Minerals Dept Of Assam Can't Stop Railway From Moving Goods In Course Of Inter-State Trade Over Demand Of Joint NOC: Gauhati HC Opines Prima Facie

The Gauhati High Court has prima facie observed that the Assam Mineral Development Corporation can't stop the Railways from transporting goods, in this case coal, in course of inter-state trade, in absence of a joint NOC being issued by the Corporation.

Justice Arun Dev Chaudhry opined that the Corporation may not have the jurisdiction for issuance of such joint NOC. 

Accordingly, it stayed a communication issued by the Corporation requiring the Chief Freight Transportation Manager of the NF Railways that the transit passes, supporting documents/papers etc. submitted by the intending coal transporters be sent to the office of the Managing Director, Assam Mineral Development Corporation Limited for verification and for issuance of joint NOC by the Assam Mineral Development Corporation Limited and the Directorate of Geology & Mining, Assam.

The case pertained to Utimraj Commercial Pvt Ltd, engaged in business of coal in the States of Meghalaya. The Petitioner used to transport coal from the States of Meghalaya to other different States in the country through Railways. Given Meghalaya's geographic location, the goods pass through the state of Assam in this process.

The petitioner stated to have obtained necessary documents, such as transit passes and NOCs from the Government of Meghalaya, for such transport. However, it was aggrieved by the aforementioned communication issued by the Managing Director, Assam Mineral Development Corporation.

Court noted that if the coal is being transported from the State of Meghalaya to the other States and are being transported by the Railways through the State of Assam, the authorities in the State of Assam, may be the Assam Mineral Development Corporation, would have a jurisdiction to inspect the documents. However, prima facie it cannot be a case where the Assam Mineral Development Corporation would require the Railways not to transport the coal without any joint NOC being issued by the Assam Mineral Development Corporation inasmuch as the Assam Mineral Development Corporation may not have the jurisdiction for issuance of such joint NOC.

Accordingly, it issued notice on the plea, returnable after four weeks.