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AMICUS AI
Citation Codes
Neutral Citations
2020 INSC 486
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 21(5) of the MMDR Act, 1957
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Cites
Cited by
Citation Codes
Neutral Citations
2020 INSC 486
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 21(5) of the MMDR Act, 1957
Smart Summary

Factual and Procedural Background

M/s Orissa Minerals Development Company Ltd. (OMDC) filed several interlocutory applications seeking (i) condonation of delay in payment of compensation ordered by the Supreme Court in Common Cause v. Union of India, (2017) 9 SCC 499, and (ii) consequential reliefs. The 2017 judgment had directed OMDC to pay compensation for illegal mining activities by 31-12-2017 under Section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957. Because the payments were made belatedly, OMDC approached the Court in 2019. Additional prayers included directions to the State of Orissa to (a) conduct a joint verification of undisposed mineral stock and permit its sale, and (b) allow OMDC to resume regular mining operations after meeting statutory requirements.

Legal Issues Presented

  1. Whether the delay in remitting the court-ordered compensation and interest should be condoned.
  2. Whether OMDC is entitled to resume mining operations, subject to statutory clearances, after having discharged the compensation liability.
  3. Whether the Court should direct the State of Orissa to verify and permit sale of undisposed mineral stock to facilitate recovery of dues.

Arguments of the Parties

Applicant (OMDC)

  • Sought condonation of delay in payment of compensation mandated by the 2017 judgment.
  • Requested permission to resume mining operations, asserting full compliance through payment of compensation and interest.
  • Asked for a direction to the State to conduct joint verification of undisposed stock and allow its sale so the company could realise funds.

State of Orissa

  • Confirmed that OMDC had paid the entire compensation along with interest for all its mining leases.
  • Did not oppose the reliefs once payment was acknowledged, thereby paving the way for condonation of delay and other consequential orders.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Common Cause v. Union of India, (2017) 9 SCC 499 Directed miners to pay compensation for illegal/excess mining by 31-12-2017 under Section 21(5) MMDR Act. Formed the foundational liability; OMDC’s delay in complying with this judgment was the reason for the present applications.
Supreme Court Order dated 29-1-2020, 2020 SCC OnLine SC 666 Earlier order where similar prayers for other applicants were allowed in identical circumstances. The Solicitor General relied on this order to support granting identical reliefs to OMDC.

Court's Reasoning and Analysis

The Court observed that the State of Orissa had unequivocally acknowledged receipt of the entire compensation together with interest from OMDC. Because the statutory liability had been fully discharged, the Court found it “expedient” to condone the delay. The Court further noted that in an order dated 29-1-2020, it had granted identical reliefs to similarly placed parties, reinforcing consistency in judicial approach. Having confirmed payment and State acknowledgment, the Court granted all consequential reliefs requested by OMDC: permission to resume mining operations (subject to statutory clearances) and a direction for joint verification and sale of undisposed mineral stock. The reasoning is concise and hinges primarily on satisfaction of the monetary liability and parity with earlier orders.

Holding and Implications

DELAY CONDONED AND RELIEFS GRANTED.

Direct consequences:

  • OMDC may resume mining operations, provided it secures all necessary statutory clearances.
  • State authorities must jointly verify undisposed mineral stock and permit its sale following due procedure.

No broader legal precedent was set; the order primarily resolves the parties’ compliance and operational issues based on acknowledged payment.

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    Common Cause v. Union Of India And Others

    Order

    1. The abovestated applications are filed by the applicant M/s Orissa Minerals Development Company Ltd. (“OMDC” for short). Since all the applications pertain to the same issue and are between the same parties seeking similar relief, they are disposed of through this common order.

    2. In all these applications the applicant has sought condonation of delay in making the payment pursuant to the order passed by this Court in Common Cause v. Union of India (2017) 9 SCC 499. Further in IAs Nos. 168557 and 168569 of 2019 the applicant has also sought a direction to the State of Orissa to conduct joint verification of the undisposed stock and allow sale of the same so as to enable the applicant company to realise the amount. In IAs Nos. 168564 and 168578 of 2019 the applicant has sought permission to resume regular mining operations in view of payment of the entire amount demanded. The applications pertain to the mining lease in favour of the applicant company in respect of Roida-Bhadrasahi Iron Ore and Bhadrasahi Iron and Manganese respectively.

    3. This Court while disposing of WP(C) No. 114 of 2014 through the order dated 2-8-2017 (2017) 9 SCC 499 had directed that the applicant company shall pay compensation on or before 31-12-2017. Since there is delay in payment, condonation of the same is sought and the further relief as indicated above is prayed.

    4. The State of Orissa in its reply to the applications has stated that the compensation amount as ordered by this Court under Section 21(5) of the MMDR Act, 1957 has been fully paid by the applicant company along with interest in respect of all the mining leases held by the applicant OMDC. In that view, since the interest is stated to have been paid for the period of delay, we find it expedient to condone the delay. Further, since the compensation amount along with interest has been paid as directed by this Court and the receipt of the same is acknowledged by the State of Orissa, we also consider it appropriate to grant the further relief sought in the applications.

    5. At this point we also take note of the submission of the learned Solicitor General that in similar circumstances, through the order dated 29-1-2020 2020 SCC OnLine SC 666 identical prayers as made in IAs Nos. 62602 and 62606 of 2019 were allowed by this Court and the instant applications were ordered to be listed after a week so as to enable the learned counsel for the State of Orissa to ascertain whether the payment has in fact been made by the applicant company. As noted, the payment made by the applicant is acknowledged by the State of Orissa.

    6. Accordingly, the following order:

    6.1. The delay in payment of the compensation along with interest is condoned.

    6.2. The applicant OMDC be permitted to resume mining operations subject to all necessary clearances required in accordance with law being obtained.

    6.3. The competent officers of the State of Orissa shall also conduct a joint verification of the undisposed stock and allow sale of the same by the applicant OMDC on following due procedure.

    7. The above applications are accordingly disposed of.

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    Comments

    Common Cause v. Union Of India And Others
    (Aug 11, 2020)