Supreme Court Allows Transportation of Already Challaned Coal in Meghalaya: Lber Laloo vs. All Dimasa Students Union (2019)

Introduction

Date of the Judgment: 10 May 2019

Citation: 2019 INSC 454

Judges: Ashok Bhushan, J., K.M. Joseph, J.

Can coal that has already been challaned for transportation be moved despite a ban on mining activities? The Supreme Court of India recently addressed this critical question in a batch of cases concerning coal mining in Meghalaya. The court’s decision balances environmental concerns with the economic realities of those involved in the coal trade. This judgment clarifies the conditions under which previously challaned coal can be transported, while maintaining a strict stance against illegal mining.

Case Background

The case originated from a suo moto action by the Gauhati High Court following the death of 15 young laborers in mining operations in Meghalaya. This case was then transferred to the National Green Tribunal (NGT), which registered it as O.A. No. 73 of 2014. The NGT directed a halt to rat-hole mining and illegal coal transportation in Meghalaya.

The NGT formed a committee to assess the environmental impact of illegal mining. Subsequently, the NGT permitted coal transportation under specific conditions. Appeals against these orders led to the Supreme Court, which also issued orders permitting coal transportation under certain terms.

On December 4, 2018, the Supreme Court allowed the transportation of 176,655 metric tonnes of coal until January 31, 2019. However, after an unfortunate incident in January 2019, where several laborers died in rat-hole mining, the Supreme Court ordered a halt to all coal transportation on January 15, 2019.

The State Government of Meghalaya partially modified this order on January 18, 2019, allowing the transportation of coal already loaded and in transit before the Supreme Court’s order on January 15, 2019, as well as coal originating outside Meghalaya.

On January 28, 2019, the Supreme Court rejected various applications seeking permission to transport coal, except for one filed by an auction purchaser of coal.

The State of Meghalaya issued a clarification on February 7, 2019, regarding its order of January 18, 2019. A report by the Katakey Committee, appointed by the NGT, was submitted on March 31, 2019, detailing the amount of coal for which transportation challans had been issued and the amount already transported.

Timeline

Course of Proceedings

The Gauhati High Court initiated a suo moto action following the death of 15 laborers in mining operations. This case was then transferred to the National Green Tribunal (NGT), which registered it as O.A. No. 73 of 2014.

The NGT ordered a ban on rat-hole mining and illegal coal transportation in Meghalaya. It also formed a committee to assess the environmental impact of illegal mining.

Appeals against the NGT’s orders were filed in the Supreme Court. The Supreme Court initially permitted coal transportation under certain conditions.

Legal Framework

The primary legal framework relevant to this case is the Mines and Minerals (Development and Regulation) Act, 1957, which governs mining activities in India. The National Green Tribunal (NGT) also plays a crucial role in environmental regulation, and its orders are binding unless overturned by a higher court.

The NGT’s order dated 17.04.2014 directed authorities to stop rat-hole mining and illegal coal transport in Meghalaya. This order was a key basis for the subsequent actions taken by the Supreme Court.

Arguments

The applicants argued that they had obtained valid transportation challans for coal before the ban on January 15, 2019, and that this coal should be allowed to be transported. They also argued that a large quantity of assessed coal was lying in the open, which could cause environmental pollution if not transported.

The State of Meghalaya submitted that 176,655 MTs of coal was to be transported, and that challans had been issued for this quantity. They also noted that 94,099 MTs had been transported before the ban, leaving 75,050 MTs for which challans had been issued but not transported.

The Amicus Curiae and Shri Nidhesh Gupta, representing the respondents, argued that the coal sought to be transported was illegally mined in violation of the Mines and Minerals (Development and Regulation) Act, 1957. They contended that allowing transportation would encourage further illegal mining.

Issues Framed by the Supreme Court

The primary issue before the Supreme Court was whether to permit the transportation of 75,050 MTs of coal for which transportation challans had already been issued before the ban on January 15, 2019.

Treatment of the Issue by the Court

Authorities

The Supreme Court considered the following authorities:

Judgment

The Supreme Court permitted the transportation of 75,050 MTs of coal for which transportation challans had already been issued. The court emphasized that this permission was limited to the already challaned coal and that the State of Meghalaya must take precautions to prevent illegal mining.

The court directed the State of Meghalaya to maintain detailed records of the transportation, including the quantity of coal, payment details, the person transporting the coal, the owner of the coal, and the details of the verification certificate.

The Court also directed that the State of Meghalaya should entrust the duty to responsible officers of the State Government not below the rank of Deputy Commissioner to ensure compliance of this order and conditions to be fixed by the State Government.

The Supreme Court directed the State of Meghalaya to finalize the mechanism for verification and transportation of coal. The actual transportation was permitted from May 17, 2019, to May 31, 2019.

The court stated, “We, thus, permit the transportation of the coal of 75050 Mts. with regard to which transportation challans have already been issued.”

The court further stated, “We are further of the view that for the said transportation of quantity of 75050 Mts., the State of Meghalaya has to take necessary precaution that under the guise of this permission, no other coal is transported or mined.”

The Court also stated, “The State should take appropriate precaution while granting permission for transportation and under the strength of this order, no other kind or category of coal shall be permitted to be transported.”

What weighed in the mind of the Court?

The Supreme Court’s decision was influenced by a combination of factors. The court recognized the need to allow transportation of coal for which challans had already been issued, but also remained cautious about the potential for illegal mining. The court balanced the economic interests of those involved in the coal trade with the environmental concerns and the need to prevent further illegal mining activities.

Key Takeaways

✓ Transportation of coal is permitted only for the 75,050 MTs for which valid challans had been issued before the ban on January 15, 2019.

✓ The State of Meghalaya must implement a strict mechanism to ensure that no illegal mining takes place under the guise of this permission.

✓ Detailed records of transportation must be maintained, including the quantity of coal, payment details, the person transporting the coal, and the owner of the coal.

✓ The transportation was permitted for a limited period, from May 17, 2019, to May 31, 2019.

Directions

The Supreme Court directed the State of Meghalaya to finalize a mechanism for ensuring verification and transportation of coal. This mechanism was to be publicized and put in place within a week from the date of the order. The court also directed that the State should entrust the duty to responsible officers of the State Government not below the rank of Deputy Commissioner to ensure compliance of this order and conditions to be fixed by the State Government.

Development of Law

The ratio decidendi of this case is that transportation of coal can be permitted even when there is a ban on mining, provided that the coal has already been challaned for transportation before the ban, and strict conditions are put in place to prevent illegal mining. This decision provides a balance between environmental concerns and the economic interests of those involved in the coal trade, but emphasizes the need for strict monitoring and enforcement to prevent illegal mining activities.

Conclusion

The Supreme Court’s judgment allows the transportation of 75,050 MTs of coal for which challans had already been issued before the ban on January 15, 2019. This decision balances the need to allow the movement of already challaned coal with the imperative to prevent further illegal mining. The State of Meghalaya is required to implement strict monitoring and verification mechanisms to ensure compliance with the order.