BHUSHAN POWER & STEEL LTD Vs. RAJESH VERMA
LAWS(SC)-2014-4-57
SUPREME COURT OF INDIA (FROM: ORISSA)
Decided on April 22,2014

BHUSHAN POWER AND STEEL LTD Appellant
VERSUS
Rajesh Verma Respondents







JUDGEMENT

- (1.)All the aforesaid matters were heard analogously as they are inter- connected. In fact, it is the judgment dated 14.3.2012 passed in C.A. No. 2790 of 2012 which has become the trigger point of all other cases. C.A. No. 2790 of 2012 was filed by M/s. Bhushan Power and Steel Ltd. (formerly known as Bhushan Limited) (hereinafter referred to as 'BPSL'). That was an appeal against the judgment passed by High Court of Orissa whereby the High Court had dismissed the writ petition of the BPSL. Before proceeding further, we would like to narrate the nature of different cases and the background in which they came to be filed. CCP No. 374 of 2012
(2.)The erstwhile Bhushan Limited had proposed setting up of plant in some identified villages in the District of Sambalpur, Orissa. For this purpose it had made a request for acquisition of land, measuring 1250 acres, which was acquired for Bhushan Limited. It had also applied for grant of lease of mining of iron ore for use in the proposed plant. These applications were favourably considered by the State Government which agreed to accord due priority to Bhushan Limited for grant of suitable iron ore areas and also agreed to recommend the proposal to the Government of India for grant of a Coal Block. Even a MOU was entered into between the State Government and Bhushan Limited containing the commitment of the State Government to recommend to the Central Government, grant of iron ore mines for its use in the proposed plant. For this purpose area earmarked for recommendation were Thakurani area with 96 million tonnes iron ore reserves and Keora Area, District Sundargarh for additional 128 million tonnes of iron ore; both for 50 years requirement of the plant. Though various statutory and other permissions required for setting up of the plant were granted and the plant was also set up, but due to some in-fight between the family members who owned Bhushan Limited, it faced difficulties in getting the grant of iron ore lease.
(3.)In so far as granting of mining lease of iron ore reserves in the aforesaid areas is concerned, it fell into rough weather. It resulted into show cause notice dated 18.1..2006 by the State Government which led to the decision that mining lease over the Thakurani area could not be allowed on various grounds and the application made by Bhushan Limited was premature. Thereafter, the Government of Orissa made a recommendation to the Central Government on 9.2.2006 to grant mining lease in favour of one M/s Neepaz Metallics (P) Ltd. in relaxation of Rule 59(1) of the Mining Rules, for a period of 30 years. Challenging these orders, Bhushan Limited filed the writ petition in the High Court on 8.5.2006. This Writ Petition was dismissed by the High Court on 14.12.2007 and challenging this decision Special Leave Petition was filed which was granted converting the SLP into C.A. No. 2790/2012. This appeal was allowed by this Court vide judgment dated 14.3.2012 with the following directions:
"Accordingly, we allow the appeal and set aside the judgment and order of the High Court of Orissa and also the decision of the State Government dated 9.2.2006, rejecting the Appellant's claim for grant of mining lease. During the course of hearing, we have been informed that Thakurani Block A has large reserves of iron ore, in which the Appellants can also be accommodated. We, accordingly, direct the State of Orissa to take appropriate steps to act in terms of the MOU dated 15.5.2002, as also its earlier commitments to recommend the case of the Appellants to the Central Government for grant of adequate iron ore reserves to meet the requirements of the Appellants in their steel plant at Lapanga".



Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.