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TMI Blog2013 (3) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... issa quashed and by writ of mandamus the State Government directed to execute a mining lease for an area measuring 1519.980 hectares in favour of the respondent-company. 3. By Notification No.647/91 dated 23rd August, 1991, the Government of Orissa de-reserved and threw open Iron/Manganese Ore areas spreading over 282.46 square miles in five blocks located in Keonjhar and Sundergarh districts in the State. Applications were then invited from interested private parties in terms of Rule 59 of the Mineral Concession Rules, 1960 for grant of prospecting licenses and mining leases in respect of the said blocks. The exercise was, it appears, intended to boost the economy of the State by ensuring optimum utilisation of its mineral reserves and in the process generating employment opportunities for the predominantly tribal population inhabiting the two districts of the State. The invitation to apply for leases and to set up steel plants was open to all leading steel manufacturers. 4. In response to the advertisement notice applications were received from different parties including one filed by respondent-Mesco Steels Ltd. These applications appear to have been evaluated, culminating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it had already taken steps for preparation of a mining plan and initiated action for preparation and approval of de-reservation proposal for the mining lease in village Sundara and Pidapokhari over an area measuring 508.500 hectares said to be forest land. What is significant is that the respondent-company also pointed out that it was on the verge of completion of its Steel Plant at Kalinga Nagar, Industrial Complex, Sukinda, P.O. Danagadi, District Jajpur, Orissa which was expected to be commissioned by April/May, 1999. The State Government eventually sanctioned the grant of a lease in favour of the respondent-company to the extent indicated earlier in terms of its order dated 17th March, 1999. 7. By a letter dated 19th June, 2000 addressed to the respondent-company the State Government pointed out that the company had failed to submit the required mining plan and obtain the approval of Ministry of Environment and Forest, Government of India, in regard to forest land involved in the proposed mining lease despite extension of time allowed to the respondent-company by the Government in terms of its letter dated 11th October, 1999. The State Government further pointed out tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government had moved for elimination of the said overlapping area in terms of Director s letter dated 1st June, 2000, no formal Government order in the matter had been received. The Director further pointed out that D.F.O., Keonjhar had reported in terms of its letters dated 15th January, 2004 and 7th February, 2004 that major portion of the surveyed and demarcated area came under Khandadhar D.P.F. and was reported to be forest land as per column 7 of the D.L.C. report to which effect an affidavit had also been filed before this Court by the State Government. It was also mentioned that the Mining Officer had reported that an area measuring 692.6953 hectares out of the surveyed and demarcated area of 802.6678 hectares came under forest land which attracted the provisions of Forest Conservation Act, 1980. Clearance from the Ministry of Environment and Forests, Government of India, was, therefore, absolutely necessary for execution of any mining lease in respect of the said area and till such time this essential pre-condition was not fulfilled, the execution of the lease deed was not legally permissible. By another letter dated 19th September, 2006, the Director of Mines recommend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of a mining lease in favour of the respondent-company, it could not take the risk of setting up of a steel plant. The High Court accordingly quashed letter dated 19th September, 2006 and by mandamus directed the State Government to execute a formal mining lease in favour of the respondent-company. The present appeal assails the correctness of the said judgment of the High Court as already noticed earlier. 11. Appearing for the appellant, Mr. U.U. Lalit, learned senior counsel, made a three-fold submission before us. Firstly, he contended that the writ petition filed by the respondent-company was manifestly premature as the Government had not taken any final decision that could have been challenged by the respondent-company nor was the writ petition, according to the learned counsel, maintainable against a mere inter-departmental letter dated 19th September, 2006, which did not by itself finally decide any right or obligation of the parties so as to furnish a cause of action to the respondent to challenge the same in the extra ordinary writ jurisdiction of the High Court. Secondly, it was contended that even if the letter could be described as a final decision taken by the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Chief Minister on 29th October, 2001, a copy whereof has been placed on record as Annexure R-1. It was also contended that the State Government was making much ado about nothing regarding the setting up of the second steel plant and that the same was no more than a pretext to deny to the respondent-company its rightful due under the sanction order issued by the Central Government and the grant made by the State. It was contended by Mr. Dwivedi that the requirement of an approved mining plan which was one of the conditions for the grant of lease had already been complied with while the execution of a lease deed could be made subject to the clearance of the project and the grant of a no objection by the Ministry of Environment and Forest under Section 2 of the Forest (Conservation) Act, 1980. The order passed by the High Court could to that extent be modified, argued Mr. Dwivedi. Inasmuch as the High Court had not taken note of the requirement of such clearance being essential not only under the Act aforementioned but also because of the directions issued by this Court in T.N. Godavarman Thirumulkpad v. Union of India Ors. (1997) 2 SCC 267, it had no doubt committed a mist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly decided to follow the line of action indicated in its communication dated 12th January, 2006 issued under the signature of the Joint Secretary, Department of Steel and Mines. It is noteworthy that there was no challenge to the communication dated 12th January, 2006 before the High Court nor was any material placed before us to suggest that any final decision was ever taken by the Government on the question of deduction of the area granted in favour of the respondent so as to render the process of issue of show cause notice for hearing the respondent-company an exercise in futility. On the contrary, the issue of the show cause notice setting out the reasons that impelled the Government to claim resumption of a part of the proposed lease area from the respondent-company clearly suggested that the entire process leading up to the issue of the show cause notice was tentative and no final decision on the subject had been taken at any level. It is only after the Government provisionally decided to resume the area in part or full that a show cause notice could have been issued. To put the matter beyond any pale of controversy, Mr. Lalit made an unequivocal statement at the bar on beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice as a reason to relegate the parties to a procedure which was just and fair and in which the respondent could urge all its contentions whether on facts or in law. Our answer to question No.2 is, therefore, in the negative. Regarding Question No.3 17. Although it is not necessary for us now to examine the question of validity of the show cause notice as the same was not questioned before the High Court in the writ petition filed by the respondent-company, we may to the credit of Mr. Dwivedi, learned senior counsel appearing for the respondent-company, mention that he did not seriously challenge the validity of the notice on the ground of jurisdiction. Mr. Dwivedi fairly conceded that the State Government could, in appropriate situations, exercise the option of recalling or modifying its recommendations but contended that the present case did not present a situation that could justify such a recall. 18. We do not propose to make any comment or express any opinion to the merits of the show cause notice. So long as the notice is not without jurisdiction as indeed it does not appear to be so, the question whether the grounds taken in the same provide a good basis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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