PANAJI
The Bombay High Court at Goa has dismissed a plea filed by Sesa Resources Ltd challenging an order of the mamlatdar to recover an amount of Rs 13.86 crore in terms of the order dated September 3, 2018 made by the Director of Mines and Geology towards unpaid royalties for ore extracted and appropriated by the petitioners.
The company argued that the director of mines should consider their representation dated Sept 17, 2018 and Sept 11, 2023 for set off against the excess royalty allegedly paid by the Sesa to the state for the period between 2010-2013.
The Goa Director of Mines and Geology had made his order dated Sept 3, 2018, in terms of which Sesa Resources was directed to pay the principal amount of 7,43,71,447/- towards unpaid royalties as of Sept 3, 2018. This amount was directed to be paid within 14 days from the receipt of the order and the balance interest.
Sesa Resources did file a reply dated Sept 17, 2018, in which they claim that they had paid excess royalty to the tune of 16.70 crores during the years 2010-2011, 2011-2012, and 2012-2013. Accordingly, they submitted that this alleged excess payment of 46.70 crores must be set off from the principal demand referred to in the Director's order dated Sept 3, 2018.
The Advocate General Devidas Pangam argued before the High Court that there was no merit in the claim for set off. He submitted that, in any case, the issue of alleged excess royalty payment and the issue of royalty determined in the Director's order dated Sept 3, 2018 were unconnected and independent issues.
The High Court observed how, if there was merit in the company’s claim that it had paid excess royalty, nothing prevented it from raising the claim earlier. “Nothing prevented the petitioners from raising such an issue if they indeed believed that such an issue was relevant. The Director's order dated 03.09.2018 was made after considering all the relevant materials and after due compliance with the principles of natural justice and fair play,” the High Court noted.
The High Court also noted that Sesa Resources' claim via its representation urging the Director to reassess the claim “was quite misconceived.”
“There was no obligation, either statutory or otherwise, to reconsider or review the order… The Petitioners…did not pay any amounts to the Respondents (State) in terms of the order dated 03.09.2018, and the Respondents (State) also did not take any expeditious steps to recover the said amount from the Petitioners. even though the Hon'ble Supreme Court had directed the State of Goa to take all necessary steps to expedite the recovery of such amount from the mining leaseholders,” the High Court observed.
The High Court also noted how the state government was “not very diligent in recovering the amount from the petitioners.”
“Otherwise, there is no explanation why, after the Petitioners failed to pay amounts specified in the Director's order dated 03.09.2018 within 14 days, no diligent steps were taken by the State Government to recover this amount. Any direction to 'consider the representations in respect of the alleged but belated claims, is many times misconstrued and even used by the State Government as a direction to accept the plea raised in the representation. It is then portrayed as if the relief was granted to a private party based upon Court directions,” the High Court said while dismissing the plea.
