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2025 Supreme(AP) 327

IN THE HIGH COURT OF ANDHRA PRADESH AT AMRAVATI 
K. MANMADHA RAO, J.
M/s Ani Mines And Minerals - Appellant
Versus 
Union Of India and Others - Respondents 
Writ Petition No. 18789 of 2021
Decided on : 21-02-2025

Advocates:
Advocate Appeared:
For the Petitioner: V HIMABINDU
For the Respondent: PELLETI RAJESH KUMAR (CENTRAL GOVERNMENT COUNSEL), G RAJA BABU, GP FOR MINES AND GEOLOGY

The court emphasized the necessity of fair procedures and proper consideration of facts in administrative decisions regarding mining licenses.

Headnote:

(A) Mines and Minerals (Regulation and Development) Act, 1957 - Section 5(2) - Writ petition under Article 226 - Challenge to the order rejecting the prospecting license - The petitioner applied for a prospecting license for minerals, which was granted but later contested by a revisionist claiming prior mining lease - The court found that the revisional authority failed to consider the facts and the legality of the order - The petitioner had complied with the necessary requirements for the license. (Paras 2, 3, 11, 18)

(B) Natural Justice - The authority must consider all relevant facts and provide a fair hearing before making a decision - The revisional authority's failure to conduct a joint survey and consider the petitioner's objections was deemed arbitrary. (Paras 16, 18)

Facts of the case:
The petitioner applied for a prospecting license for minerals in 2006, which was granted in 2007. A revisionist contested the license, claiming prior mining rights. The revisional authority upheld the revisionist's claims without adequately addressing the petitioner's arguments or conducting necessary surveys.

Findings of Court:
The court found that the revisional authority acted mechanically and failed to consider the petitioner's compliance with the law, leading to an unjust decision.

Issues: The main issues were whether the prospecting license was valid given the claims of prior mining leases and whether the revisional authority acted within the principles of natural justice.

Ratio Decidendi: The court ruled that the revisional authority's decision was arbitrary and lacked proper consideration of the facts, emphasizing the need for fair procedures in administrative decisions.

Result: Writ petition allowed; the impugned order set aside.

ORDER :

K. MANMADHA RAO, J.

This writ petition is filed under Article 226 of the Constitution of India for the following relief:

“……to issue an appropriate writ order or direction more particularly one in the nature of Writ of Certiorari calling for the records relating to the orders of the 1st respondent in final order No.1/2020 dated 14.01.2020 and pass……”

2. Brief facts of the case are that the Petitioner made an application on20.03.2006 to the Director of Mines and Geology, who is the 3rdrespondent herein for grant of Prospecting Licence(PL) for Mica, Quartz, feldspar and vermiculite, over an extent of Ac.317.40, in survey No. 504, Chaganam Village, Sydapuram Mandal, Nellore District for a period of two (2) years. Thereafter, on considering the said application (PL) of the petitioner, the 2nd respondent herein, granted licence in favour of the petitioner, vide G.O.Ms. No.72, Industries and Commerce (M.I) department, dated 31.03.2007 granting Prospecting License for Mica, quartz, Feldspar and vermiculite, over an extent of 115.98 cents, in Sy.No.504 of Chaganam Village, Sydapuram Mandal, Nellore District for a period of two (2) years in terms of Section 11(5) of Mines Mineral (regulation and development Act, 1957 (central Act 67 of 1957) and the Rules made there under and also the conditions in form -F prescribed under the Mineral Concession rules, 1960. Pursuant of the orders vide G.O.Ms.No.72, dated 31.03.2007, the petitioner executed a Prospecting Licence Deed in form "F" on 13.04.2007 and consequently the 5th Respondent herein issued proceedings No.1110/M/2006, dated 13.04.2007, according permission and granted PL in favour of the petitioner to commence operations for the minerals stated therein for a period of two (2) years from 13.04.2007 to 12.04.2009. It is stated that the petitioner has also obtained permission for undertaking blasting operations along with others vide proceedings of the Deputy Chief Controller of Explosives, Hyderabad vide E.Misc.No.E/ SC/AP/ 22/802/(E28603), dated 15.6.2007. In pursuance of the same, the petitioner has employed 25 labourers for carrying on digging the mineral and arrangements made for drinking water supply (Dug bore wells) and rest place for the labourers.

While the matter stood thus, the 6th respondent, who is unofficial respondent has filed a revision against the orders of the State Government in G.O.Ms.No.72 dated 31.3.2007 stating that “once the area had already been notified by the State Government, the State Government under for granting a Prospecting Licence on the same area is clearly illegal because the availability of mineral has already been established on the said area. Moreover the petitioner had not made any application for mining lease on the said area. The petitioner had filed counter affidavit before revisional authority in revision filed by the 6th respondent, stating that several averments made and contentions raised by the 6th respondent/revisionist are neither true not tenable in law. It is stated that the 6th respondent filed revision application before the Secretary, Ministry of Mines, Government of India, against orders of the State Government in G.O.Ms.No.72, Industries and Commerce (M-I) department dated 31.03.2007, passed by the State Government of Andhra Pradesh. Through the Impugned order, the State Government rejected the ML applications of the 6th respondent/revisionist for mineral Qurtz, feldspar over an extant over an area of 184.82 Acres and 37.00 Acres in Survey No. 504 in Changam Village, Sydapuram Mandal, Nellore District and granted PL for minerals mica, quartz, feldspar and vermiculite over an extent of 115.98 Acres in Survey No. 504 in aforesaid area infavour of the petitioner herein for a period of 2 (two) years as per the extant provisions of MMDR Act 1957 and relevant rules made thereunder and subject to outcome of the revision Application filed by Ms. Brilliant Mines and Minerals.

It is further stated that, aggrieved by the Central Government

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