Judgment

RANGANATHAN, J.:- The petitioner company obtained mining leases from the Government of Assam to extract sillimanite in the Khasi and Iaintia Hills District. In pursuance thereof, three lease deeds were executed by the State Government in favour of the petitioner. The first was a lease deed dated 25-4-1962 for a period of 15 years in respect of an area of 129.60 hectares at Lalmati. The second, dated 10-4-1968, was for a period of 15 years in respect of an area of 777.60 hectares at Nongmawait. The third one dated 8-6-1967 was for a period of 15 years and covered an area of 363 hectares at Warnsophi. The three lease deeds were to expire on 25-4-77, 9-4-78 and 7-6-82 respectively but there was a clause further renewal.

2. The petitioner company had also established a refractory Plant in 1961 near Ramgarh in District Hazaribagh. It appears, however, that petitioner faced a number of difficulties in operating the refractory plant and was explaining its difficulties to the State of Meghalaya which was formed in 1970.

3. Between 1970 to 1972, the Union of India, through its public sector companies, Hindustan Steel Ltd. and Bokaro Steel Ltd. negotiated with the petitioner for the pu