AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 11(4) [or sub-section (5) now] of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 5(1) of the Mines and Minerals (Regulation and Development) Act, 1957
  • Section 11(4) of the MMRD Act, 1957
  • Article 166 of the Constitution, Section 11(4) of the Act
  • Section 11(5) of the MMRD Act, 1957
  • Section 11(5) of the Act [prior to December 1999 Section 11(4) of the Act]
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 11(4) [or sub-section (5) now] of the Act
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 5(1) of the Mines and Minerals (Regulation and Development) Act, 1957
  • Section 11(4) of the MMRD Act, 1957
  • Article 166 of the Constitution, Section 11(4) of the Act
  • Section 11(5) of the MMRD Act, 1957
  • Section 11(5) of the Act [prior to December 1999 Section 11(4) of the Act]
Smart Summary

Factual and Procedural Background

The State of Orissa, by letter dated 28-1-1999, recommended that 84.881 hectares of chromite–bearing land in Village Kalarangiata, Kaliapani (Sukinda Tehsil, Jajpur District) be leased to M/s Nava Bharat Ferro Alloys Ltd. under Section 5(1) of the Mines and Minerals (Regulation and Development) Act, 1957 (“the Act”). The recommendation was challenged in the Orissa High Court by M/s Indian Charge Chrome Ltd., which lost on 18-5-2001 (AIR 2002 Ori 45).

After the High Court’s decision, the Central Government pointed out procedural deficiencies on 27-6-2001, sought clarification from the State, and eventually granted approval on 9-7-2001 by invoking Section 11(5) of the Act and relaxing Rule 59(1) of the Mineral Concession Rules, 1960. That approval was also challenged and transferred from the Delhi High Court to the Supreme Court.

On 17-12-2002 the Supreme Court dismissed the civil appeals and the transferred writ petition (reported in (2003) 2 SCC 533). The present opinion concerns review petitions filed against that judgment, limited to deciding whether the earlier judgment should be recalled and the matters reheard.

Legal Issues Presented

  1. Whether the review petitions disclose errors apparent on the face of the record sufficient to warrant admission and rehearing of the civil appeals and the transferred case.
  2. Specifically, whether non-consideration of the contention that the State’s letter dated 30-6-2001 was unauthorised constitutes such an error.
  3. Whether reliance on an undisclosed Chief Minister’s order dated 14-1-1999, without affording the parties an opportunity to examine or rebut it, amounts to a manifest error necessitating review.

Arguments of the Parties

Review Petitioners (M/s Indian Charge Chrome Ltd. and others)

  • Contended that the Central Government’s approval of 9-7-2001 was vitiated because it relied on the State’s clarification dated 30-6-2001, which was not issued with proper authority under the State Rules of Business.
  • Argued that the earlier Supreme Court judgment failed to consider this contention, creating an error apparent on the face of the record.
  • Submitted that the majority judgment relied on a Chief Minister’s order dated 14-1-1999, which was never produced or made available to the parties, thereby violating principles of natural justice.

Respondents/Opposing Counsel

  • Maintained that review petitions should not be entertained lightly and that mere existence of divergent judicial views is not a ground for recalling a majority judgment.
  • Urged the Court to dismiss the review petitions and uphold the earlier decision.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Indian Charge Chrome Ltd. v. Union of India, (2003) 2 SCC 533 Earlier Supreme Court judgment dismissing the civil appeals and writ petition. This is the judgment under review; it was recalled owing to identified errors.
Indian Charge Chrome Ltd. v. Union of India, AIR 2002 Ori 45 (Orissa High Court) High Court decision upholding State recommendation in favour of Nava Bharat. Formed the subject-matter of the civil appeals that were dismissed in 2002 and are now to be reheard.
Ferro Alloys Corpn. Ltd. v. Union of India, (1999) 4 SCC 149 Consideration of whether the State can decide an individual applicant’s case before receiving a committee’s recommendation on mineral requirements. Referenced as the fourth question framed in the earlier majority judgment; its impact may be reassessed on rehearing.

Court's Reasoning and Analysis

The Court confined itself to assessing whether the review petitions disclosed patent errors in the earlier judgment:

  • Non-consideration of critical contention: The prior judgment did not deal with the argument that the State’s letter dated 30-6-2001 lacked proper authorisation, even though that contention was expressly urged and had formed the basis of a subsequent State Cabinet note withdrawing the original recommendation. The omission constituted an error apparent on the face of the record.
  • Reliance on undisclosed material: The majority judgment had referred to a Chief Minister’s order dated 14-1-1999 while resolving Question 3 (special reasons under Section 11(4)/(5) of the Act). The parties were neither supplied a copy of this order nor given a chance to respond. The Court held that basing a decision on material not on record or not shared with the parties breaches natural justice and amounts to another manifest error.
  • Because these errors could have affected the outcome and resulted in “grave miscarriage of justice,” the stringent standard for admitting a review was met.
  • The Court emphasised that its observations were limited to the threshold issue of admitting the review; merits of the substantive disputes would be considered afresh during rehearing.

