BALJIT SINGH Vs. STATE OF PUNJAB AND OTHERS

JUDGEMENT

(1.) The petitioners are holders of contracts permitting them to mine minor minerals in the State of Punjab. There common grievance is that the State of Punjab, by virtue of the impugned notices, has asked them to either surrender their existing contracts or to execute a fresh contract at the rate, at which mines within the Districts, have been given for prospecting of minor or minerals by auction through 'progressive bidding'; in the absence of any mines having been auctioned by 'progressive bidding' within the District, at the auction rate of adjoining District. Since, common questions of fact and law arise in this bunch of writ petitions, this judgment will decide CWP No.12664 of 2017 (O&M) titled Baljit Singh versus State of Punjab and others, CWP No. 13166 of 2017 (O&M) titled Gurpal Singh versus State of Punjab and others, CWP No. 13553 of 2017 (O&M) titled Rakesh Kumar versus State of Punjab and others, CWP No. 13579 of 2017 (O&M) titled Jagvir Inder Singh versus State of Punjab and others, CWP No. 13578 of 2017 (O&M) titled Puneet Singh versus State of Punjab and others, CWP No. 13530 of 2017 (O&M) titled Kamaljit Singh versus State of Punjab and others, CWP No. 13428 of 2017 (O&M) titled Gurwinder Singh versus State of Punjab and others, CWP No. 13574 of 2017 (O&M) titled Ashok Chandak versus State of Punjab and others, CWP No. 13573 of 2017 (O&M) titled Kuldeep Singh versus State of Punjab and others, CWP No. 13586 of 2017 (O&M) titled Puneet Singh versus State of Punjab and others, CWP No. 13509 of 2017 (O&M) titled Avtar Singh and Co. versus State of Punjab and others, CWP No. 13510 of 2017 (O&M) titled Harsimran Singh versus State of Punjab and others, CWP No. 13511 of 2017 (O&M) titled Kanwar Mahip Singh versus State of Punjab and others, CWP No. 13512 of 2017 (O&M) titled Avtar Singh and Co. versus State of Punjab and others, CWP No. 13570 of 2017 (O&M) titled AG Mines versus State of Punjab and others, CWP No. 13571 of 2017 (O&M) titled M/s Jagadhri Royalty Co. versus State of Punjab and others, CWP No. 13572 of 2017 (O&M) titled Kamaljit Singh versus State of Punjab and others, CWP No. 13587 of 2017 (O&M) titled M/s KBM Contractors versus State of Punjab and others, CWP No. 13588 of 2017 (O&M) titled M/s KBM Contractors versus State of Punjab and others, CWP No. 13508 of 2017 (O&M) titled Hardeep Singh versus State of Punjab and others, CWP No. 13522 of 2017 (O&M) titled Dharminder Singh versus State of Punjab and others, CWP No. 13567 of 2017 (O&M) titled Punit Singh versus State of Punjab and others, CWP No. 13427 of 2017 (O&M) titled Kulbir Singh versus State of Punjab and others, CWP No. 13311 of 2017 (O&M) titled Navjit Kumar versus State of Punjab and others, CWP No. 13521 of 2017 (O&M) titled Arvinderpaul Dhounsi versus State of Punjab and others, CWP No. 13577 of 2017 (O&M) titled M/s S.M. Contractors and Suppliers versus State of Punjab and others, CWP No. 13531 of 2017 (O&M) titled Sunil Grover versus State of Punjab and others, CWP No. 13581 of 2017 (O&M) titled Karanvir Singh versus State of Punjab and others, CWP No. 13583 of 2017 (O&M) titled Jai Luxmi Suppliers versus State of Punjab and others, CWP No. 13585 of 2017 (O&M) titled M/S Satluj Contractor versus State of Punjab and others, CWP No. 13580 of 2017 (O&M) titled Babu Ram Sharma versus State of Punjab and others, CWP No. 13584 of 2017 (O&M) titled Raghav Chandak versus State of Punjab and others, CWP No. 13524 of 2017 (O&M), Gobindpur Royalty Co. versus State of Punjab and others, CWP No. 13523 of 2017 (O&M) titled Puneet Singh versus State of Punjab and others, CWP No. 13590 of 2017 (O&M) titled Kanwarmahip Singh versus State of Punjab and others, CWP No. 13568 of 2017 (O&M) titled Gobindpur Royalty Co. versus State of Punjab and others, CWP No. 13569 of 2017 (O&M) titled Doaba Contractors versus State of Punjab and others, CWP No. 13564 of 2017 (O&M) titled Gurwinder Singh versus State of Punjab and others, CWP No. 13532 