Sarda Mines Private Limited Vs State of Odisha (Orissa High Court)
The Orissa High Court allowed a writ petition seeking compensatory addition of 5 years and 10 months to a mining lease period after mining operations were suspended pursuant to an order dated 31 March 2014. The petitioner had obtained a mining lease under Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957. A formal lease was executed on 14 August 2001 for 20 years, expiring on 13 August 2021. The petitioner held Environmental Clearance dated 22 September 2004 and Forest Clearance dated 21 June 2001, both stated to be co-terminus with the mining lease. Mining operations were suspended by the Deputy Director on the ground that there was no valid Environmental Clearance, resulting in suspension pursuant to the Supreme Court’s interim order in Common Cause v. Union of India. The Supreme Court later permitted resumption of mining operations by order dated 15 January 2020, following which mining resumed under an order dated 31 January 2020. The petitioner thereafter sought addition of the lost period of 5 years and 10 months to the lease period, but received no response, leading to the writ petition.
The petitioner contended that the suspension order was void, issued by an incompetent authority, passed without jurisdictional facts under the relevant Rules, and made without affording an opportunity of hearing. It was also argued that the Environmental Clearance remained valid, that the Central Government had confirmed its validity, and that the State itself had acknowledged that the interruption of mining operations resulted from the Supreme Court’s interim order. The petitioner sought compensatory addition of the period lost due to suspension. The State opposed the petition on grounds of delay and laches, Section 8A of the 1957 Act, res judicata, competence of the authority issuing the suspension order, and inapplicability of the force majeure clause.
