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Orissa High Court

Jitendra Rout & Another vs State Of Odisha & Others. ...... ... on 20 August, 2013

Author: C. Nagappan

Bench: C. Nagappan

                    THE HIGH COURT OF ORISSA : CUTTACK.

                               W.P.(C) No. 9415 of 2012
      In the matter of an application under Article 226 of the Constitution of
      India.
                                     ___________

      Jitendra Rout & Another                 ......                 Petitioners.

                                          -Versus-

      State of Odisha & others.              ......               Opposite parties.

             For petitioners      : Mr. Asim Amitav Das, Mr. Deepak Kumar,
                                    Mr. P.K. Mishra & D.Dash.

            For opposite parties :   Mr. Asok Mahanty, Advocate General,
                                     (for O.P. Nos. 1 to 4).
                                     Mr. S.P. Mohanty, P.Lenka & M. Barik
                                                              (for O.P. No.5)
                                     Mr. J. Patnaik, Sr. Advocate, B.Mohanty,
                                     T.K. patnaik, A. Patnaik, R.P. Roy &
                                     B.S. Rayaguru (for O.P. No.6)
                                     Mr. J. Das, Sr. Advocate, Mr. A.N. Das,
                                     N.Sarkar, E.A. Das & C.Padhi (for O.P. No.7)
                                     Mr. R.K. Rath, Sr. Advocate, Mr. S.N.B. Ray,
                                     S.K. Nayak & S.K. Samadar.
                                     (for O.P. Nos.8(A) to 8(M)-interveners)
                                ---------------------
          PRESENT ;

               THE HONOURABLE CHIEF JUSTICE MR. C. NAGAPPAN
                                         AND
                   THE HONOURABLE JUSTICE MR. I. MAHANTY
          _______________________________________________________________
          _
                              Date of judgment - 20-08-2013
          _______________________________________________________________
      _

C. Nagappan, C.J.      Petitioners, claiming to be the inhabitants of village

          Khamara Nuagaon have filed this writ petition by way of Public

          Interest Litigation seeking to quash the order of the Collector-opp.
                                 -2 -


Party No.3 dated 15.03.2011 under Annexure-5 de-reserving the

lands   measuring    Ac.53.90      dec.   under   Khata   No.   231

corresponding to plot No. 64 (part) in Mouza Khamara Nuagaon

and subsequent order of sanction dated 18.03.2011 under

Annexure-6 in favour of O.P. No.6-IDCO for industrial purpose;

and further sought for declaration that the allotment of the said

land by the O.P. No.6 in favour of O.P. No.7-Company vide letter

dated 08.08.2011 under Annexure-8 is illegal.

2.          Briefly, the case of the petitioners is that the O.P.

No.7-Ultra Tech Cement Ltd. signed an MOU with the State

Government, namely, opposite party No.1 on 10.11.2006 for

establishment of 1.5 MTPA Split Cement Grinding Unit at

Khamara Nuagaon and Kolathapangi under Athagarh Tahasil in

the district of Cuttack with project cost of Rs.300 Crores.     The

Industrial Promotion and Investment Corporation of Orissa Ltd.

(IPICOL) vide letter dated 09.06.2010 recommended IDCO-O.P.

No.6 that Ac.90.00 of land at the said villages may be alienated in

favour of O.P. No.7 for establishment of the 1.5 MTPA Split cement

grinding unit. Pursuant to said recommendation, O.P. No.6-IDCO

made requisition for alienation of government land measuring Ac.

53.90 in village Khamara Nuagaon vide letter No. 17613 dated

26.08.2010 for the purpose of establishment of the said industry.

