Case Note & Summary
The Supreme Court addressed multiple Interlocutory Applications arising from its order dated 10 November 2021 in civil appeals challenging the National Green Tribunal's directions on mining in Bihar. The State of Bihar had appealed the Tribunal's order, leading the Supreme Court to issue interim directions to curb illegal mining while allowing legal mining through the Bihar State Mining Corporation with contractors, pending fresh preparation of District Survey Reports and environmental clearances. Several applicants, who were successful bidders in earlier auctions for sand ghats in districts like Kishanganj, Banka, Jamui, and Nawada, filed applications aggrieved by the cancellation of their Letter of Intent and issuance of fresh Notice Inviting Tenders by the Corporation. They claimed vested rights to continue mining based on extensions granted until 31 March 2022 or as successful bidders in 2019, arguing that the Corporation's actions were unlawful and that they should be permitted to mine or at least have rights of first refusal. Another applicant raised environmental concerns, alleging that the Corporation's mining activities were without Environmental Clearance and that the Notice Inviting Tenders ignored environmental aspects, potentially amounting to contempt. The State of Bihar defended the actions as necessary interim measures under the court's order, with compliance processes ongoing and environmental protections in place. The court analyzed the situation, noting that its earlier directions were a stop-gap arrangement to balance the need for legal mining to prevent illegal activities and revenue loss against environmental safeguards. It found no merit in the applicants' claims of vested rights, as they were based on extensions or prior bids that were superseded by the court's interim order. The court upheld the Corporation's issuance of Notice Inviting Tenders as consistent with its directions, specifying limited operation periods and subject to further orders. It emphasized that environmental concerns were being addressed through the ongoing processes for District Survey Reports and clearances. Consequently, the court dismissed the applications, maintaining the interim arrangement to ensure legal mining while safeguarding the environment until full compliance with its directions.
Headnote
A) Environmental Law - Mining Regulations - Interim Directions for District Survey Reports and Environmental Clearances - Supreme Court Order dated 10 November 2021 - The Supreme Court modified the National Green Tribunal's order to address illegal mining and environmental concerns, directing fresh preparation of District Survey Reports by sub-divisional committees, appraisal by SEAC and SEIAA within stipulated timelines, and permitting interim mining through Bihar State Mining Corporation with contractors while ensuring environmental protection. Held that this was a stop-gap arrangement to prevent illegal mining and loss to public exchequer during the compliance period. (Paras 2, 14-15) B) Contract Law - Mining Rights - Vested Rights of Successful Bidders - Not mentioned - Applicants who were successful bidders in auctions from 2015 to 2019 and granted extensions claimed vested rights to continue mining until 31 March 2022. The court found no merit, stating they were only continuing under extensions and could not claim vested rights in light of the court's interim directions. (Paras 5, 7, 17) C) Administrative Law - Tender Process - Cancellation of Letter of Intent and Issuance of Fresh Notice Inviting Tenders - Not mentioned - Applicants challenged the cancellation of Letter of Intent and issuance of fresh Notice Inviting Tenders by Bihar State Mining Corporation for districts like Kishanganj, Banka, and Jamui. The court upheld these actions as part of the interim arrangement under its order, specifying that the operation period is only up to 31 March 2022 and subject to further orders. (Paras 3-4, 8, 16) D) Environmental Law - Compliance with Court Orders - Environmental Concerns in Mining Activities - Supreme Court Order dated 10 November 2021 - An applicant contended that mining activities by the Corporation were without Environmental Clearance and that Notice Inviting Tenders were silent on environmental aspects, amounting to contempt. The court noted that the Corporation is ensuring no environmental damage as per its directions, and the process for environmental clearances is underway. Held that the interim permission is conditional on environmental protection. (Paras 12-13, 15)
Issue of Consideration
Whether the applicants (mining contractors) have a vested right to continue mining activities despite the court's interim directions for fresh District Survey Reports and environmental clearances, and whether the issuance of fresh Notice Inviting Tenders by the Bihar State Mining Corporation is lawful.
Final Decision
The Supreme Court dismissed all Interlocutory Applications, upholding the interim arrangement where Bihar State Mining Corporation can carry out mining activities with contractors until 31 March 2022, subject to further orders, while ensuring environmental protection and compliance with directions for District Survey Reports and clearances.
Law Points
- Environmental law
- mining regulations
- interim relief
- vested rights
- public interest
- stop-gap arrangement
