Case Note & Summary
The petitioners, Ircon International Limited (a Public Sector Undertaking of the Ministry of Railways) and others, challenged a notice dated 4th December 2017 issued by the Tehsildar, Dahanu, District Palghar, Maharashtra, proposing a penalty of Rs.34,80,744 for excavation of ordinary earth (a minor mineral) without obtaining requisite permission. The petitioners were executing construction of a 186 km long Dedicated Freight Corridor project for the Railways. The court examined the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, particularly Section 21(6), which requires prior approval for excavation of minor minerals. The court noted that the petitioners were a government company and the excavation was for a public purpose. The court held that the notice was unsustainable as the requirement of prior approval under Section 21(6) was not applicable to government companies executing railway projects. The court quashed the notice and allowed the petition.
Headnote
A) Mines and Minerals - Excavation of Minor Mineral - Section 21(6) of the Mines and Minerals (Development and Regulation) Act, 1957 - Penalty for Unauthorized Excavation - The petitioners, including a Public Sector Undertaking of the Ministry of Railways, challenged a notice proposing penalty for excavation of ordinary earth without permit. The court held that the notice was unsustainable as the petitioners were executing a railway project and the excavation was for a public purpose, and the requirement of prior approval under Section 21(6) was not applicable to government companies. (Paras 1-3)
Issue of Consideration
Whether the notice dated 4th December 2017 issued by the Tehsildar, Dahanu proposing penalty for excavation of ordinary earth without permission under the Mines and Minerals (Development and Regulation) Act, 1957 is valid, and whether the petitioners are exempt from obtaining prior approval under Section 21(6) of the Act.
Final Decision
The court quashed the notice dated 4th December 2017 and allowed the petition.
Law Points
- Interpretation of Section 21(6) of the Mines and Minerals (Development and Regulation) Act
- 1957
- Applicability of exemption for government companies
- Requirement of prior approval for excavation of minor minerals
Case Details
WRIT PETITION NO. 3704 OF 2018
R.M. BORDE, N. J. JAMADAR
Mr.V. Sridharan, Senior Advocate a/w. Mr.Sriram Sridharan, Ms.Divyasha Mathur I/b PDS Legal for petitioners. Mr.R.S. Pawar, AGP for respondent Nos.1 to 3State.
Ircon International Limited, Raghuvir Buildcon Pvt. Ltd., M/s. S.A. Yadav, M/s. M.H. Khanusiya, GHV India Private Limited
The State of Maharashtra, The Revenue and Forest Department of the State of Maharashtra, The Tehsildar, Dahanu
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Nature of Litigation
Writ petition challenging a notice proposing penalty for excavation of minor mineral without permission.
Remedy Sought
Quashing of the notice dated 4th December 2017 issued by the Tehsildar, Dahanu.
Filing Reason
The petitioners were issued a notice proposing penalty of Rs.34,80,744 for excavation of ordinary earth without obtaining requisite permission under the Mines and Minerals (Development and Regulation) Act, 1957.
Issues
Whether the notice dated 4th December 2017 proposing penalty for excavation of ordinary earth without permission is valid.
Whether the petitioners are exempt from obtaining prior approval under Section 21(6) of the Mines and Minerals (Development and Regulation) Act, 1957.
Submissions/Arguments
The petitioners argued that they are a Public Sector Undertaking of the Ministry of Railways and were executing a railway project, and thus the requirement of prior approval under Section 21(6) was not applicable.
The respondents argued that the excavation was without permit and penalty was justified.
Ratio Decidendi
The requirement of prior approval under Section 21(6) of the Mines and Minerals (Development and Regulation) Act, 1957 is not applicable to government companies executing railway projects for public purpose.
Judgment Excerpts
The challenge in this petition is to a notice dated 4th December 2017 issued by the Tehsildar, Dahanu, District Palghar, Maharashtra whereby a penalty of Rs.34,80,744 was proposed to be levied for excavation of minor mineral, i.e., ordinary earth, without obtaining requite permission.
The petitioner No.1 is a Public Sector Undertaking of the Ministry of Railways. The petitioner No.1 is executing construction of 186 km. long Dedicated Freight Corridor project.
Procedural History
The petition was filed in the High Court of Judicature at Bombay challenging a notice dated 4th December 2017. The court reserved judgment on 19th March 2019 and pronounced on 29th March 2019.
Acts & Sections
- Mines and Minerals (Development and Regulation) Act, 1957: Section 21(6)
