KABINI MINERALS PVT LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner Company, an applicant for lease of Decorative Stone Quarry, seeks to assail the decision of the State Government dated 4th June, 2003, to grant the lease over an area of Ac. 6.90 decimals situated in villages Jungia and Badadalima in the district of Mayurbhanj in favour of M/s. Oriental Trimex Ltd. (opposite party No. 4) thereby rejecting the petitioner's application dated 7th October, 2002.

(2.) THE main ground of assailing of such decision is that the petitioner being the earlier applicant for grant of quarry lease over the self same area was entitled to preferential consideration in consonance with Rule 6(5) of the Orissa Minor Mineral Concession Rules, 1990 (in short, 'the 1990 Rules') but giving a go bye to the said provision, the State Government decided to grant lease in favour of opposite party No. 4, a later applicant. According to the petitioner, the decision of the State Government is illegal, arbitrary and contrary to the provisions of the 1990 Rules and denies the right guaranteed under Articles 14 and 19(i)(g) of the Constitution of India.

(3.) THE petitioner Company on 7th October, 2002 filed an application before the competent authority in Form 'A' for grant of quarry lease in respect of 'Decorative Stones' for a period of ten years over an area of Ac. 6.90 decimals situated in villages Badadalima and Jungia vide Annexure 1. The Mining Officer, Baripada Circle, Opp. Party No. 3 on 26th October, 2002 intimated the petitioner with regard to receipt of its application dated 7th October, 2002 along with enclosed documents. It is averred in the writ petition that after submitting the application, the Managing Director of the petitioner Company on 25th October, 2002 signed an agreement for purchase of land in Ganjam district to set up a Cutting and Polishing Unit of decorative stones. It is also averred in the writ petition that on 2nd December, 2002, the petitioner Company placed orders for purchasing machinery for setting up its Cutting and Polishing Unit with Metcons Engineering Pvt. Ltd. While the matter stood thus, on 5th December, 2002, opposite party No. 4 Company filed an application before the competent authority for grant of quarry lease in respect of 'Decorative Stones' for a period of ten years over the same area of Ac. 6.90 decimals in the same villages of Badadalima and Jangia in the district of Mayurbhanj. It is alleged by the petitioner that though several communications were made with the authorities requesting them to consider the petitioner's quarry lease application on the ground that it was earlier to the application of opposite party No. 4 and though the petitioner advanced several reasons as to why its application should be considered on priority basis, the Government of Orissa in violation of the statutory Rules took a decision to grant the quarry lease in question in favour of opposite Party No. 4 overlooking the just claim of the petitioner. Being aggrieved by such decision, the petitioner, as stated earlier, has approached this Court with a prayer to quash the letter issued by the State Government stipulating the terms and conditions of the lease, in favour of opposite Party No. 4, vide Annexure 13.