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[Cites 27, Cited by 0]

Andhra Pradesh High Court - Amravati

M/S.Standard Metalloys Pvt.Ltd. vs Union Of India on 18 September, 2020

Bench: J K Maheshwari, K Suresh Reddy

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVAT!
(Special Original Juriadictian}

FRIDAY, THE ENGHTEENTH DAY OF SEPTEMBER
TWh THOUSAND AND TWENTY

PRESENT
THE NONGURASLE THE CHIEF JUSTICE SRI JITENDRA KUMAR MAHES ;

AND
THE HONOURABLE SRI JUSTICE K.QURESH REDDY

WRIT BETITION NO: 8446 OF 3028
Beahveen:

Mis.Standard Metalloys Pvilic.. irrough is Authoriged engi Se. Su um
Vr path, having Regd. Office at 845, Naurang Hou 90, 21, K.G. Marg, New Deihi-

44060 4

AND

PETITIONER

~

Union ¢ i fadia R Ren by is Seoratary, Ministry of Mines, Shastri Bhawan, New
Malki ie

Addition acior General and Administering Authority, Gedingy Survey of
inca, ¢ aSit nee 2x, Saminary Mulls Nagpur440006 .
Deparime sont of Atomic Ener ray, Rap by ds Secretary, Anushast Bhawan, Mumbal-

S800
RESPONDENTS

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we
vn

bad

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Petition uncer Article 286 of the Cansiitutien of india praying that in the

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circumstances stated in the affidavil fled {herawith, Ihe High Court may be Meased fo

G) Issue an sporosriate wri, omer or direction in the nature of writ of certiorari
¢ quash notification dafed 27.7.2019 issued by the Depariment of Alamie Enargy as

being ullra vires the OAMOR Act and/or the Atomic Energy Act, and or

(issue an sopropriate writ, arder or direction in the nature of writ of oartcrari

fo quash order dated 6.17.2019 issued Sy the Central Government, and/ or

fiplseue sn aprrooate wrif, order or direction to declare Rule GA of fhe Off
Shore Area Mineral Rules, 2006 as ullra viras the OAMOR Act, 2002, andar

~

faiissue an appropriate writ, order or direction in the nature of writ of
mandamus to direct the responders to exeaite and sign the deed of exploration
Hognoe with the patitioner in furtherance of order of grant dated 54.2011 and in terns
af the inter party decision of the Nenble High Court of Dethi under compliance to this
Hondle Coun,

@issue an appropnate writ, arder or direction in ihe nature of writ of cerlorari
reopening of PE No, PE AC1 2012 AOQ0S already closed earier by the CRI vide

ee
B.
wots,
"o

or quashing of reference dale OG. 2018 made by Minisiry of Mines to Ci for

slasure report dated 28.4 2073

   
 

[A NO > 1 OF 2020

Fetitien under Section 161 CRO praying thal in the circumstances stated in the
afidavli fled in support of the petition, the Nigh Court may be pleaser! to Pass ex-
nara and interim orders in favour of the Petitioners and direct stalus qua be
maintained wih regard to the ofishora Bisoks mentioned with regard to the offshore
tdocks mentioned in nolfication dated OF.O8 2070.

{A NO: 2 OF 2020

Petition under Section 151 CPC praying that in ihe circumstances stated in the
alidavil fied in support of the petition, the Nigh Court may be pleased to Pass ex-
rane amd interim orders in favour of the PeiNionera and stay fhe operation af the

™

order dated 6.77.2019 and notification dated 37.07 2078.

fatnsel for the Petitioner: SRI DYASNHRAJ SINGH DEQRA for
SRI S.VIVER CHANDRA SEKNAR

Gounsal for Respondents: SR) A.HARINATH, Asst Sel General for
SRE PASALA PONNA RAQ, SC for Central Govt.

The Court made the following: ORDER
 

HIGH COURT OF ANDHRA PRADESH ; AMARAVATI

CHIEF JUSTICE 1.K. MAHESHWART

&

JUSTICE K. SURESH REDDY

WRIT PETITION No.8410 of 2020

    

  

Havi ng Read. Office at 819,

Naurang House,
New Delhi -110001.

Versus

i. Union of Indie
Ren. by its Secretary,
Ministry of Mines,
Hast Bhawan,
New Oeihi 110001.

. AddManal Uxrector Ge
Geology Survey of Incha,
GSI Complex, Serninary NHis
Nagour-440008.

bad

  
 

tas
:

Rep. by iis Sacrefary,
Anushakt! Shawan,
Miurnifal - 440001

Counsel for the petitioner

Counsel for the rescondants

Date of reserving the order

Date of prammuncing the order

p2i, RG. Marg,

Department of Atorric Enere

ts Authorised Si igs snatory 5 Sh. "Sumi it Tripathi,

a Petoner

 

eral anid Acininistering Authority,

hespandents

fir, O. Yashral Singh Oaora
for Mr, S. Vivek C Chandrasekhar

Mp, N, Hacnath,
Assistant Soficitar General

81.49 ORG
 

 

OR PER

NARA ANRRSNSESNANNOO

Per U.K. Maheshwari, C3
invoking the jurisdiction under Articie 226 of the Constitution
of Inia, the petitioner fled the present writ petition, seeking to

9 of the

fend

quash the palicy decision vide notification dated 27.07.2601
Department af Atomic Energy (hereinafter be referred as 'the DAE'

for brevity}, Le, respondent No.3 ss being aire wires to the

oF

Feud

Offshore Argas Minerals (Developrnent arki Regulation) Act, 200:
Chereinafter be referred' as 'the OAMDR Act' for brevity}; to quash
the consequential order dated 06.11.2019 issued by respandent
Novi ~ Ministry of Mines, Government of India; to declare Rule 34
af the Offshore Areas Mineral Concession Rules, 2006 {hereinafter
be referred as 'the OAMC Bules' for brevity) as of
provisions of the OAMDR Act: fo quash the letter dated 04.04.2019

addressed by the Ministry of Mines, Government of India, to the

Cy

entral Bureau of Investigation for reanening of the Preliminary
enquiry Gearing No.PE ACL 2012 ADOOS, which was clased sariler
vide closure report dated 28.03.2013, for further investigation; and
to direct the respondents fo execute and sign the deed of
exploration licence in favour of the petitioner in furtherance to the

order of grant dated 05.04.2011,

2 The present case has chequered history, wherein the issue of

grant of exploration licences under the OAMDR Act has already
 

 

undergone two rounds of [Ngation upto Kon'ble the Suprerne Court

6£4

and an both occasions, Han'ble the Syprerne Court has refused to

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interfere with the fAndings of the High Court. White dismissing

S.LEYO NO. S530 of 2014, vide order dated 31.03.2014, against
the judgment of Bombay High Court, Hon'ble the Supreme Court
upheld the process of selection, legality and propriety in granting

exploration ficences in favour of private parties including the

petitioner herein.

J. The facts which are net in dispute anc are borne cut from
the record are, the GAMDR Act carne inte force on 15.01.2010,
Respondent Nol appol inted the administering authority uncer the
orovisinns of the OAMDR Act on LL0S.2010. The sald
administering authority issued notification dated 07.06.2010, in
terms of the mandate of Section 10 of the OAMDR Act, which
required the authority to issue notification within six (6) months of
the Act, indicating the offshore areas available for grant of

exploration flcences. By the said natification, 62 offshare blacks

ed

were notified for grant of explaration licences. Pursuant to the said
notification, various applications were received seeking allotment of
the blocks. The authority concerned! accordingly bas constituted a
screening committee consisting of experts fram Indian Bureau Of
Mines CBM}, Geological Survey of India (51) and National

Institute of Oceanography {NIO}. The screening committee has
 

& HOGS 4389

WEL 84 30 of SOG

drawn up guidelines based on the requirements under the
provisions of the OAMDR Act, more specifically Section 12, and
undertook the selection pracess recommending the names by a fist

fottees for grant of exploratian licences on the website or

ie

22.02.2011. Thereafter, the administering authority, in exercise of
HS power under section 12 of the CAAMDES Art issuecl orders dated
O5.04,.2011 granting exploration licences for the 62 blacks to 16
successful applicants, including ths petitioner herein who was
granted six blocks in the Bay of Bengal. The said blocks granted to
the petitioner for exploration are adjoining the coastline of Andhra

Pradesh State.

4. Assaling the pracess of selection adopted by the
sdministering authority, various orivate parties, though not
participated, approached different Nigh Courts and tried to stall the

allotment. Several Writ Petitions were fled before this Court, the
High Court of Macias and the High Court of Bambay by different
parties. In the meantime, based on the news item sublished |

newspapers, which sought ta raise sussicion on the allocation of
the locks, the Central Bureau of Investigation initiated a
preliminary enquiry, However, afler conducting a thorough probe,
the CET submitted a closure report dated 28.03.2013, having found
ne evidence of sate Ade on the part of any public servant and no

evidence of any quid-oro-quo bebveen the public servants and the
 

NOY

WE No G4

 

1s

 

successful allottees. In fact, the CRI also came to the conclusion
that there was mo evidence to suggest any financial loss to the
oublic exchequer ar any corresponding gain to ary crivate persan
in the whole exercise undertaken by the screening committee for

"ant af exploration licences. However, the CEI seemed to suggest

that the alleged criteria for selection was fixed and adopted by the
screening cormmittes after Inviting the applications, which may

amount to an irrequiarity. The report of the Cal was accepled i by
the Ministry of Mines, because the Minister of Mines, Government
of India, in a reply to a question in Parlament, stated that no
misconduct was found by the CBI on the part of any official, thus

nut the said rnatter at rest.

5. The private parties, wha were seeking fo stall or nullify the
grants somehow or the ather, did not meet with any success in ary

os

of the Courts. The High Court of Bombay, Nagpur Sench, bafore
which the entire selection process was challenged, including the
criteria adopted by the screening committes, which was
commented upon by CBE as being irregular, has not four faut
the procedure adapted for selection being in accordance with
law and upheld the same. Vide detailed judgment dated
17.09.2019 passed in W.P.No.1802 of 2011, the Nigh Court of
Bornbay was pleased to hold that the selection process adopted by

the administering authority Including the laying of the guidelines by
 

 

the screening committee even after receiving the applications was
fair and just, The Court was of the opinian that the guidelines
framed by the Cammittee were merely an elaboration of the criteria
prescribed under Section 12 of the OAMDR Act, as such the
selection was in accordance with the provisions of the Act and by
Following the procedure. The High Court observed! that laying down
the criteria to carry out the proavisian of Section 12 was, in fact, to
avai arbitrariness in exercise of discretion. It is important to
mantion that before the Bombay High Court, respondent No i
defended the action and the criteria adopted by the then
administering authority in the process of selection, SLP GD.No.5530
af 2014 preferred by the orivate party against the judgment of the
Bombay High Court was also dismissed by Hon'ble the Supreme
Court, vide its order dated! 31.03.2014. Accordingly, the validity of
the selection pracess and the same being In accordance with law

attgined finality.

its
*

Even thereafter, the issue of execution of the exploration
licence remained pending before the administering authority for a

considerable period on the pretext thet one of the cases filed by a
private party before this Court was pending and had not been
Gaciged, Af that stage of me, there was no indication by the
administering authority regarding any error in the notification of the

blocks or its intention not to grant the blacks. The change in the
 

 

atthude of the adrninistering authority seems to have occurred
when the then Secretary (Mines), in a meeting datecl 14.07.2015,
directed 18M to explore a way to cancel the allotment of the blocks
so that the same blocks could be re-oranted. It is the cantention of
the petitioner that the said exercise was obviously undertaken to

benefit certain orivate parties who had not been granted blocks |

the previous alohment process.

Pe Since the administering authority was not execuiinc the

is
55

exploration licences to the allottees despite the selection proces:
having attained the finality by the Court, some allottees
aporoeached the High Court of Bombay and the High Court of Delhi
seeking writs in the nature of Mandamus to direct the authority to
execute the exploration Heences. These petitions were Mes
sometime in June, 2016. On service of notice to the administering
authority, ina hurried marmer, order dated 20.06.2016 was issued
seeking fo annul the notification and grants so as to defeat the
pending writ petitions in Courts. The petifioner herein challenged

aid order dated! 30.06.2016 in WP (C).No 7537 of 2018 before

oe
er
th

4@ Delhl High Court. Vide judgment dated 06.02.2019 passed In

the said writ petition alnng with batch of connected wrif petitions,

oss

the order dated 30.06.2016 was set aside by the learned single
judge of the Delhi Nigh Court, directing the respancients to execute

the axploration licence. The Court, in te judgment, recorded
 

 
 

WEE 8g S825 of

findings against the officers of Ministry of Mines indicating their

maa Ade and the manner in which the cancellation order dated

8. Based upon the findings in the aforesaid Judgment, a
complaint was made by the then administering authority on
LLO22019 to the Central Vigilance Commission (CVC). The CVC,
vide order datecl 15.03.2019, directed for an independent
investigation against the officers of the Ministry of Mines. Being
influenced by the said development, officers in the Ministry of
Mines immediately wrote a letter to the CRT on 01.04.2019, making
request to reopen the Preliminary Enquiry closed earlier on

28.03.2013 after thoraugh investication.

