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2022 Supreme(Kar) 1387

IN THE HIGH COURT OF KARNATAKA
Alok Aradhe, S.Vishwajith Shetty, JJ.
K. Niranjan - Appellant
Versus
State of Karnataka & Ors. - Respondents
W.P. No. 16009 of 2017 (GM-MM-S)
Decided On : 10-08-2022

Advocates appeared:
Mrs. Kusuma R. Prasad, Adv, Mr. L.M. Chidanandayya, Adv, for the Petitioner; Mr. S.S. Mahendra, AGA, for the Respondents No. 1 & 2

The main legal point established in the judgment is that the failure to apply for renewal of a mining lease within the prescribed time limit results in the lapse of the lease, and the writ of mandamus for extension of the lease period cannot be granted.

Headnote:

Mandamus - Mining Lease - The court held that the petitioner's application for renewal of the mining lease had lapsed, and therefore, the writ of mandamus for a direction to treat the period of mining lease as 50 years from 18.02.1976 could not be granted.

Fact of the Case:

The petitioner sought a writ of mandamus for the treatment of the mining lease for a period of 50 years from 18.02.1976, and a writ of certiorari for quashing an order dated 21.02.2017. The petitioner's mining lease expired on 03.02.1996, and the application for renewal was rejected.

Finding of the Court:

The court found that the renewal of the lease had lapsed as the petitioner had not applied for renewal within the prescribed time limit. Therefore, the writ of mandamus for a direction to treat the period of mining lease as 50 years from 18.02.1976 could not be granted. The court dismissed the petition.

Issues: The issues involved the rejection of the petitioner's application for renewal of the mining lease and the interpretation of Section 8A(9) of the Mines and Minerals (Development and Regulation) Act, 1957.

Ratio Decidendi: The court's decision was based on the interpretation of Section 8A(9) of the MMDR Act, which prohibits deemed extension of a mining lease for which renewal has been rejected, determined, or lapsed.

Final Decision: The court dismissed the petition, finding no merit in the petitioner's claim.

JUDGMENT

1. This writ petition has been filed seeking a writ of mandamus directing the respondents to treat the mining lease of the petitioner for a period of 50 years with effect from 18.02.1976 as provided under Section 8A(3) & (6) of the Mines and Minerals (Development & Regulation) Amendment Act, 2015. The petitioner also seeks a writ of certiorari for quashing the order dated 21.02.2017.

2. Facts leading to filing of this petition briefly stated are that a mining lease was executed on 03.02.1976 in favour of the petitioner in respect of an area measuring 39 acres in Ramanadurga Range of Sandur Taluk of Bellary District for a period of 20 years. The period of mining lease expired on 03.02.1996. However, the petitioner did not file any application seeking renewal of the aforesaid lease.

3. The State Government issued a notification on 15.03.2003 inviting applications for grant of mining lease for iron ore and other minerals. The area which was previously allotted to the petitioner was also notified in the said notification. The petitioner thereupon submitted a fresh application for grant of mining lease on 16.04.2003. The aforesaid application was rejected and the order rejecting the application for grant of mining lease was affirmed by the revisional authority by an order dated 08.03.2011. The said orders were challenged by the petitioner in a writ petition viz., W.P.No.14779/2011, which was disposed of by a bench of this court by an order dated 05.07.2016 with the following directions:

    "17. We, therefore, dispose of these writ petitions by directing the State Government to consider the applications of all the applicants applied under 2003 notification following the directions of the Supreme Court of India in Sandur Manganese case (supra) and in terms of the amended provisions of the MMDR Act."

    4. In pursuance of the aforesaid order, the application submitted by the petitioner for grant of mining lease was considered and has been rejected by an order dated 21.02.2017. The said order is under challenge in this petition.

    5. Learned counsel for the petitioner submitted that the application submitted by the petitioner for grant of mining lease has not been considered and has been rejected on the ground that the same does not survive. It is therefore, contended that the impugned order dated 21.02.2017 be set aside and the matter be remitted to the State Government for a fresh consideration.

    6. On the other hand, learned Additional Government Advocate has supported the order passed by the State Government. It is further submitted that since, the petitioner had not submitted the application for renewal of the lease, the petitioner is not entitled to deemed extension of the lease. It is also urged that the petitioner is not entitled to grant of lease in view of Section 8A(9) of the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as 'MMDR Act' for short).

    7. We have considered the submission made by learned counsel for the parties and have perused the record. In the instant case, the mining lease for extraction of iron ore was granted in favour of the petitioner on 03.02.1976 for a period of 20 years. The aforesaid lease expired on 03.02.1996. Section 8A(9) of the MMDR Act reads as under:

      "8 [8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals.-- (1) xxxx

      (2) xxxxx

      (9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 (10 of 2015), for which renewal has been rejected, or which has been determined, or lapsed.]"

      8. In the instant case, the renewal of the lease had lapsed as the petitioner had not made an application for renewal within the prescribed time limit. Therefore, the writ of mandamus for a direction that the period of mining lease be treated as 50 years with effect from 18.02.1976 cannot

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