of 2017 (O&M) titled Kanwar Mahip Singh versus State of Punjab and others, CWP No. 13994 of 2017 (O&M) titled Sukhpal Singh versus State of Punjab and others, CWP No. 14002 of 2017 (O&M) titled Kabal Singh versus State of Punjab and others, CWP No. 13264 of 2017 (O&M) titled Sanjeev Kumar versus State of Punjab and others, CWP No. 13426 of 2017 (O&M) titled Kamal Kumar versus State of Punjab and others, CWP No. 13513 of 2017 (O&M) titled KBM Contractors versus State of Punjab and others, CWP No. 13514 of 2017 (O&M) titled Manpreet Singh versus State of Punjab and others, CWP No. 13515 of 2017 (O&M) titled M/S Shree Guru Nanak Mines versus State of Punjab and others, CWP No. 13516 of 2017 (O&M) titled M/S S.M. Contractors and Suppliers versus State of Punjab and others, CWP No. 13517 of 2017 (O&M) titled M/S K.B.M. Contractors versus State of Punjab and others, CWP No. 13518 of 2017 (O&M) titled Balwinder Kumar versus State of Punjab and others, CWP No. 13519 of 2017 (O&M) titled Kamaljit Singh versus State of Punjab and others, CWP No. 13520 of 2017 (O&M) titled Sanjiv Bhardwaj versus State of Punjab and others, CWP No. 13525 of 2017 (O&M) titled Silver North Mines versus State of Punjab and others, CWP No. 13526 of 2017 (O&M) titled Kamaljit Singh versus State of Punjab and others, CWP No. 13527 of 2017 (O&M) titled Brij Bhushan versus State of Punjab and others, CWP No. 13533 of 2017 (O&M) titled AKM Screening Plant versus State of Punjab and others, CWP No. 13563 of 2017 (O&M) titled Yadwinder Singh versus State of Punjab and others, CWP No. 13565 of 2017 (O&M) titled Des Raj versus State of Punjab and others, CWP No. 13566 of 2017 (O&M) titled Shri Kanwar Mahip Singh versus State of Punjab and others, CWP No. 13575 of 2017 (O&M) titled Hardeep Singh versus State of Punjab and others, CWP No. 13576 of 2017 (O&M) titled Kanwar Mahip Singh versus State of Punjab and others, CWP No. 13582 of 2017 (O&M) titled M/S Zirakpur Royalty Co. versus State of Punjab and others, CWP No. 13589 of 2017 (O&M) titled Avneet Kumar versus State of Punjab and others, CWP No. 13591 of 2017 (O&M) titled Mohan Pal Singh versus State of Punjab and others, CWP No. 25701 of 2017 (O&M) titled Surjeet Singh versus State of Punjab and others, CWP No. 25703 of 2017 (O&M) titled Sarban Singh versus State of Punjab and others, CWP No. 25733 of 2017 (O&M) titled DC Taneja and Sons versus State of Punjab and others, CWP No. 25734 of 2017 (O&M) titled Ram Sarup versus State of Punjab and others, CWP No. 25736 of 2017 (O&M) titled DC Taneja and Sons versus State of Punjab and others, CWP No. 25755 of 2017 (O&M) titled DC Taneja and Sons versus State of Punjab and others, CWP No. 25775 of 2017 (O&M) titled Navjeet Kumar versus State of Punjab and others, CWP No. 25779 of 2017 (O&M) titled M/S Arman Singh and Co. versus State of Punjab and others, CWP No. 25786 of 2017 (O&M) titled M/S Ranjit Singh and Co. versus State of Punjab and others, CWP No. 25790 of 2017 (O&M) titled Kuldeep Singh and Co. versus State of Punjab and others, CWP No. 25838 of 2017 (O&M) titled Ram Sarup versus State of Punjab and others, CWP No. 25839 of 2017 (O&M) titled Parkash Singh versus State of Punjab and others, CWP No. 26001 of 2017 (O&M) titled Ram Sarup versus State of Punjab and others, CWP No. 26263 of 2017 (O&M) titled Harjinder Singh versus State of Punjab and others, CWP No. 26266 of 2017 (O&M) titled Swaran Singh versus State of Punjab and others, CWP No. 26292 of 2017 (O&M) titled Kuldeep Singh versus State of Punjab and others, CWP No. 26306 of 2017 (O&M) titled Munish Grover and Co. versus State of Punjab and others, CWP No. 13993 of 2017 (O&M) titled Gauravjit Singh Deol versus State of Punjab and others, CWP No. 13996 of 2017 (O&M) titled Surinder Kumar versus State of Punjab and others and CWP No. 14003 of 2017 (O&M) titled Gurmeet Singh versus State of Punjab and others. CWP No.12664 of 2017 titled Baljit Singh Vs. State of Punjab, has been taken as the lead case and the facts are being extracted therefrom.

