Case: THE STATE OF KARNATAKA Vs. M/S VEDANATA LIMITED (FORMERLY KNOWN AS SESA STERLITE LIMITED)

3. The brief facts necessary to be noted for deciding this appeal are:A First Information Report No. 17/2009-10 dated15.03.2010 was registered for illegal storage of iron ore by violating Sections 2(7)(b)(iv), 62, 80 of the Karnataka Forest Act, 1963 and Rules 143, 162 of the Karnataka Forests Rules, 1969. Judicial Magistrate First Class, Ankola permitted for further inquiry by including Section 24(e) of Karnataka Forest Act, 1963. On 20.03.2010 about 5 Lakhs Metric Tonnes of illegally stocked iron ore has been seized ond seizure report has been submitted to the Judicial Magistrate First Class, Ankola who permitted to retain the same until further orders.4. Another case registered was CBI Crime No. RC 17(A)/2012. Chargesheets were filed after investigation in Special C.C. No. 268/2013, Special C.C. No. 11/2014, Special C.C. No. 14/2014, Special C.C. No. 15/2014, Special C.C. No. 36/2014, Special C.C. No. 37/2014, Special C.C. No. 38/2014, Special C.C. No. 53/2014, Special C.C. No. 54/2014. The State filed an application under Section 451/457 Cr.P.C. in the aforesaid cases before the XXXII Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bangalore (CCH-34), seeking permission to dispose off 56 heaps of iron ore lying at the Belekeri Port approximately weighing 2,72,713.347 Metric Tonnes by e-tender.5. Notices were published in the newspapers inviting the filing of application for the interim disposal of seized 56 heaps of iron ore at Belekeri Port by Dy. Conservator of Forests, Karwar on 29.03.2015. The XXXII Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bangalore (CCH-34) after considering the application passed an order on08.05.2015 allowing the application under Section 451/457 Cr.P.C. permitting the applicant/State to dispose off the seized iron ore through e-tender on certain terms and conditions as enumerated in the order.6. Against Order passed on 08.05.2015, Writ Petition No. 18941/2016 and Writ Petition Nos. 19328- 19335/2016(GM-MM-S) were filed by the respondents in the High Court of Karnataka at Bangalore. In the Writ Petition following prayers were made:e, for the reasons and circumstances stated to hereinabove, it is most humbly prayed that thisCourt may be pleased to:(i) Issue a Writ of Certiorari or any other appropriate Writ or Order or direction setting aside the Order dated 08.05.2015 passed by the Court XXXII Additional City Civil & Sessions Judge & Special Judge for CBI Cases in Bangalore (CCH 34) in Spl. C.C. Nos. 268/2013, 11, 14, 15, 36, 37, 38, 53 & 54 of 2014 vide Annexure – A & all further consequential proceedings thereto, only in so far as the petitioner is concerned, in the interest of justice and equity.(ii) Issue a Writ of Mandamus or any other appropriate Writ or Order or Direction, directing theth Respondents to consider the representation dated 04.02.2016, 08.02.2016 & 24.02.2016 submitted by the petitioner vide Annexureand permit the petitioner to remove and transport the entire quantity of approximately 34.544 Metric Tonnes of iron ore from Belekere Port premises to the Pig Iron Plant of the petitioner at Amona in State of Goa by endorsing the Mineral Dispatch Permits & Forest Transit Passes & without insisting on any further payment of Royalty, in the interest of justice and equity.(iii) Issue such other appropriate Writ or Order or Direction as deemed fit under the facts and circumstances of the case, in the interest of justice and equity.The State filed an objection in the Writ Petitions opposing the prayers made in the Writ Petitions. The High Court vide its judgment and order dated 04.07.2017 allowed the Writ Petitions. The State aggrieved by the judgment of the High Court has come up in this appeal.

Court's reasoning:
16. From the above, it is clear that the final Report which was accepted on 15.12.2015, was final report in case Crime No. 2/2014 which was registered after the investigation by SIT in pursuance of order of this Court passed in Writ Petition No. 562 of 2009 and in the above case, no offence was found against the respondent.From the above, it is clear that Order dated 08.05.2015 was passed in different proceedings which proceedings commenced by registration of FIR dated 15.03.2010, Ankola Police Station Crime No. 189/2010. After investigation by CID/CBI chargesheets were filed, which were the cases as referred above. Iron ore which was directed to be released by Order dated 08.05.2015 was iron ore seized on 20.03.2010.It is, thus, clear that seizure of the iron ore was not in case Crime No. 2/2014 in which final report has been accepted on 15.12.2015 rather seizure of the iron ore was in different proceeding in which proceeding Order dated 08.05.2015 was passed. When release of iron ore on an application filed by the State under Section 451/457 Cr.P.C. was in different proceeding, there was no effect or consequence of acceptance of the final report vide Order dated 15.12.2015 in case Crimeand the High Court committed error in allowing the Writ Petition on the strength of the final report accepted on 15.12.2015. We have already extracted the entire consideration of the High Court while allowing the Writ Petition from paragraphs 8 to 15 of the judgment. High Court while allowing the Writ Petition had only relied on acceptance of the final report by CBI Judge dated 15.12.2015 which as has been noted above, was not relevant with regard to Order dated 08.05.2015 passed by the trial court.21. In result of foregoing discussion, we are of the view that order and judgment of the High Court is wholly unsustainable