9. in the meantime, the said arder dated 06.02.2019 of t

learned Single Judge of the Delhi High Court was challenged by
respondent No.1 in LPA No.i85/2019 & batch, which was upheld
by the Division Bench vide judament dated 25.04.2018, wherein
ONce again seriqus strictures were passed' against the conduct of

the officers indicating their ma Age in making a reference to CBT

an 01.04.2019 for rengening of the PE. Agarieved hy the above
g ¥

C3

Judgment, respondent No.1 preferred SLPs, lead case keing SLP
(C). No. LiS9 of 2019, before Hon'ble the Supreme Court, In the
said SLPs, vide order dated 23.05.2019, Hoo'ble the aupreme Court

directed the Secretary, Department of Atomic Energy, to fle an
 

 

YALE. ne. A

 

affidavit sbout the golicy decision of the Central Government,
asking whether they want to go by the bids invited or they want to
interelict all orivate players, if so, haw they can de so in view of the

provision in the statutes.

iQ. In response to the sald order, the Secretary, DAE, Med his

affidavit in July, 2019 and deposed that any policy decision of the
Government as adapted under the OAMDR Act could "be
implemented only pursuant to an amendment in the OAMDR Act
The Secretary, DAE, Immediately issued the Impugned notification
dated 27.07.2019, referring Section 8 of the OAMBR Act and Rule
L8CiMivyb) of the GAMC Rides, anc sought to contend that it has

é

powers under Sections 3 and 14 of the AE Act to cancel the grant

orders for exploration Hoences and that tao retrospectively. By the

said notification, grant of operating rights were prohibited in

a

'egpect of atomic minerals in any offshore areas in the country,
including the sixty-two blocks, to any person, except fo the

Government or a Government Company or 4 Corporation owned or

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os

controlled by the Government and all actions taken in this behalf by
the Central Government under the OAMDES Act priar to the date of

the notification were rescinded,

Li. When the SLPs carne up for hearing, the saici policy decision

was produced before Hon'ble the Supreme Court. The Court, after

having refused to interfere with the judgments of the Delhi High

~
 

WLR S830 of BORG

Court, alsa has not cammented on the merit of the policy decision
dated 27.07.2019, and was pleased to direct that any policy

decision taken would be grospentve in nature.

id. Even after the above proceedings, the petitioner did not get
to anjoy the fruits of the long drawn tigation. Respondent No.l
within a short span of the dismosal of the SLPs, issued shaw-cause
notice dated 19.08.2019 to the petitioner, by relyinc gq ugon the
notification dated 27.07.2019 issued by respondent No.3. The
celtioner fied cantempt proceadings in Contempt Petition
(C).No,967 of 2019 before Hon'ble the Supreme Court. During
pendency of the said Contempt Petition, respondent No.1, after
hearing the petitioner, passed order dated 06.11.2019 under
Section 7 of the OAMDR Act prematurely terminating the order of
grant of exploration licence dated OS.04.2011. As the order dated
O6.11,.2019 came to be Issued, Hon'ble the Supreme Court, vide
order dated 27.01.2020, disposed of the Contempt Petition,
granting liberty to the petitinner to challenge the sald order dated
Q6.11.2019 In appropriate proceedings before the High Court. In
View of the same, the present petition came to be filed by the
petitioner assailing the impugned notification dated 27.07.2015, the

ander dated 06.11.2019 and to seek the reliefs above referred,

ig. The contention of the petitioner is that the notification dated

27 Q7.2019 is Hable to be quashed, being oie wires to the

g
 

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APNG BS

 

-

orevisions of the GAMDR Act as well as the Atomic Eneray Act,
1962 (hereinafter be referred as 'the AE Act' for brevity). Learned
counsel for the petitioner has referred amd relied upon various
orovisions of the GAMDR Act and the OAMC Rules with speciic

reference to Sections 3, 3, 5, 6, 12 and 12 of the QAMDE Act.

Further reliance is ofaced on Rule 18 of the QAMC Rules to contend

ae

at the DAE does not have any discretion with regard to grant of
exploration licences for atomic minerals, therefore, the said

authority is seeking fo achieve something indirectly which could not

peed
re

have been done directly. ig aisa contended that the issue
pertaining to interpretation of the provisions of the OAMDR Act is
no longer res dxfegee Inasmuch as the High Court of Delhi, in the

x

proceedings inter parties, has already held in judgements dated

£3

x

Q6.02.2019 passed by the Iearned Single Bench and 25.04.2019 of
the leared Olvision Bench, that private sersan or companies can
be granted exploration licences for atomic minerals under fhe
provisions of the QAMDR Act, and the statute does not restrain
such grant. Therefore, the notification dated 27.07.2019, which Is
merely an executive instruction cannot override the statutury
provisions which have already received judicial exarnination by the
inter-party judgment. Tf is also contended that the issue is also
barred by res fuotcata and the respondents cannat be permitted fo
reagitate the said issue. With regard to ure wres of the said

notification to the orovisions of the AE Act, is contended that
 

an
at

 

sections 3 and i4 of the AE Act, sought to be refled "par, do not
confer specific powers and cannot be said to relate to the object
sought to be achieved by the notification. It is further contended
that Section 30 of the AE Act requires rules to be framed to give
effect to the object of the AE Act prospectively, The ressondents
have not framed any rules to the extent as is being sought to be
provided by the executive instruction. The Rules framed are the
Atamic Energy (Working of the Mines, Minerals and Handling of
cribec! Substances) Rules, 1984 (hereinafter be referred as the
Rules of 1884 for brevity). Those Rules deal with the contingen ey
of discovery of the prescribed substance during mini nq. s, the
AL Sct ar the Rules co not restrict grant of operating right to
private parties, If is cartencied that where law requires a thing to
be Cone in a particular manner, the same should be done only in
that manner anc in ne other renner. It is alsa alleged by the
petioner thet the rules framed are requirecl to be placed before
both Houses of Parliament in terms of the requirement under
section 30 of the AE Act and in that case, they may likely to be

rejected by the Parlarnent. Therefore, the respondents have

er
oa

sought to sidestep the mandatary orocedure prescribed under law

by way of issuing the irmougnec notification. It is further cantencied
that the sak! notification seeks t3 undermine the statutory

provisions that is Parliamentary law viz. the GAMOR Act, and the

mecretary, DAE, who has issued the said notification was Fuily
 

 

canstious about the legal position as is evident fram his affidavit

fled before Hon'ble the Supreme Court, wherein he had
categorically admitted that any policy of the Government could be
implemented only after an amendment to the OAMDE Act. In this
fact, the said notification travels beyond the scope of the QAMDR

Act as well as the AE Act and therefore, is required to be quashed,

id. With regard to the order dated 06.11.2019 cancelling the

order of grants retrospectively, if is cantended that the sais order is

fable to be quashed as the same is in violation of Sectian 7(2) of
XN *

the OAMOR Act, which embocies the | principles of natural justice
otherwise quaranteed under Article 14 of the Constitution of India.
The petitioner contends that though show-cause notice was issued
and hearing was fixed, but the sald process was nothing but an
empty formality as the authority had already made up fs mind to
cancel the allocationfgrants of the exoforation licence. Learned
counsel, referring the language of the show-cause notice as well as
the stand of the Government before Hon'ble the Supreme Court,
camended that the decision to terminate the grant was pré-
determined. On the issue of challenge to the sald order on merits,
tis contended that it suffers from fetter of discretion which the
Central Government, Le. the Ministry of Mines hac fo apply.
Heavever, the Central Government, instead of exercising ifs own

Independent consideration on the situation, Aas im turn solely
 

ag WEE A KER, |
WAP.Na. S836 of 2029

mpressed upon the notiication dated 27.07.2019 issued by the

DAR, however, passed {he order impucned.

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wh
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provide arty mestriction on private companies being granted atomic

A.

minerals as defined under Part B of Schedule-T of the Mines an
Minerals (Development and Requlatian) Act, 195? (hereinafter be
referred as 'the MMOR Act' for brevity}. In the alternative, it is
contended that Rule 34, being subordinate legislation, can in any
event not apply retrospectively or impact or affect vested rights.

The issue pertaining to vested rights already stands settled bef

a

the High Court of Delhi wherein the issuance of order of grant
dated 05.04.2011 has been recognized as conferring vested night to

the petitioner.

if Lastly, & is contended that the letter/request dated
01.04.2019 issued by respondent No.1 asking CBI te re-open the
investigation with regard to the grants is out of vindictiveness and
bas been done to undermine the order of Bombay High Court and
iS @ Malicious exercise of power. Learned counsel placed reliance,
firstly, on the CVO, IBM and CBI enquiries itself, which were held

prior fo the jucigmert of the High Court of Bombay dated

709.2012 in W.R.No.1802 of 2011 and the respondents
 

 

themselves bad defended the action of the then administering
authority as well as the screening committee before the High Court
of Bombay, which, on consideration of the factual and lege!
situation, specifically arrivecl at the finding that the screening
committes had acted in accordance with law and the criteria
framed is traceable from Section ig of the OAMBR Act and no

irregularity of any nature was found in the selection process for
grant of exploration ficences. The High Court further held that the
criterla adonted by the Selection Committes was to avoid
arbitrariness and as such, the findings of CSI to the extent that
there was procedural irrequiarity steed impliedly overruled by the

High Court of Bombay. Tt is further contencled that Interference to
the said judgment was refused by Hon'bie the Supreme Court in
the SLB. ff is, therefore, contended that request to reapen the

x

CBI investigation after @ lapse of 6 years Le. by ietter dated
OLO4.2019 by Respondent No.1, liself speaks volume about mee
fides. If any investigation was further desirec by respondent No.1,

was always apen to the said respondent to have requested ihe
CBI fi renpen the matter immeciiately after the closure report
dated 28.03.2013. However, they did not do so, knowing fully wel
that there were no discrepancies in the entire orocess. In fact, the
saicl closure report had also been accepted by the Ministry of Mines

and a confirmation to this effect was also given to the Parhament

by the Minister of Mines. It is only when the respondents realized
 

 

that their legal attempt at cancelling the allocations vide the order
dated 30.06.2016, would not hold water in Court, that the
respondents startec) making allegations against their own officials.
Learned counsel further cantencis thet aa fe of resoondent
No.l ig a@ wrt Jarge on the face that the said letter dated

xy
Ve

04.20,

pes
pod

3 Sac been written by Mr. Niranian Kurnar Singh, the
then Joint Secretery-cum-CVO of Ministry of Mines against whom
the CVC had already initiated the Investigation on 15.03.2019 and

iy arder to mislead the CSI, crimiel material facts vie. Judgment

Gated 17.09.2013, order dated 31.03.2014 of the Hon'ble Supreme
Court and the O.M. dated I5.03.2019 initiating indepenclent

&

investigation against officials of Ministry of Mines including
Mr. Niranjan Kumar Singh were deliberately suppressed in the
letter dated 01.08.2019 and therefore, the action of issuing the

ietter was out of malice. If is, accordingly, contended that mele

ot
3

a

ides are to be inferred from: a tote! consideration of the

surrounding circumstances,

if. Learned counsel glaced reflance on the judgment of
Directorate of Film Festivals v. Gaurav Ashwin Jain', on the
issuus of scope of judicial review while examining the Government

oalioy. Reliance has further beer laced on ULP. State Road

 

"YROO?T} 4 SCL PRE
 

 

Transport Corporation v. Mohd. Ismail'. On the issue, when
law requires something to be done in a part icular manner, © ought
to be done in that way, rellance is placed on the decisions in Patna
Improvement Trust v. Lakshmi bevit, Babu Verghese v. Bar
Council of Kerala", State of Punjab v. Gurdial Singh*, Dipak
Sabaria v. State of Gujarat'. In support of the contention, the
orders passed by the Delhi Nigh Court, interpreting the prov VISIONS

of the GAMOR Act, since bece

%

2 final on SLP being disposed

wt

without interfering in the judgments of the Delhi High Court and
the said judgments could not be sought to be nullified, rellance has
been laced on the judgrnents of Non'bie the Suoreme Court in
Union of India v. K.M. Shankarappa', Mohd. Aslam v. Union
of India® and Medical Council of India v. State of Kerala®, In
support of the contention that in the manner in wht ch the oewer
has been exercised while framing Rule 3A and issuing policy
decision retrospectively, such action is not permissible In terms of
the provisions of the statute and is arbitrary, rellance bas been

ofaced upon the judgment of Hon'ble the Supreme Court in

Hukam Chand v. Union of India*®. Tt is urged that the action

 

ee
PN ba A ms

 
 

18 HOE R NSA, J
WP.Mo.SOi8 nf 2030

taken by the respondents was in wolation of the orincioles of
i f

att

natural Justice and in sugport of the ssid contentio on, reliance has
been placed on the judgments in Oryx Fisheries {PF} Ltd. v.