Thereafter, O.P. No.4 initiated a de-reservation case     vide Lease
                                 -3 -


Misc. Case No. 5/2010 under the provisions of Orissa Government

Land Settlement Act, 1962 (in short "the OGLS Act") to de-reserve

the   said   land   and   invited      public    objections   by   issuing

proclamation. According to the petitioners, they along with some

other co-villagers filed their written objection stating that cattle

and livestock used to graze in the said Gochar land, the said land

is also used by the villagers for organizing various social functions,

the youth and the children of the village are also using the said

land as play ground, and further setting up of the said industry

will lead to environmental problems.            On 08.12.2010 personal

hearing as well as spot inspection was conducted by the

Tahasildar, Athagarh-O.P. No.4 and after completion of the

necessary formalities, the O.P. No.4 overruling the objections, vide

letter dated 18.12.2010 recommended the O.P. No.3 that the

subject land be de-reserved.        The Collector-O.P. No.3 by order

dated 15.03.2011 accepted the recommendation of the Tahasildar

and directed for de-reservation of the said land in exercise of power

under Section 3-A of the OGLS Act read with Rule 4 of the OGLS

Rules, 1983 and sanctioned release of the said land in favour of

IDCO and thereafter sanction order was issued on 18.03.2011

under Annexure-6.     According to the petitioners, during pendency

of the Lease Misc. Case No. 5/2010, they along with their co-

villagers approached the O.P. No.2 by way of a representation
                                  -4 -


dated 10.11.2010 stating that their case was not heard in proper

manner and their objections were not appreciated properly. On

receipt of the said representation, the O.P. No.2 directed the

Collector, Cuttack-O.P. No.3 to look into the matter, however, the

said direction of O.P. No.2 was not complied with and hence the

petitioner No.1 filed W.P.(C) No. 27155/2011 by way of a PIL before

this Court and this Court vide order dated 21.10.2011 directed the

O.P. No.2 to consider the representation filed by the villagers and

dispose of the same.

              In the meanwhile, lease deed was executed between

the Collector, Cuttack and IDCO for transfer of 53.90 acres of

land   in    village   Khamara     Nuagaon   on   19.07.2011   and

subsequently the IDCO-O.P. No.6 allotted the said extent of land

in favour of O.P. No.7-Company vide letter dated 8.8.2011 for

establishment of the said industry and accordingly lease deed

also came to be executed on 19.8.2011 between the IDCO and

O.P. No.7.     It is also stated by the petitioners that the State

Pollution Control Board (SPCB), namely, O.P. No.5 has granted

consent to O.P. No.7 for setting up of a Bulk Terminal of capacity

2.0 MTPA under the relevant provisions of Acts.

3.            Petitioners have stated that the subject land is a

communal land and has been kept reserved for common use of

villagers and there is no specific provision for de-reservation of
                               -5 -


such land for industrial purpose when industry is set up by a

private company like O.P. No.7 and further the de-reservation of

Gochar land in question has not been made in accordance with

the provisions of the OGLS Act. Therefore, handing over the land

in favour of O.P. No.7 is perverse and illegal and accordingly the

impugned orders are liable to be set aside.

4.          Opposite party Nos. 1 to 4 have filed a common

counter affidavit stating that the orders impugned have been

passed strictly inconsonance with Section 3-A of the OGLS Act and

Rule 4 of the OGLS Rules and there is no illegality in the decision

making process. It is stated that during the public hearing, the

writ petitioners did not make any objection and though some other

villagers filed their objections, the same were considered and

overruled and the de-reservation proceedings for allotment of said

government land to IDCO is proper and legal. Further, pursuant

to the direction of this Court dated 21.10.2011 in W.P.(C) No.

27155/2011,    the   O.P.   No.2,    namely,   Revenue   Divisional

Commissioner, Central Division, Cuttack conducted enquiry and

held that the allotment of the government land in question to the

IDCO for the purpose of industry is legitimate and objections

raised by the petitioners are devoid of any merit.   However, the

said order has never been challenged by any person till now.
                               -6 -


5.          Opposite party No.5, namely, State Pollution Control

Board in its counter has stated that after receipt of application

from O.P. No.7 for grant of consent to establish the industrial

unit in question, the proposed site was inspected by the

Scientists of the Board on 10.08.2011 and the report was placed

before the Consent Committee of the Board for consideration and

the Board after considering the inspection report and the

recommendation, vide order dated 01.11.2011 granted consent

in favour of O.P. No.7 to establish the industrial unit subject to

conditions as stipulated therein.

