T R CHEMICALS LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner-M/s. T. R. Chemicals Limited (Unit-II) in this writ application seeks to challenge the order dated 25-5-2007 (Annexure-4) directing suspension of its licence for storage and transportation of minerals under Section 6 of the orissa Minerals (Prevention of Theft, smuggling and Other Unlawful Activities) Act, 1989 (In short "orissa Act, 1989") apart from the challenge to the order dated 18-6-2007 (Annexure-6) directing cancellation of the petitioner's licence In purported exercise of power under Section 7 of the Orissa Act. 1989. The petitioner also further seeks to challenge the direction made in the said order directing the petitioner to deposit a sum of Rs. 4,00,675. 00 as cost of price of the iron Ores under the provisions of the Orissa act, 1989, inter alia, on the ground that the action of the Deputy Director of Mines in passing the impugned order was without jurisdiction and therefore, illegal.

(2.) FROM the averments made in the writ application, it appears that the petitioner applied and was issued with a Licence for storage and transportation of minerals by making an application in Form-D under the provisions of Section 6 of the Orissa Act, 1989 and Rule-6 of the Orissa Minerals (Prevention of Theft, Smuggling and Other unlawful Activities) Rules, 1990 (in short "1990 rules" ). On 22-12-2006, a show cause notice for cancellation of licence was issued to the petitioner by the Dy. Director of Mines on 11-5-2007 purportedly on the basis of verification of report dated 10-5-2007 and by further Notice dated 25-5-2007, the licence granted to the petitioner-company was suspended and the petitioner was directed to deposit a sum of Rs. 4,00,675. 00 under annexure-4 to the writ application. The petitioner submitted its show cause reply vide its letter dated 31-5-2007 (Annexure-7) and further made a representation to the Dy. Director of Mines on 12-6-2007 (Annexure-5)requesting him to recall the order of suspension dated 25-5-2007. As a result of the aforesaid series of communications, by an order dated 18-6-2007 (Annexure-6), the licence which was issued in favour of the petitioner-company was cancelled, leading to filing of the present writ application seeking quashing the orders of suspension, demand of cost as well as cancellation of licence under annexures-4 and 6 respectively.

(3.) MR. Sanjit Mohanty, Senior Advocate appearing for the petitioner, inter alia, contended that the action of the Deputy director of Mines impugned herein was completely without jurisdiction and the source of such authority i. e. the Orissa Act, 1989 and the Rules framed thereunder. were superseded and were inoperative with effect from 20-12-1999. The petitioner contended that the Orissa Act, 1989 was enacted by the State Legislature by virtue of legislative power conferred by Article 245 read with clause 3 of Article 246 and Entry 2 of List-II of the Seventh Schedule of the Constitution of India. This enactment governed the requirement of licence for the purpose of possession, storage, sell, trade, transportation and removal of minerals from a mine and the said Act came into operation on and from 20-5-1990. It was further submitted that Entry 23 of List-Il of the Seventh Schedule of the Constitution covers the "regulation of mines and mineral development subject to the provisions of List-I with respect to regulation and development -under the control of the Union" whereas Entry 54 of list-I of the Constitution provides as follows :