DARSHAN LAL & CO Vs. STATE OF HARYANA
LAWS(P&H)-1993-6-52
HIGH COURT OF PUNJAB AND HARYANA
Decided on June 02,1993

DARSHAN LAL And CO Appellant
VERSUS
STATE OF HARYANA Respondents

JUDGEMENT

- (1.) In these two Civil Writ Petition Nos. 6770 and 6776 of 1992, the parties and the issues are common. These can, therefore, be disposed of by one order. The facts may be briefly noticed.
(2.) On February 24, 1990, the Department of Mines and Geology of the State of Haryana issued a notice that three Zones of sand quarries of district Sonepat will be put to auction on March 19, 1990. Two of these zones were the Bega-Murthal and the Khewra zones. The petitioner, viz. M/s. Darshan Lal & Co. a partnership firm, was the highest bidder for these two zones. The Bega Murthal Zone consisted of land in 56 villages while the Khewra Zone comprised of 21 villages. Civil Writ Petition No. 6770 of 1992 relates to Khewra Zone while Civil Writ Petition No. 6776 of 1992 is concerned with Bega-Murthal zone. The counsel for the parties referred to the factual position as emanating from C.W.P. No. 6770 of 1982. This is as under.
(3.) The department had fixed a reserve price of Rs. 11,56,000/- in respect of this Zone. The petitioner's bid was for Rs. 32,74,000/- per annum. It was accepted. An agreement as contemplated under the provisions of the Punjab minor Mineral Concession Rules, 1964 (hereinafter referred to as "the Rules") was executed between the petitioner and the respondents on April 24, 1990. At the time of the signing of the agreement, the petitioner paid an amount of Rs. 8,18,500/- as security and Rs. 2,72,833.35 as the first monthly instalment. In accordance with the terms of the auction notice and the agreement, the period of contract was to be from the date of the execution of the agreement or grant of permission to start mining operation upto March 31, 1993. The terms of the agreement are laid down under Rule 33 in form-'L'. Clauses 9 and 27, which are relevant for the decision of the case, provide as under :- "9. Payment of compensation to landowners :- The contractor shall make and pay reasonable satisfaction and compensation for all damage, injury or disturbance which may be done by him in exercise of the powers granted by this contract and shall indemnify and keep indemnified fully and completely the Govt. against all claims which may be made by any person or persons in respect of any such damage, injury or disturbance and costs and expenses in connection therewith." "27. Acquisition of land of third parties and compensation thereof :- In accordance with provisions of clause 9 of this agreement, the contractors shall offer to pay compensation to an occupier or owner of the surface of the land wherefrom the minor mineral will be raised, including the land required for use as access to the quarry mine, stacking of minerals and purposes subsidiary thereto for any damage or injury which may arise from the proposed minor mineral operations of the contractor and in case the said occupier or owner refuses his consent to the exercise of the rights and powers reserved to the Government and demised to the contractor under these presents, the contractor shall report the matter to the General Manager, District Industries centre who shall request the Collector of the District concerned to direct the occupier or the owner to allow the contractor to enter the said land and to carry on such mining/quarrying operations as may be necessary for the working of the mine/quarry, on deposit with the Collector in advance, of the following amount as tentative compensation to the occupier or the owner by the contractor subject to its final fixation by the Collector under the Land Acquisition Act, 1894 :- (a) ten per cent of the annual contract money for land comprising the quarry/mine; and (b) a sum at the rate of one rupee per square yard in the case of the arable land and ten paise per square yard in the case of waste land per year, for the land to be used for access to the quarry/mine, stacking of minerals and other subsidiary purpose. The contractor shall use the shortest possible route for access to the quarry/mine. If the amount of final compensation works out to be more than the tentative amount of compensation already deposited, the contractor shall deposit immediately on demand by the Collector the additional amount of compensation. If, however, the amount of final compensation is less than the amount already deposited by the contractor, the excess amount shall be refunded to him.";


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