M/S. Haryana Mining Company vs State Of Haryana
- SCC(2022) 15 SCC 205
- Neutral2022 INSC 540
Ratio decidendi
The rule this decision rests on
Where a quasi-judicial authority issues an order terminating a mining lease on the ground of illegal mining operations by the lessee, and the record contains no concrete evidence establishing that the lessee committed the alleged illegal mining—including demarcation reports that contain no such findings and inquiry reports that conclude that the identity of the person responsible for illegal mining could not be ascertained—the order is arbitrary and suffers from the vice of unreasonableness and is liable to be set aside in judicial review. In exercise of their power of judicial review, constitutional courts will not examine the sufficiency of evidence; however, interference is warranted where the weight of evidence is opposed to the conclusion recorded or there is no evidence at all, rendering the conclusion ex-facie erroneous or perverse. Where an administrative authority passes an order affecting the legal rights of a party and relevant material on record—such as a report by the Divisional Forest Officer that absolves the party of involvement in the alleged illegal activity—is not referred to or considered in the impugned order, the order is rendered defective by non-application of mind and is liable to be set aside.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
before the Appellate Authority, who, on being
questioned, had replied that there was no other
approach to the area alleged to be under illegal mining
except through the area leased to the Appellant. The
High Court was of the opinion that the scope of judicial
review of orders passed by quasi-judicial authorities is
limited and findings of fact cannot be interfered with.
7. Mr. Nidhesh Gupta, learned Senior Counsel
appearing for the Appellant, submitted that the
Termination Order suffers from complete non-application
of mind. Even the Appellate Authority has not
considered the contention of the Appellant that there is
absolutely no material to implicate the Appellant for
undertaking illegal mining operations outside the leased
area. On the other hand, he argued that the reports
6 placed on record were totally inconclusive and there are
no findings recorded in any demarcation report that the
Appellant was responsible for any illegal mining outside
the leased area. Our attention was drawn to the ADC
Report, which records that the representative of the
Sarpanch, Village Khudana had, in the enquiry
proceeding on 12.02.2019, made a statement to the
effect that the Appellant was carrying out mining in its
allocated area whereas M/s Hari Har Mining Company
was carrying out illegal mining in Garhi area. Further,
the ADC Report notes that in the enquiry proceeding on
25.02.2019, the Sarpanch, Village Khudana deposed that
he had filed the complaint on the basis of complaints
moved by residents of the village and he did not have
any sound proof on the allegation. The learned Senior
Counsel submitted that the High Court committed a
serious error in not allowing the writ petition, in spite of
absence of any evidence of illegal mining on the part of
the Appellant.
8. Ms. Noopur Singhal, learned counsel appearing for
the Respondent, supported the findings recorded by the
7 High Court in the impugned judgment by arguing that
there were several complaints preferred by villagers
pertaining to illegal mining by the Appellant outside the
leased area. The report dated 04.02.2019 of the Mining
Officer, Narnaul would show that the Appellant is guilty
of illegal mining. She further argued that the Appellant
cannot shift his liability to M/s Hari Har Mining Company,
who had completely stopped mining operations in that
period. As the Termination Order was passed after
giving sufficient opportunity to the Appellant and also
after taking into account the material on record, the High
Court was justified in not interfering with the said orders.
9. We note that the Termination Order refers to a
demarcation report of 17.12.2018 for the purpose of
reaching the conclusion that the Appellant was indulging
in illegal mining. A perusal of the said demarcation
report would show that there was nothing mentioned
therein about illegal mining carried out by the Appellant.
According to the said report dated 17.12.2018, the Field
Kanungo conducted the demarcation proceedings in the
presence of the members of the Gram Panchayat and
8 after perusing the revenue records. The Surveyor, with
the help of the Differential Global Positioning System
machine, verified the marking stones and flags at each
corner and side and found them to be correct. The ADC
Report, referred to in the Termination Order, concludes
that it could not ascertain as to who was involved in the
illegal mining in Khasra Nos. 366 and 367. There is also
a reference in the Termination Order to a memo dated
20.11.2019 of the Mining Officer, Narnaul, by which a
fresh demarcation report dated 15.11.2019 was sent. In
the said demarcation report, it has been categorically
stated that “no fresh mining was found beyond the
pillar”. This has also been recorded in the Termination
Order. There is no other reference to either a
demarcation report or any other enquiry report of any
officer from the Department of Mines and Geology or the
Department of Forest, that would indicate any illegal
mining conducted by the Appellant beyond the leased
area.
