BIHAR MICA EXPORTERS ASSOCIATION Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) IN these batches of writ petitions the petitioners have challenged the vires of " Jharkhand Minerals Dealers Rules, 2007", framed in exercise of powers conferred under section 23C(1)(2) of the Mines and Minerals(Development and Regulations)Act, 1957 by the State Government of Jharkhand vide notification dated 21.9.2007. The petitioners have also sought quashing of the consequential orders issued by the District Mining Officer under the Rules of 2007 directing the petitioners to obtain registration under the 2 aforesaid rules. IN the alternative the petitioners in W.P.C. No. 6244 of 2007 have sought for a declaration that the impugned Rules of 2007 does not apply to the business of the petitioners as they are governed by the provisions of the Bihar Mica Act, 1947 read with Bihar Mica Rules, 1948 as it is an occupied field under the relevant statutes passed by the said legislature over which the aforesaid Rules cannot apply. The petitioners have further prayed inter-alia for a direction upon the respondents restraining them from taking any coercive / penal action against the petitioners under the provisions of the Rules of 2007.

(2.) PETITIONERS under W.P.C. No. 6244 of 2007 i.e., Bihar Mica Exporters Association claim themselves to be the members carrying on the business and trading in Mica on the basis of Dealers License granted under Section 6 of the Mica Act,1947 which, as per them are valid and subsisting. Learned Senior Counsel, Mr. P.K.Prasad submitted that the Mica Act was enacted for the purpose of regulating and controlling the possession and trade in Mica and the Bihar Mica Rules framed thereunder provides the mode and manner for carrying out the purpose of the said Act. By referring to the different provisions of the Mica Act, 1947 and the Rules, learned counsel has contended that the impugned rules have been framed in a field occupied under the plenary powers of the State legislature. He has relied on a judgment reported in (2006)4 SCC 327, para 17 thereof stating that the impugned rules are contrary to the other existing legislation and therefore, bad in law. The petitioners claim that they are carrying on their business including export and trade in Mica in compliance of the provisions of the Mica Act and Rules framed thereunder. The cause of action for these petitioners have arisen on the issuance of the impugned letter dated 22.10.2007 ( annexure-5) asking them to get registered under the provisions of Rules of 2007 or else face the penal consequences.

(3.) PETITIONERS in W.P.C no. 2195 of 2008 state that they are registered coal dealers of the State Mineral Development Corporation Ltd. , which is extracting coal from Sikni coal Project, Sikni, who after obtaining proper transit permit despatch the said coal to different consumers in different parts of Jharkhand . These petitioners are aggrieved by the impugned Rules as that amounts to restriction in their Fundamental Right to do business under Article 19(1)(g) of the Constitution of India. They are also assailing the impugned Rules on the ground of violation of Article 14 of the Constitution of India being discriminatory in nature. It is submitted by learned Senior Advocate, Sri V. Shivnath on behalf of these petitioners that they would be compelled to obtain further license for carrying out their activities in transaction of coal validly purchased from the Jharkhand State Mineral Development Co. Ltd., which pays the royalty for the same , failing which they would be liable for penal action under the impugned Rules. They have assailed the impugned Rules as being violative of section 15, 23C, 28(3) of the MMDR Act and also with respect to Entry 54 List 1 of the VIIth Schedule of the Constitution of India. They further assailed the impugned Rules as being violative of Article 301 and 304 of the Constitution of India for causing impediment to free flow of trade, commerce and intercourse through out the territory of India. It is their assertion that coal being major mineral, it is only the Central Government , who has the power to frame Rules in relation to the major minerals like coal, which is beyond the jurisdiction of the State Government.