Case: Industrial Development Corporation of Orissa Limited Vs. Union of India and Others

decision in the Indian Metals case, we find that on the issue of the requirement of captive mining, this Court had expressly refrained from giving an opinion on the issue as it did not arise for its consideration; however, it did recommend that chromite ore be supplied to needy applicants in an equitable manner. It must be pointed out that nowhere in the Rao Report nor in the report of the Committee, has the requirement of captive mining been interpreted to mean that every industry within the State would, by reason of its existence, be entitled to a mining lease. The captive requirement of an industry is a factor that has to be kept in mind while granting leases but, it is to be done on a comparative scale. While the Central Government exercises its discretion in granting or renewing a lease, it is clear that the capacity of an industry to effectively exploit the ore, will be a predominant considerations The submission of the learned counsel that none of the other parties before this Court required the mineral ore for captive consumption cannot be accepted. This aspect has bee n specifically examined by the Committee at pages 260-263 of its report. In order to properly appreciate the issue of captive consumption, the Committee examined the needs of the other parties before it. It stated that each of these partie s had manufacturing industries which produce value-added products and earn considerable foreign exchange for the country, and it was therefore of the view that an analysis of their total requirement was necessary in the interests of mineral development as also that of the nation. Based on the information supplied to it, the Committee thereafter made an assessment, for a total period of 50 years, of the captive and net requirements of ICCL, IMFA, FACOR and JSL. At page 349 of its report , the Committee has also taken note of the projected captive and net requirements of Ispat Alloys. This being a finding of fact that has been recorded by the Committee, we have to accept that the argument of captive consumption does have a basis in the facts of the present case. On the issue of the application of the principle of equitable distribution, we are of the view that the Committee had, after having taken note of the prevailing situation and the problems faced by needy manufacturers, taken the correct view in recommending its implementation.We are, therefore, of the view that the Committee had correctly interpreted the relevant material available for appreciating the concept of "mineral development" and adopting the stance that it encompassed the concept of captive mining as well as the principle of equitable distribution. 5. Validity of the Central Governments order dated August 17, 1995 which declared that renewing TISCOs lease over an area of 406 hectares would satisfy its needs and requirements. 30. The Committee made an estimate of the captive mining requirement of each of the parties appearing before it after coming to the conclusion that this was a fundamental guideline to be kept in mind while renewing TISCOs lease. To complete this exercise, it relied upon the submissions of counsel, technical evidence submitted a them and the relevant technical information available. In the case of TISCO, after taking into account all the technical grounds and objections put forth by the learned counsel for TISCO, the Committee came to the conclusion that its lease should be granted renewal for a period of 20 years over a contiguous area of 461 hectares. By its order dated August 17, 1995, the Central Government while endorsing the finding of the Committee recommended to the State Government that TISCOs lease be renewed for 20 years over a reduced area of 406 hectares. The reasons for the reduction were also provided. 31. The decision of the Committee and the consequent order of the Central Government have been assailed by the learned counsel for TISCO on a number or tech nical grounds. Many of these have already been dealt with by the Committee. At this juncture, we think it fit to make a few observations about our general approach to the entire case. This is a case of the type where legal issues a re intertwined with those involving determination of policy and plethora of technical issues. In such a situation, courts of law have to be very wary and must exercise their jurisdiction with circumspection for they must not transgress into the realm of policy making, unless the policy is inconsistent with the constitution and the laws. In the present matter, in its impugned judgment, the High Court had directed the Central to set up a committee to analyses the entire gamut of issues thrown up by the present controversy. The Central Government had consequently constituted a committee comprising high level functionaries drawn from various Governmental/ institutional agencies who were equipped to deal with the en tire range of technical and long-term consideration involved. This Committee, in reaching its decision, consulted a number of policy documents and approached the issue from a holistic perspective. We have sought to give our opinion on the legal issues that arises for out consideration. From the scheme of the Act it is clear that the Central Government is vested with discretion to determine the policy regarding the grant or renewal of leases. On matters affecting policy and those that require technical expertise, we have shown deference to and followed the recommendations of, the Committee which is more qualified to address these issues.We are, therefore, of the view that the Central Government was justified in issuing its order dated August 17, 1995. 32. For the foregoing reasons, we are of the view that the High Court and the Committee were justified in the view they took. Consequently the appeals filed by TISCO stand dismissed. IDCOL has filed the appeals on much the same grounds as TISCO while additionally claiming that the Committee should have heard its claim too while hearing the other parties.