ADHUNIK STEEL LIMITED Vs. STATE OF ORISSA

JUDGEMENT

(1.) THIS revision is directed against the order dated 8.3.2004 passed by the learned Sub Divisional Magistrate, Bonai in a proceeding under Section 144 of the Code of Criminal Procedure vide Misc.Criminal Case No. 3 of 2004.

(2.) BEFORE considering the legality of the impugned order, it is necessary to look into the facts leading to filing of cases in different Courts in West Bengal as well as in Orissa. The Government of Orissa granted a lease of mining land at Patmunda, Orahri, Tentulldihl, Kusumdihi, Sonpatholi and Bhanajaikusum in the district of Sundargarh in favour of the opposite party. The opposite party Orissa Manganese and Minerals Pvt. Limited entered into an agreement with the petitioner Adhunik Steels Limited to carry out mining operation in the aforesaid mines and excavate/extract/remove manganese ores for and on behalf of the opposite party and to deliver the same to it or its customers for a period of 10 years with effect from May 18, 2003 with an option to renew the same on terms and conditions. It is the case of the petitioner that after execution of the agreement it purchased and acquired valuable plants and machineries to work in the mines and also incurred costs, charges and expenses amounting to Rs. 2.5 crores. It is further case of the petitioners that workmen and personnel were engaged and employed to operate mines and since July, 2003 the petitioners have been paying salary and wages of Rs. 3 lakhs per month. Apart from the above, it is the case of the petitioner that it has undertaken massive development of mines by removing more than 2.5 lakhs cum over burden to expose manganese ores valued at Rs. 10 crores. However, on 24.11.2003 the opposite party company claimed that the agreement was in violation of the Minerals Concession Rules, 1960 and therefore is illegal and void and terminated the same with immediate effect. Since the agreement contained an arbitration clause the petitioner approached Kolkata High Court by way of filing an application under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim protection by way of an order restraining the opposite party to take over possession of the schedule mines and to refrain from interfering in the mining operation which the petitioner is entitled to carry on in terms of the agreement. Kolkata High Court after hearing counsel for both parties, by order dated 9.2.2004 restrained both parties from taking any step in accordance with the agreement until the matter is decided. Further case of the petitioner is that in spite of such order passed by the Kolkata High Court the opposite party attempted to evict the petitioner forcibly and illegally and misappropriate the assets created by them valued at Rs. 13 crores. In view of such conduct of the opposite party the petitioner made representation to the Collector, Sundargarh on 30.1.2004 to invoke Section 144 Cr.P.C. and prevent a large scale disturbance that may occur due to conduct of the opposite party. It is further case of the petitioner that on 3.2.2004 some representatives and supporters of the opposite party company including the three Directors forcibly entered into the premises of the petitioner company and assaulted, threatened staff of the petitioner and looted Rs. 2 lakhs. Making such allegations an F.I.R. was also lodged in Koira Police Station vide Koira P.S, Case No. 3 of 2004. It further appears that the petitioner filed an application under Section 144 Cr.P.C. before the Sub Collector cum Sub Divisional Magistrate, Bonai which was registered as Misc.Criminal Case No. 3 of 2004 and after hearing learned counsel for both parties, the impugned order was passed.

(3.) SHRI Jagannath Das, learned senior counsel appearingfor the opposite party had filed an application for vacatingthe interim order on the ground that subsequent orders passedby Kolkata High Court were suppressed and not brought to the notice of the Court, as a result of which the ex parte order is liable to be modified/vacated. Shri Das further contended that since the matter is pending before Kolkata High Court, the learned S.D.M. had absolutely no jurisdiction to entertain the application under Section 144 Cr.P.C. Learned counsel brought to the notice of the Court the order dated 12.3.2004 passed by the Kolkata High Court and it appears that as an interim measure, the Kolkata High Court passed the following order :