6.          Opposite party No.6-IDCO in its counter affidavit

has stated that the Collector, Cuttack has sanctioned lease of

the government land in question in favour of IDCO for

establishment of industries under the provisions of the OGLS Act

and Rules made thereunder after completion of all the formalities

in accordance with law and subsequently it has allotted the said

land in favour of O.P. No.7 executing lease deed by observing

legal formalities and therefore, the allegations made by the

petitioners are not sustainable.     It is further stated that since

there is a provision of appeal under Section 7 of the OGLS Act

against any order made under Section 3 of the Act and the

petitioners have not availed the same, the present writ petition is

not maintainable.
                               -7 -


7.          Opposite party No.7 has also filed an elaborate

counter affidavit denying the allegations made by the petitioners

and has prayed for dismissal of the writ petition.

8.          We have heard the contentions of the learned

counsel for the petitioners as well as respective learned counsel

for opposite parties.

9.          The main contention of the learned counsel for the

petitioners is that the opposite parties in utmost disregard to the

provisions of law governing the field has proceeded to de-reserve

the communal lands so as to sub-serve the interests of a private

company, namely, O.P. No.7.

10.         Per contra learned Advocate General vehemently

opposed the contentions raised by the petitioners and contended

that the land in question is a government land and de-

reservation orders have been passed following the procedure

stipulated under the OGLS Act and OGLS Rules and as the

petitioners have not filed any objection during the public hearing

they cannot raise any grievance in this writ petition as there is

no illegality in the decision making process.    In support of his

contention, he has placed reliance on a decision of the Hon'ble

Supreme Court in the case of State of Jharkhand & Ors. Vs.

Pakur Jagran Manch & Ors., (2011) 2 SCC 591.
                                   -8 -


11.           Opposite party No.7 was earlier known as M/s.

Grasim Industries Ltd. and it had entered into the MOU with the

State Governmnt i.e. O.P. No.1 for establishment of 1.5 MTPA

Split   Cement      Grinding   Unit      at   Khamara   Nuagaon     and

Kolathapangi under Athagarh Tahasil in the district of Cuttack

with project cost of Rs.300 Crores. IPICOL vide its letter dated

09.06.2010 recommended IDCO-O.P. No.6 that Ac.90.00 of land

at the said villages may be alienated in favour of O.P. No.7 for

establishment of the said unit and Annexure-1 is a photo copy of

the said letter.    The O.P. No.6, namely, IDCO filed requisition

dated 26.08.2010 for alienation of government land measuring

Ac. 53.90 in village Khamara Nuagaon for the purpose of

establishment of the said industry and Annexure-2 is the photo

copy of the said letter.       Consequently, O.P. No.4-Tahasildar,

Athagarh initiated a de-reservation case vide Lease Misc. Case

No. 5/2010 to de-reserve said land measuring Ac. 53.90 dec.

under Khata No 231 corresponding to Plot No. 64 (P) of the said

village. Proclamation inviting objections was served in the Gram

Panchayat and also in the village by beating of drums, but the

present writ petitioners did not file any objections whatsoever

though some other villagers filed their objections before the

Tahasildar.    Grievances were heard and after making spot

inspection    the   same   were     overruled    and    the   Tahasildar
                                -9 -


submitted the report on the de-reservation proposal of the said

land before the Sub-Collector, Athagarh, who recommended the

same to the Collector, Cuttack for further action.     Thereafter,

O.P. No.3-Collector, Cuttack in exercise of power conferred under

Section   3-A of the OGLS Act and Rule 4 of the OGLS Rules,

accorded sanction to the de-reservation of the said Gochar land

measuring Ac. 53.90 dec. for its eventual lease in favour of IDCO

for industrial purpose and copy of the said order is found under

Annexure-5.

12.           Power to de-reserve the government land recorded as

'Gochar' is provided under Section 3-A of the OGLS Act and the

stipulation is that such power is to be exercised by an officer not

below the rank of a Collector authorized by the Government on

its behalf.   Rule 4 of the OGLS Rules prescribe the procedure to

be followed in making such de-reservation which includes, inter

alia, a public notice followed by an enquiry and recommendation.