(2.) The Udhyog and Commercial Department, Government of Punjab, issued E-auction notice dated 10.11.2015 in respect of 83 mines in various Districts of the State of Punjab. This auction was conducted by following a process of 'reverse bidding'. The petitioners were successful in this auction. Vide letter dated 04.03.2016 issued by the Ministry of Environment, Forest and Climate Change, Government of India, environmental clearance was transferred to the respective petitioners from the Executive Director, Punjab Small Industries and Export Corporation, Limited. The General Manager-cum-Mining Officer, District Industries Centre, SAS Nagar, issued letter dated 14.10.2016 thereafter, granting final approval for operating the quarry allotted. The petitioners were subsequently granted consent to operate under the Air (Prevention and Control of Pollution) Act, 1981, and Water (Prevention and Control of Pollution) Act, 1974, whereafter, they commenced operation of extraction of minor minerals. On 31.03.2017, another notification was issued for E-auction of 59 mines, through the process of 'reverse bidding'. According to this notice, the date of E-auction was 18.04.2017. However, a fresh notice dated 12.04.2017, was issued postponing the date of E-auction to 24.04.2017. Vide another notification dated 17.04.2017, the date of E-auction was further postponed to 05.05.2017. On 19.04.2017, a meeting of the Cabinet took place, in which a decision was taken, inter alia, to auction mines of minor minerals by the process of 'progressive bidding'. Consequently, public notice dated 20.04.2017 was published, cancelling the auction of 59 mines notified vide notification dated 31.03.2017. A fresh auction notice dated 03.05.2017 was issued for auction of the aforementioned 59 mines through the process of 'progressive bidding'. The auction took place on 19.05.2017 and 20.05.2017. On 27.05.2017, the Director Mining, Industries and Commerce Department, issued a letter to the General Manager-cumMining Officer of various Districts in the State of Punjab, directing them to send notices to the contractors, who were successful in the auction held pursuant to the notice dated 10.11.2015 (the petitioners, who had secured contracts through auction held by the process of 'reverse bidding') to change their existing contract to one through 'progressive bidding' or to surrender the mining contract in accordance with Rule 39 of the Punjab Minor Minerals Rules, 2013, (hereinafter referred to as 'the Rules'). A copy of this letter has been annexed as Annexure P-10 on the record. Reliance was placed on the Cabinet decision dated 19.04.2017. It was further stated therein that average cost of bid received for a mine through 'progressive bid' will be worked out in the District and will be made applicable to the contract allotted by the process of 'reverse bidding'. In case, no contract has been allotted within the district by 'progressive bidding', the average rate of the adjoining district where contracts have been awarded through 'progressive bidding' would be made applicable. Pursuant to this letter, the General Manager-cum-Mining Officer, District Industries Center, issued letter dated 29.05.2017 to the respective petitioners giving them seven days' time to submit their option. It was also stated that in case of non-receipt of any reply within stipulated time, it would be deemed that the contractor had nothing to say. A copy of this letter has been annexed as Annexure P-11 with the writ petition. The said notices dated 27.05.2017 (Annexure P-10) and 29.05.2017 (Annexure P-11) have been challenged in these writ petitions.

(3.) Pursuant to notice issued by this Court, the State filed its written statement challenging the maintainability of the writ petitions on the ground that the petitioners were only licensees and had no vested legal right for seeking a writ in the nature of mandamus and that a writ petition against a policy decision was not maintainable. On merits, it was stated that the provisions of the Mines and Minerals (Development and Regulations) Act, 1957, (hereinafter referred to as 'the Act'), the Rules and Government Instructions permitted the State Government to alter the terms of an existing contract. The State Government, in public interest, was not bound by the terms of a previous contract and that conditions existed for switch over to process of 'progressive bidding' because the system of 'reverse bidding' had resulted in creation of a mining mafia, illegal extraction of minor minerals, reduction in supply of minor minerals in the market and recurring loss to the State Exchequer. It is also pleaded that the action of the State is inspired solely by public interest and is not violative of any rights guaranteed under Part-III of the Constitution of India. Thus, dismissal of the writ petitions is sought as they lack merit.