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1991 Supreme(AP) 117

Andhra Pradesh High Court
Judges : S.S.M.QUADRI
C.M.Ramanath Reddy - Appellant
Versus
State OF A.P., rep.by its secretary, Industries and Commerce department, Hyderabad - Respondent
W. P. No. 200/91
Decided On : 03-15-91
Advocates Appeared :
Mr. V. Venkataramainaiah,Mr. K.G.K. Prasad

Headnote:CONSTITUTION OF INDIA - Art226 and Mineral Concession Rules, 1960, Rule 37 - Grant of lease for barytes by Government in an area to State Mineral Development Corporation - Sub-lease granted to a person by Corporation with permission of State - Government Subsequent keeping in abeyance of permission by Government - Action of Government can be questioned in a writ petition under Art 226 - Order without notice is violative of principles of natural justice

       Held : The writ petition is maintainable The impugned action of the State Government which is alleged to interfere with the contractual rights of the petitioner, cannot be said to be an action by virtue of any power or obligation arising under the contract It could be either an action under statutory power conferred under Rule 37 as claimed, or an executive action not authorised by law but certainly it does not spring out of any contractual obligations of the Government

       Though permission to grant sub-lease by a lessee requires prior consent of the State Government, no power is conferred on, the State Government under the Rules to cancel the consent granted to the lessee to sub-lease any of the rights, title or interest in the lease Once the sub· lease is granted pursuant to the consent of the Government the order issued by the Government has worked out itself There remains nothing to be suspended and the impugned order of the Government cannot have the effect of interdicting the- mining operations by the petitioner which have already commenced under, the sub-lease An order of the nature impugned in the writ petition ought to be declared as violative of the principles of natural justice, as neither any pre-decisional nor any post decisional hearing is provided

       WP Allowed

S. S. M. QUADRI, J.

( 1 ) CUDDAPAH District in Andhra Pradesh contains largest deposits of barytes in the world. This mineral wealth of the nation in the villages of mangampet and Anantharajupet, was reserved for exploitation by public sector by G. O. Ms. No. 27 dated 7-1-1974. The State of Andhra Pradesh, the 1st respondent herein granted mining lease for barytes over an extent of 22. 799 Hectares in the said villages for 20 years in favour of the Andhra pradesh Mineral Development Corporation Ltd. , a State Government undertaking, the 2nd respondent herein, in G. O. Ms. No. 151, dt. 10-2-1975. In pursuance of the said orders, the 1st respondent executed mining lease deed in favour of the 2nd respondent on 19-2-1975 in respect of the said extent of 22. 7990 Hectares. Pattedars of the land who were having surface rights in the land granted on lease by the 1st respondent to the 2nd respondent under the above G. O. Ms. No. 151, filed revisions before the Central government under Rule 54 of the Mineral Concession Rules 1960 and obtained stay of implementation of the order of the 1st respondent. In view of the rights claimed by the Pattedars, the 2nd respondent was unable to carry out mining operation. On 16-5-1975 a tripartite agreement was entered into among the 1st respondent, the 2nd respondent and the pattedars, under which the Pattedars agreed to give up their surface rights in respect of their land and withdraw the revision petitions on condition of the 2nd respondent granting sub-lease of its rights and liability under the mining lease granted by the 1st respondent to it in favour of the respective Pattedars for exploitation of barytes. Consequently Pattedars gave letters on 9-6-1975 giving up their respective surface rights in respect of their land and withdrawing the revision petition filed by them before the central Government. In furtherance of the said tripartite agreement, the 1st respondent granted permission to the 2nd respondent to sub-lease the land under Rule 37 (1) of the Mineral Concession Rules in G. O. Ms. No. 215 dated 22-4-1980. There. ifter, the petitioner represented to the Government for grant of sub-lease by the Corporation over an extent of 5. 06 acres in s No. 75/2 to 75/5, 112, 111/p, 78/2, 78/8 78/9 and 78/10 of Mangampet village in his favour in lieu of 2. 6508 hectares of land in S. Nos. 61/2 to 61/16 of Mangampet village and S. Nos. 4, 5 and 14 (part) of Anantharajupet and surrendered surface rights over Acs. 3. 30. by the orders issued in g. O. Ms. No. 441, dated 5-1-1990 the 1st respondent permitted the 2nd respondent for subleasing mining rights of barytes over an extent of Acs. 4. 92 in the said Survey No. of Mangampet village of Obulavaripalli Mandal in favour of the petitioner in exchange of lands covered by S. No. 61/2 to 61/16 measuring Acs. 3. 30 of Mangampet village and S. Nos. 4, 5 and 14 (part) measuring Acs. 3. 25 in Anantharajupet village on the basis of the tripartite agreement. In turn, a sub-lease deed was executed by the 2nd respondent in favour of the petitioner on 8. 11-1990. The petitioner started mining operation pursuant to the sub-lease granted in its favour. On 21-1-1991 the 1st respondent addressed a letter to the 2nd respondent (Letter no. 2532/m. III/90-1) informing that the orders issued in G. O. Ms. No. 441, dated 5-11-1990 were kept in abeyance pending further examination. This was communicated by the 2nd respondent to the petitioner by telegram dated 3-1-1991 informing him to desist from taking any further action in pursuance of G. O. Ms. No 441, dated 5-11-1990 and the sub-lease deed dated 8-11-1990. This was followed by letter dated 3-1-1991. On these facts the petitioner seeks a declaration that the action of the 1st respondent in issuing letter No. 2532/m. III/90-1, dated 2-1-1991 as viod ab initio, illegal and for consequential direction to the respondents not to interfere with the mining operations of the petitioner in respect of the rights granted in g. O.





























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