SAHI RAM Vs. AVTAR SINGH

JUDGEMENT

(1.) The writ petitioner-Avtar Singh was granted a lease in respect of a piece of land in the State of Haryana for extraction of Silica and, a major mineral, for a period of 10 years effective from 8th July 1981 to 7th July 1991. He entered into a lease agreement with State of Haryana under the provisions of Mineral Concession Rules 1960 (hereinafter referred as 'Rules'). The same area which was leased to Avtar Singh was also co-extensively leased in favour of R. L. Sharma for extraction of ordinary sand, a 'minor mineral'. The minor mineral is to be extracted from the surface and the major mineral underneath the surface. The lease with Avtar Singh stipulated that the lessee of minor mineral will work the mine first and Avtar Singh shall start work after the lessee of minor mineral has finished his operations.

(2.) Avtar Singh was issued a show cause notice dated 10th March 1983 requiring him to remedy the breaches mentioned in the show cause notice within 60 days from the receipt of the notice and report compliance to the State Government. The said show cause notice was issued under Rule 27(5) read with clause 2 of Part IX of the lease deed. This notice also stipulated that in case the lessee fails to remedy the breaches within the stipulated period the State Government will determine the lease and forfeit the whole of the security deposited by the lessee. According to this notice Avtar Singh had been advised by Director of Industries, Haryana by Memo dated 10th February 1982 and again by Memo dated 27th May 1982 to instal boundary pillars in the leased area and submit monthly production reports regularly and to ensure that payments slips were issued from the proper books of accounts maintained in Lessee's mining office but the lessee had failed to do so; a joint inspection of the area under the lease was carried out by the officers of the Directorate General of Mines safety and the General Manager DC, Faridabad, Government of Haryana on 22nd March 1982 and it had been reported that the depth of the pits was 30 to 36 meters; the sides were vertical and there were dangerous over-handing; no attempt had been made to form benches as required under Regulation 6 of Metalliferous Mines Regulations 1961. It was stated that those persons were engaged under dangerous conditions; qualified Manager and other supervisory staff was not appointed as required under Regulations 34 and 116; helmets and footwears were not being maintained and that the arrangements for supply of drinking water and first aid equipment were not made and the Central Government had already issued an order under S. 23(3) of the Mines Act, 1962 in this regard. The notice further stated that lessee had neither erected the boundary pillars nor started production nor submitted production despatch returns nor mainble records and also did not comply with the provisions of the Act and the Rules and Regulations made thereunder and had committed breach of the conditions contained in Clauses 2, 3, 7 and 10 of Part VII of the lease deed. The aforesaid breaches were required to be remedied by notice dated 10th March 1983.

(3.) Reply dated 9th May 1983 to the show cause notice is stated to have been sent by Avtar Singh denying that he had violated any condition of the lease deed and, inter alia, stating that whatever was required to be done by him as a lessee was done; proper accounts were being maintained, there was no joint inspection of the area and he had not been informed about it; there were no dangerous pits and though the boundary pillar had been erected but the local villagers and other miscreants had demolished the same. However, it had been repaired.