Scribd Logo
Upload

Welcome to Scribd!

  • 5 views

    2023 LHC 6816

    Uploaded by

    co.dsjbhakkar

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    2023 LHC 6816

    Uploaded by

    co.dsjbhakkar
    5 views4 pages

    Original Title

    2023 Lhc 6816

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views4 pages

    2023 LHC 6816

    Uploaded by

    co.dsjbhakkar

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Writ Petition No.

    55800 of 2023

    Muhammad Tariq Sahi Govt. of Punjab and others

    20.12.2023 Mr. Imran Raza Chadhar, Advocate for the petitioner.


    Mr. Muhammad Osman Khan, Assistant Advocate General,
    Punjab with Mr. Rashid Bhatti, Law Officer and Farooq
    Sultan, Deputy Director Mines.

    The petitioner is aggrieved of enhancement of reserve


    price of auction of Block No.116-A South District Sargodha
    for the purpose of mining by Government of the Punjab.

    2. It is case of the petitioner that 500% increase in the


    reserve price is without lawful authority and tainted with
    mala fide only to prevent the petitioner from participating in
    the bid.

    3. The report and parawise comments have been filed on


    behalf of respondents No.1 to 4, inter alia, stating therein that
    sandstone Block No.116-A comprising of an area of 226.03
    acres District Sargodha was granted to the petitioner against a
    bid of Rs.7,02,70,000/- for period of 03 years w.e.f
    21.12.2019 to 20.12.2022; that before expiry of lease period
    of the Block in question, a meeting of the Special Experts
    Committee was held on 02.11.2022 at Mines & Minerals
    Head Quarter Office, Lahore to determine the Reserve Prices
    of several mining leases/blocks/zones, which were vacant or
    likely to be vacant till 30.01.2023 throughout the Province of
    Punjab; that the notification dated 24.10.2022 specifically
    provides that the Special Expert Committee shall determine
    the reserve price of the blocks/zones of Minor Minerals by
    majority decision of members including Chairperson of the
    2
    Writ Petition No.55800 of 2023

    Committee under the rules; that in the said meeting, the minor minerals
    blocks/zones of District Sargodha including Block in question were also
    discussed, and the Special Experts Committee determined reserve price of
    Block in question as Rs. 40,00,00,000/- by majority decision for up-coming
    auction plan as per schedule, keeping in view market forces/trend, such as
    the fixed reserve prices of the surrounding blocks and bid moneys received
    thereon in the best public interest; that the Block in question has more area
    in acres as compared to the surrounding sandstone blocks which are granted
    against much higher bids, the relevant details whereof are as follows:

    Sr. Block/Lease No. Acreage Status Reserve Price Total Bid


    No. (Rs.) Money (Rs.)

    1. ML-SRG-Sand
    Granted since 60,00,00,000 60,05,00,000
    Stone 64.08
    04.10.2021
    (4-A+4-B)/116
    2. ML-SRG-Sand
    Granted since 35,00,00,000 59,50,00,000
    Stone 78.09
    30.0.2022
    (5)/116
    3. ML-SRG-Sand
    Granted since 24,10,00,000 65,07,02,000
    Stone 53.07
    06.02.2021
    (6)/116
    4. ML-SRG-Sand
    Stone (A)/116 Vacant Since
    226.03 40,00,00,000
    (Block in 21.09.2023
    question)

    It is further stated in the comments that as per order of respondent No.1 the
    petitioner has fully enjoyed by excavating sand stone from the said leased
    area under Rule 228 of the Punjab Mining Concession Rules, 2002. Now,
    the leases of minor mineral (Sand Stone & Ordinary Sand), which are
    vacant or likely to be vacant upto 15.12.2023, have been advertised for open
    auction against the fixed reserve prices of each block/ zone in newspaper
    through "Daily Express" dated 20.08.2023 under Rule 198 of the Punjab
    Mining Concession Rules, 2002. As per said advertisement, open auction of
    leases of minor minerals of District Sargodha, including the Block in
    question was scheduled to be held on 11.09.2023, 02.10.2023 and
    01.11.2023 respectively.
    3
    Writ Petition No.55800 of 2023

    4. Learned Assistant Advocate General, Punjab contends that to


    sabotage the legitimate auction process, the petitioner has filed the instant
    petition with mala-fide intention. The instant case revolves around the
    fixation of reserve price of the Block in question to the tune of
    Rs.40,00,00,000/-, vide decision of Special Experts Committee taken in its
    meeting dated 02.11.2022. The Special Experts Committee has determined
    the reserve price of the Block in question keeping in view the different
    factors, especially the market trend. The petitioner, in connivance with other
    existing lease holders, just wants to maintain regional monopoly over the
    business of sand stone that is why he has involved the Mines Department in
    an uncalled for litigation. His action point to his wish that the general public
    do not participate in the auction proceedings and offer bids for the Blocks of
    the sand stone, which is against the fundamental right of other citizens as
    envisaged in Article 18 of the Constitution of Pakistan.

    5. In rebuttal, learned counsel for the petitioner contends that despite


    several times, auction of Block No.116-A subject matter of this petition
    could not be carried out successfully on account of exorbitant reserve price.
    According to him, if an auction fails for such number of times, the matter is
    to be sent back to the Special Experts Committee for review of the reserve
    price.

    6. Fixation of reserve price is prerogative of the concerned government


    department and in this regard, neither any existing lessee nor any
    prospective bidder can seek fixation of the reserve price of his own choice.
    There is no cavil to the proposition that while fixing reserve price, the
    exercise of discretion by the public authority must be just, fair and
    reasonable and any arbitrary, whimsical and capricious exercise of such
    authority is amenable to judicial scrutiny, however, the scope of jurisdiction
    under Article 199 of the Constitution of Islamic Republic of Pakistan, 1973
    in that regard is very limited. For such a challenge to succeed in writ
    jurisdiction, it is imperative for the petitioner to establish that the reserve
    price fixed by the public functionaries is so unreasonable that no authority
    4
    Writ Petition No.55800 of 2023

    with prudent mind could have fixed the same. This is also known as the
    wednesbury principle. Reliance in this regard has been placed on the cases
    of Messrs 3N-Lifemed Pharmaceuticals Vs. Government of Punjab through
    Secretary Primary and Secondary Healthcare Department and others
    (2023 CLC 948) and Hajj Organizers Association of Pakistan through
    Authorised Officer and 11 others Vs. Federation of Pakistan through
    Secretary Ministry of Religious Affairs and Interfaith Harmony, Islamabad
    and 2 others (PLD 2020 Sindh 42)

    7. In the instant case, as emphasized by the respondents in their


    parawise comments, the reserve price of Rs.40,00,00,000/- for Block
    No.116-A has been prescribed by the Special Experts Committee in the
    public interest keeping in view the market forces/trend, such as the fixed
    reserved prices of the surrounding blocks and corresponding bids received
    therein, a chart whereof has been reproduced in Paragraph No.3 herein
    above. The above explanation provides sufficient justification for the
    exercise of restraint in the matter and no case of arbitrary or unreasonable
    exercise of authority warranting interference has been established by the
    petitioner. Needless to observe that case auction for the Block in question
    fails to fetch bids for and above the reserve price advertised, as per
    directive/instruction dated 26.05.2021, the matter shall be referred to the
    Committee of Special Experts for review of the reserve price.

    8. This writ petition is disposed of accordingly.

    (RAHEEL KAMRAN)
    JUDGE
    *Z.A. Manzoor*

    You might also like