Judgment

SHAH, J.: I agree that Appeal No. 2122 of 1969 must be dismissed. I also agree that if the State Government fails to dispose of the application for grant of a mining lease within the time prescribed by the rules, the failure results in refusal to grant the lease. The High Court was in error in holding that in the absence of a provision enacting that even if the application stands rejected for failure to pass an order within the time prescribed, the State Government has power to issue a licence. The High Court was again in error in holding that because of the representations made by the State before Bhimasankaran, J., in Writ Petition No. 1237 of 1957 the State Government were estopped from contending that the application was by the first respondent must be deemed to have been refused.

2. But I am unable to agree that the Central Government was competent in exercise of its power of review, against the order of the State Government made in compliance with the order of Basi Reddy, J. in Writ Petition No. 888 of 1957, to set aside the order so as in effect to overrule the judgment of the High Court.

3. The relevant facts may be recalled. The Central Government made an order on Se