No coercive step against mining contractor: High Court

Tribune News Service

Chandigarh, August 19

The Punjab and Haryana High Court has directed the state of Punjab not to initiate coercive steps against a mining contractor saddled with “huge liability” of more than Rs 65 crore. The order by the Bench of Justice Rakesh Kumar Jain and Justice Ashok Kumar Verma came on a petition filed against the state of Punjab and other respondents by Harsimran Singh through senior advocate Gurminder Singh, counsel RPS Bara and Sanya Gill.

Referring to Rule 85 (5) of the Punjab Minor Mineral Rules, the counsel submitted that the petitioner was saddled with the liability without assessment. The Bench was told that the petitioner was awarded the contract of excavation of minor minerals from a quarry in Ropar district. The yearly permissible quantity the be excavated by the petitioner was 29,500 tonnes and the total contract value of the annual royalty for the quarry was Rs 12,68,500.

The impugned demand notices were issued to the petitioner stating that the petitioner had excavated material to the extent of 32.64 lakh tonnes. On the basis of the said quantity, the demand of Rs 65 crore was raised without even passing assessment order as required under the law.