IMPORTANT POINT
A seashell in its original form is not a mineral.

Headnote:Mines and Minerals Regulation and Development) Act, 1957-Section 3(a) -Minerals-Scope-Seashells collected from lands belonging to private individuals along the seashore-Whether can be termed as minerals-(No)-Observation made by Single Judge of the High Court that as seashell are admittedly dug out from the earth, therefore, they fall within definition of mineral held as an incorrect approach-It cannot be said that a seashell in its original form is a mineral-Appellate Court was not justified in arriving at meaning of word limeshell by treating it as a compound word.
       Held : The issue whether seasell is mineral for the purposes of the Act, was not one which could be determined without extensive research by technically competent persons. According to the respondent the State Government was guided by the report of the Additional State Geologist in issuing the order dated 3-4-1975. The order does not refer to any report nor has the report been brought on record nor its contents disclosed. The letter dated 3rd April 1975 does not show that the State Government had acted on the finding of any acknowledged expert. The determination that seashells is lime-shell and a major mineral within the meaning of the Act does not appear to have been based upon any material whatsoever. The reason given in GO dated 26-5-1977 for rejection of the representation of some of the appellants, namely, that mining leases had already been issued in other districts of the State in respect of seashells, is no reason at all. (Para 19)
       Even the definitions put forward by the deponent, do not indicate that seashells by themselves are limeshell. Limeshell according to the definition advanced by the respondent is in the nature of a deposit of lime, which might be derived from marine animal shells upon further processing and after admixture with other inorganic elements. For all these reasons the decision of the State Government as expressed in the G.O. dated 3.4.1975 cannot be sustained. (Para 19)
       In view of our decision in the appeals, the requirement of taking out a mining lease under the 1957 Act and of payment of royalty thereunder in respect of seashells cannot, of course, be sustained. However since the matter is pending before this Court for a long time and realisations have been made by the State Government on the basis of the impugned decision of the High Court, it would not be appropriate to direct refund of the amounts already collected by the respondent from the appellants under the Act in respect of seashells. (Para 22)

JUDGMENT

Ruma Pal, J.-The appellants gather and trade in seashells. The seashells are collected from lands belonging to private individuals along the seashore near Tuticorin in the State of Tamil Nadu. The question to be decided is whether sea shells can be termed to be mineral within the meaning of the Mines and Minerals (Regulation and Development) Act, 1957 (referred to as the Act).

2. The Act was enacted by the Central Government in exercise of its power under Entry 54 of List I of the Seventh Schedule read with Article 246 of the Constitution. Under Section 2 of the Act it was declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent provided in the Act. The word minerals has been, somewhat un-helpfully, defined in Section 3(a) as including "all minerals except mineral oils". Despite the generality of this definition, from the provisions of the Act it is clear that there are two classes of minerals. The first is that of "minor minerals" which has been defined in Section 3(e) of the Act as meaning "building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a "minor mineral". The second group of minerals would be the "major minerals" or the minerals not included within the definition of "minor minerals". The importance of this distinction between the two types of minerals lies in the fact that as far as minor minerals are concerned the State Governments have been empowered under Section 15 to make rules in respect of minor minerals by notification in the Official Gazette for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for the purposes connected therewith. The provisions of the Act, namely. Section 5 to 13 which relate to all other minerals do not apply to minor minerals.

3. The Act envisages three kinds of operations in respect of minerals - mining, prospecting and reconnaissance. We are in this case concerned with mining leases. Section 4 of the Act inter alia provides that no person shall undertake mining operations in any area except under and in accordance with the terms and conditions of a mining lease granted under the Act and the Rules framed thereunder. Sub-section (1) of Section 6 places restrictions on the acquisition of any mineral or prescribed group of associated minerals in a State. The associated minerals have been specified in Rule 69 of the Mineral Concession Rules, 1960. Section 9 provides for the payment of royalty in respect of mining leases in respect of any mineral removed or consumed by the holder or by his agent, manager, employee, contractor or sub-lessee from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral. The Second Schedule contains a list of 50 specified minerals. Entry 28 refers to "lime shell"and item 51 deals with all other minerals not herein before specified .

4. By a letter dated 24-9-73, the Collector, Tirunevelli, wrote to the State Government, stating (in so far as it is relevant) that large quantities of seashells were being quarried from "patta lands" near Tuticorin village and transported to various places for sale. Since seashells did not find place in the list of "associated minerals" under Rule 69 of the Mineral Concession Rule, 1960, the Collector requested that the Central Government should be moved to notify seashells as an associated mineral under the Act.

5. On 3rd April 1975, the State Government issued a memo which said that the proposal of the Collector had been carefully examined in consultation with the Director of Industries and Commerce and that it was "reported that seashells are the same as lime shell which is classified as a major mineral under the Second Schedule to the Mi

Click Here to Read the rest of this document

2003 Supreme(SC) 530

IMPORTANT POINTA seashell in its original form is not a mineral.

Cases Referred (3)

IMPORTANT POINT
A seashell in its original form is not a mineral.