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2025 Supreme(Chh) 376

HIGH COURT OF CHHATTISGARH AT BILASPUR
Sanjay K. Agrawal, Sachin Singh Rajput, JJ
JSW Steel Limited - Petitioner
Versus
Union of India, Through its Secretary, Ministry of Mines, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - Respondent
WPC No. 4817 of 2022, WPC No. 4819 of 2022
Decided On : 10-10-2025

Advocates Appeared:
For the Petitioner:Mr. Ashok K. Parija, Senior Advocate with Mr. Ankit Singhal, Mr. Dhananjay Mishra, Mr. Aman Saxena, through Video Conferencing, Mr. Ritesh Patnaik and Mr. Ashish Mittal, Advocates.
For the Respondent:Mr. Tushar Dhar Diwan, Central Government Counsel, Mr. Ranbir Singh Marhas, Additional Advocate General.

No lapsing of a mining lease occurs where operations are statutorily restrained until requisite environmental clearances are obtained, making provisions inapplicable until such clearances are available.

Headnote:(A) Mines and Minerals (Development and Regulation) Act, 1957 - Section 4A(4) and Rule 20(3) of the Concession Rules, 2016 - The petitioner challenged the lapsing of mining lease on grounds of delayed environmental clearance, arguing it was not applicable as their non-commencement was due to reasons beyond control. Court established that lapsing provision could only apply post-clearance as the mining operations were statutorily restrained until such clearance was obtained - Notice dated 20-09-2022 quashed as being without jurisdiction. (Paras 14, 20, 37)

Facts of the case:
Petitioner filed writ petitions against a notice declaring mining lease as lapsed on grounds of non-commencement of operations, asserting that any delay was beyond their control due to the need for environmental clearance. The petitioner had received a letter of intent in 2009 but faced delays in obtaining necessary approvals.

Findings of Court:
The Court ruled that the conditions for the lapsing provision under Section 4A(4) of the MMDR Act were not satisfied as the petitioner was statutorily prohibited from commencing mining operations without environmental clearance. The relevant statutory deadlines had not begun to run.

Issues: The key issues were interpretation of Section 4A(4) regarding lapsing of mining leases and the implications of statutory injunctions on the commencement of mining operations.

Ratio Decidendi: The Court concluded that statutory provisions prevent the lapsing of a mining lease where operations cannot commence until required approvals are in place. Emphasizing that lapsing would not occur until after all clearances are obtained, the notice by the state was deemed without lawful authority.

Result: Writ petitions allowed; notice dated 20-09-2022 quashed.

Table of Content
1. writ petitions clubbed for common disposal. (Para 1 , 2)
2. background of petitioner's mining lease application. (Para 4 , 5)
3. arguments from the state regarding jurisdiction issues. (Para 6 , 9 , 10)
4. arguments asserting the legality of the notice. (Para 11 , 12)
5. analysis of statutory provisions under mmdr act. (Para 13 , 14 , 15 , 16)
6. examination of lapsing provisions in mining leases. (Para 17 , 18 , 19)
7. consequences of unlawful mining operations discussed. (Para 20 , 21)
8. legislative purpose of preserving rights under amended act. (Para 22 , 23 , 24)
9. court reconciles statutory injunction against mining operations. (Para 28 , 29 , 30)
10. final determination on jurisdiction regarding mining lease. (Para 31 , 32)
11. impact of decision on future applications and jurisdiction upheld. (Para 33 , 34 , 36)
12. conclusion drawn with specific relief granted. (Para 37 , 38)

ORDER :

Sanjay K. Agrawal, J.

1. Since common question of law and fact is involved in both the writ petitions, they have been clubbed together, heard together and are being disposed of by this common order.

2. The petitioner herein has filed these writ petitions under Article 226/227 of the Constitution of India seeking relief that the notice dated 20-9-2022 (Annexure P-16) issued by respondent No.3 be quashed and further sought appropriate writ or direction declaring that the consequence of lapsing provision under Section 4A(4) of the Mines and Minerals (Development and Regulation) Act, 1957 (for short, ‘the MMDR Act’) would not be applicable to them where the non- commencement or discontinuance of mining operations is for reasons beyond the control of the lessee including circumstances where the non- commencement or discontinuance is on account of pendency of grant of statutory clearances, and also sought relief to issue an appropriate writ, order or direction declaring that in respect of mining leases executed pursuant to the Mines and Minerals (Development and Regulation) Removal of Difficulties Order, 2017 (for short, ‘the Order of 2017’), the period of two years prescribed under Section 4A(4) of the MMDR Act would commence only after receipt of Environmental Clearance (EC). Further, the petitioner has also sought relief that Rule 20(3) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (for short, ‘the Rules of 2016’), as it stood prior to its substitution with effect from 1-11-2021, be declared as ultra vires to Section 4A(4) of the MMDR Act and alternatively, the period of 3 months stipulated in the pre- substituted Rule 20(3) be declared as directory and not mandatory in nature.

3. The aforesaid reliefs have been sought on the following factual backdrop: (Lead Case WPC 4817/2022)

4. The petitioner’s predecessor-in-interest M/s. Monnet Ispat and Energy Limited, on 22-1-2007, made an application for grant of mining lease for limestone at Villages Gaitra, Pausri, Bharsela & Bharseli, Tehsil Balodabazaar, District Raipur. Accordingly, the State of Chhattisgarh, on 3-11- 2009 vide Annexure P-1, issued a letter of intent (LOI) for mining limestone for captive use (cement plant) in favour of M/s. Monnet Ispat and Energy Limited for a period of 30 years and as per clause 4 of the LOI, mining operations were to be carried out only after obtaining EC. On 12-1-2015, the Parliament has amended the MMDR Act vide the MMDR Amendment Act, 2015 inter alia introducing addition of Section 10A(2)(c) protecting rights of the leaseholders. Section 24 of the MMDR Amendment Act, 2015 provides power of the Central Government to remove difficulties arising in giving effect to the provisions of the MMDR Amendment Act, 2015. Accordingly, on 18-8-2015, an application seeking EC was made by M/s. Monnet Ispat and Energy Limited under the terms of EIA (Environmental Impact Assessment) Notification dated 14-9-2006 under the Environment (Protection) Act, 1986. The Central Government on 4-1-2017 issued the Order of 2017 clarif

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