Judgment

KRISHNA IYER, J. - This appeal, by special leave, raises only a few points of law, although the stakes, counsel states, are substantial.

2. The appellant had a mining lease stretching over a period of 20 years from the respondent State of Madhya Pradesh. The grant of such licences is governed by the Mines and Minerals (Regulation and Development) Act, 1957 (hereinafter referred to as the Act) and the rules framed thereunder. In particular we are concerned with Rs. 27 (5) framed by the Central Government in exercise of its powers under S. 13.

3. Right at the outset we may re-produce the relevant rule:

"Rule 27 (5) If the lessee makes default in payment of royalty as required by S. 9 or commits a breach of any of the conditions other than those referred to in sub-para (4). the State Government shall give notice to the lessee requiring him to pay the royalty or remedy the breach, as the case may be, within sixty days from the date of receipt of the notice and if the royalty is not paid or the breach is not remedied within such period, the State Government may, without prejudice to any proceeding that may be taken against him, determine the lease and forfeit the whole or part of t