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2005 Supreme(AP) 103
Andhra Pradesh High Court
Judges : B.SUDERSHAN REDDY, C.V.RAMULU
A.P.Mineral Development corporation - Appellant
Versus
RLP Granite Private Limited - Respondent
Decided On : 02-08-05
Headnote:
Constitution of India – Article 226 – Mines and Minerals (Development and Regulation) Act, 1957 – Section 24 and 15 – A. P. Minor mineral Concession Rules, 1966 – Rule 12 – Mineral Concession Rules, 1960 – Rule 22 – Endowments Department – Legal infirmities and illegality – Mines and Geology – Violation of PCI – Petitioners filed application on before Supreme Court seeking stay of operation of show-cause notices which was not granted – Corporation vide its letter terminated the PCI and MFF agreements and restrained petitioners from entering into leased area and requested them to stop quarrying operations forthwith – Further Corporation reserved its right to avail such appropriate legal remedies as may be available to it later for recovery outstanding amounts together with interest including disposal of granite blocks it any and adjust sale proceeds against amounts due and payable by petitioners – Petitioners were required to retransfer quarry lease granted by Director of Mines and geciogy – When according to Corporation was granted purely as a consequential measure to MFF and PCI agreements – Held, Perfectly open for court exercising this flexible power to pass such order as public interest dictates and equity projects: courts of equity may and frequently do go much further both to give and withhold relief in furtherance of public interest than they are accustomed to go where only private interests are involved granting or withholding of relief may properly be dependant upon considerations as of public interest – Purposes of granting any relief even if it is to be held that impugned order passed Director is not strictly within the four-corners of rule Rules – Corporation resumed possession immediately after termination of PCI and mff agreements and continues to be in possession of resuming possession of the land is unrelated to cancellation of quarry lease by director and as confirmed in revisional order passed by the Government – Court cannot direct redelivery of possession of the land without setting aside the proceedings of termination of the agreements, which are not impugned – No merit in this batch of writ petitions.
( 1 ) THIS batch of Writ Appeals are required to be disposed of by a common judgment since they arise out of the common order made in w. P. Nos. 20083, 20084, 20085, 20086 and 20087 of 2003, dated 12-3-2004, by a learned single Judge of this Court. Learned single Judge allowed the writ petitions filed by the respondents/writ petitioners and accordingly set aside the impugned orders passed by the Director of Mines and geology in Proceedings Nos. 15721/r3 (2)/ 2003, 15718/r3 (2)/2003, 15720/r3 (2)/2003, 15722/r3 (2)/2003,15719/r3 (2)/2003, dated 16-6-2003, as confirmed by the State government in Memo Nos. 11312/m. II (1)/ 2003-5, 11311/mii (1)/2003-5, 11309/m. II (1)/ 2003-5,11310/m. II (1)/2003-5,11308/m. II (1)/ 2003-5, dated 15-9-2003, respectively.
( 2 ) THE only question that falls for our consideration is whether the proceedings of the Director of Mines and Geology, hyderabad, dated 16-6-2003, cancelling the quarry lease granted in favour of the writ petitioners and its confirmation by the State government suffer from any legal infirmities?
( 3 ) FOR the sake of convenience, we shall refer the parties as arrayed in the writ petitions. FACTUAL MATRIX:
( 4 ) IN order to consider the question as to whether the impugned order cancelling the quarry lease suffers from any illegality, it is just and necessary to notice the facts leading to filing of this batch of writ petitions.
( 5 ) THE Government of Andhra Pradesh, having found reserves of Black Granite mineral in the land admeasuring Acs. 268-70 cents of Ramatheertham village, chimakurthy Mandal, Prakasam District, accorded permission for shifting of the existing Cattle Breeding Farm therein to chadalavada village, Naguluppalapadu mandal, Prakasam District, into the lands owned by the Endowments Department subject to certain terms and conditions stipulated in G. O. Ms. No. 23, dated 22-2-1999, so as to enable the Andhra pradesh Mineral Development Corporation limited (for short "the Corporation"), a fully owned undertaking of the State Government to undertake quarry operations of Black granite Mineral available therein. The corporation is engaged in the activity of prudent exploitation of minerals in the State of Andhra Pradesh. The State Government further vide its G. O. Ms. No. 550, Revenue (Assn. II) Department, dated 12-9-2002, accorded permission to the Collector, prakasam District, to transfer the land admeasuring Acs. 268-70 cents belonging to animal Husbandry Department in favour of the Corporation, in lieu of the Endowment land through negotiations treating the transfer of land as a special case.
( 6 ) THE Corporation has applied for grant of quarry lease but subsequently given its consent for converting the same into an application for grant of prospecting licence for black granite mineral. The State government vide G. O. Ms. No. 11, dated 5-1-2000, granted prospecting licence for a period of two years in favour of the corporation in accordance with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (for short "the Act") and the Rules thereunder over an extent of Acs. 70-70 cents in various survey numbers.
( 7 ) THE State Government vide its proceedings, dated 5-8-2000, granted prospecting licence for black granite for a period of two years in favour of the corporation under the provisions of the Act and the Rules thereunder over an extent of acs. 89-06 cents in Survey Nos. 52, 55/3, 3c and 55/4a of R. L. Puram village, chimakurthy Mandal, Prakasam District.
( 8 ) BE it noted, the Corporation since purchased the land for a valuable consideration became the owner of the land and thus acquired surface rights even before the grant of prospecting licence. The corporation is the true and absolute owner of the land in question is not in dispute, and therefore, no further details in this regard are required to be noted.
( 9 ) THE Corporation, keeping in view, the policy of the State Government for development of mineral ind
