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1969 Supreme(SC) 534

SUPREME COURT OF INDIA
C.A.Vaidialingam : J.M.Shelat : V.Bhargava
Kangra Valley State Compant
Versus
State Of Punjab
Case No. : 1034 of 1966
Date of Decision : 12/19/69

Headnote:

Mines and Minerals (Regulations and Development), 1957 - Section 16 , 5 , 5(1) , 2 , 18 , 4 and 13(2) - Defence of India Act, 1939 - Section 2 - Madras General Sales Tax Act,1939, - Section 19 - Mining Leases (Modification of Terms) Amendment Rules, 1960 - Rule 6, 28 , 54 , 28(1) , (2) , 23 , 24 , 22 and 26 - Madras General Sales Tax Rules - Rule 17 - Company - Mining Leases - Application for Renewal - Whether appellant companys application bearing, for renewal of a mining lease was time-barred and therefore not a valid application - Whether application was made within time - Whether application was sent on 20/09/1961 or not - Whether it was sent by personal delivery or despatched by post - Whether it was intended to be mandatory - Whether renewal should be granted or not - Whether order of central government not being a speaking order was bad or whether application by company was not a valid one inasmuch as company – Held, Writ petition filed by company it was no doubt stated that though State government received application it was sent by company - Since it was sent from New Delhi to Chandigarh, presumably it was sent by post, but no evidence was produced to show when it was dispatched - Mere fact, therefore that application bore date 20/09/1961 cannot mean that it was made on that day and was, therefore, within time – Court hold, therefore, that application was not made within prescribed time and was time-barred - If renewal was not granted land in question would be available for re-grant and State government would have to declare that land was so availabe for re-grant, invite applications for grant of lease and follow procedure laid down in Act and Rules therefor - It is obvious that if time of six months prescribed in Rules 22 and 28 was not available to State government it would not be possible for it to decide within time and to follow procedure for granting a fresh lease to someone else - Assuming that application was a valid one and that requirement of annexing copy of certificate of approval was not mandatory and assuming further that order of central government was not a valid one, only thing that Court could be asked to do would be to send back matter to central Government directing it to pass a proper order - But in view that Court have taken of Rule 28 and consequently of application for renewal being time-barred, central government can only reject once again revision application adding in its order that Director was right in rejecting application as it was time barred - Such an order of remand would serve no useful purpose so far as appellant company is concerned - That being so, it is not worth our while to interfere under Article 136 with order of Central government and ask that government to pass a fresh order - Appeal dismissed.

J.M. SHELAT, J.

(1) THE question arising in this appeal is whether the appellant companys application bearing the date 20/09/1961, for renewal of a mining lease was time-barred and therefore not a valid application.

(2) THE Company is a public limited company having its registered office in New Delhi and is engaged in quarrying state and marketing the same. The company had secured a perpetual lease, dated March 22, 1879, of certain lands in village Majra and Manhatti in District Gurgaon. The Controller of Mining Leases under powers reserved under Section 16 of the Mines and Minerals (Regulations and Development) Act 67 of 1957 (hereinafter called the Act), read with Rule 6 of the Mining Leases (Modification of Terms) Amendment Rules, 1960, modified the said lease reducing its period so as to expire on 22/03/1962. In consequence of certain correspondence which took place between the company and the Director of Industries, Punjab, the companys secretary met that official on 12/09/1961, when he was advised that the compant should apply for renewal of lease in Form J if it so desired. Consequently, it was said that the company made an application bearing the date 20/09/1961, which was received by the Director of Industries on 9/10/1961. The company thereafter applied for and obtained on 10/11/1961, a certificate of approval under Section 5 of the Act. The Director of Industries, however, rejected the said application on two grounds, (1) that it was beyond the time prescribed under Rule 28 of the Mining Concession Rules, 1960 and (2) that it was not a valid application under Form J as it was not accompanied by a copy of the certificate of approval. The company there- upon filed a revision application under Rule 54 of the said rules to the central Government. The central government by its order, dated 14/12/1962, rejected it on the ground that it saw no valid ground for interfering with the decision of the government of Punjab. Aggrieved by the said orders, the company filed a writ petition in the High court of Punjab challenging the validity of the said two orders. In the petition the company averred that the said application for renewal, though received by the Director of Industries on 9/10/1961, was sent by the petitioner on 20/9/1961. The petition also averred that the company had obtained the certificate of approval as required by Section 5 of the Act and though it did not accompany the said application it was obtained before the Director passed his said order and, therefore, the certificate was within the knowledge of the State government. In the petition the company challenged the said orders on the grounds that there was no valid ground to hold the said application to be time-barred, that there was no provision in the Act or the rules requiring the company to be in possession of the certificate of approval at the time of the said application, that the company had obtained that certificate and that fact was known to the Director, and lastly, that the order of the central government not being a speaking order was invalid.

(3) THE learned single Judge of the High court, who heard the writ peti- tion, held that though the said application was rejected on two grounds, one of them was demonstratively untenable, the authority having recognised that the company had obtained the certificate of approval under Section 5(1) of the Act. He further held that the Director of Industries having relied upon two grounds for rejection, one of which was untenable, it was difficult to say which of the two grounds was considered sufficient by the central Government to uphold the rejection in view of its order not containing any reasons whatsoever. The learned Judge relying upon the decision in Harinagar Sugar Mills Ltd. v. Jhunjhuwala held that the order of the central Government not being a speaking order was invalid. A letters patent appeal against the said order was heard by a division bench of the High court. The Division












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