Andhra Pradesh High Court
Judges : S.B.SINHA, V.V.S.RAO
K.Satyanarayana - Appellant
Versus
Government Of A.P., Industries and Commerce Dept. - Respondent
Decided On : 04-27-01
Mines and Minerals (Regulation and development) Act, 1957 - Sections 2 and 18 – Mining lease – Andhra Pradesh Panchayat Raj Act - Section 268 read with Section 95 - India Act, 1939 – Section 2 - Central Act - Section 3 (e) – Sought for declaration - Petitioners have sought for a declaration that the various orders issued by the State government - industries and Commerce department are arbitrary, illegal and violative of Articles of the constitution of India and for a further declaration that they are beyond the legislative competence and rule making power of the State conferred by virtue of mines and Minerals being contrary to the objectives and provisions of the said Act - Industries and Commerce Department the Governor of Andhra pradesh in exercise of the powers conferred by sub-section of Section of the Mines and Minerals hereinafter referred to as the said Act for the sake of brevity made certain amendments Mineral Concession Rules - Notification of the Sand Bearing areas for granting leases by Sealed tender-cum-Public Auction - All the sand bearing areas in the state shall be leased out by Sealed tender-cum-Public Auction reach applicable by Mandal Revenue Officer or revenue Divisional Officer or Joint collector for a specified period in any case not more than two years with an yearly enhancement of of the knocked down amount and subject to the conditions prescribed in the notice of Sealed Tender-cum-Public auction as specified in rule – Held, Court held that even if it is assumed that this involves a choice of policythe restriction of such policy to one that is approved by Parliament or a State legislature constitutes a sufficient declaration of guideline within the meaning of the policy guideline theory - Court was dealing with a statute which was void and still-born Act. It was held by reason of the said provision, the legislature has totally abrogated its legislative function in the matter of sales tax legislation and surrendered it in favour of the Pondicherry Legisalture - Court held that the legislature cannot delegate its essential legislative function. In any case, it must lay down the legislative policy and must afford guidance for carrying out the said policy before it delegates its subsidiary powers in that behalf - Delegation of essential legislative function involved herein not only sufficient guidelines have been provided for in the matter of dealing with the auctions by the authorities sufficient safeguards have also been laid down - They are accordingly dismissed – Ordered Accordingly.
( 1 ) IN these writ petitions, the petitioners have sought for a declaration that the various orders issued by the State government in G. O. Ms. No. 1, dated 1-1-2001, G. O. Ms. No. 356 dated 22-11-1999, g. O. Ms. No. 183, dated 1-3-2000 and g. O. Ms. No. 165 dated 23-2-2000 of the industries and Commerce (Mines I) department are arbitrary, illegal and violative of Articles 14, 19 and 21 of the constitution of India and for a further declaration that they are beyond the legislative competence and rule making power of the State, conferred by virtue of mines and Minerals (Regulation and development) Act, 1957 (Parliamentary act) being contrary to the objectives and provisions of the said Act.
( 2 ) BY reason of the G. O. Ms. No. 1, industries and Commerce (MI) Department dated 1-1-2001, the Governor of Andhra pradesh in exercise of the powers conferred by sub-section (1) of Section 15 of the Mines and Minerals (Regulation and development) Act, 1957 (hereinafter referred to as the said Act for the sake of brevity) made certain amendments to the a. P. Minor Mineral Concession Rules, 1966 (hereinafter referred to as the Rules for the sake of brevity) issued in G. O. Ms. No. 1172, industries and Commerce (Mines) department, dated 4-9-1967. By reason of the said amendment, Rule 9-B of the Rules has been substituted as under:"9-B Notification of the Sand Bearing areas for granting leases by Sealed tender-cum-Public Auction:- (1) All the sand bearing areas in the state shall be leased out by Sealed tender-cum-Public Auction reach or Villagewise wherever applicable by Mandal Revenue Officer or revenue Divisional Officer or Joint collector for a specified period in any case not more than two years with an yearly enhancement of 10% of the knocked down amount and subject to the conditions prescribed in the notice of Sealed Tender-cum-Public auction as specified in rule 9-C. "
( 3 ) MR: P. S. Narayana, learned Counsel for the petitioners submitted that the attempt of the State to delegate its power to various Departments of the State as regards the grant of lease for quarrying the sand, contrary to the provisions of the Act, persistently would appear from the orders issued by the Government in G. O. Ms. No. 356, dated 22-11-1999, G. O. Ms. No. 183, dated 1-3-2000 and G. O. Ms. No. 23-2-2000 were issued. The learned Counsel pointed out that the Government earlier issued g. O. Ms. No. 71, Panchayat Raj and Rural development Department, dated 29-2-2000 framing the rules, relating to auction of sand in water courses, tank beds etc. , called a. P. Panchayat Raj (Auction of the Sand in water Courses vesting in Gram Panchayat) rules, 2000, the validity of which was questioned in Writ Petition Nos. 6242 and 8255 of 2000 and a learned Single Judge by judgment dated 24-11-2000 set aside the said G. O. declaring it as ultra vires the panchayat Raj Act, 1994. The learned Judge held that Section 268 read with Section 95 of the A. P. Panchayat Raj Act could not have been taken recourse to for the purpose of framing the said rules for holding auction in relation to sand which is a minor mineral as the same is governed by the provisions of the Parliamentary Act and the State government can make rules only in terms of Section 15 (1) thereof and it cannot traverse beyond the scope and ambit of the said Act. Admittedly, the impugned rules have been framed after pronouncement of the said judgment.
( 4 ) MR. P. S. Narayana, learned Counsel appearing for the petitioners inter alia would submit that a bare comparison of the rules made in terms of the aforementioned g. O. 71 dated 29-2-2000 and the impugned amended rules would clearly show that the provisions thereof are absolutely identical except the fact that the source of power is different. The learned Counsel would submit that Section 15 of the Central Act suffers from vice of the excessive delegation of legislative power. In any event, the learned Counsel would contend that apart from
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