SUPREME COURT OF INDIA
R.S. PATHAK AND O. CHINNAPPA REDDY, JJ.
State of T.N., Appellant
Versus
M/s. Hind Stone etc. etc., Respondents.
Civil Appeals Nos. 2602-2604 of 1980,
D/- 5-2-1981.
Advocates appeared
Mr. Lal Narain Sinha, Attorney General of India (in C. A. No. 2602); Mr. Soli J., Sorabjee. Sr. Advocate (in C. A. No. 2603); Mr. R. Krishnamurthy, 713 Ad.General (in C. A. No. 2604) and Mr. A. V. Rangam and Mr. K. Venkatawani, Advocates (in all Matters) for Appellant; Dr. Y. S. Chitale, Sr. Advocate; Mrs. S. Ramchandra and Mukul Mudgal, Advocates for Respondent No. 11, Dr. Y. S. Chitale, Sr. Advocate; Mr. P. Shanmughan and C. S. Vaidyanathan. Advocates, for Respondent No. 42 M/s. P. Chidambaram and A. S. Nambiar, Advocates for Respondents. Mr. A. V. Rangam and Mr. R. N. Sachthey, Advocates, for Interveners, M/s. V. Srinivasan, A. Venkatariyana and P. N. Ramalingam, Advocates, for Respondent No.45.
Mines and Minerals (Regulation and Development) Act, 1957 – Section 15 - Tamil Nadu Minor Mineral Concession Rules, 1959 - Rule 8A, 8-C and 9 - Renewal of lease - Lease of quarries in respect of black granite to private persons - Regulation of mines and mineral development subject - Whether Rule 8-C is attracted when applications for renewal of leases are dealt with - Renewal of lease - While regulation of mines and mineral development is ordinarily a subject for State legislation, Parliament may, by law, declare extent to which control of such regulation and development by Union is expedient in public interest, and, to that extent, it becomes a subject for Parliamentary legislation - Held, Absence of any vested rights in anyone, an application for a lease has necessarily to be dealt with according to rules in force on date of disposal of application despite fact that there is a long delay since the making of application - Therefore, unable to accept submission of learned counsel that applications for grant or renewal of leases made long prior to date of G.O. should be dealt with as if Rule 8-C did not exist - Right, to minerals belongs to private owners and those owners seek permission to quarry black granite applications will have to be dealt with under the relevant rules in Section III of the Tamil Nadu Minor Mineral Concession Rules. Rule 8-C, it may be noted, does not, impose a general ban on quarrying black granite but only imposes a bar on the grant of leases for quarrying black granite. Appeals and Special Leave Petitions which arise out of applications for the grant of permission, to quarry black granite in the Patta lands belonging to the applicants themselves, have therefore, to be dismissed - Civil Appeals allowed.
Judgment
CHINNAPPA REDDY, J.:- Entry 23 of List II of the Seventh Schedule to the Constitution is, "Regulation of mines and mineral development subject to the provisions of List I with respect to regulation and development under the control of the Union". Entry 54 of List I of the Seventh Schedule is "Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest". Thus while regulation of mines and mineral development is ordinarily a subject for State legislation, Parliament may, by law, declare the extent to which control of such regulation and development by the Union is expedient in the public interest, and, to that extent, it becomes a subject for Parliamentary legislation. Parliament has accordingly enacted, the Mines and Minerals (Regulation and Development) Act, 1957. By Section 2 of the Act it is 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 thereafter provided. It is now common ground between the parties that as a result of the declaration made by Parliament, by Section 2 of the Act. the State legislatures are denuded of the whole of their legislative power with respect to regulation of mines and mineral development and that the entire legislative field has been taken over by Parliament, That this is the true position in law is clear from the pronouncements of this Court in The Hingir-Rampur Coal Co. Ltd. v. The State of Orissa, (1961) 2 SCR 537, State of Orissa v. M. A. Tulloch & Co., (1964) 4 SCR 461 and Baijnath Kedia v. State of Bihar, (1970) 2 SCR 100. Section 3 of the Mines and Minerals (Regulation and Development) Act, 1937, defines various expressions occurring in the Act. Section 3 (e) defines minor minerals and it includes any mineral declared to be a minor mineral by the Central Government by a notification in the Official Gazette. Black granite has been so notified by the Central Government as a minor mineral. Sections 4 to 9A are grouped under the heading General Restrictions on undertaking prospecting and mining operations. These provisions as well as Sections 10 to 13 are made inapplicable to minor minerals by S. 14. S. 4 prohibits all prospecting or mining operations except under a licence or a lease granted under the Act and the rules made thereunder. Section 4A (1) enables the State Government on a request made by the Central Government in the interest of regulation of mines and mineral development to terminate a mining lease pre-maturely and grant a fresh mining lease in favour of a Government Company or Corporation owned or controlled by Government. Perhaps because Section 4A (1) is inapplicable to minor minerals because of the provisions of Section 14, Section 4A (2) has been expressly enacted making somewhat similar provision, as in Section 4A (1), in respect of minor minerals also, Section 4A (2) enables the State Government, after consultation with the Central Government, if it is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do, to prematurely terminate a mining lease in respect of any minor mineral and grant a fresh lease in respect of such mineral in favour of a Government Company or Corporation owned or controlled by Government. Section 5 imposes certain restrictions on the grant of prospecting licences and mining leases. Section 6 prescribes the maximum area for which a prospecting licence or mining lease may be granted. Section 7 prescribes the period for which prospecting licences may be granted or renewed. Section 8 prescribes the period for which mining leases may be granted or renewed. Section 9 provides for the payment of royalty and Section 9A for the payment of dead rent. Secs. 10, 11 and 12 constitute a group of sections under the title Procedure for obtaining prospectin
State of U. P. v. Hindustan Aluminium Corporation Ltd.
followed : Atibari Tea Co. Ltd. v. State of Assam
Automobile Transport (Rajasthan) Ltd. v. State of Rajasthan
State of U. P. v. Babu Ram Upadhya
distinguished and limited : State of Mysore v. H. Sanjeeviak
Hingir-Rampur Coal Co. Ltd. v. State of orissa
State of orissa v. M. A. Tulloch and Co.
Baijnath Kedia v. State of Bihar
followed : H.C.Naraynappa v. State of Mysore
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