Holding the Bihar Government and a stone-block bidder equally responsible for a nine-year delay in executing a mining lease in Sheikhpura, a Division Bench of the Patna High Court set aside forfeiture of the bidder’s Rs 2.90 crore deposit, ordered its refund with 12% interest, and laid down binding timelines for future mining tenders.
A Division Bench of the Patna High Court has held that Rule 52(5) of the Bihar Minor Mineral Concession Rules, 1972 permits 24 per cent simple interest on a delayed instalment only up to two months, after which the Rule contemplates cancellation, and quashed the Mines and Geology Department’s demands for further interest on three Rajouli stone blocks in Nawadah.
The Supreme Court held that enhanced royalty on iron ore cannot be avoided merely because an e-auction agreement predated the royalty revision. The Court clarified that royalty liability arises upon removal or dispatch of minerals, and statutory amendments override contrary contractual arrangements under mining law.