10. It is relevant to refer to a report submitted by the
Divisional Forest Officer (DFO), Regional Division, Forest
9 Complex, Mahendargarh on 15.10.2019 to the Forest
Conservator, Gurugram. An enquiry was conducted by
the DFO pursuant to a complaint made against the
Appellant to the National Green Tribunal, which directed
the Principal Chief Conservator of Forest of Haryana to
look into the matter and take appropriate action, by an
order dated 16.04.2019. In the said report, the DFO held
that the alleged mining was not proved. After referring
to the ADC Report, a letter sent by the Sarpanch, Gram
Panchayat, Village Garhi to the Deputy Commissioner,
Narnaul to the effect that the Appellant was never
involved in illegal mining and the written statement of
the Sarpanch, Gram Panchayat, Village Khudana to the
effect that he had no sound proof with respect to his
complaint against the Appellant, the DFO concluded that
the allegation of illegal mining against the Appellant is
not proved. Curiously, we find that there is no reference
to this report submitted by the DFO dated 15.10.2019 in
the Termination Order.
11. As stated above, the High Court set aside the order
passed by the Appellate Authority dated 26.04.2021 and
10 remanded the matter back for fresh consideration. In
the order dated 11.08.2021, the Appellate Authority
referred to the report from the Mining Officer dated
04.02.2019 to conclude that there were clear signs of
fresh mining from the photographs sent along with the
report. According to the Appellate Authority, illegal
mining by the Appellant was established from the
demarcation report dated 17.12.2018 and was
evidenced even after the ADC Report. The Appellate
Authority dismissed the Appeal on the ground that the
alleged illegal mining was carried out in an area adjacent
to the leased area of the Appellant and in a period where
mining by M/s Hari Har Mining Company was shut. The
statement made on behalf of the Appellant that M/s Hari
Har Mining Company was carrying out illegal mining
operations was considered by the Appellate Authority as
an attempt to create confusion.
12. We have already referred to the demarcation report
dated 17.12.2018 and the report of the Mining Officer
dated 04.02.2019, on the basis of which no conclusion
can be reached about the Appellant indulging in any
11 illegal mining operations. The Termination Order and
the Appellate Order are arbitrary and suffer from the vice
of unreasonableness. Relevant material has not been
taken into consideration before the Termination Order
was passed. There is no mention of the DFO’s report
dated 15.10.2019, which considered the reports relied on
by the Director General, Mines and Geology and
absolved the Appellant of indulging in any illegal mining
activity on the ground that no evidence was found
against the Appellant. There is no other material against
the Appellant in support of the allegation that the
Appellant was engaged in illegal mining in the area
adjacent to the leased site. In our view, the High Court
committee an error in dismissing the writ petition
without examining as to whether there was an iota of
evidence to justify the Termination Order. We are aware
that constitutional courts, in exercise of their power of
judicial review, would not examine sufficiency of
evidence. At the same time, it is well-settled that
interference is warranted if it is found that the weight of
the evidence was opposed to the conclusion recorded or
12 there was no evidence at all, rendering the conclusion
ex-facie erroneous or perverse1.
13. For the aforementioned reasons, we set aside the
order dated 10.01.2020 passed by the Director General,
Mines and Geology, Haryana, the order dated
11.08.2021 passed by the Appellate Authority and the
impugned judgment of the High Court dated 06.09.2021.
14. The Appeal is allowed.
.....................................J. [ L. NAGESWARA RAO ]
..................................... [ B.R. GAVAI ]
New Delhi, May 9, 2022.
1 Apparel Export Promotion Council v. A.K. Chopra (1999) 1 SCC 759; High Court of A.P. v. Nirmala K.R. Dayavathi (2015) 15 SCC 681 13
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