Raja Bricks Vs State Of Odisha And Others (Orissa High Court)
Orissa High Court has intervened in a dispute concerning the imposition of royalty and other charges on stacked sand and soil found at a brick kiln unit, setting aside a demand letter issued by the Mining Officer (in-charge), Balasore. The court’s decision underscores the fundamental importance of natural justice in administrative proceedings, particularly the right of an affected party to be heard before an adverse order is passed.
The petitioner, M/s Raja Bricks, had challenged an order dated June 3, 2025, from the Mining Officer, which directed the firm to deposit a substantial sum of Rs. 14,17,850. This demand comprised various components: Rs. 42,000 for Royalty and Additional Charge on 600 cubic meters of soil, Rs. 6,300 for District Mineral Foundation (DMF) and Rs. 1,050 for Environmental Management Fund (EMF) related to soil. For 2000 cubic meters of sand, the demand included Rs. 8,44,000 for Royalty and Additional Charge, Rs. 21,000 for DMF, and Rs. 3,500 for EMF. Crucially, a significant penalty of Rs. 5,00,000 was also levied.
Mr. Prafulla Kumar Rath, learned Senior Advocate representing Raja Bricks, argued before the High Court that the demand lacked “foundational fact” and was issued without adhering to the principles of natural justice. He asserted that the sand and soil found stacked at the brick kiln unit had been legitimately purchased from various authorized persons or licensees of sairat (minor mineral sources) for use in the brick manufacturing process. The petitioner contended that the Mining Officer failed to provide an opportunity to substantiate this claim, thereby unjustly imposing the liability for royalty, additional charges, DMF, EMF, and penalty. Such a demand, issued merely through a letter, was deemed “untenable in the eye of law” due to the absence of procedural fairness.
