Judgment

ALAGIRISWAMI, J. :- This is an appeal by special leave against the judgment of the High Court of Assam allowing the petition filed by respondent questioning the validity of the order dated 27-6-1962 issued by the Deputy Commissioner, Khasi Jaintia Hills on behalf of the Government of Assam that their application for renewal of the mining lease granted to their father must be deemed to have been refused under sub-rule (3) of Rule 24 of the Mineral Concession Rules, 1960.

2. The lease in question was granted by the Crown Representative on 29th April, 1942 to Bhagirath Mohta the father of the respondents for a period of 20 years to operate the coal-mines. Bhagirath Mohta died on 18-5-1961 and on 3-8-1961 the respondents applied for renewal of the lease. By his order earlier mentioned the Deputy Commissioner informed the respondents that the application for renewal must be deemed to have been refused. On 22-10-1962 the respondents filed a revision petition to the Central Government under Rule 54 of the Mineral Concession Rules, and this was rejected on 8-2-1963. On 7-5-1963 the respondents filed a petition before the High Court of Assam for quashing the order dated 27th June, 1962 and for a writ of Mandamus directing the renewal of the lease. The appellants contended that the rights of the respondents, if any, were wholly contractual and based on disputed facts and they could only establish them by filing a regular suit in a Civil Court.

3. The High Court of Assam allowed the petition filed by the respondents holding that Rule 24 (3) of the Mineral Concession Rules, under which the application by the respondents was deemed to have been rejected, was unreasonable and ultra vires of Section 8 of the Minerals (Regulation and Development) Act, 1957, and the deemed refusal of the application for renewal had no legal effect, that the explanation to Rule 54 should also be struck down as repugnant to the main sections of the Act. It, therefore, quashed the order of the Deputy Commissioner dated 27th June, 1962 and issued a writ of Mandamus to the State Government to deal with and dispose of the application of the petitioners dated 3-8-1961 for renewal.

4. The first question to be decided, therefore, is whether Rule 24 (3) and the explanation to Rule 54 are repugnant to the provisions of Section 8 of the Act and therefore, liable to be struck down. We may first set out the relevant provisions. Rule 24 reads as follows :

"24. Disposal of application for mining lease - (1) An application for the grant of a mining lease shall be disposed of within nine months from the date of its receipt.

(2) An application for the renewal of a mining lease shall be disposed of within ninety days from the date for its receipt.

(3) If any application is not disposed of within the period specified in sub-rule (1), or sub-rule (2), it shall be deemed to have been refused."

Rule 54 reads as follows :

"Application for revision. - (1) Any person aggrieved by any order made by the State Government or other authority in exercise of the powers conferred on it by the Act or these rules may, within two months of the date of communication of the order to him, apply to the Central Government in duplicate in Form N for revision of the order. The application should be accompanied by a treasury receipt showing that a fee of Rupees 100 has been paid into Government treasury or in any branch of the State Bank of India doing the treasury business to the credit of the Central Government.........................

Provided that any such application may be entertained after the said period of two months, if the applicant satisfies the Central Government that he had sufficient cause for not making the application within time.

(2) In every application under sub-rule (1) against the order of a State Government refusing to grant a prospecting licence or a mining lease, any person to whom a prospecting licence or mining lease was granted in respect of the same area or for a part thereof, s