{"id":28120,"date":"2009-07-15T00:00:00","date_gmt":"2009-07-14T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-jsw-steel-limited-vs-government-of-karnataka-on-15-july-2009"},"modified":"2016-12-22T05:09:02","modified_gmt":"2016-12-21T23:39:02","slug":"ms-jsw-steel-limited-vs-government-of-karnataka-on-15-july-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-jsw-steel-limited-vs-government-of-karnataka-on-15-july-2009","title":{"rendered":"M\/S Jsw Steel Limited vs Government Of Karnataka on 15 July, 2009"},"content":{"rendered":"
Karnataka High Court<\/div>\n
M\/S Jsw Steel Limited vs Government Of Karnataka on 15 July, 2009<\/div>\n
Author: P.D.Dinakaran(Cj) & V.G.Sabhahit<\/div>\n
HWTHEIHG%ECOURT(H?KARNATAKAJ\u00a5FBANGALORE_\n\nDATED THIS THE 15th DAY or JULY 2009 ~_'  1.\n\nPRESENT\n\nTI-IE I-ION'BLE MR. P.D. DINAKARALLI QHIEEJUSTTSE   \n\nAND\n\nTHE HON'BLE MRJUSTTCE v.d'.~S.\u00e9LEHAI--TIT..4j   \n\nWRIT PETITION N0. 6134}L2Ij;oaVV(G1~}1;'II1I\u00a7\/LS) E\nBETWEEN:  ' 3 A 2\n\nM\/S JSW STEEL LIMITED H  V\nHAVING ITS REGISTERED OFFICE\u00bb; _  _ -  '\nAT JINDAL MANSION'5A,. DRIG. DE'SH'MAUK'H \nMARS, MUMBAI-4.00 o2:j6,:_ 'V _    .\nREP BY ITS VICE PRESIDENT   7'\n\nKRISHNEGO--\\_?VDA-.   - 3  PETITIONER\n\n(By SIVIT. S R ANT) RADE{A';'.Ad.\u00a7:6cRtE.}\n\n \u00bb GO'IE1?\u20aci_\\fNIE\u00abN'}' OF KARNATAKA\n' B':T_~THEVSvECRETARY\nMIi\\fFSS SS:'.{AN'E TEXTILES\nCOMME.R~C_E..~AND INDUSTRIES\n-- DEPAR'FMEN'l'\n' I EANGA.L_oRE--0 1\n\n 2 \" M.\/:S\"'1f<ABINI MINERALS PVT LTD\n\n 'No;1'20, HOODI APPTS,\n CUNNINGHAM ROAD\n -~-BANGALORE-52\n\n \n\n\n\n3 THE SECRETARY TO GOVERNMENT OF INDIA\nMINISTRY OF MINES\nSHASTRI BI-IAWAN\n\nNEW DELHI 110 001  RESPON~E--ENT_S  A' \n\n(By Sri BASAVARAJ KAREDDY, GA FOR R1 , GUHA.AS'SOCiIfA~TEST' \n\nFOR R-2 )   _\n\nTHIS WP IS FILED UNDER ARTICLES__ 225 as 2;2:I7"OF \n\nCONSTITUTION OF INDEA FRAYING To EQUVASjH...__Tz~IE\nCOMMUNICATION \/ RECOMMENDA'\ufb02ON.DT.4.1\u00abQ.U"Z, fi?AS,SED BY\nTHE R1, AND ANN--J. QUASH THE PROCEEDINGS, OF THE R1\nWHEREBY IT HAS RECOMMENDED""'FHE CASE OF R2, FOR\nGRANT OF MINING TO R3, ANNEXED AS ~.AN,N:K. DIRECT THE\nR1, TO GRANT THE MINING ,LEA,SE; IN'-FTAVIOUR OF THE\nPETITIONER IN TERMS OF THEMINING LEASE:-V -!'I\u00a5'PLICA'l'IONS\nOF THE PETITONER _P'ENDING "EEFORE__IT- IN " ACCORDANCE\nWITH APPLICABLE LAWS,,,.RUI;ES:A-ND REGULATIONS.\n\nTHIS W'RIT._PEiI'iTION"C\u00bbOMiNG'UP FOR ORDERS THIS DAY,\nTHE COURT MADE THE FOLLO__wINc.;-: --\n\n"-oRnER\n\n1. {'Deii{r'eTed by PD. Dinakaran, C.J.)\n\nThe._abov.e~Efifitiipetition is filed by the petitioner challenging\n\n _cc-mmuni"ca_tion\/ recommendation dated 04.10.2007 passed by\n\n ".;feSpor..ident "No.1 recommending for grant of mining lease to an\n\nit  of 127.48 hectares in Thimmappanagudi village, Sandur\n\n Bellary District in favour respondent No.2, pursuant to<\/pre>\n
 3 gvpersonn. \/\ufb01gx<\/p>\n
2.2 The further contention of the petitioner is that,<\/p>\n
recommending the grant of lease in favour of 2″” respc-‘ndent; V’ 1′<\/p>\n
State Government has not followed the proecedurei  <\/p>\n
under Rule 26 of Mineral Concession <\/p>\n
referred to as M.C. Rules, 1960). He’nce_faiI1ire  the<\/p>\n