Union of India** and ONGC Ltd. v. Western Geen

International Led

18. Responvent Nos.t anc 2 Rave filed thelr counter-affdavit
and in terms of the averments made therein, the learned Assistant
solicitor General has sought to oppose the writ petitien on the
grounds that the sower of judicial review fs limited and that what js
primarily under challenge in the writ petition is the policy decision
of the Government to nat grant mining af atomic minerals to
private companies/parties in the offshore sreas. It is contender!
that the minerals in question are of strategic value anc allowing
private parties to mine the same would impact the security of the
nation. Various judgmertts have been referred on the aspect of
policy decision of the Gavernment anc the alleged bar on the
interference by the Courts in such decisions. The respondents have
aso refled upon the arler of Hon'ble the Supreme Court to
overcome the contention of the petitioner pertaining to the Findings
af the High Court of Delhi. The respondents have sought to place
relaance on the order of Hon'ble Ager Court dt.39.07.2019 passed

in the SLP of the respondants challenging the order of the Delhi

 

 
 

we
"as

 

BWV os

High Court. Much reliance has been placed on the sentence "ave

directions oF the High Court shal sot care in the wor

fe,

iniplementing fhe palicy decisforvactian', to contend that by virtue

oo

of the same, the effect of the judgments of the Nigh Court af Delhi
are completely wiped off and the sald orders of the High Court
stand merged in the order of the Han'ble Supreme Court, Bases
on the same, it is stated thet urvier Section 6 of the OAMDR Act
read with Rule i8 of the GAMC Rules, the DAE-respondent Nos
was fully competent to exercise Ns discretion ane fake a policy
decision to not grant exploration licence or mining isases £9 arivate
companies for atomic minerals. The said policy, it was cont ended,
is also in consonance with the policy under the provisions of the
MMBR Act and the rules framed thereunder. Rellance is also pl faced
on various provisions of the AE Act to contend that respondent
No.3 has acted dure wres to the provisions of the sald Act while
issuing the instructions vide notification dated 27.07.2019. If has
been sought to be highlighted that the minerals in question, WE.

ilmenite, rule, gamet, sillimaniie, zircon, are of high strategic

us

importance, Suggestion has also been sought to be mace
pertaining to the importance of zircon in energy production throug
nuclear plants. Monazite which is a prescribed substance being

notified as such under the AE Act, is also said to be avaiable in the

suite of minerais available in the said offshore blocks. Accordingly,
 

ae ROY & KER:
WA Ne BAG of FOI5

it is claimed that the writ petition should be rejected as BAF wes

fully within its powers to have issued the imouaned notification.

th

iS.  In-so far as ewercise of power under Sectior® 7 of the CAMDR
Act is concerned, the respondents have contended that the same
was strictly follawed in compilance with the said provisions and
princinies of netural justice, as such a show-cause notice was

£

and opportunity of hearing was provided to the petitioner,
The Central Government, thereafter, has righty arrived at the
conclusion to prematurely terminate the aperating rights vide order

dated 06.21.2019

20, With regard to Rule 34 as inserted in the OAMC Rules, it was
contended by the learned Assistant Solicitor General that the same
is in compliance with Section 6fb) of the GAMDR Act, which
Provides that the grant may be to an Indian company that satisfies
such conditions as may be prescribed. Accordingly, under Section
JS of the OAMDR Act, while exercising its rule making power, the
saicl condition uncer Rule 3A has heen prescribed and as such the

said Rule is sofa wires to the OAMOS Act,

4i, Lastly, regarding the letter dated 01.04.2019, § is sought to
be contended thet the CBI enquiry has already commenced based

on the said letter. It is also contended! that a writ petition has bean

3F3

fied challenging the enquiry before the High Court of Delhi, It is
 

 

also subrnitted that respondent No.t has taken note of the
discrepancies/irrequiarities in the selection process as brought out
by the CBT in its report detec) 28.09.2015, which has aroused
suspicion of respondent No.l with regard to the sald grants and
undue haste shown by the then administering authorify in
execution of the exploration Heenees pursuant to the order dated
O8.11.2017 of the High Court of Delhi when the Government was
stil contemplating further course af action and accordingly the said
latter Inflating enquiry cannet be held to be vitlated by sala Ades.

to be

a

Ik is accordingly contended that the wel petition desarve

dismissed.

my

22. Learned Assistant Soliciter General appearing on behalf of the

Zr 4
uw
rou

respondents also placed reliance on the judgment of Directorate
of Film Festivals v. Gaurav Ashwin Jain, on the puint af scape

of judicial review. Placing reliance on the judgment of M.P, OH
Extraction v. State of M.P.5, i is said that uniess the policy
frarned by the Stete is capricious and arbitrary, interference should
not be made by the Court. Further, relying upon the Judgrnent of
Balco Employees Union v. Union of India'*, it is contended

that the Courts should net embark upon an enquiry as to whether a

hes
oS

wb

particular public policy is wise or a better public palicy can

evolved and interference with the policy decision by the Court is

 

 
 

 

met permissible merely on the ground that fairer ar wiser or more
sclantific cr more logical policy may be oossible. Further, on the
point of exceptions available In relation to the principles of natural
justice, reliance has bean placed on the judgments of Justice K.S,
Puttuswarmy v. Union of India", Maneka Gandhi v. Union of
India' and Mohinder Singh GHI vy. CEC'. Finally, it is urged
that what is in the interest of national security is not a question of
law anc if is a matter of policy, therefore, the Court is not required
ta interfere, and In support thereof, s@lance has been placed an
the judgment of Ex. Armymen's Protection Services P, Ltd. v.

Union of India®. In view of the aforesal d judgments, ib is urged

that the petition fled by the petitioner may be disrriissed,

ai, On consideration of the averments made in the writ petition,
courter-affidavit fled Oy respandent Nast & 2, the rejoinder Aled
oy the petitioner, the rival contentions as advanced and the reliefs
prayed oefoes the Court, mainly the following issues arise for

determination in the oresent case:

i. Whether the policy decision of the DAE taken vide
Not¥ication dated 27.07.2019 is within the arnbit
and power of the AE Act and/or OAMDR Act and not

whe wres to the statute, ar it is dehors the

 

AIR GOD? SC 4081
is ay: oan
"4978 AIR SOP

 
 

 

provisions of both the Acts, and issued arbitrarily

<

with lack of bona fides?

ond

3, Whether the order dated Q6.11.2019 passed by
respondent Novi is after due application of mind or
merely relying upon the Notification datec
27.07.2019 and such action is In consonance to the

provisions of Section * of the OAMDE. Ach in

observance of the orincigles of natural justice

Bad

Whather Rule 34 of the OAMC Rites, as notified on

23.06.2019, Is ufre wres to Section 35 of the

<

OAMDE Act, and having sanction of law?

4 Whether the letter dafed 01.04.2019 sent by
respondent No.l to the Director of Central Bureau
of Investigation to reopen the Preliminary Enquiry
bearing No.PE ACI 2012 Al0O0S already closed vide

closure report dated 28.03.2013, after six years is
tainted with saa Ace looking to the facts of the

cases

24. Before dealing with the questions framed hereinabove and in
the context of the facts of the present case and the reliefs so
orayed, challenging the policy decision of the Central Government,
at the outset, it is necessary to sea whether the scope of judicial
raview is avaliable te this Court i ise of power under Article

226 of the Constitution of India. In the said context, it Is to be
noticed that in the S.L.e. arase out of the infer-party judgment

delivered in favour of the petitioner by the Delhi High Court,
 

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dated 29.07.2019, has
efore the Court is not in
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the fundamental rights of the cliivens or is opposed to the
orovisions of the Constitution or opposed to any slatutary provision
or manifestly arbitrary. Ib is clear that it cannot 6 interfered or
the ground that it is erroneous or a better, fairer or wiser

alternative may be available.

27. Further, Hon'ble the Suprerme Court In ffs judgment in
Bombay Dyeing & Mfg. Ca. Ltd. V. Bombay Environmental
Action Group™, has carved out several factors on which the
Court may enquire into a polley decision of the Government. Those
facters are () whether the discretion conferred upon the statutory
authority had been properly exerclaed; (1) whether exercise of
such discretion is in consonance with the provisions of the Act; CH)

whether while taking such action, the executive Government had
taken into consideration the ourport and object of the Act; Gv)
whether the sare subserved other relevant factors which would
affect the public at large; Q} whether the principles of sustainable
development which have becarne part of our constitutional law
have been taken into consideration; and (vf whether in arriving at

such @ decision, both substantive due process and procedural due

nrocess had been comolled with.

 
 

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28. Recently, in the case of Indian On Corporation Ltd. V.
Shashi Prabha Shukia*®, Hon'ble the Supreme Court, while
dealing with the plea of absolute discretion, has referred the
observations made by Lord Reid in Ssdffeld vo Minister of
Agriculture, Fisheries and Food: (AC p. 203 €D} which read

thus:

 

th ey we * She ' xe eg ene, . bon
DEFsons sggNeved were oot entified fo the orofection af she

ceiurk ©

2%, On consideration of the said precedents, it is 9 trite law to
say that the policy formulated by the Government contrary to the
provisions of the statute or in an arbitrary exercise of pcwer
affecting funcamental rights, can be interfered with by the High

Court In writ Jurisdiction. The Court, while exercising powers of
judicial review, can always examine a patic icy to check whether it

violates fundamental rights or is opposed to provisions of the

er

Constitution or opposed fo any statutory orovision or it is
ad ¥

 
 

 

manifestly arbitrary. Simultaneously, the Rules framed without
having sanction of law by the statute cannot be termed as inva
vires, In view of the forgoing legal position laid dawn by Hon'ble
the Sugreme Court, now, if can safely be cluded that the scene
of judicial review is available to this Court in exercise of the power
under Article #26 of the Constitution of India, to the subject matter
in issue, Hence, we deal with the questions framed in seriatim.

Question Nod: Whether the policy decision of the DAE
taken vide Notification dated 27.07.2019 is within the
ambit and power of the AE Act and/or OAMDR Act and sot
ultra vires to the statute, ar it is dehors the provisions of

both the Acts, and issued arbitrarily with lack of bona
fides?

"

30. For the surpose of decieling this issue, it is necessary to refer

concluding relevant portion of the Notification dated 27.07.2019,

which is reorocduced hereunder;

ANE sons Ph se rads oe oy wey gta tie ee ° >
Mines! (Deveoment and Reguistion) Ach 2002

7 ~ Ss *; wy se ~ Sy te ie ', SEAT =
SOPRA REES LNBE PY OF mucho igane for ahyine NNIGENS OF

?

" 2 ae
top a ge " s fF etfs fe ae
ihe Danartment of fhe Government of indie dealing wath Une

Aforvc Energy:

mee Pages SAR oi elec ofr ae oat
AND WHESESS sub-cisuse (O) af clause fie} oF Sun-

seorevel of the Department or Atomic. &sergy and

fherefores, as fhe save Gocks are a cOrnivuky oF onshore
 

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33. On perusal, it reveals that the DAE has exercised the powers

to issue the said policy

?

re

under & ms 3 and i4 of the AE Act and
glaced reliance on Section 6 of the OAMDR Act and rule
LS hoi bs of the GAMC Rites. Therefore, the relevant provisions

of the said Acts and Rules are required to be discussed,

Pad
'

3 Tt is to be noted that the AE Act was brought for

develapment, control and use of atomic energy for the welfare of

the people of Incia and for other peace) purposes and for matters
connected therewith. Thus, the legislative intent arc object to
bring such enactrient is to make use of the automatic energy |

development and its regulation for the welfare of the citizens. As
per Clause {a} of sub-Section (1) of Section 2 of the AE Act, the
atornic energy is defined as the energy released from atomic nuciel
as a result of any process, including the fission and fusion
processes. Clause (b) therein defines "fissile material' to be uraniurn
233, uranium 235, olutoriurs or any material containing these
substances or any other material that may be declared as such by
notification by the Central Government. As ger Clause (c}, minerals

include all substances obtained or obtainable from the soil,

including alluvium or racks by underground or surface working.

Pg

'Prescribed substance', as has bean clefined In Clause (g), rear to
be any substance, including any mineral prescribed by the Central

Government, by notification, being a substance which in is opinion
 

 

WIP Wo ddidiof 2020

is of may be used for the production or use of atomic eneray or
research into matters connected therewith and includes uranium
gutonium, thorium, beryllium, deuterium ar any of their respective
derivatives or compounds or any other materials containing any of
the aforesaid substances. Therefore, looking to the definition of

'inerals', is clear that applies to onshore minerals available

by the surface mining or undergroure mining. The said

G om

athe

wm

2

concent is appicable only for onshore mining not for offshore

mining. Therefore, as ger the intent and object of the AE Act and

laoking to the definition of 'minerals' and 'prescribed substance', it

applies to onshore mining and not to the offshore mining.

