LARSEN AND TOUBRO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner Larsen & Toubro Limited ( L&T ) seeks the setting aside of an order dated 10th July 2003 of the Mines Tribunal dismissing its revision application challenging an order dated 27th September 2001 passed by the Government of Orissa ( GoO ) (Respondent Nos. 2 to 4 herein) rejecting, inter alia, (i) its application dated 5th November 1995 for a Mining Lease ( ML ) for iron ore over an area of 611.58 hectares in Village Badamgarh Pahad, Sundergarh District (ii) its revision application dated 11th September 1997 for Prospecting Licence ( PL ) over an area of 540.475 hectares in Village Khajuridihi Reserve Forest, Sundergarh District and (iii) a further revised application dated 11th September 1997 for a PL over an area of 475.955 hectares in Village Rakma & Marsuan, Keonjhar District. Factual matrix

(2.) It is stated that sometime in 1995, the GoO made a promise to L&T that it would be allowed to use iron ore deposits for captive consumption for the proposed port-based steel plant to be set up by the L&T at Gopalpur, Orissa. Pursuant to the said promise, a Memorandum of Understanding ( MoU ) was entered into between L&T and the GoO on 20th December 1995. The said MoU recorded that L&T required a quantity of approximately 5 million tonnes (MT) of iron ore to meet its annual requirement of the steel plant at Gopalpur during the first phase of production of 10 MT in the event of L&T achieving the ultimate capacity of 6 to 7 MT per annum (MTPA). In Clause II (d) of the MoU, it was stated as under:

(3.) Further the MoU recorded that the GoO inter alia agreed to hand over to L&T land to the extent of 5000 acres between the National Highway No. 5 and the Howrah-Madras Railway main line, free from all encumbrances through the Orissa Industrial Infrastructural Development Corporation ( IDCO ) for the steel plant and associated facilities. The allotment of another 1000 acres would be considered for the purposes of a township and a colony. The GoO was to ensure that the Gopalpur port would be ready by the time the steel plant commenced commercial production since an all-weather port was of vital importance to the steel plant. Further, the MoU recognized that the Banspani-Daitari Railway link is the essential link for transportation of iron ore to the plant site and it is therefore necessary that this link is established before the Steel Plant goes into operation. L&T and the GoO would together/or separately pursue with the Government of India, Ministry of Railways for expeditious completion and commissioning of the Banspani-Daitari Railway link before 1999.