Case Note & Summary
The Supreme Court was dealing with several Interlocutory Applications arising out of its earlier order dated 10th November 2021 in Civil Appeal Nos. 3661-3662 of 2020, which had modified the directions of the National Green Tribunal regarding sand mining in Bihar. The background of the case is that the State of Bihar had challenged an order of the NGT dated 14th October 2020, which had issued various directions to curb illegal mining. The Supreme Court, while recognizing the need to curb illegal mining and also permit legal mining, had directed the preparation of fresh District Survey Reports (DSRs) by sub-divisional committees within stipulated timeframes, and permitted the State Government to carry on mining activities through the Bihar State Mining Corporation until further orders, ensuring environmental concerns are addressed. The present I.As were filed by various applicants who were aggrieved by the cancellation of their Letters of Intent (LoIs) or the issuance of fresh Notices Inviting Tender (NITs) by the Corporation for sand ghats in districts like Kishanganj, Banka, Jamui, and Nawada. The applicants, represented by senior counsel including Shri Mukul Rohatgi, Shri Narender Hooda, Shri Prashant Bhushan, and Shri C.A. Sundaram, argued that they were successful bidders or had been granted extensions, and that the Corporation's actions were prejudicial to their interests. They sought to be permitted to continue mining or to have their LoIs restored. One applicant also argued that the mining by the Corporation without Environmental Clearance amounted to contempt of court. The State of Bihar, represented by Shri Atmaram Nadkarni, submitted that the NITs were issued for a limited period in view of the Court's order, and that the Corporation was ensuring compliance with environmental norms. The Court, after hearing all parties, noted that its earlier directions were issued in the peculiar facts and circumstances to balance the need to curb illegal mining and permit legal mining, and that the interim arrangement was temporary. The Court observed that the applicants' contractual rights were not absolute and were subject to the larger public interest and environmental concerns. The Court directed that the interim arrangement of mining through the Corporation would continue until further orders, and the State must ensure strict compliance with environmental norms. The Court also directed that the process of preparation of DSRs and appraisal by SEAC and SEIAA must be completed expeditiously. The Court disposed of the I.As with these observations, without granting any relief to the applicants to restore their LoIs or continue mining individually.
Headnote
A) Environmental Law - Sand Mining - Interim Mining Operations - Supreme Court's Directions - The Court had permitted the State Government to carry on mining activities through the Bihar State Mining Corporation until further orders, ensuring environmental concerns are addressed. The applicants, who were successful bidders or had extensions, sought to continue mining or have their Letters of Intent restored. The Court held that the interim arrangement was made in the peculiar facts to balance the need to curb illegal mining and permit legal mining, and the applicants' contractual rights were not absolute in the face of the larger public interest and environmental concerns. (Paras 14-16) B) Contract Law - Tender Process - Cancellation of Letter of Intent - The applicants challenged the cancellation of Letters of Intent and issuance of fresh NITs by the Corporation. The Court noted that the directions were issued to ensure compliance with environmental norms and preparation of DSRs, and the interim mining through the Corporation was a temporary measure. The Court did not interfere with the cancellation or the fresh NITs, as the applicants' rights were subject to the overall scheme ordered by the Court. (Paras 3-4, 16) C) Environmental Law - Environmental Clearance - Mining Activities - The applicant in I.A. No. 163177 of 2021 argued that mining by the Corporation without Environmental Clearance amounted to contempt. The Court observed that the Corporation was ensuring no damage to the environment, and the directions were being complied with. The Court did not find any contempt and directed the State to ensure compliance with environmental norms. (Paras 12-13, 16)
Issue of Consideration
Whether the applicants, who were successful bidders or had extensions for sand mining in Bihar districts, are entitled to continue mining or have their Letters of Intent restored in light of the Supreme Court's order dated 10th November 2021 permitting mining through the Bihar State Mining Corporation.
Final Decision
The Supreme Court disposed of the I.As, directing that the interim arrangement of mining through the Bihar State Mining Corporation shall continue until further orders. The Court did not grant any relief to the applicants to restore their Letters of Intent or permit them to continue mining individually. The Court directed the State to ensure strict compliance with environmental norms and expeditious completion of the DSR process.
Law Points
- Environmental law
- Mining law
- Interim relief
- Contractual rights
- Environmental clearance
- District Survey Report
- Sustainable mining
