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2014 Supreme(Bom) 1603

In the High Court of Bombay at Goa
RANJIT MORE & U.V. BAKRE, JJ.
M/s Lithoferro, a partnership firm, Goa represented herein by its Partners & Others
Versus
State of Goa, through its Chief Secretary & Others
Writ Petition Nos. 210, 221, 222, 223, 224, 286, 291, 292, 293, 307, 341, 344, 345, 348, 350, 351, 352, 354, 361, 363, 371, 373, 374, 375, 376, 377, 378, 434 of 2014 & Miscellaneous Civil Application No. 471 of 2014
Decided on: 13-08-2014

Advocates Appeared:
For the Petitioners:R. Dada, D. Khambatta, S.D. Lotlikar, I.M. Chagla, Senior Advocates with Parag Rao, Swati Kamat Wagh, Fatima Noronha, Abhijeet Kamar, Sahish Mahambrey, D. Pangam, V. Agarwal, S.P. Munj, Riyaz Chagla, H.D. Naik, Abhijeet Gosavi, Amay Phadte, Ninad Laud, Nikhil Vaze, Nitin Sardessai, Deep Shirodkar, L. Raghunandan, Advocates.
For the Respondents:A.N.S. Nadkarni, Advocate General with D. Lawande, Government Advocate, A. Prabhudesai, S.S. Rebello, Amogh, P. Dangui, N. Pai, Additional Government Advocates.

The main legal point established in the judgment is the application of the doctrine of promissory estoppel in the context of mining lease renewals, affirming the obligation of the State Government to consider all applications for renewal under Section 8(3) of the MMDR Act.

Headnote:

Mining Leases - Renewal - Mines and Minerals (Development & Regulation) Act, 1957, Mineral Concession Rules, 1960 - Summary

Fact of the Case:

The case involved the renewal of mining leases in Goa, which were initially granted in perpetuity by the Portuguese. The Supreme Court held that the deemed mining leases expired on 22nd November, 1987, and the maximum 20-year renewal period expired on 22nd November, 2007, making mining by the lessees after this date illegal. The State Government was directed to execute lease deeds under Section 8(3) of the MMDR Act for leaseholders who had paid stamp duty and to decide on renewal applications for those who had not paid.

Finding of the Court:

The court found that the mining leases had expired, making mining by the lessees illegal. It directed the State Government to execute lease deeds for leaseholders who had paid stamp duty and to decide on renewal applications for those who had not paid.

Issues: The main issue was the legality of mining leases and the renewal process under the MMDR Act and the Mineral Concession Rules.

Ratio Decidendi: The court held that the deemed mining leases had expired, making mining by the lessees illegal. It affirmed the power of the State Government to grant second renewal of leases under Section 8(3) of the MMDR Act.

Final Decision: The court directed the State Government to execute lease deeds for leaseholders who had paid stamp duty and to decide on renewal applications for those who had not paid.

Judgment :

Ranjit More, J.

1. Rule. Rule made returnable forthwith. Heard by consent.

2. The above writ petitions pertain to renewal of mining leases. Initially, the petitioners sought directions to the State Government to decide their applications for renewal of the mining leases filed in the year 2007. Some petitions, thereafter, came to be amended, thereby seeking directions to the State Government to execute the second renewal lease deeds. Since the issues raised in these writ petitions are common, and the writ petitions have been analogously heard, the same are being disposed of by this common judgment.

BRIEF BACKGROUND AND FACTS OF THE CASE

2-A. On 19th December, 1961, Goa was liberated and became a part of Indian Union. On 1st October, 1963, the Mines and Minerals (Development & Regulation) Act, 1957 (hereinafter, referred to as “the MMDR Act") was made applicable to the Union Territory of Goa. Prior to liberation of Goa, the Portuguese who were ruling Goa had granted mining concessions in perpetuity to the concessionaires. On 10th March, 1975, the Controller of Mining Leases, by issuance of notification, called upon every lessee and sub-lessee to file returns under Rule 5 of the Mining Leases (Modification of Terms) Rules, 1956 and sent copies of the notification to the concessionaires in Goa. The concessionaires, aggrieved by this notification, challenged it before the Bombay High Court, at Panaji, Goa. The Bombay High Court restrained the Union Government from enforcing the said notification against the concessionaires.

The Parliament, thereafter, passed the Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987 (for short, “the Abolition Act"). On 23rd May, 1987, the President of India, gave his assent to the Abolition Act. Section 4 of the Abolition Act abolished the mining concessions and declared that with effect from 20th December, 1961 every mining concession will be deemed to be a mining lease granted under the MMDR Act and the provisions of the MMDR Act will apply to such mining leases. Section 5 of the Abolition Act further provided that the concession holder shall be deemed to have become a holder of the mining lease under the MMDR Act in relation to the mines to which the concession relates and the period of such lease was to extend upto six months from the date on which the Abolition Act received the President's assent.

On 14th October, 1987, sub-Rules (8) and (9) were inserted in Rule 24A of the Mineral Concession Rules, 1960 (for short “the MC Rules") which deal with the mining leases in Goa, Daman and Diu. In terms of the proviso to sub-Rule 8 of Rule 24 of the MC Rules, the Government of Goa extended the time for making applications for the first renewal by a period of one year. Within this period of one year, the leaseholders made applications for first renewal. Initially, the State Government granted first renewal for a period of 10 years i.e. 22nd November, 1987 to 21st November, 1997. Subsequently, in view of the amendment to Section 8 of the MMDR Act, the renewal was extended from 10 to 20 years and the period of 20 years expired on 22nd November, 2007. Before expiry of the period of the first renewal, the petitioners preferred applications under Section 8(3) of the MMDR Act to the State Government for renewal of their mining leases.

In the year 2010, the Central Government appointed Justice Shah Commission under Section 3 of the Commissions of Inquiry Act, 1952 to inquire into the illegal mining of iron ore and manganese ore in contravention of the provisions of the MMDR Act, the Forests (Conservation) Act, 1980, the Environment (Protection) Act, 1986 and other rules and guidelines issued thereunder. Justice Shah Commission submitted its interim report in March, 2012 to the Ministry of Mines, Union of India. In the month of September, 2012, the Justice Shah Commission Report on Goa was tabled in the Parliament along with an Action Taken Report of the Ministr





















































































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