The executive power of the Union and States extends to the carrying on of any trade or business and the acquisition, holding, and disposing of property, and this includes the power to undertake the exploitation of mineral resources.

( 1 ) THIS is a petition under Article 226 of the Constitution for the issue of a writ of mandamus or any other appropriate writ, order or direction to the State of Andhra Pradesh, directing them to forbear from giving effect to G. O. Ms. No. 1617, Industries, dated 17/12/1957, and published in the Andhra Pradesh Gazette dated 2/01/1958. The impugned notification bears the title, "reservation of certain areas of Krishna District in Jaggayyapet Taluk, for public sector". and reads as follows : -- "in pursuance of the Industrial Policy Resolution of the Government of India, dated 30th, April, 1956, and with the prior approval of the Government of India, the Governor of Andhra Pradesh, hereby declares that the areas, the details of which are given in annexure I and II to this notification, are with immediate effect reserved for exclusive exploitation of the Stale Government. " Annexure I deals with the lands situated in the villages of Gandrayi, Takkellapadu and Ramachandrunipet.

( 2 ) THE sum and substance of the petitioners ease is that in April, 1952, he applied to the State Government of the grant of prospecting licences for iron ore in respect of an extent of about 1000 acres in the reserved forest area of Gandrayi, Takkellapadu and Ramachandrunipet villages of Jaggayipet Taluk, Krishna District, and without disposing of his application, the State Government had issued the impugned notification and thus deprived him of his chances of getting prospecting licences in those areas.

( 3 ) THE circumstances leading up to the issue of the above notification by the State Government may now be stated. With a view to give effect to the revised Industrial Policy Resolution of the Government of India of the 30/04/1956, the State Government examined the question of reservation of areas for public sector and came to the conclusion after investigation, that gypsum and iron ore might be taken up at present, and thereafter communicated their intention to the Government of India and sought their approval. The Government of India gave their approval in their letter No. M/ii-159 (7) 756 dated 19/09/1957 to the proposal of the State Government regarding reservation of iron ore-bearing areas in the State for exploitation by the State. The State Government thereupon issued the impugned G. O.

( 4 ) THE contention on behalf of the State Government is that the lands in question belong to the State Government; that no individual has any manner of right either to the surface or to the minerals in those lands; that it is within the competence of the State Government to decide to explore the subsoil and work the mines themselves and refuse to grant any prospecting licence or mining lease to any private person: that in those circumstances no question of invading any ones right to properly or right to carry on business arises; and that the petitioner has no vested right to insist upon the Government granting him a prospecting licence or a mining lease in the lands in question. The Government further state that here is no question of the interest of the petitioner being adversely affected by the non-issue of a prospecting licence to him, as there is no legal obligation on the Government to grant a prospecting licence or a mining lease in respect of any area, and as per Rule 17 of the Mineral Concession Rules, 1949, the granting or refusing of a prospecting licence is entirely within the discretion of the Government.

( 5 ) ON behalf of the petitioner a variety of questions were mooted, some of which were wide of the mark; but the principal contentions of the teamed advocate for the petitioner were two fold : (1) That the action taken by the State Government was through executive fiat and without legislative sanction and was therefore ultra vires of the Constitution inasmuch as the source of the impugned notification was resolution of the Government of India and not a law enacted by Parliament; and (2) That the enactment governing the regulation