Supreme Court Condoned Delay in Payment of Compensation and Permitted Resumption of Mining Operations in MMDRA Case. The Court allowed the applicant to resume mining operations and sell undisposed stock after full payment of compensation with interest under Section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957.

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Case Note & Summary

The applications were filed by M/s Orissa Minerals Development Company Limited (OMDC) seeking condonation of delay in payment of compensation pursuant to the order dated 02.08.2017 in WP(C) No.114/2014, and for permission to resume mining operations and sell undisposed stock. The Supreme Court noted that the State of Orissa acknowledged receipt of the entire compensation amount along with interest for the period of delay. The Court condoned the delay, permitted OMDC to resume mining operations subject to obtaining all necessary clearances, and directed the State to conduct joint verification of undisposed stock and allow its sale following due procedure. The applications were disposed of accordingly.

Headnote

A) Mines and Minerals - Condonation of Delay - Section 21(5) of Mines and Minerals (Development and Regulation) Act, 1957 - Delay in payment of compensation condoned as entire amount along with interest was paid and acknowledged by State - Held that delay is condoned and applicant may resume mining operations subject to clearances (Paras 4-5).

B) Mines and Minerals - Joint Verification of Stock - Section 21(5) of Mines and Minerals (Development and Regulation) Act, 1957 - State directed to conduct joint verification of undisposed stock and allow sale by applicant following due procedure - Held that such verification and sale is permitted (Para 5).

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Issue of Consideration

Whether the delay in payment of compensation as directed by the Court should be condoned and whether the applicant should be permitted to resume mining operations and sell undisposed stock.

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Final Decision

The Court condoned the delay in payment of compensation, permitted OMDC to resume mining operations subject to obtaining all necessary clearances, and directed the State to conduct joint verification of undisposed stock and allow its sale following due procedure. All applications disposed of.

Law Points

  • Condonation of delay
  • Payment of compensation with interest
  • Resumption of mining operations
  • Joint verification of undisposed stock
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Case Details

2020 LawText (SC) (8) 8

IA.No.168557/2019, IA.No.168564/2019, IA.No.168569/2019, IA.No.168578/2019 in WP(C) No.114/2014

2020-08-11

S.A. Bobde, A.S. Bopanna, V. Ramasubramanian

Common Cause

Union of India & Ors.

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Nature of Litigation

Interlocutory applications in a writ petition seeking condonation of delay in payment of compensation and permission to resume mining operations.

Remedy Sought

Condonation of delay in payment of compensation, direction for joint verification of undisposed stock, and permission to resume mining operations.

Filing Reason

Delay in payment of compensation as directed by the Court in WP(C) No.114/2014.

Previous Decisions

Order dated 02.08.2017 in WP(C) No.114/2014 directing payment of compensation by 31.12.2017.

Issues

Whether the delay in payment of compensation should be condoned. Whether the applicant should be permitted to resume mining operations. Whether the State should conduct joint verification of undisposed stock and allow sale.

Submissions/Arguments

Applicant sought condonation of delay and permission to resume mining operations and sell undisposed stock. State of Orissa acknowledged receipt of full compensation with interest.

Ratio Decidendi

Where the compensation amount along with interest has been fully paid and acknowledged by the State, the delay in payment is condoned, and the applicant may be permitted to resume mining operations and sell undisposed stock subject to compliance with legal requirements.

Judgment Excerpts

the compensation amount as ordered by this Court under Section 21(5) of the M.M.D.R. Act, 1957 has been fully paid by the applicant company along with interest the delay in payment of the compensation along with interest is condoned The Applicant OMDC be permitted to resume mining operations subject to all necessary clearances The Competent Officers of the State of Orissa shall also conduct a joint verification of the undisposed stock and allow sale of the same

Procedural History

WP(C) No.114/2014 was disposed of on 02.08.2017 directing payment of compensation by 31.12.2017. The applicant filed IAs seeking condonation of delay in payment and further relief. The Court heard the applications and passed the present order on 11.08.2020.

Acts & Sections

  • Mines and Minerals (Development and Regulation) Act, 1957: Section 21(5)
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