Government to consider the same is arbitraryaand nnreavsonvable.<\/p>\n
3. Heard learnedvcounselthepetijiioner and the<\/p>\n
learned Government     it   <\/p>\n
4. We havegiven”  an%3f;ioi1_s”.:o11sideration to the submissions<\/p>\n
made on behalfof theipetitioner’a_s”we1~1 as the respondents.<\/p>\n
  CQrfeeded1y_ theiiiimpugned proceedings dated 27.09.2007
\nreads. _as jhereunderzi ‘  ii ‘<\/p>\n
0″ ~\u20ac\u00e9.;e.No\u00a3iee”.’un\u00a7ief Rule 26(1) of M.C.Ru1es, 1950 was<\/p>\n
_  issued\u00bb to..__al1-the applicants to appear for hearing on
\n 2-0″‘! Feiariiary, 2007 at 11.00 am. to make
\n‘ iipreisentation for sanction of mining lease in their
\n The hearing was held as scheduled and 33<\/p>\n
  ..ap_p1icants who attended the hearing were heard in<\/p>\n
!: \/u ::\/\/i:\/”Mt . – ‘
\nJ\/’V<\/p>\n
Therefore, we do not agree with the contention of petitioner _<\/p>\n
the procedure contemplated under Rule 26 of M.C_.. Vvva:s.not”<\/p>\n
complied with.\n<\/p>\n
5.2 That apart, the reasoning  impugned..vprok7’eedings
\nreads as hereunder: ‘
\n“9. It is desirable to  ‘areas to
\napplicants who\u00e9liaye already.V\u00a5esta1\u00a7li_she-d\u00abtheir plants
\nin the State”  :Znv_es.tii1gihugepjlarnclunts. The Ore
\nrequirement. for””pr”od11ct4iorivroftonne steel is about
\n1.6 tonVno–s.of’i~ro’n;o3:e’7.  V l l I
\n5.3 It  also  to__notice that the Government has
\nfollowed the criteria me–nt’ioVned””—-i_n’ Section 11(3) of M.M.D.R Act,
\n1957 for gzjanting rnininglease as per which the following matters
\n ‘bathe biauisiskfor  of mining lease:\n<\/p>\n
(a)~..Any special” lV<p'r:.o'i.vledge of, or experience in reconnaissance<\/p>\n
operations,_p.rospecting operations or mining operations, as<\/p>\n
"  '–the ca'seV_rnay be, posse ssed by the applicant;<\/p>\n
 \u00ab..(b):vi_T'eh_e"iinancial resources of the applicant;<\/p>\n
M<\/p>\n
(c) The nature and quality of the technical staff employedp–or> to<\/p>\n
be employed by the applicant;\n<\/p>\n
(d) The investment which the applicant proposes to=makei’e ”<\/p>\n
mines and in the industry based on the mine.=’rals\u00a7'”  <\/p>\n
(e) Such other matters as may be prescri.bed_A_.l * <\/p>\n
5.4.1 The Government while considering the Iner1ts_ of <\/p>\n
respondent has observed as  ;_’  T’<\/p>\n
14. M\/s. Kabini Mineral  :CoVmpanyi”does.p.”not hold any
\nPvt. Ltd., _   [mining l.ease.._in’Karnataka. They
\n3  . “prc’rpose’_ xto” invest Rs.262.50<\/p>\n
.V  “‘They__a1so propose to set
\n  ._ ‘ ‘ up-f_’::; ” ‘Stee?g\/ Sponge Iron plant\n<\/p>\n
 ——–  _  iig,  ‘-near Hospet’. Proposed use of ore<\/p>\n
“‘  ” ‘is-._for captive consumption, for<\/p>\n
  export and also for local supply.\n<\/p>\n
5:41  the other l’i’and..tl1e merits of petitioner reads as<\/p>\n
hereundt’-;r:,   l<\/p>\n
17. M\/s”.\u00bbJ.S.W.”p:StAeels The Company does not hold any
\n Ltd;–.,  mining lease in Karnataka. They
\n‘ propose to invest Rs.10 crores.\n<\/p>\n
Proposed use of ore is for
\nindigenous consumption and
\ncaptive use. Iron ore will be
\nsupplied to their Steel Plant at
\nToranagallu, Hospet Taluk,
\nBellary District.\n<\/p>\n
5.5 The above comparitive merits of petitioner  _<\/p>\n
respondent herein reveals that while the 2nd respondent”~herein_:it<\/p>\n