33. While issuing the impugned notification dated 27.07.2019 by
the DAE, the power under Sections 3 and 14 of the AE Act has
been invaked. However, to understand the intention of the
legisiature, if Is expedient to quote those provisions. Section 3 of
the AE Act is reproduced as thus:

"2. Gererai powers of Se Central
Cover en ES iapect nf fe the orpwsions af fs Act ge

aispase of starve

ees in
CYgn ay aut BONEN
ae "pe

& Of 8 GoveruTea
satiety ap end bg tee sk

SOOPER ND APP

 

~ o" Se ae ed 9 ree Loy ny
OS. fEQUSY for or Gf connection with. the

, aia sees epee oe ee
BS UGUCUOE, Gave. COMI OF USE OF  atOnyNe

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' x Shy o "a :
if for Ge prmduchon and SUB OF
from afaorvc energy and' for fexing

CONGLAIVE 89 SUCH Dre nducth on ang

wy pte or Saye y 2S Moet Pe & "
ag for ad matters incidental Ghereto:

en fe BN Mr tet este oN
By Reelf or Myrouga soy authority or

Se
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wig ee ates iy Pity ey 8 e

Vat? estaoisned By & of 3 Government

 

fg) fo de a such Yyrigs fi oluaing the erection of
ourciigs ang esscufion of works and fhe
mordvig of miiaras) as Me Centra' Government
COMSGESs Necessary or expedient' for fhe
exercise of fhe foregoing powers, "

34,  Perusal of the aforesaid Section makes it clear that It confers

general power to the Central Government subject to the provisions
of the Act, As per sub-sections (9), Co}, (ob) and (9 of Section 3 of

the AE Act, it is clear that the power is available to praduce,
develop, use and dispose of atamic anergy and other incidental
matters either by Hself or through any authority or corporation

esiailished by it or a Government company. With respect to the
power conferred under other sub-sectians of Section 3, viz., {c),
(a), {6} and (g), the general power of supervision is available only
with the Central Government, In this regard, if is to be noted that
in the original Act of 1962, the power to produce, develon, use and
dispose of atamic energy anc to carry out reasearch in the matters
connected therewith as specified In sub-section (a) and to carry out

ather incidental riatters ag specified in sub-sections (b}, (bb) and
 

 
 

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matters under sub-clause {c) of clause (1) af sub-section 1, which
lates to any plant designed or adapted or manufactured for the
production, development and use of atomic energy or for research
into matters connected therewith. Therefore, in the statute, while
conferring power upon the Central Government to have control
aver production and use of atomic energy, absolute prohibition is
made in the matter of grant of Heance only with respect to any
plant designed or adopted or manufactured for the oraduction,
development and use of atomic eneroy or for research into matters
connected therewith. If does nat prohibit the orant of licence by
the Central Government for the purpose of mine and mineral, Thus,

fhe

section 3 of the AE Act does not deal with the grant of licences of
Mine aad mineral, while Section 14 ceals wit ih by which the
grant of licences of mine and mineral of a prescribed substance is

permissible under a Heence granted by the Central Government,

subject to the rules made In this behalf and the exceptions stated

above,

38 The Ceritral Government has formulated the Rules of 1984 in

rcise of the power under Sections 14 and 30 (2) (e), (a) and 3
of the AE Act, The said Rules deal with the working of the Manes,
minerals and handling of prescribed substances. The term 'handle',
aSSess, Share, use,

as defined in Rule 20) includes manufacture, pe

transfer by sale or otherwise, export, Import, transport or dispose
 

 

of. Under Rule 2), Heencee' has bean defined as any serson wha
has been granted a licence for mining, milling, promessing and/or
handling of prescribed substances, under the Act or Rules made
thereunder. As per rufe 2fn), 'milling' includes crushing, pulverising,
sieving, processing chemically or otherwise of the ores or minerals
or chemical concentrates of prescribed substances. As per Rule
2{q3, 'person' hes been defined, which includes any Indiv Adual,
corporation, asseciation of persons whether incor porated) or nat,
narinership, estate, trust, private or public institutions, "grove,
government agency or any state or any political su ibdivision thereof

or any political entity within the state, any foreign government or
nation or any political subdivision of any such government or nation
or ather entity, Thereby, it is clear that the cence may he granted
to any person, Le, any individual private person. Rule 3 makes ig
clear that Heence is necessary for mining, milling, processing and/or
handling any ore mineral or other material frorm which any one of
more of the prescribed substanoes can be extracted. Therefore, the
mining of a prescribed substance can be pos ssible under | cence
by a licencee as per the conditions specified in the leance as per
Rule 4. From the above, it is clear that under the Rules of 1954,
the mining of a prescribed substance by amy person is nermissibie
under a ficence. The restriction under Sections 3 and 14 of the AE
Act is not anplicable to the mining operetian by a person being

ficencea even for the arescribed substance. The general restrictio
 

  
 

WP ROadio a

 

under Section 3 is wi
gispose of atomic eneray and carry out research inte any
matters connected therewith, while under Section 14, the grant
Gf Heence js restricted only to the extent of any plant desianed

or adepted or manufactured for the production,

development and use of atomic enerny or for research into

 

matters connected therewith. Therefore, the legislative intent

 

is very much clear that production and use of atomic energy should
mot be done by any individual but if ought to be done by the
Central Government and in furtherance to the said legislative
intent, the amendment in the AE Act has been brought in the year

LOB.

37. Thus, under Sections 3 and 14 of the AE Act, the mine and
mineral operation of a prescribed substance by a Hcencee, who
may be any person as specified in the Rules, is not restricted, but
the production and use af atomic eneray by a private individual is
restricted. The petitioner at present has only applied for an
exploration licence and in terrms of provisions of the GAMDE Act, it
mas nothing to do for the production, develooament, use or cisposal
of atomic energy or to carry out research ints any matters
connected therewith, Therefore, the various provisions discussed
above would not even came into play at oresent when all that the

parties are undertaking exploration at their awn cost to prove the
 

38

 

existence of mineable quantities of the mineral, that ton, without
kmowing which mineral or substance may be goassibly found at the

stage of exploration fcance

38. The impugned notification dated 27.07.2019 has been issued
in exercise of the power under Sections 3 and 14 of the AE Act, by
which the Central Government orohibited grant of operating right in
respect of atomic minerals in any ofshareg area in the country,
including 62 blocks, to any persan. As discussed herein, it is clear
that if grant is made regarding mine and mineral from which a
prescribed substance can be obtained In operation under a Hcence
granted under the Rules of 1984, the general prohibition with
respect to minerals containing prescribed substance do not debar

gperation of mine. Therefore, reference to Sections 3 and 14 of the
AE Act prohibiting the mining operation in general as per imougned
notification is misplaced anc it cannot be resorted to prohibit the

grant of operating rights under the gravisions of the GAMDE Act.

Therefore, the exercise of the power under the provisions of the AE
R p

ts

Act is contrary to the leqislative intent, obfect anc also against the

scone of the provisions of the AE Act

39, Moreaver, on a consideration of the provisions of the Ak Act,
itis evident that all minerals which are identified as atomic minerals
under the pravisions of MMDR Art not protected under the said

Act. Rather the Act seeks to govern only those atomic minerals
 

 

which are natiied as "prescribed substance" as defined under
Section 2{g) of the Act. The objective af the Act is to control
mineral from which "satornic energy" can be harnessed. The
petitioner is seeking to explore the availability of other minerals like
imenite, silimanite, zircon, ruthe which admittedly are no longer
prescribed substances, Ressondent Na.3, in fect, issued 4
notification dated 20.01.2005 by which the said minerals were
specifically rernoved fram the list af prescribed substances w.e.f
OLOL. 2007. Admittedly, the said notification or the Beach Sand
Mineral Policy of 1998 issued by respondent No.3, with intent to
promote private participation in mining of the aforesaid atomic

minerals, are mot withdrawn wl date and govern the fisic.

ae

Pursuant thereto, number of mining leases for such minerals
namely, imenite, silimanie, ruthie and zircon were granted te
orivate parties onshore which are stll in operation. It is also
relevant that these atomic minerals are also being exported from
the country by the private parties as is evident from the Notification
dated 21.08.2018 issued by the Cirector General of Foreign Trade

(OGFT) and recent circular dated! O1.08.2020 of Indian Rare Earth

Limited CIREE).

4Q, The power under Section 14 of the AF Act is not absolute
and subject to the rules in exercise of the power under Section 30

of the Act to carry out the purpases in Section 14 of the Act, which
 

fh.

 

are the Rules of 1984. Under the said Rules, any person handling
mrescribed substances has to apply for a licence and such an
apnication would necessarily have to be considered on a case to
ease basis. The respondents have not framed any rules to the
extent as js being sought fa be provided by the executive
instruction and in fact, the said notification is in the teeth of the

Rules which already exist under the AE Act, which otherwise da not

04

rict ts applicability only to the extent of the Government oF
Government Companies or Corporation. Thus, the impugned
notification would amount to supglenting the provisions in both the

Act and the Rules by executive instructians contrary tm the

of

provisions of statute, which itselfis not permissible. In ather words,
the grant of licence of mine and mineral to the nrescribed
substance permitted by the provisions of the AE Act anc the Rules

of 1984 cannot be allowed fo be fettered by executive instructions

issued vide Imougned notification dated 27.07 2019.

44. In addition, as per sub-section (4) of Section 30 of the AE
Act, any of the statutory orovision brought by way of amendment
woul apply prospectively and not retrospectively, Therefore, the
applicability of the fmpugned notification dated 27.07.2018 to the
grants already made, thet too, with retrospective effect without

there being any such power under the Act and the Rules, is
 

 

arbitrary, Thus, the notification dated 27.07.2019 Is contrary to the

statute and aqainst all cannons of law,

42. Reverting to the reference of Section 4 of the OAMBR Act
and Rule L8CUvy)(b} of the GAME Rules in the impugned
noufication dated 27.07.2018, the said provisions are required to
be considered, On perusal of the intent and object of the OAMDR

Act, R clearly stipulates to provide for develonment and regulation

is

of mineral resources in the territorial waters, continental shelf,
exclusive economic zone and other maritime zones of India and to
provide for matters connected therewith or Incidental thereto. As
per Section 3, the Act applies to ail minerals in the offshore areas
including any mineral prescribed by notification under clause (g) of
sub-section (1) of Section 2 of the AE Act. Therefore, the
applicability of the OAMDR Act to the oravisions of the AE Act is
confined to the extent of clause (g) of sub-section (1) of Section 3
of the AE Act. Under clause (b) of Section 4 of the GAMDR Act, the
atomic minerals would include the minerals specified in Part B of
the First Schedule to the MMODR Act. Clause {1} of Section 4 clarifies
that the minerals include all minerals except mineral of and

hydracarbon resources relating thereto.

43. In view of the foregoing, & is clear that the mineral
prescribed by notification, as per clause (g} of sub-section (1) of

section 2 of the AE Act anc the mineral specified in Part B of the
 

ay HEIR KOK,
WLPLNe. SS of BGR

First Schedule to the MMDR Act included in the atomic minerals,
have relevance for the purpose of OAMDR Act and not otherwise.
i is necessary to clarify that the operating right would include the
right of a holder of a reconnaissance permit or an exploration

~~

licence ar a production lease. In the sald context, the Hinitedd rate of

43

espondent No.3- DAE has been specified, while dealing with the
grant of coerating right, which can be rede to an Indian national
or a company as defined in Section 3 of the Campanies Act, 1856,
subject to such conditions as may be prescribed. While giving
power of operating right, by oroviso te Section 6, a rigour has been
put to the eifect that the grant of produc Hon jease for atornic
minerals or orescribed substances may not be made without
consuftation with the Department of the Government of Indis
dealing with the Atomic Energy. Therefore, for the purpase of
reconnaissance or exploration, the onerating right can be granter

even without consultation with BAS, to any person, in terms of
Sections Li and 12 of the OAMDBR Act respectively.
exercise of grant of procluction lease shall be done by the
administering authority as per Section 13 of QAMOBR Act. Thus, by
Section 3 of the GAMDO® Act, the legislative intent is clear that

any of the mineral as specified in clause (9) 0

weap,

sub-section CL} of
Section 2 of the AE Act, is found during eyoloration, far its
oroduction lease the role of DAE comes into, otherwise, they dave

no mile to play. Thus, legislation added proviso to Section 6 of the
 

 

