PESHAWAR, July 12: The Peshawar High Court here on Thursday declared cancellation of lease agreements, relating to exploration of phosphate mines in Abbottabad district, by the provincial government illegal.

A two-member bench comprising Chief Justice Dost Mohammad Khan and Justice Sajjad Hassan Shah accepted two writ petitions filed by a resident of Abbottabad, Rukhsana Javed, challenging the suspension and cancellation of three lease agreements related to exploration of phosphate.

The bench observed that provincial mines and minerals department had violated the principle of natural justice and the established principle that nobody should be condemned unheard by suspending and cancelling lease agreements of the petitioner without providing her an opportunity to be heard.

However, the bench observed that the rules on the subject did not preclude the competent authority to proceed against the petitioner strictly in accordance with law in case any violation of the terms and conditions of the lease had taken place.

The issue assumed fame last year when a high level inquiry was conducted regarding the affairs of the mines and mineral department and objection was raised over leasing out the said land to the petitioner. It was alleged that first she was granted prospecting licences, which were later converted into lease agreements regarding exploration of phosphate at a throwaway price.

However, the petitioner denied the charges and claimed that an influential figure in the province tried to receive bribe from her and on failure her prospecting licences and lease agreements were cancelled.

Advocate Syed Attique Shah appeared for the petitioner and said that in one of the cases the petitioner was granted prospecting licence regarding land measuring 489 acres.

He stated that on July 14, 2011, an assistant director of the department ordered suspension of all the mining operations of the petitioner in the prescribed areas on the allegation that she had carried out illegal mining operation in the area not allotted to her.

Mr Shah said that on July 30, 2011, the same assistant director cancelled three lease agreements signed with the petitioner. He argued that the action was taken against the petitioner without issuance of any show cause notice. He contended that it was against the principle of natural justice and nobody should be condemned unheard.

An additional advocate general, Lal Jan Khattak, argued that prior to suspension of the lease a high level inquiry was conducted by the government through a committee comprising the deputy director (exploration) Bannu, assistant director (mineral

development) D.I. Khan and senior inspector mines. He added that the inquiry found the petitioner guilty of irregularities.

When the bench inquired from him whether any show cause notice was issued to the petitioner, he replied in negative. He said that the petitions were not maintainable as under the rules the petitioner had the remedy to file an appeal against the impugned orders before the secretary of the department. He requested the court to refer the petition to the competent authority to be treated as appeal.

However, the bench disagreed with his contention observing that the department was already biased against the petitioner and the malice on its part was visible from the fact that instead of director general of the department, who was the competent authority, an assistant director was asked to issue the orders regarding the cancellation of lease.