Holding and Implications

The review petitions are ADMITTED, the judgment dated 17-12-2002 ((2003) 2 SCC 533) is RECALLED, and the civil appeals and transferred case are to be listed for rehearing.

Immediate Effect: The prior dismissal of the civil appeals and writ petition stands vacated; all substantive issues will be reconsidered on merits.

Broader Implications: The order does not lay down new legal principles but underscores the Supreme Court’s willingness to recall its own judgment when non-consideration of arguments or reliance on undisclosed material could cause a miscarriage of justice.

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    Indian Charge Chrome Ltd. And Another Petitioners/ v. Union Of India And Others

    Y.K Sabharwal, J.— Civil Appeals Nos. 8501 and 8502 of 2002 and Transferred Case No. 9 of 2002 were decided by this Court in terms of judgment dated 17-12-2002 (2003) 2 SCC 533. The civil appeals had been filed against the decision of the Orissa High Court dated 18-5-2001 in Indian Charge Chrome Ltd. v. Union of India AIR 2002 Ori 45. The transferred case was a writ petition filed in the Delhi High Court that had been transferred to this Court. The civil appeals and the writ petition were dismissed.

    2. In these petitions seeking review of the aforesaid judgment, the limited point for consideration at this stage is whether the review petitions deserve to be admitted and consequently the civil appeals and the transferred case deserve to be reheard or not. For considering this limited point, it is not necessary to note facts in detail, the same having been noted in the judgment under review in Indian Charge Chrome Ltd. v. Union of India (2003) 2 SCC 533.

    3. Facts in brief, relevant for deciding the limited point are that the State of Orissa made recommendation dated 28-1-1999 seeking the approval of the Government of India under Section 5(1) of the Mines and Minerals (Regulation and Development) Act, 1957 (for short “the Act”) in respect of 84.881 hectares of land, bearing chromite in Village Kalarangiata, Kaliapani in Sukinda tehsil of Jajpur district, Orissa in favour of M/s Nava Bharat Ferro Alloys Ltd. (for short “Nava Bharat”). The said recommendation was challenged before the Orissa High Court by the review petitioner M/s Indian Chrome Ltd. The writ petition was dismissed by the High Court in terms of judgment dated 18-5-2001 AIR 2002 Ori 45.

    4. After the decision of the High Court, the Central Government by its letter dated 27-6-2001, upon consideration of the recommendation dated 28-1-1999 pointed out to the State Government the following two deficiencies:

    “(i) The recommended area is not free for grant and, therefore, before considering this area for grant of mineral concession, relaxation from the provisions of Rule 59(1) of the Mineral Concession Rules, 1960 (hereinafter referred to as ‘the Rules’) is required under Rule 59(2) of the Rules. The State Government was required to recommend to the Central Government that while considering the proposal dated 28-1-1999 the provisions of Rule 59(1) may be relaxed by the Central Government in the interest of mineral development.
    (ii) Admittedly the applicant NBFAL is not the sole or the first applicant for the area under consideration and hence if the State Government wants to assign priority to this applicant, the powers under Section 11(5) of the MMRD Act, 1957 (hereinafter referred to as ‘the Act’) are required to be invoked. It may be noted that prior to 20-12-1999, the provision relating to granting priority to a later applicant was covered under Section 11(4) of the Act which after December 1999 amendment has been rechristened with modification as Section 11(5) of the Act.”

    5. The State Government was asked to clarify/take action on the following issues:

    “(a) whether the State Government recommends that provisions of Rule 59(1) of the Rules be relaxed by the Central Government under Rule 59(2) of the Rules in the instant case. If yes, the reasons therefor may be clearly specified by the State Government;
    (b) whether the State Government recommends that the provisions under Section 11(5) of the Act [prior to December 1999 Section 11(4) of the Act] be invoked in the instant case and if yes, the reasons therefor in the interest of mineral development may be specified; and
    (c) if the answers to the first two queries are in the affirmative then the State Government may quickly get the chrome ore requirement of NBFAL assessed by the ‘New Committee’ and the views of the Committee with the recommendations of the State Government thereon may be sent for consideration by the Central Government by 16-7-2001, so that a decision on the recommendation may be taken by the Central Government in the time period prescribed by the High Court of Orissa.”

    The aforesaid letter was replied by an officer of the State Government on 30-6-2001.

