The High Court
Case Details
IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.17101 of 2025 M/s.Raja Bricks, represented through its Proprietress- Smt.Shakuntala Sahu …. Petitioner Mr.Prafulla Kumar Rath, Senior Advocate assisted by Ms.S.Das, Advocate -versus- State of Odisha and others …. Opposite Parties Mr.Saswat Das, Addl. Government Advocate CORAM: HON’BLE THE CHIEF JUSTICE
Decision
ORDER 09.07.2025 Order No. 02. This matter is taken up through hybrid mode. 2. The Petitioner has questioned the propriety of the order dated 03rd June, 2025 passed by the Mining Officer (in-charge), Balasore directing the business concern (petitioner) to deposit the following amounts towards Royalty, Additional Charges, DMF & EMF coupled with penalty with respect to sand and soil found stacked in the business premise: Demand as per the following calculations Total Quantity = 600 Cum Soil & 2000 cum Sand (approximately) Royalty and Additional Charge for Soil Rs.42,000.00 DMF (30% of Royalty) EMF (5% of Royalty) Rs. 6,300.00 Rs.1,050.00 Royalty and Additional Charge for sand Rs.8,44,000.00 DMF (30% of Royalty) EMF (5% of Royalty) Penalty Rs.21,000.00 Rs. 3,500.00 Rs.5,00,000.00 Page 1 of 4 Total = Rs.14,17,850.00 (Rupees Fourteen lakhs seventeen thousand eight hundred fifty only) 3. Mr. Prafulla Kumar Rath, learned Senior Advocate appearing for the Petitioner submitted that the said direction to deposit is without any foundational fact. It is stated that purchase of the sand/soil found stacked were brought from various persons/licensees of sairat for making use in Brick Kiln Unit. Instead of granting opportunity to the Petitioner to substantiate its claim that it has no liability to pay the Royalty, Additional Charges, DMF & EMF on sand/soil being found stacked. The authority is not legally justified to issue letter dated 3rd June, 2025 (Annexure-1). He further submitted that such a demand by way of letter is untenable in the eye of law for want of adherence to the principles of natural justice. 4. Mr. Saswat Das, learned Additional Government Advocate on written instruction received from the Mining Officer, Minor Minerals, Balasore (opposite party No.2) submitted that on spot visit, it was found that soil and sand remained stacked in the Kiln Unit. The source of acquisition of such soil and sand was not explained at the spot, which led to issue of letter dated 3rd June, 2025 (Annexure-1). He submitted that in view of Rule 51(4) of the Odisha Minor Minerals Concession Rules, 2016 (in short “the Rules”), as amended by virtue of the Odisha Minor Minerals Concession (Amendment) Rules, 2023, the Mining Officer is competent to recover the royalty, rent or tax etc. from the person who wins the mineral or disposes of such mineral. He also contended that since the Petitioner did not submit any documentary evidence to show the source of acquisition of such soil and sand found stacked on spot inspection to the Unit of the Petitioner, it cannot be said that issue of letter dated 03rd June, 2025 requesting the Petitioner to deposit the amount stated therein towards the Royalty and additional charges in addition to DMF and EMF is untenable. Page 2 of 4 5. Heard Mr. Prafulla Kumar Rath, learned Senior Advocate assisted by Ms. S.Das, learned counsel for the petitioner and Mr. Saswat Das, learned Addl. Government Advocate. 6. Perusal of record reveals that the Petitioner by way of documents enclosed at Annexure-22 series disclosed the source of acquisition of Minor Minerals from different persons during a period of time. As submitted by Mr. Prafulla Kumar Rath, learned Senior Advocate, had the Mining Officer issued show cause notice and/or afforded an opportunity to the Petitioner to submit copies of such documents, the same would have been done to substantiate that the Petitioner is not liable for Royalty, Additional Charges, DMF & EMF. 7. It is conceded by Mr. Saswat Das, learned Addl. Government Advocate that Rule 51(4) of the Odisha Minor Mineral Concession Rules, 2016 does not empower the Mining Officer to impose penalty. However, he submitted that there was no necessity for issuance of any show cause notice to the Petitioner as he failed to produce any document, as stated to have been in his possession vide Annexure-22 series, at the spot inspection. As decision is taken affecting adversely the petitioner with respect to liability to pay royalty, etc. by the authority concerned, the principles of natural justice demands at least an explanation to be called for from the party. This Court is satisfied that there has been violation of principles of natural justice. To ascertain whether, at all, the petitioner is liable to pay Royalty, Additional Charges, DMF & EMF, a notice should have been issued calling upon to furnish documents. In such event, it was open for the petitioner to demonstrate that he neither won the minerals nor disposed of the sand/soil, which were found stacked on spot inspection. Copies of the transit passes issued by the competent authority during the relevant period enclosed to writ petition at Annexure-22 series ex facie shows acquisition of sand/soil by the Petitioner from different sources. Page 3 of 4 8. Therefore, in order to return factual finding in this regard and to ascertain whether the stacking of mineral in the Brick Kiln Unit by the Petitioner falls within the scope of Rule 51(4) of the Rules to demand Royalty, Additional Charges, DMF & EMF, this Court by setting aside the order/direction contained in letter dated 03rd June, 2025 issued by the Mining Officer (in-charge), Balasore (Opposite Party No.2), directs the Petitioner to appear before the said authority on 28th July, 2025. The Petitioner may demonstrate by furnishing necessary evidence before the said Mining Officer to justify its non- liability. Upon appreciation of evidence and after affording an opportunity of hearing, the Mining Officer may proceed to take a decision thereon strictly in accordance with law. 9. With the aforesaid observation and direction, the writ petition stands disposed of. (Harish Tandon) Chief Justice (M.S. Raman) Judge Bichi Signature Not Verified Digitally Signed Signed by: BICHITRANANDA SAHOO Designation: Secretary Reason: Authentication Location: Orissa High Court Date: 10-Jul-2025 17:00:30 Page 4 of 4