GAMDE, Act regarding consultation with the DAE at the time of
grant of production lease. As per Section 8 of the OAMDR Act, it fs
clear that by way of notification in the official gazette, any offsha

grea may be reserved by the Central Government not already held
under any operating right, for the purpose of operation by it,
specifying fs boundaries, but the said areas may be de-reserved by
way of notification of the Government. The necessary implication of
the said provision is that the Act aupiies to all minerals in offshore

rea but certain areas may be reserved by the Central Gavernment

a

for operation by them under Section & of the GAMDR Act.
Therefure, under the O4 MDR Act, the operating right even for
atomic mineral or the prescribed substance specified under clause
(9) in sub-section (1) of Section (2) of the AE Act, in any offshore
area can be given to any private individual or private company and
as per Sections 12 and 13 of the QAMDR Act, the grant of
eperating right is not restricted to the Government, Corporation

awned and controlled by if and its instrumentalities,

44. Section 38 of the OAMDE® Act also confers the rule makin Ng
power fo the Central Government Sub-section (3) of Section 35
specifies the procedure as to how the rule so framed may be
placed before each House of Parlament and in case both the
Houses agree, subject to modifications, if any, the rules may be

nobfied, but thase rules shall be without prejudices to the validity af
 

 

 
 

 
 

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34 HES. KK}

WAP NOS 2D
ovdrate, off saads or anv offer Ayorocerhon
cormpouns, f0 ihe acemaestevig authoaritv
WINMA & Geriod OF sixty Gays fron? the date of
SuOP encourler who 7 turn shall pass an fhe
avormetion (9 te Secrefeay to fhe
Goverunent oF Jodie jo ghe Minty of

Pofrofeum and Natural Gas:

Provided fiat Ao

fee explore
OF ALO

ation Heer

mvc Energp ©

condition prescribed in

exploring the mineral ur

therein is discavered |

administering author

"C3 ;

reporting,

in the

gas hydrate, oil sands or any other hydra:

SEY
the said mineral shail

exploration losence

de Be see sete of cards wy Fe = eye, . ye.
atorue syneve! Shad be inefuded in

of fhe Oapartment

met ona ey ot =
FOS BRRIOUE

A perusal of the above Riie makes it clear that in acidition to

in the exploration licence granted, the

this Rule would be applicable. While
nder a lice fF any mineral not specified

. 2
awily,

AHERIN or such

included
exce@ot the mineral cis narnely

es Aya
Ou, Qas,

Ory
fod

arbon compound, The

proviso to this Rule would restrict that on discovery of the new

mineral und

er a ficence and intimation to the administering

authority, without agproval of the DAE, the atornic mineral shall not

be included for explorat

ooies in @ case where

Curing exploration, any new mir

on. Mearing thereby, the aforesaid Rule

exploration licence has been granted and

eral has been discovered. Thus, it
 

 

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L8(1yivyb) of OAMC Rules and on the aspect af grant of operating
rights to private parties for atomic minerals and the said decisic

being iofer garties, are binding on the Union of India, which was

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Ana S.LESNo.ii759 of 2019. In the said SUP, the Court, vids
interim order dated 23.05.2018, directerl the Secretary, DAE, to Ale
an affidavit about the Central Government policy and decisior

2

by the tics Invited or they want to

whether they want to go |
interdict all those private players and, if yes, they should explain as
to how they propose to do so, particularly, in Wew of the grovisions
4 the statute. Relevant portion of the order dated 23.05.2019 of
Hon'ble the Supreme Court is reproduced as thus:

MET BP gee fan fy BOY ngog soot
By the next dats, the affloawt by Secretary wha is

RS ba wtf "5 ke 3. Me Ss ae mv ore
fhe Aighest a7 sank an tie Gegarten en of Agoovc &eny.

~ int fee Fay yg Ss tre Rix f ay fea oyy oe ~ ame gn ape te P
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ap et BE ae be wey pd ee fead
pisvers and & pes, Shey shou? axqne

-- os BAS .: pon at e ~ toy Sas
DPODOSE OO 2G SO per Sous 3 in visny oF Me DHS 3S FF Ge

54. Pursuant to the said order, Mr. K.N. Vyas, Secretary of the

DAS, has fled his affidavit and in paras 44 and 50 thereat, he has

denosed that the QAMDBP Act is required to undergo necessary
 

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faxes shaw be open fo fudioie! review an Hs own SHENG BIG
pore Sify oy & okey : ie. =
ments Shat bas fo fe tested an fhe anv'? af Se few ny fie

is NON OR EN oe g Bes : com ane gant ~ roers Pow
Browsions of the Act is asporogriste proceeanigs, FF # &
CM LESER UIST
GeesuGted,
ay , z . mF F, ee we ~ Ff
"Ve also make & clear thaé Ca! inquiry has to be un
Beye. roads Fey oo J saregy ete? &e ms sf 3" oo
accordance witht law and woul' be suGlect fo decision af High

set me Paes fe fs
Court and & caniof be confined against inoliwduel con LOGIN.

eye fhe heey poe au had otared otic ment a
Pending aootcation(s) anv, stat stand Oras of

as. By the sald order of Nor'ble the Supreme Court, itis clear

that 16 exploration licences may be cancelled as per the said solcy

decision dated 27.07.2019, but the Court declined to comment on
the merits of the said policy as it was not in issue before. Thus,

allenge of the policy decision was eft open. simultaneously,
Hon'ble the Supreme Court was not inclined to interfere with the

~

Delhi High Court, and confirmed the fi ndings

orders gassed by the
recorded! interpreting the unclinching provisions of the OAMDR Act

and the Rules. The Court observed, the Government is free to take

_

a decision as per the policy decision, equally applying to all glayers
in the fleld anc implernenting the same prospe; ectves. Tf any action
is taken, It was left open for juclicial review on its own stre sngth and
merits as per the provisions of the Act in apsropri late proceedings,
Thus, in the context of the interim orcer datect 23.05.2016 passed

in SLPLNo.11%59 of 2019 and lecking to the affidavit Hed by the

sacretary of the DAE, the amendment in QAMOR Act is required in
 

$34
ass

 

the matter of refusing fo grant the operating fight to any orivate
oarty, because the CAAMDR Act coes nat prohibit such grant fo any
nersan or jf can be granted only to the Central Government.
Yrerefore, the DAE was aware thet under the OAMDR Act,

restriction to give operating right af a mine to private indivicual is

oft specified.

54, AC this stage, it is relevant that during arquments in their
appeal before the Division Bench of the High Court of Delhi, siniilar
arguments had been made by the respondents and in para 56 of its
judgment dated 25.04.2019, the Division Bench concluded as
under:-

ae Piha pps cy set eee aes ged wine ogee Ve
$6... Thet soar one more grovad taken before us i ine

go ahead piltt &

 

anmier SUCH @ policy decision was taken & net moicated and
if tis surprising that wher the GANOR Act clearly
grovides for grant of exploration Neence, 8 ihe Act
S amended pursuant to any such policy decision, any

SA

asetien in toils regard would &e contrary fo jaw."
femphasis supgiied}
55. In vweew of the said discussion and looking to the finding
acarded by the High Court of Delhi, as confirmed by Hon'ble the

Supreme Court, in the context of the provisinns of the OAMDR Act,

if can be gathered that the grant of operating right to private party
 

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i§ permissible and the said grant only in favour of a Government or

nd controled by if or its instrumentaflties can

2

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£3

be possible only by way of an ameridment in the OAMDR Act. Thus,
as per the Intention and object and the provisions of the GCAMDR
Act, there was no scope to the respondents to deny the execution
of exploration licence deed, Hence, the Government, giving go-by
to the provisions of the OAMDR Act, which aopiies to the offshore
mining, proceeded to disguise the action under the AE Act, with the
aid of Sections 3 andi i4 of the AE Act, which are having no
application, as already discussed. As such, exercise of the power to

7.2029 in reference to the

oR

issue the notification dated 2°.

provisions of the GAMDA Act is contrary to the Act and Rules, anc

is arbitrary and illegal.

|G. Ih is settled law that Jegisiature has the right to legislate the
law with retrospective date. In so far as subordinate legislation is
concerned, unless the fegisisture specifically confers cower on the
delegatee to fegisiate with retrospective effect, all subordinate
legislation wil apply only prospectively without impacting ar

affecting vested or accrusd rights, The policy in question is merely

an executive act, and coes not even satisfy the requirement of

£

subordinate legisiatian and as such the policy can neither be
relroaspective or retroactive. Even if if is presumed to be a

subordinate legislation, if will be Ait by well settled princinles of law
 

 
 

 

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the provisions of Section 35 of the OAMDR Act and
Section 30 of the AE Act, it is dear that the Rules, if any made,
would have prospective application and such Rules shall be srought
by @ procedure sc prescribed therein, In the present case, the
SAMDP Act has not bean amended, but by way of the Imougned
notification, orohibition of offshore mining was directed, that foo
retrospectively. Looking to the legisiative Intent, applicability of the
notification without having sanction of the statute, making &
applicable retrospectively, is in excess of the power conferred to
the Gepartment and contrary to the affidavit of the Secretary of the
Department filed in the Hon'ble Supreme Court. Such act can anly
he termed as arbitrary and with lack of bona fides. The aforesaict
judgment in the case of State of Jharkhand (supra) would apply
squarely to the facts of the present case. Thus, the issuance of
the impugned notification without sanction of the statute is

anifestly arbitrary and in excess of power.

-- &

80. In the impugned notification, after referring fo Section 6 of
the OAMOR Act and Rule 18CiNivio} af the OAMC Rules, i is
further stated that the Beach Sand Mineral deposits in offshore fs
required to be brought at par with onshore areas in their treatment
in order to safeguard the strategic Interest of the nation. In this
regard, it is to be noted that the MMOR Act apples to onshore

areas while the OAMDR Act applies to offshore areas. The policy
 

 

cecision, If any, is required' to be brought by the Government, it
must be in consonance with the Intent, object of the statutory
provisions of the individual Act, having its application either to
offshore or onshore, Without amendment, bringing a policy
contrary to the statute, in the guise of safequarding the s Stratedic
interest of the nation, is impermissible, In the counter-affidavit Aled
by the respondents, the safc strategic Interest of the nation has
been clubbed with the safety and security ef the country without
any support of law, In this context, in the inter-parties judgment of
the Delhi High Court, in para 93, if is clarified that after de e-listing
the atomic minerals such as jimenite, rutile, zircon and leucoxene
from the list of prescribed substances vide notification dated
GL.2006, more than §S0 mining leases were granted' onshore
under the MMDR Act for mining of the above said atomic minerals
which are being mined by those private persans. It is not the case
of the respondents that all those mining esses have been
cancelled. Therefore, taking a plea to bring offshore mining at par
to arshore mining is an arbitrary exercise, In the said context, it is

necessary to exolain that oriar to bringing the GAMDR Act, under

cs)

the MMDR Act, Beach Sand Mineral Policy dated 16.10.1998 was
floated inviting the participation by private sectors and mining
eases were granted to them for anshore areas as referred in the

Judgment of the Odhi High Court. The Beach Sand minerals

including ilmenite, rutile, zircon and leucoxeane are having wide
 

WEP Nix

 

industrial applications and uses lke paints, papers, plastics, textes,
ceramics, medical and electronics appliances etc. These rrinerais
are also being exported freely by the private parties, which is
apparent from the notification dated 02.08.2020 issued by the
indian Rare Earth Limited REL}. IREL Is an agency of the Centr 'al
Government fo canalise the export of the onshore minerals, On the
teeth of the said fact, reference mace in the notification regarding
strategic interest of the nation or security of the nation is only to

give the flavour of the security of national Interest, corftrary to the
intent and oblect of the OAMDR Act and clearly shows an arbitrary
approach of the respondents. These facts also show that the
reasons are being manufactured fo somehow justify the action of
cancellation of operating rights to the allottees, This is sat the first
time that the respondents have indulged in such an act. The High
Court of Delhi had also come to similar conclusion on consideration
of the facts and law that the reasons were being manufactured by

the respondents to try and justify their Negal ection.

os

6i, Further, the polley in question framed by Respondent No.3 is
at absolute variance with the National Mineral Policy 2019 which Is
apnraved by the Cabinet and which specifically provicies for private
participation in expleration activities including In beach sand
minerals, Relevant portions of the said policy are as under:

'Sf PROSPECTING AND EXPLORATION
 

 

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otpers. wich iotent is manested by its Jafurious

acts. ~
femphasis supniied)

6G. In the context of the discussions made hereinabove on the
facts and law, the arqument regercing res jucloera on all issues as
raised) by the petitioner, is net germane looking to the separate
cause of action and issuing the notification in the context of the
provisions of the AE Act, though the findings as recorded in the
arevious ligation regarding interpretation of Section 6 of
QAMDR Act and other Acts and Rules are well covered by the
principles of res juolcede and being relevant, have been duly
considered above. An argument fas been advanced by the

espondents that the observations made by the learned Single

Bench ar the Division Banch of the -- ath High Court are nullified in

view oF the observation mace by Hon'ble the Supreme Court in the

re

order dated 29.07.2019 passed in the SP. (CO) No 11759 of 2019,
that the directions of the Delhi High Court would not come in the
way while Implementing the policy. In this regard, is to abserve
that in the order passecl in the S.L.P., ib is made clear that the
policy decision was not under challenge before Hon'ble the

aupreme Court, however, the Court has not touched the merits of

the policy. Simultaneously, the Court was not inclined to interfere

ry
 

 

in the orders of the Delhi High Court. In view of the same, the
meaning of the werd 'directions' v sould denote the direction part by
which the Delhi High Court has directed the authorities for
execution of the exploratinn licence deed within hwo WEEKS,
Therefore, the abservation of the Supreme Court was oniy with
respect to execution of the said licence dead in view of the policy.
Now, the said policy was fot found in consenance with the
provisions of the AE Act and not having sanction of law either
under the AE Act or the QAMDR Act, as discu gga hereinabave.