In this context, the decision of the Supreme Court relied on by

the learned Advocate General referred to above is relevant, in

which their Lordships of the Supreme Court held that the

contention of the first respondent therein that "once a gochar

always a gochar, and there is no power in anyone at any time, to

alter its status as gochar" is without merit and proceeded further

to observe that "the de-reservation of any government land
                              -10-


reserved as gochar should only be in exceptional circumstances

and for valid reasons".

13.         In the present case, the de-reservation has been

made following the due procedure contemplated under the OGLS

Act and Rules. Further, in this case, this Court vide order dated

21.10.2011 in W.P.(C) No. 27155/2011 directed the Revenue

Divisional Commissioner, Central Division, Cuttack-O.P. No.2 to

conduct enquiry to find out as to whether the objections of the

writ petitioners against the proposal for de-reservation of gochar

land measuring Ac.53.90 dec. in village Khamara Nuagaon is

legal and valid.    Pursuant to the said direction, O.P. No.2

conducted enquiry, heard the writ petitioners twice and after

going through the de-reservation case records and the report

submitted by the Tahasildar, found that Ac. 205.12 dec. of

gochar land was available in the village Khamara Nuagaon and

after de-reservation of Ac.53.90 dec. of gochar land for eventual

lease in favour of the IDCO, the surplus Gochar land is

Ac.151.22, which is more sufficient than the reasonable

requirement of the village and hence the objections raised by the

petitioners devoid of any merit. The photo copy of the said report

is found at     Annexure-7 to the writ petition.         In such

circumstances, the contention of the present writ petitioners that

the de-reservation of land in question, recorded as Gochar, has
                                -11-


been made without following due procedure is without any merit

and liable to be rejected.

14.          The next contention of the learned counsel for the

petitioners is that the alienation of Ac.53.90 dec. of land by way

of lease to O.P. No.7 is not permissible in the eye of law.   After

de-reservation of government land measuring Ac.53.90 dec., the

O.P. No.3-Collector, Cuttack sanctioned lease of the said land in

favour of IDCO by letter dated 20.06.2011 for establishment of

industry and lease deed dated 19.08.2011 came to be executed

between the parties by complying the legal formalities.     Section

33    of   the   Orissa   Industrial   Infrastructure   Development

Corporation Act (OIIDC), 1980 stipulates that after transfer of

government land to the Corporation, the Corporation may

dispose of the said land in any manner whether by way of sale,

mortgage, exchange, or lease etc.       Section 15 of the said Act

deals with the general powers of the Corporation and sub-clause

(a) states that the Corporation shall have power to lease, sell,

exchange or otherwise transfer any property held by it on such

conditions as may be deemed proper by the Corporation.         Our

attention was also drawn to the provisions of the Orissa

Industries (Facilitation) Act, 2004 (Orissa Act 14 of 2004) in this

regard. On the recommendation of the Nodal Agency, IDCO has
                                 -12-


granted lease of the land in question in favour of O.P. No.7-

Company for establishment of industry.

15.         The State Pollution Control Board- O.P. No.5, after

considering the inspection report of its scientists, granted

consent to O.P. No.7 to establish the Bulk Terminal of 2.0 MTPA

capacity (which is a packaging unit in which cement unloading

and storing takes place in RCC Silos and packed in bags) subject

to general and special conditions as mentioned therein and

copies of the report and the order of consent are also annexed to

the counter affidavit of the Board.        One of the conditions

stipulated in it is that "No Grinding shall be done and Cement

shall be packed only."       Hence the contentions of the learned

counsel for the petitioners that the IDCO in contravention of the

OIIDC Act, 1980 has transferred the land by way of lease in

favour of O.P. No.7, and the establishment of unit will affect the

environmental condition lack merit and liable for rejection.

             In view of the above, there is no merit whatsoever

in the writ petition. In the result the writ petition is dismissed.

No costs.

                                             .............................
                                              Chief Justice

I. Mahanty, J.

I agree.

................................ Judge -13- Orissa High Court, Cuttack The 20th day of August, 2013/A. Dash