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SAMAJ PARIVARTANA SAMUDAYA AND ORS. versus STATE OF KARNATAKA & ORS.

Citation: [2017] 7 S.C.R. 725 · Decided: 28-08-2017 · Supreme Court of India · Bench: RANJAN GOGOI · Disposal: Disposed off

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Judgment (excerpt)

[2017] 7 S.C.R. 725 
SAMAJ PARIVARTANA SAMUDAYA AND ORS. 
v. 
STATE OF KARNATAKA & ORS. 
I. A. No. 248 of2015 
in 
Writ Petition (C) No. 562 of2009 
AUGUST 28, 2017 
[RANJAN GOGOi, PRAFULLA C. PANT 
AND NAVIN SINHA, JJ.J 
Mines and Minerals -
Sale of iron-ore in State of Karnataka 
A 
B 
c 
- Interim application is .filed by FIMI seeking the direction fiwn the 
Court that iron-ore and manganese ore may be sold in Karnataka 
without recourse to e-auction conducted by the monitoring 
committee set up by the Supreme Court - Held: The sale and purchase D 
of iron-ore had been conducted in the most outrageous manner 
and on wholly unacceptable terms in the past resulting, inter a/ia, 
in huge leakage of government revenue - Such experiences and 
events cannot be allowed to resurface - Therefore, on an overall 
view of the matter, dispensation is not warranted with the existing 
policy of sale and purchase of iron-ore by e-auction in the State of E 
Karnataka -
The restoration of 'normalcy' in the process of sale 
and purchase of iron-ore must wait for the jilfure and at least till 
such time that significant headways are made in the other cu11nected 
aspects of the matter. 
Disposing of the I.A., the Court 
F 
HELD: Sale and purchase of iron-ore through the Court 
Appointed Monitoring Committee and by e-auction is not a 
singular but a connected facet of what was visualized by the Court 
in its bid to check, control and regulate mining and also to restore 
nature and environment to its earlier pristine purity, so far as 
possible. A cap on production and restoration of ecology and 
environment through a Comprehensive Environment Plans for 
the Mining Impact Zone (CEPMIZ) has been visualized by this 
Court in its order dated 18th April, 2013. The connected aspects 
G 
i.e. lifting of the cap or enhancement thereof and launching of the 
CEPMIZ scheme is under active consideration of this Court in H 
725 
.. 
\' 
\ 
726 
SUPREME COURT REPORTS 
[2017] 7 S.C.R. 
A other connected Interlocutory Applications (I.As.). When the 
said connected issues are pending, it cannot be said that the 
situation has become ripe for the normal rule of sale and purchase 
to be restored so far as the sale of iron-ore in the State of 
Karnataka is concerned. The experience of the past has been 
B 
c 
horrific. It cannot be allowed to come back. Sale and purchase of 
iron-ore had been conducted in the most outrageous manner and 
on wholly unacceptable terms resulting, inter alia, in huge leakage 
of government revenue. Such experiences and events cannot 
be allowed to resurface. Taking an overall view of the matter, 
time has not come to dispense with the existing policy of sale 
and purchase of iron-ore in the State of Karnataka through the 
Court Appointed Monitoring Committee by e-auction. The 
restoration of 'normalcy' in the process of sale and purchase of 
iron-ore must wait for the future and at least till such time that 
significant headways are made in the other connected aspects of 
D the matter dealt with by the final order of this Court dated 18th 
April, 2013 passed in Writ Petition (C) No.562 of 2009 .. The 
application filed by FIMI South is rejected. The suggestions of 
the CEC and the State of Karnataka as made in their respective 
reports/affidavits filed before the Court are also not accepted. 
(Paras 10-12) (729-E-H; 730-A-DJ 
E 
CIVIL ORIGINAL JURISDICTION: I. A. No. 248 of 2015 m 
F 
Writ Petition (Civil) No. 562 of2009. 
Under Article 32 of the Constitution oflndia. 
S.S. Shamshery,AAG, ShyamDivan, Sr.Advocate (A.C.), A.D.N. 
Rao (AC), Siddhartha Chowdhury(AC), Prashant Bhushan, Ms. Anitha 
Shenoy, Jayant Mohan, Kumar Dushyant Singh, Kuna! Verma, 
Yugandhara Pallav Jha, K. Raghavacharyulu, Kailash Pandey, Ranjeet 
Singh (for Gaichagpou Gangmei), Kuna! Chatterji, Chanchal K. Ganguli, 
Amit Sharma, Ankit Raj, Ms.Ruchi Kohli, M. Yogesh Kanna, 
Ms.Mahalakshmi, Ms. Sujatha B., Sandiv Kalia, Dr. Sanjay Gupta, 
G 
Nandram, Advs. for the appearing parties. 
H 
The Judgment of the Court was delivered by 
RANJAN GOGOi, J. 1. This application (I.A. N0.248 of2015) 
has been filed seeking the following direction from the Court: 
SAMAJ PARIVARTANA SAMUDAYA AND ORS. v. STATE OF 
727 
KARNATAKA & ORS. [RANJAN GOGOi, J.] 
"that iron-ore and manganese ore may be sold in Karnataka 
A 
without recourse to e-auction conducted by the monitoring 
committee set up by this Hon'ble Court." 
2. The response of the Central Empowered Committee ("CEC" 
f

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