KALYAN SAHU Vs. STATE OF ORISSA

JUDGEMENT

(1.) In this Writ Petition, the Petitioner has challenged Rule 3 of the Orissa Minerals (Prevention of Theft, Smuggling & Illegal Mining & Regulation of Possession, Storage, Trading & Transportation) Rules, 2007 (in short, "2007 Rules") as ultra vires of the Constitution of India & 2007 Rules de hors Section 23C of the Mines & Minerals (Development & Regulation) Act, 1957 (in short, "the Act").

(2.) The facts, as narrated in the Writ Petition, are as follows:

(3.) Learned Counsel appearing for the Petitioner submitted that earlier the Petitioner was granted licence for storing/selling/trading coal. The licencing authorities on 14.12.2000 decided to renew only 10 numbers of licences for operating coal depots each within 40 Kms. of Talcher coalfields & IB valley coalfields till opening of adequate numbers of Open Sale Coal depots by M/S. M.C. Ltd. & to ensure that, all such coal depots were checked by the competent authority at least once in a fortnight in order to prevent illegal storing & trading of coal. The Petitioner's depot was one of such depots whose licence was renewed from 2000 till 2007. He continued to store the coal within 40 kms. radius of Talcher coalfields. The Learned Counsel for the Petitioner also submitted that the restriction imposed Under Rule 3 of the 2007 Rules not only restricts the trade & business in not granting licence for storage of minerals for trading within a radius of 40 km. from the source of minerals but also debars the local people from getting coal for their requirement. The restriction of 40 kms radius has no rational nexus with the objective which is sought to be achieved by the said Rules. He further submitted that though the authorities had denied the Petitioner to grant Iicence to store coal within 40 kms. radius of the coal bearing area, they had renewed the licence of two licence holders, namely, M/s. Aryan Energy Pvt. Ltd. & M/s. Global Coal & Mining Pvt. Ltd., for storing, procuring, processing & trading of coal within 40 kms. radius. He submitted that Rule 22 of the 2007 . Rules is the savings clause where it has been provided that notwithstanding anything to the contrary contained in these rules, things done, action taken, or orders passed under the Orissa Minerals (Prevention of Theft, Smuggling & Other Unlawful Activities) Rules, 1990 shall be deemed to have been done, taken or passed under these rules. Since the Petitioner's licence was being renewed from 1995 till date & the Petitioner was earlier granted licence for storing of coal within 40 kms. of the mineral sources, the action of the authorities by not granting him licence to store coal within 40 kms. radius of the mineral sources is illegal & arbitrary. The 2007 Rules is violative of Article 19(i)(g) & Article 14 of the Constitution of India.