Back
PATNA HIGH COURT
S.B.Sinha, J.
Surendra Prasad Saha
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 770 of 1989 ;
Decided On : AUGUST 29, 1989
MINING LEASE RENEWAL - BIHAR MINOR MINERAL CONCESSION RULES, 1972 - RULE 11A - VALIDITY - RENEWAL OF MINING LEASE FOR MINERAL SAND - RIGHT TO RENEWAL - AMENDMENT OF RULE 11A - EFFECT - PUBLIC AUCTION - LEGALITY.
Fact of the Case:
The petitioner was granted a mining lease for minor mineral sand for a period of five years from 19-5-1980. He applied for renewal of the lease before 90 days from the date of expiry, i.e., 19-2-1985, and deposited the relevant renewal fee. However, the District Mining Officer informed the petitioner that his application for renewal of the mining lease cannot be renewed in view of the insertion of Rule 11A of the Bihar Minor Mineral Concession Rules, 1972, which provides that the settlement of sand as a minor mineral will be done by public auction by the Collector to the highest bidder on an annual basis.
Finding of the Court:
The court held that the impugned order dated 8-4-1985, by which the petitioner's application for renewal of the mining lease was rejected, cannot be said to be illegal. The court observed that the State Government had the power to make rules with regard to the procedure for obtaining a mining lease, including the renewal of a mining lease. The court also held that the amendment of Rule 11A of the Bihar Minor Mineral Concession Rules, 1972, which provided for the settlement of sand as a minor mineral by public auction, was valid and that the said rule shall prevail over the provisions of the mining lease deed executed in favor of the petitioner.
Issues: 1. Whether Rule 11A of the Bihar Minor Mineral Concession Rules, 1972, which provides for the settlement of sand as a minor mineral by public auction, is valid? 2. Whether the amendment of Rule 11A, which was made after the petitioner had applied for renewal of his mining lease, can be applied to the petitioner's case? 3. Whether the petitioner has a right to renewal of his mining lease?
Ratio Decidendi: 1. The court held that Rule 11A of the Bihar Minor Mineral Concession Rules, 1972, is valid as it was made by the State Government in exercise of its power under Section 15(1A) of the Mines and Minerals (Regulation and Development) Act, 1957. 2. The court held that the amendment of Rule 11A, which was made after the petitioner had applied for renewal of his mining lease, can be applied to the petitioner's case as the renewal of a mining lease is a fresh grant and the procedure for obtaining a mining lease, including the renewal of a mining lease, is governed by the rules framed under the Act. 3. The court held that the petitioner does not have a right to renewal of his mining lease as the renewal of a mining lease is not a matter of right but is subject to the provisions of the rules framed under the Act.
Final Decision: The court dismissed the petitioner's application challenging the impugned order dated 8-4-1985, by which his application for renewal of the mining lease was rejected.
1. This application is directed against an order dated 8-4-1985 as contained in Annexure-1 to the writ application whereby and whereunder the District Mining Officer, Giridih informed the petitioner that his application for renewal of the mining lease for mineral sand cannot be renewed in view of the insertion of Rule-11A of the Bihar Minor Mineral Concession Rules, 1972 by the State of Bihar in terms of notification dated 6-11-1984 as contained in Annexure-2 to the writ application which, incidentally was replaced by another notification dated 14-1-1985 as contained in Annexure-2 to the writ application.
2. The facts of the case lie in a very narrow compass.
3. The petitioner was granted a mining lease for the minor mineral sand by reason of registered deed of lease dated 19-5-1980 in respect of an area comprising 11.38 acres of land in village Makatpur and Barmashia for a period of five years commencing from 19. (sic)
4. In terms of the aforementioned deed of lease allegedly the petitioner was entitled to renewal thereof for a further period of five years.
5. Allegedly in terms of the aforementioned deed of mining lease the petitioner filed an application on 16 (sic) for renewal of the lease before 90 days from the date of expiry thereof i.e. 19-2-1985 and also deposited the relevant renewal fee.
6. By reason of the impugned order dated 8-4-1985 as contained in Annexure-1 to the writ petition, the petitioner was intimated that in view of the aforementioned notification as contained in Annexure-2 to the writ application, his mining lease cannot be renewed.
7. It appears that the aforementioned notification dated 6-11-1984 was replaced by notification dated 14-1-1985 which as contained in Annexure-3 to the writ application.
8. The Parliament enacted Mines and Minerals (Regulation and Development) Act 1957 (Act 67 / 1957) (hereinafter referred to as the said Act) to provide for regulation of mines and the development of minerals under the control of the Union.
9. in terms of S. 14 of the said Act, Ss. 4 to 13 thereof do not apply to minor minerals.
10. Sec. 20 of the said Act provides that the said Act and rules made thereunder shall apply in relation to the renewal after the commencement of the Act of any prospecting licence or mining lease granted before such commencement as they apply in relation to the renewal of a prospecting licence or mining lease granted after such commencement.
11. The State of Bihar in purported exercise of its power conferred upon it under S. 15 of the said Act framed the rules known as the Bihar Minor Mineral Concession Rules, 1972.
12. By reason of an amending Act being Mines and Minerals (Regulation and Development) Amendment Act, 1972, Section (sic) of the said Act was amended.
13. Sec. 15 of the said Act reads as follows :-
1.A In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely : -
(a) the person by whom and the manner in which applications for quarry leases and mining leases or other mineral concessions may be made and the fees to be paid thereof; (b) the time within which, and the form in which, acknowledgment of the receipt of any such applications may be sent; (c) the matters which may be considered where applications in respect of the same land are received within the same day. (d) the terms on which, and the conditions subject to which and the authority by which quarry leases, mining leases or other mineral concessions may be granted or renewed. (e) the procedure for obtaining quarry leases, mining lease or other mineral concessions; (f) the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations; (g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
