1. Petitioner claiming to be a trader carrying on business in the name and style of M/s Lucky Artificial Sand Industries, aggrieved by non implementation of the directions contained in the memorandum, dated 26.08.2013, Annexure-H of the Director, Department of Mines and Geology to fix the price and royalty in terms of schedule III to the Karnataka Minor Mineral Concession Rules, 1994, (‘the Rules’ for short) has presented this petition for a writ of mandamus and for appropriate directions to the 3rd respondent/Senior Geologist, Department of Mines and Geology, Haveri to hold an auction of pebble stones available on the banks of River Tungabhadra, at Kotihal, Ranebennur Taluk.

2. Petition is opposed by filing statement of objections of the respondent/State interalia pointing out that Rules when amended by notification dated 16.12.2013, Rules 8C to 8Y were inserted whereunder Rule 8N provides for separate stacking on non-saleable mineral and reads thus:

“8N. Separat Stacking of non-saleable mineral

(1) The non-saleable mineral rejects at quarry bottom shall regularly be collected and transported to the surface and the quarry or mine floor kept reasonably clear of debris. However in case of sand quarrying, mineral rejects like shingle, pebbles at riverbed shall regularly be collected and stored within the tendered area for utilization in reclamation measures and strengthening of river banks also.

(2) Such non-saleable minor minerals suitable for possible use by small scale industries sector shall be properly recovered.

(3) Small lumps of mineral shall, as far as possible, be segregated from the dumps and stored separately for future use.

(4) The ground selected for dumping of top soil, overburden, waste material or non-saleable mineral shall be away from workings of quarry as specified in approved quarry plan.

(5) Before starting quarrying operations, conceptual ultimate limits of the quarry shall be determined and dumping ground shall be so selected that dumping is not carried out within the limits of the ultimate size of the quarry except where simultaneous back filling is proposed.”

3. According to the respondent/State, the non saleable, mineral rejects, at the quarry bottom is required to be regularly collected and transported to the surface, while the quarry or mine floor is to be kept reasonably clear of debris and in case of sand quarrying, mineral rejects like shingle, pebbles at the riverbed shall be regularly collected and stored within the tendered area for utilization in reclamation measures and strengthening of river banks. It is the further case of respondent/State that in view of insertion of Rule 8N, the memorandum dated 26.08.2013, Annexure-H of the Director of Department of Mines and Geology, does not survive and therefore, no mandamus lies.

4. In addition, it is stated that pursuant to insertion of Rule 8N, no pebbles are subjected to auction since they come within the purview of non saleable mineral and separate stacking method is adopted for that mineral. It is said, pebbles are collected and stored for the purpose of strengthening the riverbed in the respective rivers, hence disposal of pebbles after extraction is unavailable. At paragraph 6, it is specifically pointed out that petitioner, without the permission of the competent authority, illegally stocked 1265 cubic metres of sand by violating Rule 4(1) of the Mines and Minerals (Development and Regulation) Act, 1957 and Rule 3(1) of the Rules, hence, the 3rd respondent/Senior Geologist imposed penalty of Rs.8,22,250/- by notice, dated 22.11.2012, AnnexureR1, to the statement of objections.

5. Petitioner filed a rejoinder statement that Rule 8N is totally opposed to Rule 8B and Rule 31A of the Rules and further that the amendment not retrospective in operation having come into force w.e.f. 16.12.2013, does not apply to the memorandum, dated 26.08.2013, Annexure-H of the Mines and Geology Department. In the additional rejoinder it is stated that the notice of