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Gujarat High Court · body

2010 DIGILAW 67 (GUJ)

Chandrakant kodidas (Khodidas)Patel, Partner of Jay Bhavani v. State of Gujarat

2010-02-10

ANANT S.DAVE, S.J.MUKHOPADHAYA

body2010
JUDGMENT : S.J. Mukhopadhaya, J. The matter relates to seizure of Hitachi 110 earth moving vehicle owned by the 1st appellant. Learned Single Judge having passed conditional order for release, the present appeal has been preferred. 2. The case of the appellants is that the 1st appellant is the owner of the vehicle rented in favour of the 2nd appellant, who is the holder of lease granted on 30.09.2008 for excavating the sand. The 3rd and 4th respondents having seized the vehicle on 26.12.2009, followed by notice issued on 15.10.2010 showing intention to recover the amount, the writ petition was preferred. 3. According to the appellants, seizure under Rules 13 and 17 of the Gujarat Minerals (Prevention of Illegal Mining, Storage and Transportation) Rules, 2005 (hereinafter referred to as Rs.2005 Rules') is illegal, the said Rules being not applicable to minor mineral including sand. 2005 Rules are applicable to other minerals and that the minor mineral is governed by the Gujarat Minor Mineral Rules, 1966 (hereinafter referred to as `the 1966 Rules') whereunder no provision has been made for seizure of vehicle or machinery or to recover any amount other than penalty under Rule 42. 4. Counsel for the appellant would contend that even if 2005 Rules are applied, under Rule 18 as the authorised officer has power to release the vehicle on execution of a bond by owner for production of the property so released as and when so required, without any condition, the conditional order for release of vehicle passed by learned Single Judge is uncalled for. It was also contended that in absence of determination of amount to be recovered, learned Single Judge ought not have asked to deposit any amount as a precondition for release of the vehicle. 5. Ms. Trusha Patel, learned A.G.P. for the respondents contends that the power of seizure flows from Section 24(1) of the Mines and Mineral (Regulation and Development) Act, 1957 (hereinafter referred to as `the Act of 1957'). If any person raises, transports or causes to be raised or transported any mineral from any land without any lawful authority, the competent authority is empowered to seize mineral, tool, equipment, vehicle or any other thing used in such activity. Referring to Section 3(a) – definition of mineral, it was submitted that mineral includes both minor and other minerals, except mineral oils. Referring to Section 3(a) – definition of mineral, it was submitted that mineral includes both minor and other minerals, except mineral oils. In absence of any exclusion of miner mineral, no distinction can be made between two minerals, one minor and another. It is for giving effect to Section 21(4), which was introduced by Amending Act 38 of 1999, 2005 Rules were framed, wherein under Rule 2(9), `mineral' has been expressed and defined in terms with expression and definition under Section 3(a) of the Act of 1957. According to her, the authorities are empowered to seize tool, machine, vehicle, etc. under Rule 13(2) and (3) read with Rule 17 of 2005 Rules. 6. From the provisions of the Act and the Rules, it will be evident that prior to Amending Act 38 of 1999, no provision was made for seizure of tool, equipment, vehicle, etc. used in illegal mining. Power was delegated u/Sec.21 only to impose penalty, and for giving effect to the same provision under Rule 42 of 1966 Rules was made. Sub sec.(4) to Section 21 was introduced by Amending Act 38 of 1999 where under for the first time provision was made for seizure of tool, equipment, vehicle or any other thing if used by a person for raising or transporting a mineral without any lawful authority. After introduction of subsec.(4) to Section 21, to give effect to the same, 2005 Rules were enacted. 7. The power of seizure of any tool, equipment, vehicle or any other thing used for raising or transporting mineral without any lawful authority is vested under sub secs. (4), (4A) and 5 to Section 21 and quoted hereunder: "21. Penalties. (1) to (3) xx xx xx (4) Whenever any person raises, transports or causes to be raised or transported, without any lawful authority, any mineral from any land, and, for that purpose, uses any tool, equipment, vehicle or any other thing, such mineral tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf. (4A) Any mineral, tool equipment, vehicle or any other thing seized under subsection (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under subsection (1) and shall be disposed of in accordance with the directions of such court. (4A) Any mineral, tool equipment, vehicle or any other thing seized under subsection (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under subsection (1) and shall be disposed of in accordance with the directions of such court. (5) Whenever any person raises, without any lawful authority, any mineral from any land, the State Government may recover from such person the mineral so raised, or, where such mineral has already been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority. (6) xx xx xx" 8. It will be evident from 2005 Rule that the same is applicable to all mineral except mineral oil. Rule 5 while deals with mining, Rule 8 relates to registration and renewal for stockings/storage of mineral. Penalties can be imposed under Rule 13, which includes seizure as evident from Rule 13, as quoted hereunder: "13. Penalties: (1) Whoever contravenes the provision of Rule 5, 6 and 8 of these rules shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees or with both and in case of continuing contravention with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention. (2) Whenever any person raise transport or store or cause to be raised or transported or stored without any lawful authority, the State Government may recover from such person the mineral so raised, or transported or stored where such mineral has already been disposed of the price thereof and may also recover from such person rent, royalty or tax as the case may be; (3) Whenever any person raise, transports or stores or cause to be raises or transported or stored without any law full authority any mineral from any land/place and for that purpose or use any tool, equipment, vehicle or any other thing, such mineral, tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf." 9. Rule 17 also deals with seizure of property liable for confiscation. Rule 17 also deals with seizure of property liable for confiscation. Once a property is seized it requires to be marked in a specified manner and required to be produced before the authorised officer to satisfy that an offence has been committed. Such officer on satisfaction may order confiscation of mineral or value or part of the value so seized together with vehicle used in committing such offence. Under subrule (4) of Rule 