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]From this, the High Court inferred that the subsequent renewal of lease as envisaged and contemplated under Section 8(3) refers to very rare circumstances which may require renewals to be made. The Court, therefore, held that the conditions which make for the rare cases and diverse circumstances have to be clearly and pointedly articulated, for which the recording of proper and detailed reasons was necessaryWe are of the view, however, that the issue can be decided without locking horn s with the controversy over the situations in which utterances in the legislature are relevant for statutory interpretation. To us, the language of Section 8(3) is quite clear in its import. Ordinarily, a lease is not to be granted beyond the time and the number of periods mentioned in clauses (1)and. If, however, the Central Government is of the view that to allow a lessees lease to be renewed further would be in the interest of mineral development, then, it is empowered to do so, provided there exist on record sound reasons for such an actionandthose reasons are recorded. Since such a measure has been incorporated in the legislative scheme as a safeguard against arbitrariness, the letterandspirit of the law must be adhered to in a strict manner.We have studied the orders of the Central Government dated June 3, 1993andOctober 5, 1993. The order dated June 3, 1993 is a statement which declares the grant of a second renewal to TISCO. It does not profess to give any reasons for such a decision, for that reason, falls foul of the requirement of Section 8(3), as has rightly been pointed out by the High Court. The order dated October 5, 1993 is more generous in terms of the reasons it offers; however, the High Court was of the view that, since it did not take into account the findings of the Rao Report, the decision of this court in the Indian Metals caseandthe National Mineral Policy, it could not have justified its decision as having been made after a proper analysis of the interest of mineral developmentWe are, therefore, of the view that the High Courtandthe Committee were justified in taking note of the findings of the Rao Report as well as the observations of this Court in the Indian Metals case in considering he issue of renewal of TISCOs leaseSince the Order dated October 5, 1993 did not make any reference to the Rao Report or the decision of this Court, we feel that the High Court was justified in striking it down for not having taken into account all t he factors relating to a proper appreciation of the concept of mineral developmentIt must also be noted that in its order dated August 17, 1995, the Central Government had, in exercise of powers conferred on it by Rule 59(2) relaxed the requirement of Rule 59(1) to enable the other parties to be granted leases. We are of the view that the High Court had taken the correct step in allowing the prospective applicants to put forth their points of view with reg rd to the renewal of TISCOs lease. As we have already pointed out, these issues involve considerably high stakes, both in terms of commercial valueandthe effect that such a decision will have on the concept of mineral developmentandthe consequent national interest. To that extent, those likely to be affectedandindeed, those who can legitimately have a stake in the proper formulation of such a vital policy, can be heard. No exception can be taken to the High Court treating them as proper partiesanddirecting the Committee to hear themWe, therefore, hold that both the High Courtandthe Committee were justified in hearing the prospective applicants while considering the issue of renewal of TISCOs leaseFor the foregoing reason, the Committee was the view that the concept of mineral development" under Section 8(3) of the Act requires the assessment of the captive mining requi rement of different industries as also the application of the principle of equitable distribution of mining leasesOn the issue of the application of the principle of equitable distribution, we are of the view that the Committee had, after having taken note of the prevailing situationandthe problems faced by needy manufacturers, taken the correct view in recommending its implementation.We are, therefore, of the view that the Committee had correctly interpreted the relevant material available for appreciating the concept of "mineral development"andadopting the stance that it encompassed the concept of captive mining as well as the principle of equitable distributionOn the issue of the application of the principle of equitable distribution, we are of the view that the Committee had, after having taken note of the prevailing situationandthe problems faced by needy manufacturers, taken the correct view in recommending its implementation.We are, therefore, of the view that the Committee had correctly interpreted the relevant material available for appreciating the concept of "mineral development"andadopting the stance that it encompassed the concept of captive mining as well as the principle of equitable distributionThe decision of the Committeeandthe consequent order of the Central Government have been assailed by the learned counsel for TISCO on a number or tech nical grounds. Many of these have already been dealt with by the Committee. At this juncture, we think it fit to make a few observations about our general approach to the entire case. This is a case of the type where legal issues a re intertwined with those involving determination of policyandplethora of technical issues. In such a situation, courts of law have to be very waryandmust exercise their jurisdiction with circumspection for they must not transgress into the realm of policy making, unless the policy is inconsistent with the constitutionandthe laws. In the present matter, in its impugned judgment, the High Court had directed the Central to set up a committee to analyses the entire gamut of issues thrown up by the present controversy. The Central Government had consequently constituted a committee comprising high level functionaries drawn from various Governmental/ institutional agencies who were equipped to deal with the en tire range oftechnicalandm consideration involved. This Committee, in reaching its decision, consulted a number of policy documentsandapproached the issue from a holistic perspective. We have sought to give our opinion on the legal issues that arises for out consideration. From the scheme of the Act it is clear that the Central Government is vested with discretion to determine the policy regarding the grant or renewal of leases. On matters affecting policyandthose that requiretechnicalexpertise, we have shown deference toandfollowed the recommendations of, the Committee which is more qualified to address these issues.We are, therefore, of the view that the Central Government was justified in issuing its order dated August 17, 1995For the foregoing reasons, we are of the view that the High Courtandthe Committee were justified in the view they took. Consequently the appeals filed by TISCOdismissed. IDCOL has filed the appeals on much the same grounds as TISCO while additionally claiming that the Committee should have heard its claim too while hearing the other parties.