Case: Bhushan Power and Steel Ltd Vs. Rajesh Verma and Ors

CCP No. 374 of 20122. 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 followingIt would be pertinent to mention that State of Orissa had filed Review Petition seeking review of this judgment but the same was rejected. Pursuant to the aforesaid directions, though the BPSL has been given Thakurani Block A, the order has not been implemented qua Keora, District Sundargarh. That is precisely the cause for filing Contempt Petition (Civil) No. 374 of 2012 by BPSL.I.A. No. 14 of 20135. The State of Orissa and its officials who are impleaded as Contemners in the CCP have filed their replies to the CCP expressing certain difficulties because of which they claim that the directions given in the judgment are incapable of enforcement. Simultaneously, Respondent No. 1/ State of Orissa has filed instant I.A. No. 14 of 2013 as well, in which certain subsequent developments which have taken place after the passing of the judgment dated 12.3.2012 are traversed. It is highlighted that there are certain other and legal proceedings filed by them are pending at various stages in the High Court or in this Court and the area claimed by them in those legal proceedings overlap with the area which is the subject matter of grant to BPSL. A reference is also made to subsequent judgment in the case of Sandur Manganese & Iron Ore v. State of Karnataka; (2010) 13 SCC 1  which has changed the legal position thereby making it difficult for the State to recommend the case of the petitioner. It is also stated that the issue which is dealt with by this Court in Sandur Manganese (Supra) was not raised in the Writ proceedings/ Civil Appeal of the BPSL. On the basis of the aforesaid averment prayer made in the I.A. reads asNO. 2 OF 2013 IN I.A. NO. 14 OF 20136. 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 20137. 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 followingindicated hereinbefore, on 21st April, 2008, this Court passed an interim order in the Special Leave Petition filed by Bhushan Limited directing the parties to maintain status quo with regard to the lands indicated in the application filed by the appellants for grant of mining lease. However, one of the most significant developments that subsequently took place was that on 25th November, 2011, Shri B.B. Singhal and Shri Neeraj Singhal, Vice-Chairman and Managing Director of Bhushan Steel and Strips Ltd. filed affidavits withdrawing all their claims and rights in the MOU dated 15th May, 2002, executed between the State Government and Bhushan Limited and declaring that the said MOU was and had always been in favour of Bhushan power & Steel Ltd. The above named persons also prayed for deletion of their names from the array ofPETITION (C) NO. 194 OF 201310. 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 followingfor the Intervener, M/s. Jindal Steels Ltd., Mr. K.V. Vishwanathan, learned Senior Advocate, submitted that so long as any allotment made in favour of the Appellants did not impinge on the allotment made in favour of M/s. Jindal Steels Ltd;, it could have no grievance against a separate allotment being made in favour of the Appellants.It is pleaded that the case of Jindal Steel is even on a better footing for grant of mining lease, application for which purpose are pending with the State of Orissa. It had also signed the MOU for setting up an integrated Steel Plant wherein similar promise was made by the State Government for grant of a mining lease. Additionally, Jindal Steel had the advantage of being an earlier applicant for the mining lease in regard to Thakurani RF Block A area which was also a part of an MOU by BPSL. It is further mentioned that 16 mining lease applications were received in respect of the said area and the Director of Mines vide his report dated 8.11.2002 rejected all other applications except that of Jindal Steel herein, BPSL and three other applicants. In the case of Jindal Steel, recommendation was for 264 hectares in Thakurani RF Block A as against 383 Hectare in respect of BPSL. It is also stated that even when recommendation in respect of BPSL in Thakurani area is made by the State Government and approved by the Union of India, recommendation of Jindal Steel is still pending with the State Government. It is thus, pleaded that the case of the petitioner, Jindal Steel, is squarely covered by judgment dated 14.3.2012 passed in C.A. NO. 2790 of 2012 and benefit thereof be extended to this petitioner as well.WRIT PETITION (C) NO. 837 OF 201312. This Writ Petition is filed by Shri Mahavir Ferro Alloys Pvt. Ltd. It has also proposed to set up a 0.35 MTPA Captive Integrated Steel Plant with additional facilities and 60 MW Captive Power Plant in Sundargarh district had an overall investment of Rs. 435 crores. This petitioner claims that pursuant to MOU entered into with the State Government for grant of mining leases, it had submitted its application in this behalf. However, more than 10 years have elapsed but the State Government has not recommended its case, primarily because of status quo orders passed by this Court in C.A. NO. 2790 of 2012. It is pointed out that for this reason this petitioner has already filed I.A. No. 2 in I.A. NO. 14 of 2013 in C.A. NO. 290 of 2012. Case of this petitioner, again, is that it is equally circumscribed and placed as BPSL as well as Jindal Steel and, therefore, entitled to the grant of mining lease as done in favour of BPSL by this Court vide judgment dated 14.3.2012.

Court's reasoning:
CONTEMPT PETITION (C) NO. 374 OF 2012 In C.A. No. 2790 OFWe cannot lose sight of the fact that there is a judgment, inter parties, which has become final. Even when the Civil Appeal was being heard, certain other parties claiming their interest in these very lands had moved intervention applications which were dismissed. At that time also it was mentioned that there are 195 applicants. However, notwithstanding the same, this Court issued firm directions to the State Government to recommend the case of the petitioners for mining lease in both the areas. In view of such categorical and unambiguous directions given in the judgment which has attained finality, merely because another judgment has been delivered by this Court in Sandur Manganese case, cannot be a ground to undo the directions contained in the judgment dated 14.3.2012. In so far as law laid down in Sandur Manganese (Supra) is concerned, that may be applied and followed by the State Government in respect of other applications which are still pending. However, that cannot be pressed into service qua the petitioner whose rights have been crystallised by the judgment rendered in its favour. It cannot be re-opened, that too at the stage of implementation of the said judgment.We would like to place on record the arguments of learned Senior Counsel for the petitioner that the total area under notification is 731.67 sq. kms. and out of this 406 sq. km. is yet to be allotted. The area which comes to the share of the petitioner under MOU is 13.91 sq. km. which is barely 3 percent of 406 sq. km and, therefore recommendation by the State Government in favour of the petitioner cannot be stalled or put to naught only on the basis of inchoate applications, fate whereof is yet to be decided. It is also pointed out that in so far as the petitioners in other writ petitions are concerned area claimed by them is not overlapping with the petitioners area.However, it may not even be necessary to go into these contentions in detail. Once we hold that the respondents are bound to implement the direction contained in judgment dated 14.3.2012, in so far as the State Government is concerned, it is obliged to comply therewith and such matters, alongwith other relevant considerations, can be left to the wisdom of the Central Government while taking a decision on the recommendation of the State Government.