S.J.MUKHOPADHAYA, J. - (1.) IN this case, the petitioner has challenged the entire certificate proceeding including the demand notice dated 7th February, 2003 issued under Sections 4 and 6 of the Bihar & Orissa (Public Demand) Recovery Act, 1914 (for short P.D.R. Act) in connection with Certificate Case No. 17/02 - 03 as was pending before the Certificate Officer (Mines), Dhanbad and to command the respondents not to take any coercive steps against it or its employees in connection with the aforesaid certificate case No. 17/02 -03. During the pendency of the writ petition, the Certificate Officer passed final order in Certificate Case No. 17/02 -03, as contained in Memo No. 204 dated 7th March, 2003, whereby and whereunder, the objection raised by the petitioner has been rejected and petitioner has been directed to pay the certificate amount by 13th March. 2003. The aforesaid final order dated 7th March, 2003 has also been challenged by the petitioner by tiling a petition (LA. No. 524/2003) for amendment of prayer.
(2.) ACCORDING to the petitioner, it is a Government Company within the meaning of Section 617 of the Companies Act engaged in manufacturing Steel and Irons, as such holds several Coalmines by way of ownership/lease. The Coalmines of petitioner are situated within the district of Dhanbad in Jharkhand, as also in adjacent State of West Bengal. Chasnala Colliery and Jitpur Colliery are two captive Coalmines which fall within the State of Jharkhand. The coal extracted by the petitioner from the aforesaid two captive Coalmines, after washing, are sent to its Steel Plant at Burnpur in the district of Burdwan, West Bengal where it produces Iron and Steel. Admittedly, the petitioner is liable to pay royalty under Section 9 of the Mines and Minerals (Regulation & Development) Act, 1957, on the coal extracted and removed/consumed by the petitioner. Under Rule 64(A) of the Mineral Concession Rules, 1960 , the State Government is empowered to charge 24% interest on the dues of royalty, if the same is not paid within sixty days from the date fixed for payment by the State Government. The petitioner had been paying royalty as per law upto February, 2002, but abruptly stopped making payment from March, 2002. The amount of royalty was calculated to Rs. 3,87,94,065/ - for the period March, 2002 to November, 2002 and the petitioner Company was served with notice by the State of Jharkhand. But the royalty amount with interest which came to Rs. 4,49,45,439/ - having not paid, the Certificate Case No. 17/02 -03 was initiated at the instance of the District Mining Officer, Dhanbad, State of Jharkhand.
(3.) THE petitioner had not disputed the certificate amount for recovery of royalty with interest, but it filed objection under Section 9 of the P.D.R. Act on 27th February, 2003 and requested for suspension of the certificate proceeding on the ground that the petitioner Company has been declared sick under the Sick Industrial Companies Act, 1985 (for short S.I.C.A. 1985). However, the certificate . proceeding having not suspended, this writ petition was preferred.;