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2021 Supreme(Bom) 1325

IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT NAGPUR
Sunil B. Shukre, Anil S. Kilor, JJ.
Prafulla - Appellant
Versus
State Of Maharashtra & Ors. - Respondents
Writ Petition No. 3075 of 2021
Decided On : 11-10-2021

Advocates appeared:
A. J. Gilda, Advocate, N. R. Patil, Advocate

The principle of harmonious construction was applied to reconcile conflicting provisions of the Mines and Minerals Act, 1957 and the Rules of 2016, ensuring that no provision was rendered ineffective.

Headnote:

Mining Lease - Lapsing of Lease - Mines and Minerals Act, 1957, Section 4A(4), Rules of 2016, Rule 20(7)

Fact of the Case:

The petitioner held a mining lease for Manganese Ore but faced an order declaring the lease lapsed due to failure to commence mining operations within the stipulated period. The petitioner sought revival of the lease, which was not decided by the respondents, leading to the court intervention.

Finding of the Court:

The court found that the reasoning for rejecting the lease revival application was illegal and in ignorance of settled legal principles. The impugned orders were quashed and set aside, and the matter was remanded back to the respondents for a decision within four weeks.

Issues: The key issues involved the interpretation of Section 4A(4) of the Mines and Minerals Act, 1957, the amendments introduced to it, and the provisions of Rule 20(7) of the Rules of 2016.

Ratio Decidendi: The court applied the principle of harmonious construction to reconcile the incongruent provisions of Section 4A(4) and Rule 20(7), holding that the latter was not rendered ineffective by the amendments and could be enforced by interpreting 'mining operations' as 'production and dispatch'.

Final Decision: The petition was allowed, the impugned orders were quashed and set aside, and the matter was remanded back to the respondents for a decision within four weeks.

JUDGMENT

Sunil B. Shukre, J. - Heard Mr. A. J. Gilda, learned counsel for the petitioner and Mr. N. R. Patil, learned AGP for respondents.

2. Rule. Rule made returnable forthwith. Heard finally by consent of the learned counsel appearing for the parties.

3. The petitioner, a holder of lease for mining Manganese Ore available in a parcel of land admeasuring 30.82 acres situated at Hiwara, Tahsil Bhandara, District Bhandara since the year 1971, faced an order passed on 31/03/2021 by respondent No.2 declaring that his mining lease had lapsed on account of failure to commence the mining operations within a stipulated period of two years from the date of the execution of the mining lease. The mining lease was executed in favour of the petitioner on 25/02/2011, initially for a period of three years and lateron, by the order passed by respondent No.2 on 29/06/2018, it was extended till 18/11/2021. But, before the expiry of the lease period, an order recording lapsing of the lease was passed on 31/03/2021. Realizing the serious consequences of the order dated 31/03/2021, the petitioner filed an application dated 08/04/2021, seeking revival of the mining lease and as it was not decided by the respondents, the petitioner approached this Court in Writ Petition No.2487 of 2021 seeking issuance of a necessary direction to decide it within certain time. This Court by the order passed on 16/07/2021, directed the respondents to decide the application within three weeks from the date of the order. Now, a decision has been rendered by the respondent No.2 but, the decision, if perused carefully, would appear to be no decision in the eye of law. This could be gauged from the solitary reason stated in the order dated 30/07/2021, which is followed by order dated 13/08/2021, impugned herein. The reason given is that the provisions of Rule 20(7) of the Minerals (Other than Atomic & Hydrocarbon Energy Minerals) Concession Rules, 2016 (for short "Rules of 2016") have turned ineffective after amendments introduced to Section 4A(4) of the Mines and Minerals (Development and Regulation) Act, 1957 (for short "Act, 1957") by Notification dated 28th March, 2021 issued by Ministry of Law and Justice.

4. The reason so stated in the impugned order is questioned for its correctness and approach by the learned counsel for the petitioner. He contends that if the reason for refusing to decide the application filed by the petitioner seeking revival of mining lease is accepted, the petitioner would have nowhere to go and the provision of Rule 20 of Rules of 2016 would be rendered nugatory. Mr.N.R.Patil, learned AGP, however, supports the impugned order stating that since the "mining operations" or the "production and dispatch" activity on the mine under lease was not commenced by the petitioner within stipulated period of time, the lease has been rightly said to be lapsed and now there is no question of revival of the same, especially when the application has been filed for its revival after lapsing of the lease.

5. The rival arguments would necessitate consideration of the unamended Section 4A(4) of the Act, 1957, the amendments introduced to it by the Notification dated 28th March, 2021 and also the provisions of Rule 20(7) of the Rules of 2016. The relevant portion of the unamended Section 4A(4) reads thus :-

"Section 4-A Termination of prospecting licenses or mining leases. -

(1)

(2)

(3)..

(4) Where the holder of a mining lease fails to undertake mining operations for a period of [two years] after the date of execution of the lease or, having commenced mining operations, has discontinued the same for a period of [two years], the lease shall lapse on the expiry of the period of [two years] from the date of execution of the lease or, as the case may be, discontinuance of the mining operations;"

The relevant portion of the amendments introduced to Section 4-A(4) of the Act, 1957 is reproduced as below :-

" In Section 4A of the principal Act, in sub-section (4), -

(i) for the w

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