DARSHAN LAL & CO Vs. STATE OF HARYANA

JUDGEMENT

(1.) In these two Civil Writ Petition Nos. 6770 and 6776 of 1992, the parties and the issues are common. These can, therefore, be disposed of by one order. The facts may be briefly noticed.

(2.) On February 24, 1990, the Department of Mines and Geology of the State of Haryana issued a notice that three Zones of sand quarries of district Sonepat will be put to auction on March 19, 1990. Two of these zones were the Bega-Murthal and the Khewra zones. The petitioner, viz. M/s. Darshan Lal & Co. a partnership firm, was the highest bidder for these two zones. The Bega Murthal Zone consisted of land in 56 villages while the Khewra Zone comprised of 21 villages. Civil Writ Petition No. 6770 of 1992 relates to Khewra Zone while Civil Writ Petition No. 6776 of 1992 is concerned with Bega-Murthal zone. The counsel for the parties referred to the factual position as emanating from C.W.P. No. 6770 of 1982. This is as under.

(3.) The department had fixed a reserve price of Rs. 11,56,000/- in respect of this Zone. The petitioner's bid was for Rs. 32,74,000/- per annum. It was accepted. An agreement as contemplated under the provisions of the Punjab minor Mineral Concession Rules, 1964 (hereinafter referred to as "the Rules") was executed between the petitioner and the respondents on April 24, 1990. At the time of the signing of the agreement, the petitioner paid an amount of Rs. 8,18,500/- as security and Rs. 2,72,833.35 as the first monthly instalment. In accordance with the terms of the auction notice and the agreement, the period of contract was to be from the date of the execution of the agreement or grant of permission to start mining operation upto March 31, 1993. The terms of the agreement are laid down under Rule 33 in form-'L'. Clauses 9 and 27, which are relevant for the decision of the case, provide as under :-