Patna High Court
Arena Food And Agro Industries Pvt … vs The State Of Bihar on 21 January, 2025
Author: Rajesh Kumar Verma
Bench: Rajesh Kumar Verma
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1976 of 2024
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Arena Food & Agro Industries Pvt Limited, a Company incorporated Under
the Provisions of the Companies Act, 1956, having its registered office at
Village Nimi, P.S. Shekhopur, District-Sheikhpura through its Director,
Radhey Sharma, aged about 49 Years, Son of Harangi Singh, Resident of
Village Nimmi, P.S. Shekhopur, District Sheikhpura.
... ... Petitioner/s
Versus
1. The State of Bihar through the Prioncipal Secretarty, Mines and Geology
Department, Government of Bihar, Vikas Bhawan, Bailey Road, Patna.
2. The Principal Secretary, Mines and Geology Department, Government of
Bihar, Vikas Bhawan, Bailey Road, Patna.
3. The Director, Mines and Geology Department, Government of Bihar, Vikas
Bhawan, Bailey Road, Patna.
4. The District Magistrate Cum Collector, Sheikhpura.
5. The Mineral Development Officer, Sheikhpura.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Suraj Samdarshi
Mr. Avinash Shekhar, Advocates
For the State : Mr. Shailesh Kumar, AC to GP-5
For the Mines Dept. : Mr. Naresh Dikshit, Spl. P.P.
Mr. Utsav Anand, Advocate
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CORAM: HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
ORAL JUDGMENT
Date : 21-01-2025
Heard Mr. Suraj Samdarshi, learned counsel for the
petitioner, Mr. Shailesh Kumar, learned AC to GP-5 for the State
as well as Mr. Naresh Dikshit, learned Special. P.P. for the Mines
Department.
2. The present writ petition has been filed for the
following reliefs :
Patna High Court CWJC No.1976 of 2024 dt.21-01-2025
2/5“(i) To issue an appropriate writ, order or direction in
the nature of certiorari for quashing memo no. 1151
dated 19.09.2022 issued by the Respondent Mineral
Development Officer, Sheikhpura whereby and
whereunder a penalty of Rs. 61,83,72,105/ – has
been imposed upon the petitioner purportedly under
Rule 39 and 56 of the Bihar Minerals (Concession,
Prevention of Illegal Mining Transportation &
Storage) 2019 Rules for allegedly transporting
52,80,692 CFT and 5,39,280.75 CFT minerals from K
license site bearing K-Sheikhpura/28/2022 and K-
Sheikhpura/30/2022 without issuance of e-transit
challans.
(ii) This Hon’ble Court may adjudicate and hold that
mineral stocked by Petitioner at its K-license sites
obtained under Rule 39 of the Bihar Minerals
(Concession, Prevention of Illegal Mining,
Transportation and Storage) Rules 2019, is royalty
paid and therefore there is/was no occasion for the
petitioner to misappropriate mineral from the K
-license sites.
(iii) This Hon’ble Court may further adjudicate and
hold that penalty cannot be levied upon a valid settee
under Rule 56(2) of the 2019 Rules.
(iv) This Hon’ble Court may further adjudicate and
hold that memo no. 1151 dated 19.09.2022 issued by
the Respondent Mineral Development Officer is bad
in the eyes of law since the same has been issued in
glaring violation of the principles of natural justice as
the petitioner has not been afforded any show cause
Patna High Court CWJC No.1976 of 2024 dt.21-01-2025
3/5
notice whatsoever to controvert the allegations upon
which the penalty has been levied.
(v) This Hon’ble Court may further adjudicate and
hold that the levy of penalty contained in memo no.
1151 dated 19.09.2022 is in gross violation of the
maxim audi alteram partem as the petitioner has been
condemned unheard without an opportunity to defend
the charges against it.
(vi) This Hon’ble Court may further adjudicate and
hold that the imposition of penalty upon the petitioner
is in violation of the 2019 Rules?
(vii) To grant any other relief or reliefs which the
Petitioner may be found entitled to in the facts and
circumstances of the case.”
3. Learned counsel for the petitioner submits that the
petitioner is the stock holders in the Mines Department and a
mining lease has been settled with the petitioner and the petitioner
had deposited Rs. 29,00,00,000/- (Twenty Nine Crores) for the
period from March, 2017 to March, 2022. Learned counsel for the
petitioner further submits that the petitioner has received a letter
dated 19.09.2022 under the signature of the Mineral Development
Officer, Sheikhpura (respondent no. 5) by which the respondent
no. 5 has demanded a royalty under Rule 39 and 56 of the Bihar
Minerals (Concession, Prevention of Illegal Mining Transportation
& Storage) Rules, 2019 to the tune of Rs. 61,83,72,105/- ( Sixty
Patna High Court CWJC No.1976 of 2024 dt.21-01-2025
4/5
One Crores Eighty Three Lakhs Seventy Two Thousand and One
Hundred Five). Learned counsel for the petitioner further submits
that the letter dated 19.09.2022 was issued without any show cause
notice to the petitioner and even at the time of inspection the
petitioner was not present at the site.
4. Learned counsel for the Mines Department has filed a
counter affidavit stating therein in paragraph nos. 12 and 14 of the
counter affidavit that the Mineral Development Officer,
Sheikhpura (respondent no. 5) has inspected the site of K-License
on 08.07.2022 where he has found the stored quantity of minerals
was zero and as per departmental online portal, the quantity of
sand mineral of 52, 80, 692 CFT and 53, 92, 80.75 CFT at
respective sites, has been found in the online portal of the
requirement and as per defiance Rule, 11, 39 and 43 of Bihar
Minerals (Concession, Prevention of Illegal Mining Transportation
& Storage) Rules, 2019 the petitioner is liable to pay the royalty to
the tune of Rs. 61,83,72,105/- ( Sixty One Crores Eighty Three
Lakhs Seventy Two Thousand and One Hundred Five).
5. Learned counsel for the petitioner submits that action
of the respondents is in violation of principle of natural justice and
without giving any show cause notice the impugned order has been
passed against the petitioner. Learned counsel for the petitioner
Patna High Court CWJC No.1976 of 2024 dt.21-01-2025
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submits that the petitioner is ready to pay the amount if the same
has been passed after compliance of principle of natural justice.
6. In view of the aforesaid, the order dated 19.09.2022
passed by the Mineral Development Officer, Sheikhpura
(respondent no. 5) (Annexure-10) is hereby set aside and the
matter is remanded back to the respondent no. 5 with a direction to
issue a fresh show cause notice to the petitioner and after hearing
the parties, the respondent no. 5 has liberty to pass a fresh and
reasoned order in accordance with law.
7. With the aforesaid liberty/directions, the writ petition
stands disposed of.
(Rajesh Kumar Verma, J)
Ibrar//-
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