    6. The Central Government, in terms of its letter dated 9-7-2001, on consideration of letters dated 28-1-1999 and 30-6-2001, conveyed its approval to the grant of the mining lease in favour of Nava Bharat under Section 5(1) by invoking the provisions of Section 11(5) of the Act and relaxing the provisions of Rule 59(1) of the Mineral Concession Rules, 1960 and Rule 59(2) of the Rules and in compliance with the judgment of the High Court.

    7. The approval dated 9-7-2001 was challenged in the writ petition aforenoted which was transferred and decided by this Court along with the civil appeals.

    8. When the matters were pending in this Court, a note dated 25-8-2001 was approved by the State Cabinet on 28-8-2001 deciding to withdraw recommendation dated 28-1-1999. It was, inter alia, noted that clarification sent on 30-6-2001 was not valid since due approval of the competent authority specified in the Rules of Business of the State Government under Article 166 of the Constitution was not obtained. It was proposed to grant the entire balance area of 436 hectares to the Orissa Mining Corporation.

    9. Four questions that were framed by the majority judgment for consideration are:

    “1. Whether the so-called reservation of the entire area for being exploited by the Orissa Mining Corporation, puts an end to the right of the respondents and the appeal as well as the writ petition could be disposed of on that ground?
    2. Whether in fact there has been any relaxation of the provisions of Rule 59(1) by the Central Government under Rule 59(2) in respect of the area in question and if so, once the relaxation having been granted, further any relaxation when the question of grant in favour of Nava Bharat cropped up?
    3. Were there really any reasons recorded by the State Government in terms of Section 11(4) of the Act for treating the application in a preferential manner? and lastly
    4. Whether the judgment of this Court in Ferro Alloys Corpn. Ltd. v. Union of India (1999) 4 SCC 149, 1999 AIR SCW 913, AIR 1999 SC 1236 prevented the State Government to take the case of any individual applicant and consider the same on its own merits, before receipt of the recommendation of the Committee, which had been set up to find out the requirements of the respective claimants and submit the recommendation thereto?”

    10. While considering the third question, an order dated 14-1-1999 said to have been made by the Chief Minister was taken into consideration for rejecting the contention of the petitioners that there were no special reasons in terms of the provisions contained in sub-section (4) of Section 11 [now sub-section (5)] for grant of a preferential right in favour of Nava Bharat.

    11. Insofar as the writ petition challenging the approval dated 9-7-2001 granted by the Central Government, it was noted that

    “we also do not find any infirmity with the approval that the Central Government made, which is the subject-matter of the writ petition that had been filed in the Delhi High Court and which stands transferred to this Court”.

    12. One of the contentions that had been raised on behalf of the petitioners at the hearing of the appeals and the transferred case was that the letter dated 30-6-2001 was not issued under the authority of the State Government and, thus, the approval of the Central Government on the basis of an unauthorised clarification stood vitiated and could not be sustained. That was also the stand of the State Government in the Cabinet note dated 25-8-2001 approved on 28-8-2001.

    13. To support the contention that there are errors apparent on the face of the record, we have been taken through the judgment to show that the aforesaid contention was urged. It appears clearly that the contention was made but there has been omission to consider it. The approval was, inter alia, based on the clarification given in the letter dated 30-6-2001. At this stage, the only question is as to an error apparent on the face of the record having occurred in non-consideration of this nature of contention and not on its merit or demerit. The validity of the approval was in question in the transferred case as also in the civil appeals wherein reliance was sought to be placed on the invalidity of the approval as a subsequent event.

    14. There is another error apparent, namely, the reliance upon the aforenoted order of the Chief Minister dated 14-1-1999 while dealing with the third question and rejecting the contention about non-existence of special reasons in terms of Section 11(4) [or sub-section (5) now] without any opportunity to supply a copy of the order dated 14-1-1999, or to deal with it. It is not on record. So far even we have had no opportunity to peruse it. It is also not referred to in the recommendation of the State Government dated 28-1-1999.

    15. It is true, as contended by learned counsel opposing the admission of the review petitions that review petitions should not be lightly entertained and mere fact that there were two views, one in terms of the majority and the other dissenting, cannot be the basis for recalling the majority judgment and rehearing the matter, but that is not the ground for the conclusion we have reached, as aforesaid, for admitting the review petitions. We have found errors apparent on the record, as noticed above, namely:

    1. Non-consideration of the contention regarding illegality of the communication dated 30-6-2001.
    2. Absence of opportunity to explain the order dated 14-1-1999.

    16. These are manifest errors which have crept up in the judgment under review resulting in grave miscarriage of justice. Accordingly, we admit these petitions and recall the judgment dated 17-12-2002 (2003) 2 SCC 533 and direct that the civil appeals and transfer case be listed for hearing. We make it clear that observations made in this order are only for the purpose of deciding the limited aspect of admission of the review petitions.

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    Indian Charge Chrome Ltd. And Another Petitioners/ v. Union Of India And Others
    (Apr 1, 2005)