( 1 ) THIS Writ Appeal was referred to Full Bench by a Division Bench mainly because it disagreed with certain observations made by another Bench in W. A. No. 795 of 1985, disposed of on 20-8-1985. Since the reference of this matter to Full Bench, however, the decision in W. A. No. 795/85 has been overruled by a Full Bench in G. Raghava Das vs. Government of A P. Even so, having regard to the importance of the question raised, namely, interpretation of Section 2 of the Forest (Conservation) Act 1980, we proceeded to consider the matter.

( 2 ) THE appellant (writ-petitioner) was granted a mining lease for laterite, for a period of 20 years, over an extent of 318 acres in Peddamaredimille reserve Forest under G. O. Ms. No. 352 dated 26-3-1974. Laterite is a major mineral. The lease is governed by the Mines and Minerals (Regulation and Development) Act, 1957, and the Rules made thereunder. As required by the Act and the Rules, an agreement was executed by the appellant and the District-Collector, East Godavari, representing the Government, on 1-6-1974. Later on, the appellant laid an approach road to the area leased out. On 28-2-1982 he made a representation to the Di