B. S. Construction And Yash Construction v. Jharkhand State Mineral Development Corporation Ltd.
2005-06-29
M.Y.EQBAL
body2005
DigiLaw.ai
ORDER M.Y. Eqbal, J. 1. Heard the parties. 2. In these two writ petitions since similar question of law and facts are involved, the same are being heard and disposed of by this similar order. 3. The petitioners are aggrieved by the tender notice dated 30.5.2005 published in the newspaper inviting applications for the grant of mining lease in respect of limestone from Semra/Salatuwa Lime Stone Project. 4. The brief facts and that both the petitioners were granted mining lease for two years and the period of lease will expire on 20.10.2005 and 20.7.2005 respectively. Before expiry of period of lease, the impugned tender notice was issued for the grant of mining lease in respect of the same limestone. 5. Mr. P.P.N. Rai, learned counsel appearing for the petitioners, assailed the impugned tender notice mainly on two grounds. Firstly learned counsel submitted that before expiry of the period of lease of the petitioners, no mining lease can be granted to any person. Learned counsel secondly submitted that the person under whose authority the tender notice was issued is not a competent authority in as such as he has no financial power. Learned counsel lastly submitted that there is a clause in the lease agreement for the renewal of the mining lease and further there is clause for termination of the lease which have not been followed by the respondents. 6. Mr. Mehta, learned counsel appearing for the respondents, on the other hand, submitted that the performance of these two petitioners were found to be unsatisfactory and therefore the respondents had no option but to invite fresh tenders for the grant of mining lease. Learned counsel further submitted that till mining lease of the petitioners subsists, they shall not be disturbed and the mining lease, even if granted pursuant to the tender notice, that shall be taken after the expiry of the agreement. 7. From perusal of the lease agreement it appears that after the expiry of the period of lease, the tenure of the work order may be extended for further period on satisfactory performance of the Agency during initial two periods. There is provision of even absolute discretion to the Managing Director of the Corporation to terminate the agreement. Clauses 16 and 25 of the agreement reads as under :- "16.
There is provision of even absolute discretion to the Managing Director of the Corporation to terminate the agreement. Clauses 16 and 25 of the agreement reads as under :- "16. The period of contract will commence from the date of issue work order No. 2039, dated 20.10.2003, and shall be valid for a period of two years i.e. up to 20.10..2005. The tenure of the work order may be extended for further period or periods on satisfactory performance of the Agency during the initial two years period. 25. It will at the absolute discretion of the Managing Director of the Corporation to terminate the agreement in the following events : a. If the Agency be involved in any action involving moral turpitude. b. If the Agency be involved in any action causing breach of peace or indiscipline at the mines or stop the work before the expiry of the agreement period. c. If Agency fails to comply with any if the terms and conditions contained herein or that would be mutually agreed upon for the execution of the work. d. If Agency fails to pay full wages to workmen as per prevailing act/awards from the management premises and presence of Corporations authorized representative. e. If Agency fails to produce labour licence, PF registration No. and document of deposit of contribution to provide fund, Pension scheme relating to employees of Agency posted at Mines of Corporation within one month of issue of work order. Before terming the agreement 15 days notice under registered post on the address given in this agreement will be given to the Agency without prejudice to the rights and claim under the agreement and the Corporation will have right to adjust such amount towards the financial loss that Corporation might incur due to such acts or commissions of Agency from bills or security deposit or earnest deposit or through other legal proceedings." 8. In my considered opinion the proper procedure that can be taken by the respondents before issuing notice inviting tenders was that a 15 days notice should have been given to the petitioners before the proposed termination of their lease on the ground of poor performance and it was only after hearing the petitioners, the lease can be terminated and the discretion for the extension of lease can be decided against them.
It was only thereafter a fresh tender notice should be issued inviting tenders for the grant of fresh mining lease. 9. Since the said procedure has not been adopted by the respondents, the impugned order inviting tenders cannot be sustained. For the reasons above, these two applications are allowed and the impugned tender notice is quashed. 10. Since this order has been passed in presence of the parties, not notice as contemplated under Clause 25 is to be given to the petitioners. The petitioners shall file their written show-cause satisfying the authority that their performance is upto the mark and their respective lease is to be renewed for a further period. The respondents-authority after considering the show- cause, shall take a final decision within a period of one month from the date of submission of show-cause. If the show cause of the petitioners are not accepted and the respondents decide not to renew their mining lease, then only they shall proceed further inviting tender for fresh mining lease.