undertaken a reafforestation programme in the area. The record, however, does not indicate much of improvement yet. We have taken note of the position that the Uttar Pradesh Government has a Master Plan f....