JUDGMENT

BHARUCHA, J.- What has been urged in these writ petitions is that Rule 8-C, as amended by GOM No. 214 issued by the Government of Tamil Nadu on 10-6-1992, and Rule 38 of The Tamil Nadu Minor Mineral Concession Rules, 1959, are bad in law. The challenge is grounded on the provisions of sub-section (2) of Section 17-A of the Mines and Minerals (Regulation and Development) Act, 1957, which was inserted in the statute by Amending Act 37 of 1986.

2. Rule 8-C is in Section II of the said Rules, which deals with government lands in which minerals belong to the Government. The relevant portion of Rule 8-C, as amended, reads thus:

"8-C. Lease of quarries in respect of black, red, pink, grey, green, white or other coloured or multicoloured granites or any rock suitable for use as ornamental and decorative stones to a State Government company or corporation owned or controlled by the State Government.- (1)(a) Notwithstanding anything contained in these rules but subject to Rule 8-A and clause (b) of this sub-rule, on and from 10-6-1992, no lease for quarrying black, red, pink, grey, green, white or other coloured or multicoloured granites or any rock suitable for use as ornamental and decorative stones shall be granted to any person.

(b) The State Government themselves may engage in quarrying black, red, pink, grey, green, white or other coloured or multicoloured granites or any rock suitable for use as ornamental and decorative stones or may grant and renew leases for the above minerals to a State Government Company or a Corporation owned or controlled by the State Government."

Rule 38 is in Section V, dealing with miscellaneous matters. It reads thus:

"38. Reservation of area for exploitation in the public sector, etc.-

The State Government may, by notification in the Official Gazette, reserve any area for the exploitation by the Government, a corporation established by any Central, State or Provincial Act or a government company within the meaning of Section 617 of the Companies Act, 1956 (Central Act I of 1956)."

Section 17-A of the Act reads thus:

"17-A. Reservation of area for purposes of conservation.- (1) The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.

(2) The State Government may, with the approval of the Central Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it or by the Central Government and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.

(3) Where in exercise of the powers conferred by sub-section (2) the State Government undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under prospecting licence or mining lease."

It is an admitted position that the approval of the Central Government was not obtained to Rule 8-C as amended on 10-6-1992, either before or after that date.

3. Section 17-A(2) empowers the State Government to reserve any area not already held under a mining lease for undertaking mining operations through a Government company or corporation owned or controlled by it or by the Central Government, but it may do so only with the approval of the Central Government. When