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2026 DAILYLAW 27291 (ORI)

Bikash Kumar Patra, Son of Jogendra Patra v. State of Odisha, Represented through the Chief Secretary to Government Department of Planning and Convergence

2026-01-21

Harish Tandon, Murahari Sri Raman

body2026
J UDGMENT : H ARISH T ANDON , C.J. An interesting point is raised in the instant writ petition on the composition of the District Mineral Foundation for the district of Jajpur in terms of Section 9-B of the Mines and Minerals (Development and Regulation) Act, 1957 (for short, “MMDR Act”) read with Rule 4 of the Odisha District Mineral Foundations Rules 2015 (for brevity, “ODMF Rules”). The writ petition is filed by the petitioners assailing the Notification No.10593— PT1-PC-DMFC-DMF- 0021-2024/P, dated 24 th July, 2025 whereby and whereunder, the Government reconstituted the Board of Trustees called “the District Mineral Foundation for the District of Jajpur”. The said notification reveals 17 persons who will be the constituent of the said District Mineral Foundation which includes the Sarpanch of Pimpudia Gram Panchayat, Sarpanch of Haripur Gram Panchayat and Sarpanch of Dhuligarh Gram Panchayat. 2. It is specifically averred in the instant writ petition that since the mines are situated within the territorial jurisdiction of Kaliapani Gram Panchayat, Kansa Gram Panchayat and Ransol Gram Panchayat, inclusion of Sarpanch of the other Gram Panchayats as aforesaid, is contrary to Rule 4 of the ODMF Rules. 3. Before we proceed to decide the matter, it would be profitable to quote Section 9-B of the MMDR Act, 1957 and Rule 4 of the ODMF Rules, 2015 which run thus: “Section 9-B. District Mineral Foundation.? (1) In any district affected by mining related operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the District Mineral Foundation. (2) The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. (3) The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government. Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation. (3) The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government. Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation. (4) The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in Article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (40 of 1996) and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (2 of 2007). (5) The holder of a mining lease or a [composite license] granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 other than those covered under the provisions of sub-section (2) of section 10-A, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in terms of the Second Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government. (6) The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 and those covered under the provisions of sub-section (2) of section 10-A, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorisation of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government.” “Rule 4. Composition of Board of Trustees of the District Mineral Foundation.— (1) The Board of Trustees shall consist of the following members, namely: (i) Revenue Divisional Commissioner or Collector, as may be decided by the Government, who shall be its Chairperson; (ii) Collector, if he is not the chairperson, Additional District Magistrate and district level officers of Steel and Mines. Composition of Board of Trustees of the District Mineral Foundation.— (1) The Board of Trustees shall consist of the following members, namely: (i) Revenue Divisional Commissioner or Collector, as may be decided by the Government, who shall be its Chairperson; (ii) Collector, if he is not the chairperson, Additional District Magistrate and district level officers of Steel and Mines. Forest and Environment, Rural Development, Works, ST and SC Development and Health and Family Welfare Departments and of such other Departments as the Government may specify, who shall be its members, ex-officio; (iia) The Project Director, District Rural Development Agency and the Chief Executive Officer of the Trust, who shall be its members, ex-officio. (iii) The Collector of the District shall be the Managing Trustee; (iv) Each Member of the Lok Sabha and each Member of the Odisha Legislative Assembly in whose constituency any major mineral concession is situated, shall be its ex-officio members; (v) A member of the Zilla Parishad situated within the District wherein the area in which any major mineral concession is situated to be nominated by the Government as an ex-officio member; (vi) Not exceeding three members of Panchayati Raj Institutions or Urban Local Bodies from the area in which any major mineral concession is situated to be nominated by the Government as members. (1-a) Project Director, District Rural Development Agency or such other person as may be decided by the Government shall be the Chief Executive Officer of the Trust. (2) The Chairperson may invite such other officials to the meetings of the Board, as he may consider necessary. (3) The quorum for the Board shall be fifty percentum of the members. (4) The Board shall meet at least twice in a financial year.” 4. Learned counsel for the petitioners invited the attention of the Court to Clause (vi) of sub-rule (1) of Rule 4 of the ODMF Rules which provides that a maximum three members of the Panchayati Raj Institutions or the Urban Local Bodies where the major mineral concession is situated shall be the constituent of the said Foundation, and, therefore, inclusion of any Sarpanch from a Gram Panchayat where the major mineral concession is not situated contravenes the said provision. 5 . 5 . According to him, the Members of the Gram Panchayats can only be included as Member of the Foundation if any part or portion of the major mineral concession is situated within its territorial jurisdiction. Therefore, the inclusion of the Members of the Gram Panchayats of other villages where the major mineral concession is not situated is opposed to the said Rule and once the violation is patent, the said notification is liable to be quashed and set aside to such extent. 6. On the other hand, Mr. Saswat Das, learned Additional Government Advocate has taken a shelter under Section 9-B of the MMDR Act which contains that any district affected by the mining related operation has to be given a primacy as the said Foundation is a non-profit body. 7 . Taking a clue from sub-section (2) of Section 9-B of the MMDR Act, 1957, Mr. Saswat Das, learned Additional Government Advocate contended that the object underlining the formation of District Mineral Foundation is for the interest and benefit of the persons and the areas affected by the mining related operation, and, therefore, any village which is affected by a mining related activities are engulfed within the said provision. Therefore, the inclusion of the Sarpanch of the above mentioned respective Gram Panchayat(s) cannot be said to be in contradiction to the said Rules. 8. We would have persuaded ourselves to accept such proposition, but upon reading of the languages, the words and the phrase used in the MMDR Act and the ODMF Rules, we are unable to accept the proposition sought to be made by the learned Additional Government Advocate. 