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2015 Supreme(AP) 579

In the High Court of Judicature at Hyderabad
DILIP B. BHOSALE & S.V. BHATT, JJ.
Coromandel Mining & Exports Pvt. Ltd. & Others – Petitioner
Versus
Union of India & Others – Respondent
Writ Petition Nos. 10364, 11582, 11970, 12236, 12437, 12476, 12686, 12690, 12692, 12700, 12712, 12944, 12975, 12976, 13115, 13129, 13171, 13205, 13206, 13208, 13219, 13464, 13643, 13654, 13779, 15132, 15135, 18276, 21005, 21466, 25146, 25198, 27133, 27158 & 27165 of 2015
Decided On : 11-09-2015

Advocates Appeared:
For the Petitioners:C.V. Mohan Reddy, Sivaraju Srinivas, Advocates.
For the Respondent: K.M. Nataraj, Addl. Solicitor General.

Headnote:

Constitution of India –Petitions, first, to declare that Sections 8, 10, 11 and 13 of The Mines and Minerals (Development and Regulation) Amendment Act, 2015 notified in the extraordinary gazette and brought into effect, are unreasonable, arbitrary and unconstitutional being violative of Articles 14, 19(1)(g), 39, 300(A) and 301 of the Constitution of India, and second, a direction to the respondents to complete processing of their applications for prospecting licences made in accordance with the provisions of Mines and Minerals (Development and Regulation) Act, 1957 (for short ‘the Principal Act’) as available prior to the date of the Amendment Act came into effect. –Held, It is true that Section 11 has been deleted and by virtue thereof sub-section (5) inserted by the State Amendment also stood omitted and as a result thereof even non-tribals may compete with the tribals if the auction is conducted in scheduled areas, if similar provision is not introduced by the State Government. In view thereof, when we specifically asked the learned Advocate General for the State of Andhra Pradesh and the learned Additional Advocate General for the State of Telangana whether they intend to introduce similar provisions [sub-section (5)] by way of State Amendment in view of the substitution of Section 11 of the Principal Act, they both submitted that the State Government may do so. Though they so stated, they could not make any positive statement within how much time the State Amendment will be introduced protecting the rights and interests of the members of Scheduled Tribes. The learned Advocate General for the State of Andhra Pradesh, however, submitted that in any case, the question, as raised, based on the Fifth Schedule of the Constitution of India, need not be considered at this stage since the State Government has not issued any notification inviting bids for minerals in the scheduled areas. He submitted that challenge based on these provisions and on this ground can be kept open to be considered if the State – writ petitions are disposed

JUDGMENT

Dilip B. Bhosale, J.

1. Heard learned counsel for the parties. Rule. By consent of learned counsel heard forthwith.

2. Principally, two prayers have been made in these petitions, first, to declare that Sections 8, 10, 11 and 13 of The Mines and Minerals (Development and Regulation) Amendment Act, 2015 (for short ‘the Amendment Act’) notified in the extraordinary gazette dated 27.03.2015 and brought into effect on 12.01.2015, are unreasonable, arbitrary and unconstitutional being violative of Articles 14, 19(1)(g), 39, 300(A) and 301 of the Constitution of India, and second, a direction to the respondents to complete processing of their applications for prospecting licences made in accordance with the provisions of Mines and Minerals (Development and Regulation) Act, 1957 (for short ‘the Principal Act’) as available prior to the date of the Amendment Act came into effect.

3. The petitioners in these petitions had applied for prospecting licence-cum-mining lease under Section 10 for minerals like limestone, and while their applications were pending, the Amendment Act came into effect and as a result thereof their applications became ineligible, and hence they have prayed for striking down the aforesaid provisions of the Amendment Act and sought direction to process their applications under the Principal Act. Sub-section (1) of Section 10A of the Amendment Act states that all applications received prior to the date of commencement of the Amendment Act (i.e. 12.01.2015) became ineligible.

4. Though the petitioners in these petitions are different the challenge raised is similar. In order to consider and appreciate the grounds of challenge, we deem it necessary to state few facts, to the extent they are necessary, of the Writ Petition No.11582 of 2015, which was argued by Sri C.V.Mohan Reddy, learned senior counsel for the petitioners. He made leading arguments in this batch of writ petitions.

4.1 The first petitioner-Company, in this petition, is 100% share holder (Holding Company) of the second petitioner-Company. The third petitioner is one of the promoter shareholders of the first petitioner-Company. The first petitioner-Company’s applications for grant of mineral concessions (prospecting licence-cum-mining lease) were pending with the 2nd respondent-State of Andhra Pradesh on the date when the Amendment Act came into effect. Their applications, as claimed by them, have direct impact on the first and second petitioner-Companies and also the interest of the third petitioner as their promoter shareholder.

4.2 The first petitioner-Company is a Company incorporated under the Companies Act, 1956. Presently, it is having 5.2 million tons per annum manufacturing capacity of cement at its factory located at Mellacheruvu Village/Mandal, Nalgonda District, and at Mullakalapalli Village, Yelamanchili Mandal, Visakhapatnam District. The Company also has two Ready-Mix Concrete Plants at Patancheruvu, Medak District and Nacharam, Ranga Reddy District. The first petitioner-Company claims that it had achieved a turnover of 1659.88 crores in the financial year 2013-2014 by sale of 35.29 lakhs metric tones of cement manufactured and marketed under the brand of ‘MAHA’ cement.

4.3 The second petitioner-Company, which has been acquired by the first petitioner-Company, also has a cement plant with production capacity of about 3.2 million tons per annum at Yankandla Village, Banaganapalli Mandal, Kurnool District in the State of Andhra Pradesh.

4.4 Limestone is one of the most essential raw materials required for manufacturing of cement and the cost of procurement thereof, according to the petitioners, has a direct impact on the profitability of their Companies. Further, according to the petitioners, having regard to the cost factor, standard industry practice is that mineral concessions rights are acquired by such cement manufacturing Companies in close proximity of the factories’ location and the mineral (limestone) so acquired is captively consum












































































































































































































































































































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