Po

Therefore, in that view of the matter, the argurnent 3s advanced is

of no avall to the respond ants and is hereby repelled.

67. in view of the foregoing discussion, fis fo pe co neluded that
the DAE does not have power either under Se 3 or i4 of the
AE Act to deny operating rights t private cariies for mining of
minerals, The said provisions fo grant licence in favour of Central
Government or any authority or a Carporation astablished by the
Central Government or a Government company is limited to the
acquisition, production, passession, Use, disposal, export or import
of any plant designed or adopted or manufactured for the
production, development, and use of atamic energy oF far research
into matters connected therewith, areal sot for the mining
operations. Simultaneausly, the OAMDR Act permits grant of

exploration licence to any privatise persan oF COMPEAy si nd if is aniy
 

wed
fag

NOI RGR g
WEG S439 of By

at the stage of production lease that the consultation with the DAE
is required. In terms of Rule ISON} of the OAM Rules, it
applies in & situation of discovery of any MEW Mineral not specified
iN exploration cence for which approval of the OA£ is
contemplated. Therefore, the issuance of the poHcy datec
27.07.2019 is contrary to the statute, which cannot be sustained in
the eye of law and is Hable to be quashed. It is further tO observe

that as per the discussion made hereinabove, the policy has been
made applicable with retrospective effect, which is contrary to the
provisions of the statute and therefore, f has been issued

arbitrarily ancl with lack of bona fides and an this ground also, it is

SS. In view of the discussion made hereinabove, the legisiativ

intent fo bring the OAMDR Act and the AE Act and | interpretation of
the provisions of law are clear, In the said fact, the judgments of
M.P. O1 Extraction v. State of M.P, {supra} and Balce
Employees Union v. Union of india (supra) relied upon by the
learned Assistant Solicitor General in support of their contention
that the Court has no power to interfere in the palley Sion, are

of no hein to the respondents.

Accordingly, Question No.1 is answerer,

Question No.3: Whether the order dated 06.11.2619
passed by respondent No is after due application of mind
 

 
 

wef
as

WIP NaadT® of 2050

or merely relying upan the Notification dated 27.07.2019
and such action fs In consanance ta the provisians of
Section F of the GAMDBR Act, In observance of the
orinciples of natural justice?

69. Regarding the order dated 06.11.2019 passed by respondent

Novi, is to be seen whether the saic order was passed observing
the princioles of natural justice inscribed in Section 7(2) of the
OAMDR Act or ff is only relying upon the policy decision dated

27.07.2019 challenged in this case, After issuance of the said

ed

notification dated 27.07.2019, the petiiener was served with the
show-cause notice dated 19.08.2019 by respondent Novi. The said
shaw-cause notice is mainly premised! on the saici notification and

as ger the fanquage of paragraphs 10 and 11 of the show-cause

rs}

notice, it reveals that a decision to cancel the operating nghts with
regard to 62 offshore blocks had already been taken by respondent
No.i. For ready reference, paragraphs 10 and il of the shoaw-

cause notice are remraduced as thus:

"FO Ascondingli. os fhe anferest of fhe conservation ant

Cenye! Government in exvernise af the powers conferred
under Section ¥ of the OAMOS Act. in consufadior with the
aarnnisteing eubionih, Aas gecided to fenninate any
operating right in respect af the 62 offshore mineral
Blocks sotified vite Se aofificstion dated
OF, 08. 2088.

iy. a7 wew of abeve decision of He Central

="

Government fhe sotice is Aeraby served under Section
 

wh
Fn

 

a "y o FES we 8 Reo ieee ae * fnpeer AS ae os py
OF fhe OAMDR Act as fo way te ander for grant of
Exploration Licence issued by the gaministering authority
sion PISA Beker SEY SOS SS y oD oe
vide Chelr No ISk&OSMCOR EL COT GIL ECOOM-SOR-S Dated

: : Peaeis Bie FO FF ¥QO #¥
OS. C4 2 2 PO} ik fer &fock AOR. é & fey a &. fs woke.

w sat
Ay
fron,

op

2
2,

iy 4 bury x ee eer
Bengal sector shad not be fennnated

femphasis supplied}

70. As can be seer from the contents of the show-cause notice,
it is clear that the Government wanted to exercise the power under
section ¢ of the QAMOR Act in the interest of the conservation and
regulation of atomic minerals in offshore areas. Therefore, after
consuitatian with the administering suthority, the decision to
terminate Ure operating rights in rasmect of G2 offshore mineral

mocks was taken. In the sak! context, the show-cause notice was

issued to the petitioner

fl, Looking to the show-cause notices, the gower has been
exercised under the OAMBR Act. Section ¥ of the GAMDR Act deals
with a situation where the Central Government is having right to
prematurely terminate any operating right In respect of any mineral
in any offshore area, after consultation with the administering
authority, Fis af the opinion that it is exoediert in the interest of
development anc regulation of offshore mineral resources,
preservation of natural erviranment and orevention of pollution,
avoidance of danger to pullic health or communication, ensuring

safety of any offshore structure or conservation of mineral
 

sed
st

 

resources. As per the show-cause notice, the Central Government
wanted to exercise the power in the interest of conservation and
requiation of atomic minerals, It is made clear here that Section 7
of the OAMDR Act refers to regulation of offshore mineral
resources, So far as canservation of mineral resources is
concemed, ib is to observe here that the OAMOR Ack was
promulgated in the year 2002 and the OAMC Rules were
pramulgated in the year 2006 but came into force an 15.01.2010
by the issuance of notification dated 13.02.2010 by the Central
Government in the Official Gazette. As ner Section 10 of the
OAMDR Act, the administering authority is required to notify the
offshore areas for which reconnaissance permit, exploration licence
or production lease may be granted. Such notification was issued
on 07.06.2010. In furtherance to the said notification, the
petitioner applied for grant of exploration fcence to which the
aliotment was made on O5.04.2011 In terms of Section 12 of the
OAMDR Act. Similarly, the allotments of other offshore areas
notified were also made in favour of other persons who were found
to be eligible. After such grant, exploration cence deaec was not
executed in favour of anyone for a long Hine due to pendency of
itigation in Courts on account of challenge to the selection process

for grant of exploration licences. Even after the saich cases were

th

decided sgginst the private individuals upte Hon'ble the Supreme

Court and the selection process attained finality by judicial
 

 

bronouncement, the exdioration licence deeds were not executed
in favour of the allottees and instead, a notification dated
70.08,2016 was issued cancelling the said grant jn terms of the
CRe notification dated 06.01.2011. Tt is net out of place to mention
here that the Delhi High Court has conclucied that the said CRF
noavificatian did not restrict the grant and issued direction for
execution of the exploration fleence deed in a time bound manner,
yet the deads for exploration licences were not executed, Instead
of executing the exploration cence dead, once again, the
exploration licences were cancelled by the order dated 06.11.2019

in terms of the notification datecl 27.07.3019 of the DAE.

¢

72. In the above facts, if is dear thet after comme ncement of
the OA&MBR Act in the year 2010, by way of notification dated
OY.06.2010, for the first time, the offshore areas of CRP-IV¥ were

notified for grant of exploration licences, which even after grant,

at

Were not executed in favour of the getitioner or anyone excent in
one case in which under the direction of Delhi High Court, the
exploration licence deed was executed, If is te abserve Nere that
the OAMDR Act has been brought with intent to expiare the mineral
resources in offshore areas. Therefore, the offshore blocks were
notified for grant of exploration licences, but in view of the above
facts, the ficence deeds were not executed til date and the matter

was kept pending In litigation. Therefore, while cancel ing the grant
 

 

of the petitioner vide impugned order dated 06.11.2019, using the
expression 'conservation of mineral resources' is flimsy and fake.
The purpose for which the OQAMDR Act was introduced by the
Central Government and after natifying the 62 offshore blocks for
the first time, when the deeds for exploration licence have not
been executed even after grant, the question of conservation of
mineral resources does not arise. It is to be noted here that the
exploration is 8 process by which the Government may arrive at 3
conclusion what are the mineral resources available in the offshore
area and when this protess itself has not cammenced, teking 3
pretext of conservation of mineral resources [5 completely

misplaced.

73. Tt is also highly significant to sbserve that the intent behind
"Sonservation of minerals' has been explained under the heading
'Conservation and Mineral Development' in the National Mineral
Policy, 2019 pronounced by the Ministry of Mines, respo mndient No.l,
after iL was aporoved by the Cabinet, Government of Inca,
Selevant portion of para 6.2 of the said policy are as under-

"#2 Conservation and Mineral Development

a oy o s yf Sse bld a " ow dane: -

Cpnservedian af mvnmereis shed Be construed Noo #7 ote
~ fares ° See "

feSPRYVe Serise af BQUTSIOe AN COM RETRO? Oe
 

Ms

 

s ey ty y "~ x oy wat :

SEVOWESLO OSH SS foe uwitimare goal and e@
n SK, "oe poe BeONE os os ee é fo ei
COMBE fo orsvent sub-ootimal aod unscientiic

mining. Ee concept of collaborative avning amangst
MunINg Concessionaires located in large mining bet shall
be encouraged to ensure ootum exvacton af eunerat
Pale aduition and genera! customisation aF product yi!
be encouraged Oy prowolng fiscay snovor aon-Ascay
incentives. "

#4. 'The Intent of the Government with regard to conservatio

0

and development of mine

canservation of rm

cor
the distant future
augmertation of reserve/resay

mining approach in order fo

encourage mining

SHE
Ma

LOMrces

extraction of minerals ane

fsovernment is to pravide fis

SG, FOW could respondent Ne,
Policy, could pass order cla

exploration of minerals in the ne

which is completely in the tee

other Rane

minerals for Government controled

tented conservatio

inevais shall not be

but as

ted 06.11.2019 terminating grants

_ 7 the intent of the

oof rriinera

+

ral resources is very clear that

construed in the restrictive

wuMpHoN or preservation for use is

3

& postive concept leading to

ce base and to focus on zerc-waste

prevent uriscientific mining and to

an holders fo ensure optimum

»
3

En

heir value adefition for which the

cal and/or nan-fiscal incentives. Bel

Ag
uthor of the saic National Minera!

1,38

for

me of conservation of minera

th of the salcl Mineral Policy, On the

os

woverTignt is to conserve these

tae

companies, then if cannot be

xm
Red

and rather if can only be
 

 

WP No Sag

termed as reservation of minerals in the name of camservation.
'Therefore, in both the scenarios, use of powers under section 71}
of the GAMDR Act for conservation of atomic minerais is unjust,

unfawful and contrary to the National Min Policy which cannot

be accepted.

35, Tk is nat out of piace to observe bere that the OAMDR Act
was enacted in the year 2002 and brought inte eect in January,
2010 with intent and object of development and requiation of

mineral resources in the territorial waters, continental shelf,

A

exclusive economic zone and other maritime zones of India. This
development and reguiation can only be possible wher some
mineral resources have been expioredd and their details, such as
types of minerals, quality, quantity, geographical location inc tuding
depth in sea bed at which minerals are located, are broudht to the
notice of the Government. Prior to its exploration, cancelling the
same referring the conservation of mineral resources makes the
object of the enactment redundant. ds discussed above, the power
of Section 7(1} of the OAMOR Act to terrninate the operating rights
has been made available in specified situations. Qut of them the
situation as made agolicable for cancelling the exploration Ncences
by the imougned order dated 06.11.2019 on the pretext of

conservation cf mineral resources is apparantly against the object

and intent of the GAMDR Act and to make the implementation of
 

 

wherein

0h
=

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Ne

use which

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international Lid', Non'ble the Sugreme Court has dealt with

74
ta.

are couched and soaveved fa Ole gersor
proceeded agains'.

