In a shot in the arm for Mideast Integrated Steel Company (Mesco), the revision tribunal of the Union Mines ministry has set aside the order of deputy director of mines (DDM), Joda mining circle, on the ground that he had “unilaterally and arbitrarily” suspended trading permissions granted to the company earlier by the state government.
The DDM in its order dated January 3 this year had canceled permission for sale of iron ore by Mesco from the iron ore mining lease spread over 104.68 hectares in Tanta village and Sidhamatha reserve forest on the ground that the lease was transferred by the original lessee K N Ram in favour of the company for captive use of the ore in its steel plant.
On observing that the company was selling iron ore from the aforesaid lease to others, the DDM held it as gross violation of the state government's order and suspended transit permissions issued on various dates from October 9, 2010 to January 1, 2011.
Stating that the DDM had gone beyond his jurisdiction in canceling permission, the tribunal said, "Neither this officer nor the state government is competent to retract from their own order dated August 30, 1996 and subsequent legal tripartite transfer deed unilaterally. The state government is also not empowered to put such a condition on its own without prior approval of the Central government and had also not intended at the time of approval of transfer or at the time of entering the deed”, the tribunal stated in its order.
Mesco contested the order of DDM-Joda in the revision authority on grounds that the official was not the competent authority to issue any such order. The revisionist argued that according to the transfer deed dated October 31 1996, there was no such condition that the company should use the iron ore only for captive consumption.
The mining lease was transferred by original lessee K N Ram in favour of Mesco on August 30, 1996 with due approval of the government. Accordingly, a transfer deed lease was executed between K N Ram (the original lessee), Mesco and the state government on October 31, 1996 for the remaining period up to January 22, 2003. But after expiry lease term in 2003, the mine has been operating on deemed renewal basis.
It may be mentioned that the original lessee - K N Ram which has no iron ore based plant is still working in other portion of the area and as per the terms of the same mining lease deed is allowed to sell the ore in the market.
The tribunal in its order has held that the revisionist was neither issued show cause notice nor called for personal hearing before suspension of transit permission.
Moreover, the prior approval of the Central government was also not obtained in the matter.
