The court found that a petitioner lacks standing to challenge mining lease rejections when the applicant's prior applications have become ineligible under the amended MMDR Act.

JUDGMENT :

NARENDRA KUMAR VYAS, J.

(A) Relief sought:-

1. This petition has been filed by the petitioner for issuance of direction to the respondent authorities to decide the application submitted by respondent No. 2/Chhattisgarh Mineral Development Corporation Limited (for short “the Corporation”) before 27.03.2023 regarding grant of mining lease to the Corporation. The petitioner has also prayed that in the eventuality the respondent fails to decide the application for grant of mining lease in favour of the Corporation, the application submitted by them shall not be treated ineligible and their application be remained alive for consideration in view of bar contained in Section 17(A)(2a) of Mines and Minerals (Development & Regulation) Act, 1957 (for short “the MMDR Act, 1957”). The petitioner has also prayed for declaring that the area which was reserved in the year 1981 for public sector undertaking for mining of Bauxite by the State Government under the Act, 1957 remains reserved for public sector undertaking even after amendment in the MMDR Act, 1957.

(B) Facts:-

2. (A) The Government of Madhya Pradesh issued a notification on 19.06.1981 (Annexure P/1) reserving the right of mining of Bauxite ore in Kanker and Narayanpur Tahsil District Bastar for M.P. State Mining Corporation Limited (for short “the MPSMC”) and along with the notification, the villages where the mining operation has to be carried out, have also been identified. Subsequently a proposal was sent by the MPSMC to allow them to carry out prospecting mining through joint prospecting mining operation which was approved by the Government vide its notification dated 18.11.1981. In pursuance of acceptance of the proposal made by the MPSMC, the Belpahar Refractories Limited conducted prospective mining and submitted report of geological investigation for Bauxite in the notified area.

(B) The State Government vide order dated 22.11.1985 (Annexure P/3) has nominated the MPSMC as agent for Bauxite mining in Kanker, Kondagaon & Narayanpur of Bastar District on certain conditions. Clause 1 (A) of the order specifically provides that the MPSMC will be owner of the mines as per the provisions of the Mines Act, 1952 and also to comply all the provisions of law and rules made therein. In view of reorganization of State of Madhya Pradesh as State of Madhya Pradesh and Chhattisgarh on 01.11.2000, the Chhattisgarh Minerals Development Corporation (for short “the CMDC”) has been constituted to carry out the mining operation in the State of Chhattisgarh as State Government public undertaking.

(C) It is case of the petitioner that a Joint Venture Agreement (JVA) was executed on 17.02.2003 (Annexure P/7) between CMDC (First Party) and the petitioner [M/s K.G.N. Mineral & Metal (P) Ltd.] (Second Party) for identification, exploration, exploitation and marketing of Bauxite ore in Kanker & Bastar District to setup a calcination plant of 100 Metric Tonnes per day capacity in Kanker District of Chhattisgarh as soon as possible but not latter than two years from the date of joint venture agreement. Clause 6 of the joint venture agreement provides that the first party shall ensure with the State Government of Chhattisgarh that Bauxite ore bearing areas as earmarked above, are made available to the Second Party. The First Party will extend necessary assistance with regard to the above and in consideration of which the First Party will be given 25% of the equity of JVC without actually subscribing for it. Clause 14 of the joint venture agreement also provides that day to day working of the joint venture shall be fully under the control and ma