  

femphasis supplied}

Similarly, in the case of OAGEC Lisl ». Western Geco

4

the issue of non-apmlication of mind and held as thus:

 

wy eye goa gts  f sont age OS; Pee yy
SS. Squat smoortanl! ary Jadecd fungementa' fo
£

' sarties Sefve & de sa i

i
acconiance with the erincioles of naturel justice. Besides s the

sary & won, < Sapti o nay NY . W Bh Saw, ~ T ad
celebrated auch alferam partem rufe ane of the facets af ihe

pancioies of neture! justice is thet the courvauthorty
deciding the matter must apply fe mind fe ihe
attendant facts and circumstances while teking 2
view one way er the offer Non-aopication af mind &
a defect that is fatal fo any adiudicalon. Apoticaiion
ef mind is best demonstrated by disclosure af Lhe
awed and disclasure of ound i Sest dere ay
recording reasons in support of ite decision wihticl
the court or authacity is faking. The requirement that
an adiueicatory auttoriv must apoly fs mind i i
thar view. so desaly embedded in our furisarudence
that if can be described as a fundamental policy of
indian jaw"

femphasis sugpiied)

 

28,

ERGs St 4g S08

e285

 
 

 

#9, In addition to the aforesaid, the appli fcabllity of sub-section
(2) of Section 7 of the GAMDR Act may be in a cantingency as

*

specified in sub-section (1) thereaf. As per the discussion made
hereinabove, the show-cause notice was afven for conservation of
the mineral resourees. Once the said cont ingency kself doses not

subsist as discussed above, then issuance of the notice under sub-

section (2) of Section ? of the QAMDR Act is effectuated by bigs,

and affording an opportunity of hearing by issul ng the show-cause
notice is notin the letter and spirt of the princinies of natural

justice.

80. Further, on perusal of the shaw-cause notice and the reply

SQ submithed by the petitioner as referred in the impugned order

3.

tisted 06.11.2019, if reveals that the petitioner had taken six
grounds, which have been narrated In the termination order. None
of them has been dealt with while record ing the finding against the

petitioner terminating the licence, In fact, the reason of termination
of the ficence Is solely based on the policy decision of the DAE
Gated 27.07.2019 regarding absolute prohibition of the exploration
of the atorric minerals by the private parties. The said palicy
decision is apparently contrary to the object of the OAMOR Act and
thal toc, prior to implernentation of the Act by alleaving the

xploration done by the Heence holders, bringing such a policy

fB

decision speaks volume about sage Aves on the part of the
 

o0
pi

 

authorities in the facts of the present case in which after
successfully Htigating twice even upte Han'ole the Supreme Court,
the said policy decision on the non-existing contingericies has been
introduced. Therefore, without dealing with the contentions
advanced by the petitioner in the reply to the show-cause notice,
the order impugned has been passed, referring such policy decision
and under the guise of conservation of mineral resources. If is inte
law that whenever the grounds have beer raised in reply to show-
cause notice not arly on facts but in law alsa, if is the duty of the
authority to deal with thase contentions while arriving at a
concdusion tg pass | reasoned order, which is conspicuously

missing in the present case.

Si. As stated hereinabove, the Delhi High Court In para 73 of ks
judgment dated 06.02.2019, has observed that as per the minutes
of the oroceedings dated [4.07.2018, i wes clear that the
Government was predetermined to cance! the licence and it further
held in para 75 that reasons were manufactured by the respondent
No.i to somehow cancel the grant so that the same could be
re-allocated/re-granted. Therefore, the first order of the
cancellation of icence dated 30.06.2016 was quashed and directed
the authorities to execute the exploration fleance dead within four
weeks, Even after the confirmation of the said Jucigment by the

Nivision Bench anc direction for execution of exploration iicence
 

 

within two weeks, the Central Government visited the Supreme
ourt where a policy decision dated 27.07.3019 was producer and
raiying upon the said policy decision and taking benefit of the
expression 'canservation of mineral rescurces', the order dated
O6.11.2019 has been issued again cancelling the grant, which, as
discussed, Is wholly arbitrary, violative of princigles of natural
justice and against the intent and obNect of the OAMDR Act. It also
reflects that even after bringing the OAMDR Act, the officers of the
Government want to make the said Act reclundant for which they
are predetermined to caricel the grant for reasan one or the other,
changing their stand af every stage of execution of exploration
kcence deed in favour of the petitioner. Such action is in violation
of the princigles of natural justice anc not as per the snlrit and

oiiect of the Act

82. TRus,

i

it is apogrent that Section 7(2} of the GAMDR Act
applies in the contingency as available In Section 71}. 9 As
discussed, the cause to issue the show-cause notice is for
conservation and regulation of the atomic riinerais, which is
unfounded. More so, the show-cause natice is biased and
oredetermined. In the sald context, the judaments of Hon'ble the

supreme Court in Maiak Singh v. State of Punjab &

Haryana*®', Justice K.S. Puttaswamy v. Union of India

 
 

 

{supra}, Maneka Gandhi v. Unien of India (supra) ane
Mohinder Singh GHl v. CEC {supra} are of no help to the

respondents.

83. As per the discussion made hereinabove, the impugned order
dated 06.11.2019 cannot be sustained in the eye of law. The order
dated 66.11.2019 suffers from norrappiication of mind, bias and
colorable exercise of power and passed with predetermined ming in

a mechanical manner and in violation of principles of natural

ws

justice. Even otherwise, once the arder impugned is consequential
to the notification dated 27.07.2019 which is found Hable be
quashed, the consequential order datec! O0.11.2019 Is also fable to

be quashed.

Question No.2 is answered accordingly

Question Noe.g: Whether Rufe 3A of the OAMC Rules, 3S

SY

notified on 23.08.2019, is affra vires to Section 35 of the
OAMDR Act, and having any sanction of law?

S34. The QAMDR Act came into force with effect from 15.01.2010
i.e., affer about 8 years of Hs enactment.
brought by the Parlarnent with intent to develop and regulate the
mineral resources in the 'territorial waters, continental shell,
exclusive economic zone and other maritirme zones of India. To
carry out the purposes of the Act, as per Section 10 of the OAMDR

Act, it is obligatory on the administering authority to declare the
 

ACES KK, 3
WARE NO. S40 af 2030

eh
OF

affshare areas available for grant of reconnaissance permit,
exploration Reence end production lease, by way of notificatic

within @ period of six months fram the date of commencement of
the Act. Prior to such notifying the offshore areas for grant of
permit, licence or lease, the consultation is required to be made by
the Ministry of Mines with the Ministry of Defence, Ministry of

environment and Forests, Ministry of Home Affairs, Ministr

sR
o
olay

Agriculture, Department of Ocean Develooment, Ministry of

dispute that the administering authority has issued the notification
presumably after cansultation as required under Section 10 of the
OAMDR Act, on 07.08.2010 to carry out the purposes of the Act.
The third graviso to Rule 3(2)} of the OAMC Rules makes it clear
that if any exploration licence is granted, then, for grant of
praduction lease in terms of sub-section (1) of Section 13 of the
QAMDE Act, separate notification as contemplated under Section
LO is mot required to be issued. Section SC} of the OAMOBR Act
makes it clear that reconnaissance operation, exploration oneration
ar production operation, if any, is undertaken by a person in the
offshore area, it can be possible with the prescribed terms and
canditions of the said permit, foerice or lease under the Act and
the Rules. The groviso to Section S¢13 makes it clear that the
conditions so specified for grant for reconnaissance operation,

exploration operation or production aperation in the offshore areas
 

 

s

under Section S(i} shall not agoly where such exploration Js
undertaken by the Geslogical Survey of India, Atomic Minerals
Directorate of Exploration and Research, Chief Nydrographer to the
Government of India of Naval Hydrographic Office of the Indian
Navy, National Institute of Oceanography, National Institute of
Oeean Technology ar any other agency duly authorized in this
behalf by the Central Government, and then also a notification is
not required to be issued as specified In sub-section () of Sectio

10 of the OAMOR Act. Therefore, with respect to the notification
under Section 10¢1) for grant of permit, licence or lease ta
connection with Sections 5, 8 and 13 for reconnaissance operation,

exploration operation or graduction lease, Rule 3 of the QAMC

a5. Under the OAMC Rules, ff has not been prescribed that who
may be eligible for grant of reconnaissance pernmul, exmloration
ficence and production iease of atamic minerals. The eligibiily ts
governed by Section 6 of the GAMOR Act, clarifying who may be
given the operating right. As per the said Section, i is clear that
operating right can be given by the Central Government to any
person who is an Indian national or a company a defined
Section 3 of the Companies Act, 1956, who satisfies the conditions
as may be prescribed. The proviso to Section 6 of the OAMDE Act

puts & rigour that at the stage of grant of praduction fease for
 

£4
">

 

WUE Ng 88k

atomic minerals Gr prescribed substances, consultation with the
Department of the Government of India ing with the Atomic
Energy is contemplated. Therefore, for the purpose of grant of
operating right, which Incudes the reconnaissance permit
exploration licence and procluction lease, a private person or a
grivate company are eligible and commetent. The OAMC Bules

were stent on the sari issue,

a

86. Now, after the notification dated 27.07.2019, the Central
Government amended the QAMC Rules and after Rule 3 , Rule SA

has been ackded, which is resraduced as thus:

"2 #9 Ge Of store Areas AGneral Concessions
Aves, 2008, afer ave 3 the folowng cule shay be
UISETOR, BTR

34. Prahibitier on grant af permit. Scence or
fease if respect ef afemic siinerais.- Ao

<>
2

POCOMMRESS ANCE DSN sogverahon soence or DPOGuEHON

except the Goveswnent ors Goverynent Comosny ar a
COMOnshon ouned or contoded by Me Government. ©
87. On perusal of the aforesaid, it has been made mandatory
that reconnaissance permit, exploration Reeance or Groduction lsase
of the atornic mineral shall not be grantect to any persan except
the Government or a Government company or a Corporation

awaed or controlled by the Government although as per Section

&{a) of the OAMDE Act, any person who is an Indian national or 4
 

the
pe

 

os Sy

company as defined under Section 3 af the Companies Act, 1956,

can be granted operating nights of atomic minerals.

88. Section 3 of the GQAMDR Act makes H clear that the Act shall
apoly fo all minerals in the offshore arsas including any mineral

mrescribed by notification under clause (g) of sub-section (1) of
Section 2 of the AE Act. Atarnic minerals, as has been cefined In
the DOAMDE Act, which is referred in the amended Rule 3A, means
the minerals inclucied In atomic minerals sceclfied In Part B of the
First Schedule to the MMDR Act. Therefore, & is clear that on

Notification under Section 1O{1} of the offshore areas and as per

the sroviso to sub-section S¢1}, If exploration operation is not

&
key

undertaken by the Demartments so specified, the grant o

operating rights can be given under Section 6 to any persan of

Indian national arc cornmary with respect to all the minerals that
includes the atomic mineral. Thus, the legisiative intent by the

OAMOR Act does not debar the grant of reconnaissance permit,

exmloration flcence, production lease of an atomic mineral fo any
orivate individual or a private company bul by bringing Rule 2.

the orivate individual or private company has been debarred.
Although, under Sections §, 8 and is of the QOAMOR Act, the word
used is any person', which means any Indian national ar a private
company, but by Ride SA of the DAMC Ruies, ousting any Indian

national or private company, the exploration licence and
 

wave ee
rks o

WLS Ne S440 of BORG

  

<5
Youd

oroductian lease of atamic mineral has naw been made available
ary to the Central Government ar a Government company or the
Corporation comtraiied or awned by the Government. It is relevant
that the Secretary, DAE, in a sworn affidavit before Hon'ble the
Supreme Court, adriittec that until amendment in the oravisians of

the OAMOR Act is made,

ca

rant af exploration eance for offshore
areas tO private parties carinot Se prohibited. But, without bringing
any amendment in the QAMDR Act, abruptly by notifying
amendment in the Rules by Mmtraducing Rule 3A, imposing
pronibition an grant of permit, licence or lease in respect of atomic
minerals in offshore areas to private parties, is against the statue

and thus, arbitrary,

89. In addition, Rule SA of the OAMC Rules, as brought, is
contrary to the provisions of the OAMDR Act, although rule making
power may be exercised under Section 35 of the OAMOR Act. If we
have @ glance at Section 35(1) of the QOAMDR Act, it is clear that
the Central Government may, by notification in the official gazette,
Make rules for the purpose of the OAMDBR Act. Sub-section (Ma)
of Section 3S of the GAMDE Act clarifies that the terms and
conditions of recommalssance permit, exploration licence or
procuction fease under sub-section (1) of Section {5} may

specified In the rules; sub-section 2(f) provides for making rules

regarding conditians for grant of operating night under Section G(b)
 

 
 

3s ay
WES Ne Sag 9

of the OSMODR Act: sub-section 2fc) provides for making rules
regarding the substanoess te be prescribed under praviso to Section

& Section 35 does not confer any power to the Central

Government to debar any person for grant of atomic mineral. By

the language of Section 6, @ is clear that the Central Gavernment
shall not grant any operating fo any person urhess such person is
an Indian national or a carmpany as defined under Section 3 of the
Sampanies Act, (958. Section 35 of the OAMDR Act does not
specify that far the purpose of Section Bla}, the Rules debarring
any person who is an Indian national to grant the atornic minerals
can be frarned. Therefore, the power as exercised! in the pretext of
rufe making under Section 35 of the OAMDE Act, ousting any
private person in the matter of grant of operating right, is beyand
the power of Section 35(2Na}, (hb) and ic) Therefore, Rule 24 of
the GAMC Rules is contrary to the provisions af the OAMDE Act

(a}, {b) and (c} and aise

x

and beyond the power of Section 352)

contrary to the object of the QAMODR Act. Therefore, Rule 34 of the

CHAMC Rules is Tghie to be deciared offre wresto the GQAMDR Art.

a0, As per Section 35¢3) of the QAMBR Act, amendment, if any,

brought In the Rules can only be orospective and the notification
dated 23.08.2019 regarding amendment in the Rules also makes it
clear that the said amenciment shall came inte force on the date of

their publication in the official gazette, Le., prospectively. Looking
 

 

to the above and in view of the language engrafted in Section
35{3} oF the OAMDR Act, It Is clear that any modification or
annulment made in the Rules shall be without prejudice to the
yadidity of anything previously dane uncer the Rules. Thus, the
grant of exploration Reence fo the petitioner giving operating rights
would not be adversely affected by bringing Rule 3A In the case at
rand,

irs terms of the above discussion, question No.3 is answered

accordingly.

