The High Court
Case Details
Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISA, CUTTACK Date: 14-Aug-2025 14:16:26 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C). NO.11425 OF 2017 Global Coal and Mining Pvt. Ltd. …. Petitioner Mr. Ashok Mohanty, Senior Advocate being assisted by Mr. Pradeep Kumar Mohanty, Advocate M/s. Mahanadi Coal Fields Ltd. and another …. Opp. Parties -versus- Mr. Sabita Ranjan Pattnaik, Additional Government Advocate Mr. K.M. Natraj, Senior Advocate & ASGI along with Mr. Shibashish Mishra, Advocate (For MCL)
Legal Reasoning
Mr. Pradipta Kumar Mohanty, Senior Advocate being assisted by Ms. K.T. Mudali, Advocate (For IDCO) CORAM:
Decision
JUSTICE K.R. MOHAPATRA JUSTICE SAVITRI RATHO ORDER 13.08.2025 This matter is taken up through hybrid mode. Petitioner in this writ petition seeks to assail the letter/notice Order No. 25. 1. 2. dated 20th March, 2017 (Annexure-7) issued by the General Manager, IB Valley Area, Mahanadi Coalfield Limited (MCL) for evacuation the structure over the leasehold property and deliver possession to MCL as the period of lease in respect of the said land has already expired in the meantime. 3. Mr. Mohanty, learned Senior Advocate appearing for the Petitioner submits that pursuant to an agreement executed between the Petitioner and General Manager, MCL, IB Valley Area on 17th October, 2008 for construction of Railway Siding by the Petitioner Page 1 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISA, CUTTACK Date: 14-Aug-2025 14:16:26 for five years, the Petitioner was provided with an area of Ac.11.92 re (Ac. 9.53 dec. in village Belpahar and Ac.2.39 dec. in village Chingiriguda). Accordingly, the Petitioner occupied the area and made construction of Railway Siding over the same. The Petitioner was also paying the lease rent to the MCL regularly. The lease in question was extended from time to time and lastly, it was extended till 20th June, 2017. Since the MCL required the area for expansion of Samaleswari OCP, which was approved by the Ministry of Coal, Government of India, issuance of notice under Annexure-7 was occasioned. Assailing the same, the Petitioner has filed the present writ petition. This Court, while issuing notice vide order dated 13th June, 2017, has passed the following interim order in Misc. Case No.10411 of 2017: “Heard. In the interim, it is directed that operation of the impugned letter dated 20.03.2017 passed by opposite party no.2 under Annexure-7 for evacuation of structures over the lease land shall remain stayed till the next listing of the case.” The said order is being extended from time to time and is in 4. vogue till today. 5. It is further submitted by Mr. Mohanty, learned Senior Advocate that MCL Authorities accepted the lease rent till the year 2023. Thus, the Petitioner is holding over the lease, although the lease period has expired in the meantime. The Petitioner has invested huge amount for constructing the Railway Siding. Unless the impugned notice under Annexure-7 is set aside and the aforesaid area is provided to the Petitioner for Railway Siding, the Coal Washery Unit of the Petitioner, which is operating on an area leased out by IDCO will automatically be closed. The Coal Washery Unit of the Petitioner cannot run without a Railway Siding attached to it. Thus, he prays for a direction to the MCL Authority, Page 2 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISA, CUTTACK Date: 14-Aug-2025 14:16:26 more particularly, the General Manager, MCL, IB Valley Area to consider extension of lease in favour of the Petitioner. 5.1. It is further submitted that the Petitioner had approached this Court in W.P.(C). No.24730 of 2013 assailing the order dated 25th November, 2010 issued by the Estate Officer-cum-Project Officer, Samaleswari Open Cast Mines, MCL to vacate the land occupied by the Petitioner for Coal Washery Unit. The Petitioner had also filed an interim application therein being Misc. Case No.22432 of 2013. Considering such interim application, this Court vide order dated 6th May, 2014, directed as under: “ Accordingly, the State Government and the IDCO are directed to take immediate steps to allot alternate land as applied for by the Petitioner company, for shifting its industry from the land in question, which has been acquired by the Central Government for the MCL. Till the allotment of alternate land is made for shifting of the Coal Washery unit of the Petitioner Company, they shall not be evicted from the land in question. Writ petition is disposed of accordingly. Interim order dated 08.11.2013 stands vacated. Misc. Case is also disposed of.” 6. Thus, the Coal Washery Unit of the Petitioner still exists over a piece of land provided by IDCO, which has been acquired by Government of India for the mining purpose by MCL. It s submitted by Mr. Mohanty, learned Senior Advocate that in order to operate the Coal Washery Unit, a Railway Siding is essential. Hence, the lease in respect of the land for Railway Siding should be extended till an alternate land is provided by IDCO to remove the Coal Washery Unit, which is allotted to the Petitioner. 