proposed to invest Rs.262.5O lakhs, the pet.ition’e_r.:<\/p>\n
invest Rs. 10 crores and further pi”o_posed’* = use 1the..:o_re for
\nindigenous consumption and captiveiiiise pandii   to
\nsupply the ore to its existing $’te_el  ._’ri.i{.5W.ever,  fact
\nthat petitioner is prepared to   also has set
\nup a Steel Plant at :Fo:?airiga1l’;,  District was
\nnot taken note of bythe Government. On
\nthe other  ‘arbitrarily recommended the<\/p>\n
grant of mining lease to End re.spondent herein.<\/p>\n
 v_ Even though we’are__not in a position to support the reasons<\/p>\n
that ‘rimpugnedvi’proceedings CELIIIC to be passed with material<\/p>\n
 irregzilarity’  oblique – motive in granting lease just<\/p>\n
 before the  Chief Minister laid down office, we are<\/p>\n
.:ipe’o4nvinCed’that the order of State Government in preferring the 2nd<\/p>\n
“V ‘-.p_iire_spontien’ti as against the petitioner for granting mining lease is<\/p>\n
 and unreasonable and contrary to the matters that are<\/p>\n
I0<\/p>\n
infrastructure and overall development of the lifestyle<\/p>\n
of the public at large of the locality and region.
\n22.2. The major concern in mining sector is they-“v.<\/p>\n
undue and protracted delay in clearing approval frorri, <\/p>\n
various Ministries and departments, viz. Mines  .;. <\/p>\n
Geology, Pollution Control Board, Environment-._arid’e. L”
\nForest, Revenue and Survey, Indian.Bu::*.eau
\netc. and in processing and granting m.,inineg it 1ea’se.”‘V”‘t
\nSuch delay, not only causes hardshipltoithe appli2;an’ts
\nwho invest huge amount, butlaffjeets ectonomiclgrovutli
\nof the nation. Therefore, it is ap_pr’opriate for th_eV_State<\/p>\n
Government and the Ce_n’tral .Gover’nz_rieVnt.,pto evolve a<\/p>\n
single wvindoxv ‘  V sys’tem\u00ab   .vs_rit.hi_i1 their respective
\njurisdiction \u00ab. to -not’:i_iy,l’ur_e'<:e,i's.re, scrutinize, process,
\napprove  to take 'aplpriopriate decision in granting<\/p>\n
mini:-jig' lease without undue and protracted delay".<\/p>\n
  7.1 1' ~. Wave e{re;",':he,\u00a5e\u00a3ore, unable to agree with the decision of the<\/p>\n
Government  preferring the 2nd respondent as against the<\/p>\n
ll_:p'eti'ti.orier__'in sew of decision taken by us in W.A.No.5026\/2008<\/p>\n
  and in W.P.No.5022\/2009 (GM~MM–S~P1L).<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court M\/S Jsw Steel Limited vs Government Of Karnataka on 15 July, 2009 Author: P.D.Dinakaran(Cj) & V.G.Sabhahit HWTHEIHG%ECOURT(H?KARNATAKAJ\u00a5FBANGALORE_ DATED THIS THE 15th DAY or JULY 2009 ~_’ 1. PRESENT TI-IE I-ION’BLE MR. P.D. DINAKARALLI QHIEEJUSTTSE AND THE HON’BLE MRJUSTTCE v.d’.~S.\u00e9LEHAI–TIT..4j WRIT PETITION N0. 6134}L2Ij;oaVV(G1~}1;’II1I\u00a7\/LS) E BETWEEN: ‘ 3 A 2 M\/S JSW STEEL […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-28120","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nM\/S Jsw Steel Limited vs Government Of Karnataka on 15 July, 2009 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-jsw-steel-limited-vs-government-of-karnataka-on-15-july-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Jsw Steel Limited vs Government Of Karnataka on 15 July, 2009 - 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