Bhushan Power & Steel Ltd vs Rajesh Verma & Ors

1. All the aforesaid matters were heard analogously as they are inter- connected. In fact, it is the judgment dated 14.3.2012 passed in C.A. No. 2790 of 2012 which has become the trigger point of all other cases. C.A. No. 2790 of 2012 was filed by M/s. Bhushan Power and Steel Ltd. (formerly known as Bhushan Limited) (hereinafter referred to as 'BPSL'). That was an appeal against the judgment passed by High Court of Orissa whereby the High Court had dismissed the writ petition of the BPSL. Before proceeding further, we would like to narrate the nature of different cases and the background in which they came to be filed.

2. The erstwhile Bhushan Limited had proposed setting up of plant in some identified villages in the District of Sambalpur, Orissa. For this purpose it had made a request for acquisition of land, measuring 1250 acres, which was acquired for Bhushan Limited. It had also applied for grant of lease of mining of iron ore for use in the proposed plant. These applications were favourably considered by the State Government which agreed to accord due priority to Bhushan Limited for grant of suitable iron ore areas and also agreed to recommend the proposal to the Government of India for grant of a Coal Block. Even a MOU was entered into between the State Government and Bhushan Limited containing the commitment of the State Government to recommend to the Central Government, grant of iron ore mines for its use in the proposed plant. For this purpose area earmarked for recommendation were Thakurani area with 96 million tonnes iron ore reserves and Keora Area, District Sundargarh for additional 128 million tonnes of iron ore; both for 50 years requirement of the plant. Though various statutory and other permissions required for setting up of the plant were granted and the plant was also set up, but due to some in-fight between the family members who owned Bhushan Limited, it faced difficulties in getting the grant of iron ore lease.

3. In so far as granting of mining lease of iron ore reserves in the aforesaid areas is concerned, it fell into rough weather. It resulted into show cause notice dated 18.1..2006 by the State Government which led to the decision that mining lease over the Thakurani area could not be allowed on various grounds and the application made by Bhushan Limited was premature. Thereafter, the Government of Orissa made a recommendation to the Central Government on 9.2.2006 to grant mining lease in favour of one M/s Neepaz Metallics (P) Ltd. in relaxation of Rule 59(1) of the Mining Rules, for a period of 30 years. Challenging these orders, Bhushan Limited filed the writ petition in the High Court on 8.5.2006. This Writ Petition was dismissed by the High Court on 14.12.2007 and challenging this decision Special Leave Petition was filed which was granted converting the SLP into C.A. No. 2790/2012. This appeal was allowed by this Court vide judgment dated 14.3.2012 with the following directions:

6. In I.A. No. 14 of 2013, this I.A. is preferred by M/s. Shri Mahavir Ferro Alloys Pvt. Ltd. The grievance of this applicant is against the status quo order dated 21.4.2008 passed in the applications filed by the BPSL. It is alleged that the applicant has filed 9 applications for grant of Iron Ore Mining Lease of different areas, notified as well as non-notified, including the Thakurani area. However, because of the status quo order the applications of the applicant not being considered by the State Government which is adversely affecting the interest of the applicant. WRIT PETITION (CIVIL) NO. 60 OF 2013

7. While narrating the facts of C.A. No. 2790 of 2012 in brief, we had mentioned about the inter se disputes between the family members of erstwhile Bhushan Limited because of which BPSL faced difficulties in getting the grant of iron ore lease. It so happened that during the pendency of the aforesaid appeal, the family members resolved their disputes. On 28.2.2006, Bhushan Limited altered its name to BPSL. Other group got incorporated a company named as M/s. Bhushan Steel Limited (BSL). BSL is the petitioner in the instant petition. This significant development was taken note of in the judgment dated 14.3.2012 in the following manner:-

10. This Writ Petition is filed by Jindal Steel and Power Limited (hereinafter referred to as 'Jindal Steel'). It had entered into MOU with the State of Orissa on 8.5.2002. It is stated in the writ petition that this petitioner became an intervenor in C.A. No. 2790 of 2012 to protect its interest which has been duly taken note of in the judgment dated 14.3.2012 in the following manner:-

(b) Further, it is seen that the applied area is overlapping with the applied area of several other applicants, including M/s. Larsen & Toubro Limited and M/s. Tata Iron and Steel Co. Limited.