 

by respondent No.t to the Director of Central Bureau of

investigation ta reqpen the Preliminary Enquiry bearing PE
ACSA 2022 ANOGS already clased vie closure = Faport tiated

looking ta the facts of the case?

91. In the matter of grant of exploration Hcences, after the
notification; under Section 10 of the OAMDR Act by the
administering authority, a Preliminary Enquiry bearing Na. PE ACL
2012 ADOOS was regisherecl by the CRI on 21.09.2012 an the basis

of the source information relating to the allegations of irregularitie

committed during the grant of exploration licences for allotment of
offshore blocks by unknown oublic servarrts of the Indian Bureau

of Mines, Nagpur and other unknown persons and cornparies. In

the said enquiry, the allegation regarding procedural irregularities
 

 

 

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regarding the arbitrary and mava Aide exercise of the power by the
officiais of the Department. For ready reference those findings
have already been quoted in para 75 while dealing with Question

Nowe,

o7. On perusal of those paragraphs, it is clear that the
Department, after the minutes af the meeting dated 14.07.2015,
was predetermined to cancel and re-qrant the ficences, The issue
of overlapping of same blocks as shawn was found false and based
on afterthought and an attempt to mislead the Court. The
rgasoning given in the impugned order was not permissible and

sund erroneous, thus observed thet the said order was issued to

3

achieve their goal for re-allocating the blacks by manufacturing the

reasons. If is not requi ired iO reiterate that the said findings

remained untouched even by Hon'ble the Supreme Court in the
SLP,

28 It is also net out of context to observe that despite the
selection process for grant of exploration Neence having attained

judicial Analy, respondent No.l once again took the plea of

Reg

~

procedural irregularity in the selection process before the learned

343

ingle Judge of the Deihi High Court, which was rejected. Relevant
portions of paras 93 and 94 of the judarnent dated 06.02.2019 are

reproduced as thus:
 

 

 
 
 

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at the Delhi Nigh Court, vide order dated 06.02.2019
gassed in W.PAE CV.NO.P537 * of £018, Ras also observed that the
deed was signed by Mr. Ranjan Sahal in furtherance to the order
cated 09.11.2017 in W.P.No.S734 of 20176 and found no irregularity

therein. Relevant oortian of para iO? of the judgment is

reproduced as thus:

oy

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iO, £ gs DESTRESS DO SRS ere f9aF Loe

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ps ae at oO ist woy eed Sd

erlang fo gmorcaion of CRE souscetion dated & 10.4201.

overiaoging of certain Siocks seh onshore ances ano' arent
OIG

ae e weniger. by ue Sap ky : bryos eng ee
GY aera' concessians §9 oY Wate Bares for afore miners

set dd Sores soketies . ie Lae testes + Rr
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how cae te e " wy ene, sas co SoBe wes an CoN pe ow eS, : > ew So
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wn et, gray ie " ~, - Se fos eon fh i. f doy se
expioraten ficences with ane Mis. LUA Minerals Put Laigk on

LOL. 2 ES also not out of context that the learned single Judge of
the Delhi High Court, in the judgment dated 06.05.2019, had
directed the authorities to execute the deed for exploration licence
within a period of four weeks and similarly, the Division Bench of
the Delhi High Court had directed the authorities for executing the
same witht) @ period of hve weeks. Therefore, the issue of undue
haste in signing the dead en 30,11.201% Le., within 21 days of the

order of the High Court dated G9.11. 2017, has no merit,
 

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103. In wiew of the foregaing, & is clear that the Delhi High Court,
referring the letter dated O1.08.2019, had observed that the
raquast for re-inmvestiqation into the matter is a device to somehow
get aver all judicial pronouncements made by various Courts. Such
an act, orig Aace, seams to be an act mot at all bona fide but a
device or methad ta samehow dery benefit of Court's order to the
respondents therein. Thus, © is clear that the writing of letter by
Mr. Niranian Kumar Singh, Joint Secretary, Ministry of Mines, fly on
the face of the various orders, viz., the order dated 17.09.2013 of
the Bornbay High Court, confirmed by Non'ble the Supreme Court
on 31.03.2014, order dated 06.02.2019 of the learned single Jucge
of the Delhi High Court, order dated 25.04.2019 of the Divisio
Bench of the Delhi High Court and the order dated 29.07.2019 of
Har'ble the Supreme Court, canfirming the findings of the Delhi
High Court. The said acton is nathing but save fide and colourable
exercise of peaver because the CVC had earlier directed
investigation against Mr. Nivardan Kumar Singh and other officers

orm 15.03.2019, Tf is to further observe that the CSI cannot take

Gn

ny action to derogate the findings made by the Division Bench of
 

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the Deathi High Court In reference to the same letter referred
hereinabove, which stood confirmed by HNor'ble the Supreme
Court. Simultaneously, there is no explanation why for a period of
six years, the Ministry of Mines was not interested In reapening of
the CBI enquiry if any irrequiarity was there and chose to wake up
only after the arders of the Delhi High Court passing strictures
against the officers of the Ministry of Mines and CVO directing ta
hold an enquiry against them. This action taken by the officers of
the Ministry of Mines after six years making a request to re-open
the closed PE is not only aie fee but fo save themselves fram the
cansequences of the investigation ordered into the illegal actions

taken by them.

1o4, TE is

i

iso relevant ta note that Mr. Niraniean Kumar Singh
intentionally in his letter dated 01.04.2019, concealed crucial
material facts in order to ermure that the closed PE is reopened,

Those are, the order dated 17.09.2015 of the Bombay High Court,

o

whereby no irrequiarity was found In the selection process, the

"

order dated 21.03.2014 of Hon'ble the Supreme Court confirming
the sail order of the Bombay High Court as well as the crucial fact
of CVC ordering an independent investigation on 15.03.2019
against the officers of the Ministry of Mines including Mr. Niranjan
Kumar Singh, which were conveniently concealed! and suppressed

in the letter dated G1.0¢.2019. This is nothing oul abuse of power

by Mr.Nirardan Kumar Singh apart fram being an act of mae foe.
 

 

In view of the foregoing discussion, the fetter dated 01.04.2019 is
yitated on account of save Se and cannot be permitted to stand
and afl consequential actions taken on the basis of the said letter
are also able to be quashed.

Question Nod is answered accordingly.

Re

105, Geanclusians:-

3 AS per the discussion made while answering Question No.1,

Cis clear that the notification dated 27.07.2019 issued by the DAE
in exercise af the power under Sections 3 and 14 af the AE Act is
beyond campetenae, since Sectlons 3 are! 14 of the AE Act anply in
connection with the production, development, use or disposal of

& Btornic energy or to carry out the research into any matters
connected! therewith. The saicl provisions do not confer power to

the DAE to prohibit grant of exploration Ueence of the atomic
i =

re

uneral to any private person permissible uncer the provisions of
the OAMBR Act. As per the previsions of Section 6 af the CLAMDR
Act, if is clear that the operating right can be granted to any
person who is an Indian neticnal or 8 company as defined in
section 3 of the Companies Act, 1956, regarding the atomic
minerals specified in Part-B of the First Schedule to the MMDB Act.

The OAMDR Act applies to all the minerals in the offshore areas,

including any rrineral prescribed by notification In clause (q}

1
2.

sub-section (1) af Saction (2) of the AE Act. For the purpose of
 

Bal

 

reconnaissance operation, exploration operation or production
operation, grant may be mace to any person. It does not prohibit
the grant to a private person. In the matter of grant of operating
right, it may be given to any person or private company for the

atomic minerals but at the stage of giving the production lease for
atomic mineral or orescribedd substance, the consultation with the
Department of the Government of India dealing with the Atomic
Energy is required. The rales contemplated for DAE is under the
eroviso to Rule 18(1hefb) of the GAMC Rules applied in the
event of discovery of any atomic mineral during exploration which
was sot specified in the exploration Heence, the approval of the
DAE to be taken for its inclusion in the exploration licence. The

notification dated 27.07.2019 is, therefore, beyond the power as

ee

specified in Sections 3 and i4 of the AE Act and uétra wres to the
statutes and dehors the previsions of both the Acts, and issued
arbitrarily with lack of bona fides. Accordingly, the notification

dated 27.07 2019 is quashed.

iD} The order dated G6.11.2019 issued for cancellation of
exploration licence is without due application of mind, in wolation

of principles of natural justice, and merely relying upon the

notification dated 27,07 2019, which already stands quashed. The
cancellation of exploration licence taking the plea of conservation

of mineral resources is Rimsy and against the spirt of the definition

S29
 

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of canservation of the mineral resources as prescribed in the
National Mineral Policy, 2019. Thus, the order dated 06.11.2019,

being Dlased and not in consonance with the provisions of Section

? of the OAMDR Act, is bad! In law and is accordingly, quashed,

i} Rule BA of the QAMC Rules, as notified on 23.08.2014 9, is
against the intent and object of the QAMDR Act and also beyorrl
the power as specified In Sectian 35 of the GAMDR Act, There

the Rule 2A of tive OAMC Rules, having no sanction of law, is

z

declared ivfra wires to the OAMDR Act.

vy) The fetter dated 01.04.2019 issued by Mr. Niranian Kumar
singh, Joint Secretary of the Ministry of the Mines, for re "opening
the PE bearing No. PE ACL 2012 AQGOS a lreacky closed vide closure
report dated 28.03.2013 is tainted with mave Ade and itis an actin
retaliation to stall an enquiry by the CVC against him. More SO, in
view of the discussion made in Question No.4 and the findings of
the Bombay High Court and the Delhi Hish Court, duly upheicd by
Hon'ble the Supreme Court, any action an the fetter dated
O1.04.2019 Is conternstuous and vidiated which cannot be
permitted to stand. Therefore, the fetter dated 61.04.2019 for
reopening the said PE after six years of ifs closure by the CBI anc
consequential actians taken on the basis of the said letter stand

quashed.
 

LAS NS KSA, D
WANG. Seid

 

108. In terms of the canclusions drawn hereinabove and as 6

commequence of the quashment of the impugned notification dated

2¢.07 2019 and the order dated 06.11.2019 and declaring the Rule

e

A of the OAMC Rules as avis wees to the OAMOR Act and as the

a

letter dated 01.04.2019 addressed by Mr. Niranisn Kurnar Singh,
cint Secretary of the Ministry of the Mines, far re-opening the PE
bearing No.PE ACT 2012 AQQOS after six years of its closure by t
CBI and consequential action on the basis af the said lether stand
quashed, we direct that the deed for the exploration Heence dated
O5.05.2011 be now executed by the respondents in favaur of the
getiioner within a@ period of four weeks from the date of
cammunication of this order,

Accordingly, this writ petition is hereby allowed. In the facts
ane circumstances of the case, oarties are directed to bear their
SAY Costs.

AS a sequel to the decision of the case finally, all

pending miscellaneous applications > shall stand Closed.
a moe cesses vo a ce gdh. KTATA RAO
é ASSISTANT REGISTRAR

° PTRUS COPY =

 

+ SECTION OFFRAER
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8, Te Secretary. Unian of India, Ministry of Mines, Shastri Bhawan, New Deihi-
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s. The Additional Director Ganeral and Administering Authorfy, Geolagy Survey of
ima ISS] Complex, Seminary Ni lig Ne agpur-4iGgos

3. The Secretary, Departrnent of Atornic Energy, Anughakti Bhawan, Mumbal-
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& One Cf fa Ri S.VIVESR CHANDRA SEKNAR, Advocate [OR UC}

§ One OC to SREN NARI INAT HH, Aget. Sot PGensrafOPUC)

&. One OC 9 SRI MASALA PONNS RAO, OO far Central Govt HaPUC)

a. Twe €.D. Copies.

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HIGH COURT -

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DATED: TBiGg2020

ORDER

WP No 84170 af 2020 4 ae rf are ye estoce neat ee ALLOWING THE WRIT FPETPPTON