- (1.) SHISHIR Kumar, J. The present writ petition has been filed in the nature of mandamus declaring the Uttar Pradesh Minerals (Prevention of Illegal Mining Transportation and Storage) Rules, 2002, as prospective in its operation. Further a writ in the nature of mandamus directing the respondents not to interfere in the storage, selling and transporting of morrum, stored by the petitioners prior to coming into force of new Rules.
(2.) THE brief facts of the case are that the petitioners are traders of sand/morrum and gitti. Petitioner No. 1 stored minor minerals on plots No. 105 and 106 in village Badanpur, Tehsil and District Hamirpur for the purposes of selling it in the open market. Petitioner No. 2 has stored minerals on plots Nos. 76 and 77 belonging to one Sri Kamesh Chaurasiya in village Shitalpur, plots Nos. 78 and 333 belonging to one Sri Laxmi Narain Singh in Tehsil-Helapur and plot No. 354/2 belonging to one Sri Ram Kishun in village Kanauta in Tehsil & District Hamirpur. THE petitioners purchased the above mentioned minerals from the open market and also from various lease/permit holders in the district Hamirpur and Mahoba for selling to various customers who take into for the purposes of private consumption. THE petitioners purchase the said minerals from the lease holders and transport it to the business places. On 22-2-2002, the petitioner No. 1 received a notice from the mines officer by which the petitioners were directed to clarify the position of genuineness of the stock of morrum. According to the notice under Section 4 (1-A) of the Act, no person can stock or transport minerals without permission, otherwise action will be taken under Section 21 of the Act. Since no rules were framed regulating the storage of minor minerals, petitioners filed a writ petition before this Court and a Division Bench of this Court passed the following orders : "heard the learned Counsel for the parties. It has been alleged in para 9 of the writ petition that no rules have been framed under Section 4 (1-A) of the Mines and Minerals (Regulation and Development) Amendment Act, 1999 and hence there is no ban to storage of sand. In the circumstances, we direct that the respondents shall not interfere with petitioner's storage of sand unless some rules have been made under Section 4 (1-A) of the Act prohibiting or regulating such storage in which case those rules have to be followed. " That subsequently on 23-8-2002, further direction was issued to the respondents not to interfere with the transportation and selling morrum except in accordance with law. Now the State Government in purported exercise of powers under Section 23-C of the Mines and Minerals (Development and Regulation), 1957 (hereinafter referred to as the Act), has framed the Uttar Pradesh Minerals (Prevention of Illegal Mining Transportation and Storage) Rules, 2002, which has been published in the Official Gazette on 2-9-2002. After framing the aforesaid rules, the respondent No. 2 the District Magistrate Hamirpur without giving any show cause notice to the petitioners had directed the mines officer, Hamirpur not to permit the petitioners to transport or sell the stock of minerals stored by them, prior to coming into force the new rules, since according to the respondent No. 2, the stock of minerals stored by the petitioners have become illegal in view of the provisions of Rule 11 of the new Rules, which provides for obtaining a license prior to the storing of any mineral. The petitioners have been storing the minerals prior to the coming into force the new rules and the new rules does not provide for disposal of minerals stored prior to coming into force of the new rules, as such, the new rules are not applicable on the stock of the minerals already stored by the petitioners. Any person who commits a breach of the new rules and the provisions of Section 4 (1-A) of the Mines and Minerals (Regulation and Development) Act, 1957, under which the new rules have been framed, shall be punished under Section 21 of the Act with imprisonment for a term which may extend for two years or with fine which may extend to Rs. 25,000/- or with both. Section 4 (1-A) and Section 21 (1) are being quoted below : "section 4 (1-A) - No person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with the provisions of this Act and the rules made thereunder. Section 21 (1) - Whoever contravenes the provisions of sub-section (1) or sub-section (1-A) of Section 4 shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twenty-five thousand rupees, or with both. "
(3.) SINCE storage of minerals without obtaining a license entails penal consonance under the provisions of the Act and the rules framed thereunder, the nature of new rules cannot be retrospective in operation and will not apply on minerals already stored by the petitioners, prior to the coming into force of new rules that is on 2-9-2002. The action of the respondents in preventing the petitioners from disposing of stock of morrum stored prior to the coming into force of the new rules is wholly illegal, arbitrary and without authority of law. The intention of the legislature while amending the aforesaid Section 4 was to safeguard its royalty, which was being evaded by the lease and permit holders by storing minerals within the mining area and removing them after expiry of mining lease or permit, without any payment of royalty. The further submission has been made by the petitioners that the respondent No. 2 District Magistrate, Hamirpur without giving any show cause notice to the petitioners, has directed the authority not to permit the petitioners to transport or sell the stock of minor minerals stored by them, prior to coming into force of the new Rules. According to the respondents the stock of minor minerals stored by the petitioners is illegal in view of the provisions of Rule 11 of the new Rules, which provides for obtaining a licence prior to storing of any mineral. Moreover, the new rules does not brought for disposal of minerals stored prior to coming into force of new rules, therefore, the new rules are not applicable on the stock of the minerals already stored by the petitioners. As the new rules, storage of minerals without obtaining a licence entails penal consequences, therefore, the nature of new rules cannot be retrospective in operation. The intention of the legislature while amending the aforesaid Section 4 is for the purposes of safeguarding its royalty which was being evaded by the lease and permit holders by storing minerals within the mining area. The substantive law is only prospective in its operation and will not apply retrospectively. The action of the respondents are in clear violation of principle of natural justice.;