2011 (7) Supreme 519
SUPREME COURT OF INDIA
Cyriac Joseph and T.S. Thakur, JJ.
Ashok Kumar Lingala — Appellant
versus
State of Karnataka & Ors. — Respondents
Civil Appeal No. 8819 of 2011
(Arising out of SLP (C) No.35213 of 2010)
with
L.V. Ashok Kumar Lingala — Appellant
versus
M/s. Sandur Maganese & Iron Ore Co. Ltd. & Ors. — Respondents
Civil Appeal No. 8820 of 2011
(Arising out of SLP (C) No. 200 of 2011)
Decided on : 18-10-2011
Facts of the Case :
A Present Appeals have been filed against order passed by High Court whereby Writ Petition filed by appellant had been disposed of with the direction that question of identity of area forming subject matter of mining leases granted to appellant on one hand and respondent ‘SIMORE’ on the other, shall be determined by the Civil Court in the suit pending before it on the basis of the evidence that the parties may choose to lead.
B. High Court further held that in case the Civil Court comes to the conclusion that the area over which mining leases had been granted to rival parties did not overlap then both of them would be entitled to carry out their mining activities under their respective lease agreements. In case, however, there was an overlapping of the area covered by two leases, lessee who claims under lease granted earlier in point of time would have a superior right to carry out the mining activities in preference to the one granted later.
Findings of the Court :
A. The Court held that when large areas are granted for mining purposes, some confusion as to the boundaries of such areas especially if they are adjacent to each other is nothing abnormal. What in such cases needs to be done is to conduct a fresh demarcation and fix boundaries so that the parties holding such areas stay within the limits of their respective areas instead of straying into the adjacent area.
B. Directions were given for fresh demarcation. Impugned order of High Court was set aside. Appeals were allowed.
Key Points: - Where mining leases overlap, the lessee with the earlier lease has superior rights (!) (!) . - Overlapping areas require fresh demarcation and boundary fixation by a Committee (!) (!) (!) . - A lessee cannot be denied mining based on a rival’s overlapping lease without a proper demarcation (!) (!) . - Interim restraint orders on mining require proper evidence and cannot continue indefinitely (!) (!) . - Private land within a mining lease does not automatically invalidate the lease; compensation may be required (!) (!) .
JUDGMENT
T.S. Thakur, J. —
1. Leave granted.
2. These appeals arise out of an order dated 1st September, 2010 passed by the High Court of Karnataka -whereby Writ Petition No.17281 of 2010 filed by the appellant has been disposed of with the direction that the question of identity of the area forming the subject matter of the mining leases granted to the appellant on the one hand and respondent M/s Sandur Manganese & Iron Ore Company Ltd. (‘SIMORE’ for short) on the other, shall be determined by the Civil Court in the suit pending before it on the basis of the evidence that the parties may choose to lead. The High Court has further held that in case the Civil Court comes to the conclusion that the area over which the mining leases have been granted to the rival parties does not overlap then both of them would be entitled to carry out their mining activities under their respective lease agreements. In case, however, the Civil Court is of the opinion that there is an overlapping of the area covered by the two leases, the lessee who claims under the lease granted earlier in point of time would have a superior right to carry out the mining activities in preference to the one granted later. The facts in brief are as under: -
3. Land measuring 4.42 hectares situated at village Devagiri, Sandur Taluk, Bellary District falling under Surveys No. 56/P, 57/P, 58/P and 91/P was according to the appellant dedicated to Kumaraswamy Devaru Temple. The entire extent of land which now falls in new Survey No.27 was given to one-Pennaiah S/o Dodda Pennaiah for cultivation in lieu of the services which he was rendering to the temple. With the enactment of the Karnataka (Sandur Area) Inam Abolition Act, 1976 abolishing all rights in inam lands and permitting the cultivators and tenants of the land to make applications under Section 10 of the Act for re-grant and registration, the cultivator-Pennaiah also made an application to the Land Tribunal, Sandur Taluk, Bellary District seeking a re-grant. The said application eventually culminated in the Tribunal passing an order dated 22nd October, 1981 granting occupancy rights in favour of the tenant, pursuant whereto the Tehsildar issued a registration certificate registering his occupancy rights and entering his name in the record of rights. -
4. The appellant’s further case is that Pennaiah continued to cultivate the land personally especially when neither the order of re-grant was challenged before the Land Tribunal nor his cultivation objected to by anyone including the 3rd respondent who held a lease in respect of Government and forest land situate in Sandur Area. The appellant asserts that the land aforementioned is a piece of private patta land that was held by Pennaiah during his life time and by his widow Yellamma after his death. Neither Pennaiah nor Yellamma had in their capacity as Pattadars in cultivating possession of the land ever offered the property to SIMORE or granted any right or any other interest in its favour. On the contrary Yellamma in her capacity as Pattadar had permitted the appellant to obtain a mining lease under the provisions of Minor Mineral (Development and Regulation) Act, read with Mineral Concessions Rules, 1960 which application was sent to the Deputy Commissioner, Bellary District, to verify the status of the land and also to the Deputy Director of Mining and Geology for conducting an actual spot inspection. Both the authorities had, according to the appellant, submitted their respective reports in which -the said property was found to be private Patta land. They had, therefore, offered no objection to the grant of a mining lease qua the same.
5. It was on the basis of the reports aforementioned that the State Government had sought the approval of the Central Government for the grant of a mining lease in favour of the appellant which approval was upon due and proper consideration granted by the Central Government. The State Government had pursuant thereto issued a N
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