STATE OF RAJASTHAN Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition has been filed by the State of Rajasthan through Secretary to the Government, Mines Department; Director, Mines & Geology Department and Mining Engineer, Mines & Geology Department at Udaipur against the order passed by the Central Government dated 21/7/1998 by which revision petition filed by respondent No.2-Hindustan Zinc Ltd., a public sector undertaking, has been allowed.

(2.) Respondent No.2-Hindustan Zinc Ltd. filed the revision petition against the order dated 2/9/1998 passed by the petitioner-Mining Engineer by which, an amount of Rs.36,85,58,744/- was ordered to be recovered from them for sale of 18762 tonns of rock phosphate to private parties for the period from 1975-76 to 1986-87.

(3.) Contention of the learned counsel for the petitioner is that mining lease was allotted to Hindustan Zinc Ltd. - respondent No.2 vide order dated 3/11/1969 (Ann.1) under Rule 22(i) of the Mineral Concession Rules, 1960 (for short, the "Rules of 1960"). Allotment was made on the condition that lessee shall not dispose of any quantity of rock phosphate surplus to lessee's requirement but shall hand over such surplus quantity to the Director of Mines and Geology, Government of Rajasthan or other officer authorised by him in this regard. The surplus quantity shall be so handed over at a price, which will include a reasonable return on capital employed. Learned counsel submitted that Hindustan Zinc Ltd. sold the surplus rock phosphate to private parties for a long period from 1975 to 1988 in open market, which was contrary to the aforesaid condition for grant of mining lease. Petitioner wrote letter to Hindustan Zinc Ltd. on 10/6/1988 followed by reminders dated 6/7/1988, 30/7/1988 and 1/8/1988 calling upon them to give details/statement of the quantity of rock phosphate sold to private parties during the aforesaid period but Hindustan Zinc Ltd. failed to furnish any detail. It was thereafter that vide order dated 2/9/1988, the Mining Engineer in context of the letter of the State Government dated 23/2/1988 computed the quantity of rock phosphate sold by Hindustan Zinc Ltd. to private parties weighing 18762 tonnes and raised demand for a sum of Rs.36,85,58,744/- from Hindustan Zinc Ltd. Aggrieved thereby, Hindustan Zinc Ltd. filed revision petition, which was allowed by the Central Government vide order dated 13/9/1977.