Case Note & Summary
The Supreme Court disposed of a series of interlocutory applications in a long-pending writ petition concerning iron ore mining in Karnataka. The Court addressed several issues, including claims for payment of excess iron ore sold by the Monitoring Committee, enhancement of mining lease area, and refund of guarantee money. The Court rejected the applicant's claim for payment of 1,04,506 MT of excess iron ore, noting that revised returns filed after the suspension of mining were not permissible under any rule and indicated wrongdoing. For 39,725 MT of iron ore found at railway sidings, the applicant was given an opportunity to prove legal extraction before the Central Empowered Committee. The Court also permitted the State of Karnataka to enhance the area of Mining Lease No. 2525 from 9.15 hectares to 18.74 hectares, excluding 1.28 hectares of forest land, and to auction the lease. Regarding guarantee money, the Court noted that refund is subject to implementation of Reclamation and Rehabilitation Plans as per earlier orders. Several applications were dismissed as infructuous, withdrawn, or in default due to non-prosecution. The Court also recorded the statement of the applicant's counsel that a pending writ petition before the Karnataka High Court would be withdrawn in light of the order.
Headnote
A) Mining Law - Excess Iron Ore - Payment for Excess Ore Sold by Monitoring Committee - No provision permits revision of returns; revised returns filed after suspension of mining indicate wrongdoing - Applicant not entitled to payment for 1,04,506 MT of excess iron ore sold; for 39,725 MT at railway sidings, applicant must establish legal extraction and declaration in returns (Paras 3-4). B) Mining Law - Lease Area Enhancement - Forest Land Exclusion - 1.28 hectares of forest land excluded from 10.87 hectares to be added; 9.59 hectares additional land may be added to free leased land of 9.15 hectares in Mining Lease No. 2525, total area enhanced to 18.74 hectares - State permitted to auction lease (Para 6). C) Mining Law - Guarantee Money - Refund - Guarantee money refundable upon implementation of R&R Plans to satisfaction of CEC and Court; 90% refund on Monitoring Committee's satisfaction for Category B leases, balance 10% after full implementation (Para 10).
Issue of Consideration
Whether the applicant is entitled to payment for excess iron ore sold by the Monitoring Committee, and whether the mining lease area should be enhanced for auction.
Final Decision
The Court disposed of all applications as follows: I.A. No. 241/2015 partly allowed - applicant not entitled to payment for 1,04,506 MT excess iron ore; for 39,725 MT at railway sidings, applicant may file papers before CEC for decision, but payment requires Court permission. I.A. No. 265/2016 allowed - 9.59 hectares additional land added to Mining Lease No. 2525, total area 18.74 hectares, State permitted to auction. I.A. Nos. 62856/2018, 57649/2020, 57650/2020 noted for refund of guarantee money subject to satisfaction of R&R Plans. Other applications dismissed as infructuous, withdrawn, or in default.
Law Points
- Revised returns filed after suspension of mining are not permissible
- no provision or rule permits revision of returns
- excess iron ore sold by Monitoring Committee not payable to lessee unless legally extracted and declared
- forest land excluded from lease area enhancement
- guarantee money refund subject to satisfaction of R&R Plans