17, no order of confiscation can be made, unless the person from whom the property is seized is given a notice, opportunity of making a representation and a reasonable opportunity of being heard in the matter. Such procedure is required to be followed prior to confiscation of the seized property as evident from the said Rule 17 and quoted hereunder: "Rule 17. Seizure of property liable to confiscation: (1) When there is reason to believe that an offence has been committed in respect of any mineral such mineral, together with vehicles or other conveyances used in committing such offence may be seized by any officer authorised by the Government in that behalf (herein after referred to as the authorised officer) and record details of seizing property in FormJ. (2) Every officer seizing any property under these rules shall place on such property a mark in such manner as may be prescribed, indicating that the same has been so seized and shall as may be except where the offender agrees in writing to get the offence compounded, either produce the property seized before the officers appointed by the State Government. (3) Where any mineral seized under subrule (1) produced before the officers authorised by the State Government and he is satisfied that an offence has been committed in respect thereof, he may order confiscation of the mineral or value or part of the value thereof so seized and produced, together with the vehicles, or other conveyance used in committing such offence. (4) No order confiscating any property shall be made under sub-rule (3) unless the person from whom the property is seized is given. (a) a notice in writing in Form X informing him of the goods on which it is proposed to confiscate such property. (4) No order confiscating any property shall be made under sub-rule (3) unless the person from whom the property is seized is given. (a) a notice in writing in Form X informing him of the goods on which it is proposed to confiscate such property. (b) opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds for confiscation; and (c) a reasonable opportunity of being heard in the matter. (5) Without prejudice to the provisions of subrule (4) no order of confiscation of vehicle, or other conveyance under subrule (3) shall be made if the owner thereof proves to be satisfaction of competent authority or authorised officer that it was used without his knowledge or connivance or the knowledge of connivance of his agent, if any, or the person in charge of the vehicle or other conveyance in committing the offence and that each of them had taken all reasonable and necessary precautions against such use. (6) The property seized under this rule shall be kept in the custody of the authorised officer or with any third party until compensation for compounding the offence is paid or until an order of the Officer authorised by the Commissioner directing its disposal is received. (7) The State Government may at any time on its own accord call for the examination of the order of confiscation by the competent authority on an application, call for and examine the records of the case and may make such enquiry or cause such enquiry to be made and pass such order as he may think fit; Provided that no order prejudicial to any person shall be passed without giving him an opportunity of being heard." 10. The authorised officer or the officer who seized the vehicle is empowered to release the vehicle on execution of a bond for production of the property so released, if and when so required. This is evident from Rule 18 which reads as follows: "Rule 18. The authorised officer or the officer who seized the vehicle is empowered to release the vehicle on execution of a bond for production of the property so released, if and when so required. This is evident from Rule 18 which reads as follows: "Rule 18. Power to release property seized on bonds: The authorised officer or who has seized any vehicles or other conveyance under rule13 and where a report of such seizure has been made to the officers authorised by Commissioner under subrule (3) of that rule may release the same on the execution by the owner thereof a bond for the production of the property so released, if and when so required before the officers authorised by the Commissioner having jurisdiction to try the offence on account of such seizure has been made." 11. From the aforesaid provisions it will be clear that the power of seizure of vehicle flows from subsecs.(4), (4A) of Section 21 of the Act read with Rule 13 of 2005 Rules. The expression `mineral' under subsec. 3(a) of the Act and Rule 2(9) of 2005 Rules is same, which includes minerals whether minor mineral or other mineral. The authorised officer is not only empowered to seize minerals together with vehicle, tool, equipment, etc., but also liable to determine the quantum of amount to be recovered after notice and hearing under Rule 17 of 2005 Rules. Final order of seizure or imposition of penalty or both can be made under rule 13 subject to appeal and revision and review as prescribed under Chapter V of 2005 Rules. The owner of the vehicle or the property, if seized, on execution of a bond for production of property, as and when so required, can request the authorised officer to release the property without asking for depositing any amount to be determined, as the authorised officer is empowered to do so under Rule 18. 12. The full power being vested with the authority to seize mineral, property, vehicle, tool, etc. 12. The full power being vested with the authority to seize mineral, property, vehicle, tool, etc. after notice and hearing to decide the quantum of payment and penalty, there being provision made for appeal, revision and review under 2005 Rules, and the authorised officer being empowered to release the vehicle under Rule 18 without any precondition to deposit money, we are of the view that the High Court under Article 226 normally should not entertain any writ petition for release of vehicle or seized material. 13. In the present case, we find that the authorities have not yet finally determined the quantum of amount to be paid by appellant after notice and hearing the appellant, we are of the view that the learned Single Judge instead of passing conditional order ought to have dismissed the writ petition allowing the appellants to move before the authorities for release of the vehicle. In absence of any exceptional circumstance such as absence of authorised officer or appellate forum, there was no occasion to entertain the writ petition. For the reasons aforesaid while we set aside the order dated 25.01.2010 passed by learned Single Judge, give liberty to the appellants to move before the authorised officer under Rule 18, who may decide the same in accordance with law preferably within a week from the date of receipt of such application. The Letters Patent Appeal and Civil Application stand disposed of with the aforesaid observations. Direct service is permitted, but no costs. Order accordingly.