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Patna High Court

M/s SP Stone WorksversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The challenged orders are appealable under Rule 67 of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019, and the writ petition is dismissed pending an appeal.

Summary

M/s SP Stone Works, a proprietorship firm, filed a writ petition in the Patna High Court seeking certiorari to quash two letters issued by the Mines Development Officer and the District Magistrate of Banka, and to compel a proportional reduction in an auction amount following a reduction in the area and quantity of mineral product. The petitioner alleged that the tender rules were altered after its participation, resulting in unjust enrichment of the respondents. The Mines Department contended that the order under challenge is appealable under Rule 67 of the Bihar Minerals (Concession, Prevention of Illegal Mining, Transportation & Storage) Rules, 2019. The Court examined whether the order could be challenged via a writ or should be pursued through the statutory appeal mechanism. It held that the order is indeed appealable under the specified rule and therefore directed the petitioner to file an appeal and a stay application within four weeks. Consequently, the writ application was disposed without adjudicating the substantive claims.

Issues considered

  • Whether the order dated 26.07.2024 issued by the Mines Development Officer and the order dated 05.02.2025 issued by the District Magistrate are appealable under Rule 67 of the Bihar Minerals Rules, 2019.
  • Whether the writ petition seeking quashing of the letters and reduction of the auction amount should be entertained, or the matter should be pursued through the statutory appeal process.

Legislation cited

Subjects

  • certiorari
  • writ jurisdiction
  • mineral concession
  • appealability
  • auction reduction
  • unjust enrichment
  • Bihar Minerals Rules
  • procedural order

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.3716 of 2025
                 ======================================================
                 M/s SP Stone Works a proprietorship firm having its business office at Srikant
                 Road, Belabagan, Deoghar, Jharkhand through its authorized representative
                 namely Purushottam Sharan Prashant male aged about 45 years son of Late
                 Kamala Sharan Singh resident of Srikant Road Belabagan, Mul Niwasi Lane,
                 Behind Allahabad Bank, P.S. and District- Deoghar, Jharkhand- 814112.

                                                                           ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Chief Secretary, Government of Bihar, Patna.
           2.    The District Magistrate, Banka.
           3.    The Mines Development Officer, Banka.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :         Mr. Maria Nazir, Advocate
                 For the Mines           :         Mr. Naresh Dikshit, Spl. PP
                                                   Ms. Shruti Singh, Advocate
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                         and
                         HONOURABLE MR. JUSTICE RANJAN KUMAR JHA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

7   07-07-2026                      Heard learned counsel for the parties.

                                 2. Following is the relief sought for in the present writ

                   application:-

                                                          “(a) For issuance of a writ or order or a
                                             direction in the nature of certiorari for quashing of
                                             the letter bearing reference number 813/M dated
                                             26.07.2024    issued   by   the     respondent   Mines
                                             Development Officer, Banka;
                                                          (b) For further issuance of a writ or
                                             order or a direction in the nature of certiorari for
                                             quashing of the letter bearing reference number
                                             110/M dated 05.02.2025 issued by the District
                                             Magistrate, Banka;
Patna High Court CWJC No.3716 of 2025(7) dt.07-07-2026
                                            2/3




                                               (c) For further issuance of a writ or
                                  order or a direction upon the respondent the District
                                  Magistrate, Banka to proportionately reduce the
                                  auction amount in light of reduction in the area and
                                  quantity of product auctioned in terms of the tender
                                  document so as to ensure balancing of interest of
                                  both the petitioner and the respondents;
                                               (d) For further issuance of a writ or
                                  order or a direction restraining the respondents in
                                  terms of the notice inviting tender from compelling
                                  the petitioner to observe and comply with further
                                  terms and conditions of the tender notice in view of
                                  the decision of the respondent the District
                                  Magistrate, Banka whereby the rules of the tender
                                  have been changed after participation of the
                                  petitioner which is impermissible in law;
                                               (e)   For    further    holding    and    a
                                  declaration that the denial of proportionate
                                  reduction in the auction amount in spite of reduction
                                  in the area and quantity of product to which the
                                  petitioner was entitled in terms of the tender notice
                                  and other details stated therein constitutes a case of
                                  unjust enrichment of the respondents and the state
                                  government which is impermissible in law;
                                               (f) For grant of any other relief or reliefs
                                  to which the petitioner is found entitled in the facts
                                  and circumstances of this case.”


                      3. Mr. Naresh Dikshit, learned counsel for the Mines

          Department submits that the order under challenge is appealable

          under Rule 67 of the Bihar Minerals (Concession, Prevention of

          Illegal Mining, Transportation & Storage) Rules, 2019.
           Patna High Court CWJC No.3716 of 2025(7) dt.07-07-2026
                                                       3/3




                                 4. In view of the aforesaid submission, the petitioner

                     is directed to prefer an appeal along with the application for stay

                     of the order under challenge within a period of four weeks from

                     the date of receipt/production of this order.

                                 5. In the event any such appeal is preferred, the

                     competent appellate authority shall consider and dispose of the

                     same by passing a reasoned order in accordance with law after

                     affording due opportunity of hearing to all the stakeholders

                     within the statutory period as provided under Rule 67 (3).

                                 6. In the event any application for stay is also filed

                     along with the appeal, the authority shall consider the same and

                     pass an appropriate order.

                                 7. With the aforesaid observation, the present

                     application stands disposed of.

                                 8. Pending application(s), if any, shall also stand

                     disposed of.



                                                 (Sudhir Singh, J)


                                             (Ranjan Kumar Jha, J)
Sachin/-

U


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