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SUPREME COURT OF INDIA
J.S.Verma : K.S.Paripoornan : S.P.Bharucha
State Of Tamil Nadu
Versus
M.P.P.Kavery Chetty
Case No. : 1655 of 1993, 845 , 869 of 1993
Date of Decision : 1/19/95
Advocates Appeared: Agarwala E.C. : Agrawala L.P. : Balachandran V. : Chaudhary Pravir : Chopra W.C. : Choudhary K.Rajendra : Choudhary Prabir : Gopalakrishnan G. : Gupta Aruneshwar : Iyer Ganpathy : Krishnamurthy V. : Kumar K.Ram : Malhotra Indu : Mani K.K. : Mariarputham A. : Mohan K.V. : Mohan R. : Perumal R.A. : Ramalingam P.N. : Seetharaman P.R. : Setia S.R. : Sharma Surya Kant
Appeal against judgment – Jurisdiction – Bank - State government issued government - It stated that under the said Rules as they stood, orders had been issued that leases be granted to industries which had already been established for cutting and polishing granite and to those who gave a definite industrial to set up such units within the appellant State within a period of two years from the date of receipt of the letter of commitment - Director of Geology and Mining at Madras had reported to the State Government that illicit mining and transportation was rampant in a number of districts, that the amount obtained as tender bids for granite leases was very and that there was an alarming tendency for monopolies to be created in the granite trade – Held, Said Act is enacted to provide for regulation of mines and the development of minerals under the control of the Union. Section 2 of said Act declares that it is expedient in public interest that Union should take under its control the regulation of mines and the development of minerals to the extent provided in the said Act. Section 13 empowers the central government to make rules for regulating the grant of prospecting and mineral leases in respect of minerals and for purposes connected therewith. Ss. (1 of Section 15 empowers the State government to make rules for regulating grant of quarry leases mining leases and other mineral concessions in respect of minor minerals and for purposes connected therewith. Ss. (1-A) of Section 15 states that such rules may provide for the matters set out therein, namely person by whom and the manner in which an application for a quarry lease, mining lease and the like may be made; the fees to be paid there for time and the form in which the application is to be made; the matters which are to be considered where applications in respect of the same land are received on the same day; the terms and conditions on which leases may be granted or regulated; the procedure in this behalf; the facilities to be afforded to lease-holders; the fixation and collection of rent and other charges and the time within which they are payable; the protection of the rights of third parties; the protection of flora; the manner in which leases may be transferred; the construction maintenance and use of roads, power transmission lines, etc. on the land; the form of registers to be maintained; reports and statements to be submitted and to whom; and the revision of any order passed by any authority under the said Rules. Clause (o) of Ss reads any other matter which is to be or may be prescribed". Section 18 of the said Act states that it shall be the duty of the central government to take all such steps as may be necessary for the conservation and systematic development of the environment by preventing or controlling any pollution which may be caused by prospecting or mining operations - RULES 8-D and 19-B empower the State government or its officers or a State government company or corporation as the State government may direct to control the sale by every permit-holder of quarried granite or other rock suitable for ornamental or decorative purposes - They also empower the State government or its officers or a State government company or corporation, as the case may be, to fix the minimum price for sale thereof - Object, as is shown by terms of government Order quoted above is to conserve and protect granite resources – Appeal dismissed
Judgmenrt
S.P.BHARUCHA, J.
(1) LEAVE granted.
(2) IN these appeals the State of Tamil Nadu impugns the judgment and order dated 23/12/1992 of a division bench of the High court at Madras whereby Rules 8-D and 19-B and a part of Rule 19-A of the Tamil Nadu Minor Mineral Concession Rules, 1959, ("the said Rules") made under the provisions of the Mines and Minerals (Regulation and Development) Act, 1957 ("the said Act") were struck down as unconstitutional. The government orders by which these provisions were introduced into the said Rules were also quashed in part. A direction was issued to the appellant State to permit the respondents herein, being the petitioners upon whose writ petitions the judgments and orders were passed, to carry on quarrying operations and transport the material quarried without reference to the aforementioned rules, a subject to the payment of royalty and seigniorage.
(3)
RULE 19-A
Prior to 10/6/1992, Rule 19-A read thus:
"19-A. Permission for quarrying black, pink, red, grey, green and other coloured granites and any other rock required for use for decorative and ornamental purpose in ryotwari lands.- (1 Notwithstanding anything to the contrary contained in Section III to these rules the authority competent to grant permission for quarrying black, pink, red, grey, green and other coloured granites and other rock required for use for decorative and ornamental purposes in ryotwari lands shall be the State government. The application shall be in the form specified in Appendix III to these rules: Provided that the quarrying permission for the minerals above in ryotwari lands shall be granted only to an applicant who is having an existing industry in Tamil Nadu or distinct industrial programme to use the mineral in his proposed industry in Tamil Nadu: Provided further that the permission-holder for quarrying the above mineral shall remove or transport the mineral from the specified land after payment of area assessment, seigniorage, rates prescribed from time to time in Appendix II to these rules and after obtaining transport permit from the District Collector or the officer authorised by him in that behalf: Provided also that the transport permit shall be issued only to the industry for which the mineral is required to be supplied. The lessee shall keep correct accounts showing the quantity and other particulars of all minerals obtained at the factory site and despatched from the factory. The lessee shall also allow any officer authorised by the State government in this behalf to inspect the industry and verify its records and accounts and furnish such information and returns as may be required by him."
(4) ON 10/6/1992, the State government issued government Order No. 214. It stated that under the said Rules as they stood, orders had been issued that leases be granted to industries which had already been established for cutting and polishing granite and to those who gave a definite industrial programme to set up such units within the appellant State within a period of two years from the date of receipt of the letter of commitment. The Director of Geology and Mining at Madras had reported to the State Government that illicit mining and transportation was rampant in a number of districts, that the amount obtained as tender bids for granite leases was very meagre and that there was an alarming tendency for monopolies to be created in the granite trade. He had also reported that there was a lot of wastage in the granite-cutting and polishing process. He had suggested that the State government should take steps for conservation and proper utilisation of the non-renewable granite potential available in the appellant State with a view to safeguard the interest of future generations and the public interest at large. Granite was a valuable mineral which earned valuable foreign exchange. It was a non-renewable mineral. It was, therefore, necessary that it should be c
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