9. Section 9-B of the said Act was introduced by way of an amendment in the year 2015 where the Government decided to constitute a District Mineral Foundation having a primary object to work for the interest and the benefits of persons and the area affected by the mining related operation. 10. Such avowed object is reflected in sub-section (2) of Section 9B to constitute District Mineral Foundation. However, the same has to be achieved in the manner as may be prescribed by the State Government. The bare reading of sub-section (2) of Section 9-B of the MMDR Act, conveys the laudable massage that keeping in mind the primary object for constitution of the District Mineral Foundation, the State Government may prescribe the mechanism to achieve the same. However, the same has to be achieved in the manner as may be prescribed by the State Government. The bare reading of sub-section (2) of Section 9-B of the MMDR Act, conveys the laudable massage that keeping in mind the primary object for constitution of the District Mineral Foundation, the State Government may prescribe the mechanism to achieve the same. Said sub-section (2) of Section 9-B was invoked along with the other rule-making power emanating from Section 15 and Section 15A of the MMDR Act, the Odisha District Mineral Foundation Rules, 2015 was promulgated which cannot be said to be in colourable exercise of powers or exceeding the rule-making powers reserved in the Parent Act. There is no challenge to the said ODMF Rules being violative of any constitutional provisions or the substantive Act. Therefore, it would be a first and foremost duty of the Court to interpret the provisions contained in the said Rule in a more beneficial way, so as to make it workable, rather to render it otiose. 11. The preamble of the said ODMF Rule exposits that the same is made to regulate the composition, the function and the manner of working of the District Mineral Foundation and the amount of payment to be made to such foundation by the concession holders of the minerals for the interest and the benefit of the persons. The distinction has to be drawn between the provisions contained in the substantive Act (the MMDR Act) and the subordinate legislation (the ODMF Rules) in interpreting the same keeping in mind not only the object and purpose behind the promulgation of the substantive Act, but also making it workable and upholding the avowed purposes for incorporating the said Act. 12. The object of establishing the District Mineral Foundation is for the interest and benefit of the persons and the areas affected by the mining related operation, which is distinct and different from the provisions relating to the constituent of the said Foundation. The MMDR Act does not provide any members to be included in the said Foundation but the primary principles on which such Foundation should function. The constituent of the said Foundation is provided in the subordinate legislation which cannot be said to be either opposed to Section 9-B (2) or any other provision(s) of the said MMDR Act. The MMDR Act does not provide any members to be included in the said Foundation but the primary principles on which such Foundation should function. The constituent of the said Foundation is provided in the subordinate legislation which cannot be said to be either opposed to Section 9-B (2) or any other provision(s) of the said MMDR Act. The area is not defined in the Act, and, therefore, there is no impediment on the part of the Court to provide a generic meaning known in a common parlance. 13. Though Mr. Saswat Das, Learned Additional Government Advocate sought to rely upon the definition of the term “mineral concession” contained in Section 3(ae) of the MMDR Act to mean “either a reconnaissance permit, prospecting licence, mining lease, composite licence or a combination of any of these and the expression “concession” shall be construed accordingly”, however, we do not find that such meaning can be attributed in interpreting Clause (vi) of sub-rule (1) of Rule 4 of the ODMF Rules. The expression “the area in which any major mineral concession is situated” in said clause has to be assigned a proper meaning. In order to ascertain the intention and the purpose of the legislator in promulgating such subordinate legislation, even the word “situate” means a site or a place. If it is conjointly used with the “area”, it would mean a geographical limit of a place. Therefore, the contention of Mr. Saswat Das, learned Additional Government Advocate to assign the meaning of “mineral concession” defined under the MMDR Act would frustrate the very object and purposes. It would invite an anomalous situation. Therefore, the intention of the maker of the law has to be deciphered on a bare reading thereof. The harmony between sub-section (2) of Section 9-B of the MMDR Act and Rule 4 of the ODMF Rules can only be achieved on the said foundation so constituted would function in accordance with the object shown in sub-section (2) of Section 9-B thereof. 14. The object and the functioning of the Foundation is a distinct feature than the constituents of the said Foundation. 14. The object and the functioning of the Foundation is a distinct feature than the constituents of the said Foundation. Once three Members of the Gram Panchayats are to be included in the body of the said Foundation from an area where the major mineral concession is situated, it ruled out the inclusion of any Member of the Gram Panchayat of the adjoining villages where the said mine is not situated. 15. The expression 'mining related operations' appearing in sub-section (2) of Section 9-B of the Act has to be read in juxtaposition with the definition of the term “mining operations” as ascribed to in Section 3(d) of the MMDR Act, i.e., “any operations undertaken for the purpose of winning any mineral”. As a logical corollary winning of mineral has to be from a place or a site, and, therefore, we do not find any incongruity in the language used in Clause (vi) of sub-rule (1) of Rule 4 of the said ODMF Rules. 16. On the basis of the discussions and the observations made hereinabove, we find that the inclusion of the Sarpanches of the nearby/adjoining Gram Panchayats, where the mine is not situated is contrary to Clause (vi) of sub-rule (1) of Rule 4 of the said ODMF Rules. Therefore, the notification dated 24th July, 2025 is partially quashed to the extent of inclusion of the Sarpanches of three (3) Gram Panchayats mentioned at serial Nos.(xv), (xvi) and (xvii) as Members of the said Foundation. The Development Commissioner- cum-Additional Chief Secretary to the Government of Planning and Convergence Department is directed to reconstitute the said Foundation strictly in terms of Clause (vi) of sub-rule (1) of Rule 4 of the said Odisha District Mineral Foundations Rules, 2015, within a period of four weeks from the date of communication of this order. 17. With the aforesaid observations and direction, the instant writ petition stands disposed of.