(d) M/s. Larsen and Toubro Ltd has challenged the aforesaid orders of the Central Government by filing Writ Petition in the High Court which was dismissed by the Single Judge of Delhi High Court. Appeal thereagainst was dismissed by the Division Bench on 3.7.2012. Order of the Division Bench of the High Court is challenged by filing SLP (C) NO. 33812 of 2012 in which notice has been issued and as the matter is sub-judice in those proceedings it is difficult to pass any orders qua BPSL at this stage.

“42. The contempt of court is a special jurisdiction to be exercised sparingly and with caution whenever an act adversely affects the administration of justice or which tends to impede its course or tends to shake public confidence in the judicial institutions. This jurisdiction may also be exercised when the act complained of adversely affects the majesty of law or dignity of the courts. The purpose of contempt jurisdiction is to uphold the majesty and dignity of the courts of law. It is an unusual type of jurisdiction combining “the jury, the judge and the hangman” and it is so because the court is not adjudicating upon any claim between litigating parties. This jurisdiction is not exercised to protect the dignity of an individual judge but to protect the administration of justice from being [pic]maligned. In the general interest of the community it is imperative that the authority of courts should not be imperilled and there should be no unjustifiable interference in the administration of justice. It is a matter between the court and the contemner and third parties cannot intervene. It is exercised in a summary manner in aid of the administration of justice, the majesty of law and the dignity of the courts. No such act can be permitted which may have the tendency to shake the public confidence in the fairness and impartiality of the administration of justice”.

27. As a consequence, we hold that the Respondents/ Contemners are in contempt of orders dated 14.3.2012 passed by this Court in not complying with the directions in respect of Keora area. However, we are giving one final opportunity to them to purge the contempt by transmitting requisite recommendations to the Central Government. It would be for the Central Government to consider the said recommendations on its own merits and in accordance with law. In case the recommendation is sent within one month from the date of copy of receipt of this order, we propose not to take any further action and the respondents/ contemners shall stand discharged from this Contempt Petition. However, in case the respondents do not purge in the manner mentioned above, it would be open to the petitioners to point out the same to this Court by moving appropriate application and in that event the Contemners shall be proceeded against.

28. With this, I.A. No. 14 in C.A. NO. 2790 of 2012 and I.A. No. 2 in I.A. NO. 14 in C.A. NO. 2790 of 2012 also stand disposed of. Writ Petitions

29. In so far as three writ petitions are concerned we need not go into the detailed arguments advanced by Counsel for the petitioners in those petitions. As already noted above, for their own reasons all the three petitioners pray that the same directions as given in favour of BPSL in judgment dated 14.3.2012, be passed in their cases as well. This they claim on the basis of parity with BPSL. However, we are constrained to hold that, on the basis of such an argument, they cannot approach this court directly under Article 32 of the Constitution by filing writ petitions. It has already been authoritatively determined that no fundamental right of the petitioners is violated. No fundamental right is violated by non-granting of mining lease. (See (2012) 11 SCC 1 and (1973) 1 SCC 584).

30. That apart, there are few other aspects, aptly pointed out by Mr. L. Nageswara Rao, learned ASG, which come in the way of maintainability of the instant petitions. He, inter alia, submitted that atleast in respect of applications which are still pending and yet to be decided, judgment in Sandur Manganese (Supra) shall have to be applied as it does not remain virgin area, which was the position when the case of BPSL was decided. He had made various other submissions on merit as well. Without going into all these issues, we dismiss these petitions giving liberty to the petitioners to approach the High Court in the first instance and/ or any other forum which is available, as per law. We make it clear that in so far as these petitions are concerned we have not dealt with the issues on merits. Wherever the petitions are filed, it would be open to the said forum to deal with the question as to whether the petitioners would be entitled to the benefit of judgment dated 14.3.2012 passed in the case of BPSL or not. All other issues are also kept open to be agitated in those proceedings. Writ petitions are dismissed with liberty as aforesaid.