7. Mr. Mohanty, learned Senior Advocate appearing for IDCO submits that although offers were given to the Petitioner providing different parcels of land for shifting the Coal Washery Unit, but, for the reasons best known to the Petitioner, it has not shown any Page 3 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISA, CUTTACK Date: 14-Aug-2025 14:16:26 interest to deposit the differential amount for allotment of the land by IDCO. 8. Mr. Natraj, learned Senior Advocate and ASGI appearing for MCL vehemently objects to the submission made by Mr. Mohanty, learned Senior Advocate appearing for the Petitioner and contends that lease has already expired since the year 2017. Pursuant to the interim order, the Petitioner is occupying the said land. It might have paid lease rent till the year 2023, but, fact remains that it has stopped paying rent after that. Thus, the Petitioner has no semblance of right to occupy the land, for which, approval has been granted by the Ministry of Coal, Government of India for expansion of mining operation by Samaleswari OCP. It is an inter se dispute between the Petitioner and IDCO for allotment of land for Coal Washery Unit. But, that has got nothing to do with the prayer made in the writ petition. It is emphatically submitted by Mr. Natraj, learned Senior Advocate that the lease granted in favour of the Petitioner by MCL for operating the Railway Siding is not contingent upon allotment of land by IDCO for running the Coal Washery Unit. Allotment of an alternate site for Coal Washery Unit of the Petitioner is the subject matter of another writ petition, i.e., W.P.(C). No.22002 of 2025, which may be heard on its own merit. 9. Considering the rival contentions of the parties, this Court finds that the lease granted in favour of the Petitioner for Railway Siding has already expired since 20th June, 2017. Pursuant to the interim order passed by this Court on 13th June, 2017 in Misc. Case No. No.10411 of 2017, the Petitioner is occupying the land leased out in its favour for Railway Siding. It is contended by Mr. Natraj, learned Senior Advocate that since the lease period has expired since the year 2017, the Petitioner has got no right to occupy the Page 4 of 5 Signature Not Verified Digitally Signed Signed by: ROJALIN NAYAK Designation: JUNIOR STENOGRAPHER Reason: Authentication Location: HIGH COURT OF ORISA, CUTTACK Date: 14-Aug-2025 14:16:26 said land. He also drew attention to the relevant clause of the lease agreement, which reads as under: “ The lessor shall be entitled to terminate the lease hereby granted in the event of requirement of said land for mining purpose after serving a notice to the lessee and the leassee will return the same land at no additional cost to the lessor within 90 days of serving of such notice.” Pursuant to the said clause of the said agreement, notice 10. Annexure-7 was issued to the Petitioner by the General Manager, IB Valley Area, MCL to evacuate the structure over the leasehold property. In view of the agreed term of the lease agreement as quoted above, the Petitioner has no right to retain the land beyond 90 days of the notice dated 20th March, 2017 (Annexure-7), which is impugned herein. 11. The contention raised by Mr. Mohanty, learned Senior Advocate to the effect that operation of the Coal Washery Unit is dependent upon a Railway Siding is not acceptable, as the lease of the area for Railway Siding is not contingent upon lease of land for running Coal Washery Unit. Thus, we find no merit in the writ petition. 12. Accordingly, this writ petition stands dismissed. But, in the facts and circumstances of the case there shall be no order as to cost. 13. Interim order dated 13th June, 2017 passed in Misc. Case No.10411 of 2017 stands vacated. Urgent certified copy of this order be granted on proper application. (K.R. Mohapatra) Judge Rojalin (Savitri Ratho) Judge Page 5 of 5