Manganese Ore India Ltd vs State Of M.P.& Ors

5. It is necessary to state here that Hindustan Copper Limited had filed a Writ Petition to strike down the provision of Section 3 and the Table Part-B Item 4 (which is now Item No. 3 after 1995 amendment) and Explanation (b) which contains extended definition of mines as ultra vires the Constitution. As the factual matrix would reveal, the High Court dismissed the Writ Petition by placing reliance on State of M.P. v. Birla Jute Mfg. Co. Ltd.[1]. The matter travelled to this Court which eventually formed the subject matter of Civil Appeal Nos. 3248-50 of 1998. A two-Judge Bench of this Court in Hindustan Copper Ltd. v. State of M.P. and others[2] taking note of certain facts opined that the main controversy that was required to be examined by the High Court was as to how the word “mines” is to be understood as contained in clause (b) of the Explanation under Item 4 of the Table contained in Section 3 of the Act. This Court took note of the contentions of the appellant therein that the activities carried on by it do not fall within the meaning of the word “adjacent” area and further the approach of the respondents was selective and discriminatory. As the submissions raised were not dealt with by the High Court but it proceeded to dispose of the case without examining the facts in greater details in regard to either the activities carried on at different places by the appellant or as to how in the context of the facts of the case and having due regard to the provisions, the word “adjacent” should be construed, the Court remitted the Writ Petition to the High Court by stating so:-

6. After the remit, the High Court heard the Writ Petition and dismissed the same. The order passed by the High Court was assailed in appeal, by special leave, in Civil Appeal No. 6725 of 2008. In the second round, the two-Judge Bench stated the facts in detail which are to the effect that the appellant therein is engaged in extraction of copper ore, by open cast mining process involving drilling and blasting the ore in the open pit mine, the ore in the form of boulders are transported to the primary crusher (situated at a distance of 2.53 km from the mine), where it is crushed into pebbles/pieces and such crushed ore is then carried on a conveyor to a secondary crusher (situated at about 5 km from the mine) for further crushing into smaller pebbles. After the said stage, small pieces/pebbles are then carried by a conveyor to the Concentrator Plant (situated at 5.5 km from the mine).

7. This Court further proceeded to state the facts adumbrated as projected by the appellant before the High Court. It was asserted that:-

5. According to the appellant, its activities consist of two distinct parts. First is mining, that is, drilling, blasting and collecting of ore which is carried on at mine pit. This activity is carried on in the mine area registered under the Mines Act, 1952. The second is processing, which is carried on at the primary crusher, the secondary crusher and the Concentrator Plant. The processing (manufacturing) part of the activities are carried on in the factory area. The primary crusher, the secondary crusher, the ball mill, the Concentrator Plant, the tailing pumps, the intake well and the water treatment plant are situated away from the mine, at distances varying from 2.5 km to 10 km and are registered separately as a “factory” under the provisions of the Factories Act, 1948. The open pit mine (mining area) and the processing plants/machineries (factory area) are all situated in a large tract of land taken on mining lease from the State Government.”

Therefore, the analysis made by the High Court is not correct and, accordingly, the judgments rendered by it deserve to be set aside and we so direct. However, during this period if any amount has been paid by the appellants to the revenue, the same shall be adjusted towards future demands.

32. Consequently, appeals are allowed. In the facts and circumstances of the case, there shall be no order as to costs.

[Shiva Kirti Singh] New Delhi;

November 10, 2016