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11. Vide a gazette notification dated 25.10.1980, the Government of India, in the exercise of power under Section 7 of the 1980 Act, transferred the undertaking of Bird and Co., along with right, title and interest, on or from the said date, to Bharat Process & Mechanical Engineers Limited.9

12. OMDC, as a subsidiary of Bird and Co., had continued with the winning and mining activities. On 26.08.1983, BPMEL executed a power of attorney in favour of OMDC to do the mining and to comply with the applicable rules.

27. In the context of the renewal of the lease, the key issue to consider is whether the High Court at Calcutta was justified in directing the formation of a High-Powered Committee comprising no more than three members, representing the Union of India, State of Odisha, and OMDC. This committee was tasked with making a reasoned decision on the renewal of the three leases within three months, after hearing TGP. The reason provided by the Company Judge, upheld by the Division Bench of the High Court at Calcutta, is rooted in the potential repercussions of non-renewal. Failure to renew the three leases in favour of OMDC, linked to the company under liquidation (BPMEL), could lead to adverse consequences. This includes the non- payment of amounts owed to creditors, including TGP and the workmen. The Company Judge's order observes that the renewal of the lease in favour of the Official Liquidator, facilitated by OMDC or TGP, could lead to optimal mine utilisation and subsequent income, which could be utilised wholly or partially for the settlement of the company's outstanding debts. Additionally, the order emphasises that the Central Government cannot evade accountability for the claims of BPMEL's creditor.

Provided further that such lease shall lapse on failure to undertake production and dispatch or having commenced the production and dispatch fails to continue the same before the end of such extended period.”

15 (2016) 11 SCC 455.

• Rule 23 of the 2016 Rules permits the transfer of a mining lease or composite licence. The conditions of the said lease are satisfied as OMDC and BPMEL had filed affidavits required as per the Mineral Concession Rules, 1960 from BPMEL to OMDC.

32. It is also an accepted and admitted position that pursuant to several decisions of this Court, penalties of approximately Rs.800,00,00,000/- (Rs. 800 crores) has been levied on OMDC in respect of the mines. OMDC’s straitened circumstances do not permit it to pay the penalty. Unless it can raise the amount from third parties, it would be impossible for OMDC to continue the mining activities. Furthermore, TGP cannot compel OMDC, a 18 “23. Transfer of Mining Lease or composite licence (1) Where a prospecting licence-cum-mining lease or a mining lease has been granted through auction, the holder of such concession (the transferor) may transfer such concession in the manner specified in this rule.