2014 Supreme(Del) 2577
High Court of Delhi
G. ROHINI & RAJIV SAHAI ENDLAW, JJ.
Federation Of Indian Mineral Industries (Fimi) & Another
Versus
Union Of India & Others
W.P.(C) Nos. 7745 & 7746 of 2014
Decided on: 09-12-2014
For the Petitioners:Dr. Abhishek Manu Singhvi, Parag Tripathi, Sr. Advocates, With Anand Varma, Tarun Patnaik, Advocates.
For the Respondents:R1, Akshay Makhija, CGSC with Rohitendra Deb, Waize Ali Noor & Kirtiman Singh, CGSC R3, Joseph Aristotle, Sr. Advocate With M.B. Elakkumanan, Kapil Dutta, Advocates.
Headnote:
Mineral Concession Rules, 1960 -Rule 24A(6) - Mines and Minerals (Development and Regulation) Act, 1957 - Section 8 - Mining lease - Grant of - Renewal - Cause of action - There is no basis in the pleadings vis-a-vis the mining lease in favour of Tata Steel Ltd - Grievance with respect to the action of the Government of the State of Jharkhand claiming Rs. 3568.32 crores from Tata Steel Ltd - Pending application for renewal of mining lease, is personal and only to Tata Steel Ltd. and only against the State of Jharkhand - This Court would not have territorial jurisdiction - Grievance is of only three out of over 320 members of the petitioner Federation - Three causes of action cited are against the State Government only and which have nothing to do with the amendment to the Rule 24A(6), notification whereof was issued at Delhi - It is open to the member of the petitioner Federation to raise the issue in the concerned State High Court - No case for entertaining the petitions particularly in this Court is made out.
Rajiv Sahai Endlaw, J.
1. These petitions under Article 226 of the Constitution of India have been filed seeking a declaration, that the amendments to Rule 24A(6) of the Mineral Concession Rules, 1960, brought about by the Notification dated 18th July, 2014 issued by the Ministry of Mines, Government of India and whereby Sub-rule (6) has been substituted, are prospective in nature and effect.
2. It is the case of the petitioners that:
(i) The grant and renewal of mining leases by State Governments, including the period thereof, is governed by Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and under Sub-section (1) whereof, the maximum period for which a mining lease will be granted shall not exceed 30 years and the minimum period shall not be less than 20 years; under Sub-section (2) thereof, mining lease is renewable for a period not exceeding 20 years; under Sub-section (3) thereof, if the State Government is of the opinion that in the interest of mineral development, it is necessary so to do, it may, for reasons to be recorded, authorize the renewal of mining lease in respect of minerals not specified in Part A and Part B of the First Schedule for a further period or periods not exceeding 20 years in each case; and, further vide Sub-section (4), no mining lease granted in respect of minerals specified in Part A and Part B of the First Schedule is to be renewed except with the previous approval of the Central Government.
(ii) Vide Rule 24A(6) of the Rules (supra) as it existed prior to its amendment (supra) w.e.f. 18th July, 2014, if an application for renewal of mining lease is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period till the State Government passes order thereon.
(iii) The Supreme Court in Goa Foundation Vs. Union of India (2014) 6 SCC 590 pronounced on 21st April, 2014 held that Rule 24A (6) applies only to the first renewal under Section 8(2) of the MMDR Act and is not applicable to subsequent renewals of mining lease under Section 8(3) of the MMDR Act, as had been the practice earlier.
(iv) The Supreme Court subsequently in order dated 16th May, 2014 in W.P.(C) No.114/2014 titled Common Cause Vs. Union of India further held that notwithstanding the State Government having not taken a decision on the applications filed for second or further renewal of mining lease, the lessee, after the expiry of the term of the first renewal cannot operate the mining lease till the State Government forms an opinion in exercise of powers under Section 8(3) of the MMDR Act for further renewal of the mining lease.
(v) The Government of India vide Notification dated 18th July, 2014 substituted Rule 24A(6) till then existing as under:
“(6) If an application for renewal of a mining lease made within the time referred to in sub-rule (1) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period till the State Government passes order thereon.”
WITH
“(6) If an application for first renewal of a mining lease made within the time referred to in sub-rule (1) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period of two years or till the State Government passes order thereon, whichever is earlier:
Provided that the leases where applications for first renewal of mining lease have been made to the State Government and which have not been disposed of by the State Government before the date of expiry of lease and are pending for disposal as on the date of the notification of this amendment, shall be deemed to have been extended by a further period of two years from the date of coming into force of this amendment or till the State Government passes order thereon or the date of expiry