HC orders refund to firm over mining losses due to policy change
PNS
Ranchi
The Jharkhand High Court has directed the state government to refund a proportionate amount to Godfam Investment & Finance Co. Ltd. for the period during which it was unable to carry out sand mining operations due to a change in government policy. The court also ordered that the amount be paid with 6% annual simple interest from October 15, 2012—the date on which the company surrendered the mining ghats—until the date of actual payment.
The judgment was delivered by a division bench comprising Chief Justice M. S. Sonak and Justice Rajesh Shankar. The court, however, did not issue any directions regarding the refund of royalty, registration charges, or stamp duty.
The case dates back to 2011, when the company was granted mining leases for five sand ghats in Dhanbad district for a three-year period. After depositing a substantial portion of the bid amount, the company commenced operations. In June 2012, the state government stopped issuing transit challans, citing the absence of environmental clearance.
The company argued that no such condition had been mentioned in the tender documents, approval letter, or lease agreements, and that the requirement was imposed subsequently. With mining operations halted, the company surrendered the ghats on October 15, 2012.
The court observed that the state cannot impose the burden of its policy changes on a private entity. It held that the government cannot accept payment from a company, prevent it from operating, and still retain the money, terming such action unjustified.
