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2021 Supreme(Guj) 852

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
Biren Vaishnav, J.
Ashapura Minechem Limited - Appellants
Vs.
State of Gujarat - Respondent
Spe. Civ. App. No. 6802 of 2021
Decided On : 30-04-2021

Advocates:
Advocate Appeared:
For the Appellant : A.S. Vakil
For the Respondents: Ishan Joshi, AGP

The main legal point established in the judgment is the court's interpretation and application of Rule 29 of the Gujarat Minor Mineral Concessions Rules, 2017, in directing the government to issue an order for the grant of quarry lease.

Headnote:

quarry lease - Gujarat Minor Mineral Concessions Rules, 2017 - Rule 29

Fact of the Case:

The petitioner sought a quarry lease permission and mining lease agreement in pursuance of a Letter of Intent (LOI) issued by the respondent. The petitioner argued that the LOI was issued prior to the amended Rules of 2017 and that failure to grant the quarry lease would lead to forfeiture of their rights.

Finding of the Court:

The court found that the petitioner had a valid claim for the grant of quarry lease and directed the government to issue an order for the same within a specified period, with further conditions regarding environmental clearances and mining activities.

Issues: The main issue was the failure of the government to issue an order for the grant of quarry lease despite the petitioner's compliance with the necessary conditions.

Ratio Decidendi: The court relied on Rule 29 of the Gujarat Minor Mineral Concessions Rules, 2017, which stipulated the conditions for the grant of quarry lease and the consequences of non-compliance. The court also considered previous similar cases and directed the government to act in accordance with the legal provisions.

Final Decision: The petition was allowed, and the court made the rule absolute, directing the government to issue an order for the grant of quarry lease within a specified period.

ORDER :

Biren Vaishnav, J.

1. Rule returnable forthwith. Learned Assistant Government Pleader waives service of rule on behalf of the respondent-state. With the consent of the respective parties, the matter is taken up for final hearing.

2. Mr. Vakil, learned counsel for the petitioner would rely on the orders passed in similar matters by this Court namely; SCA No. 9470 of 2019 dated 17.5.2019 and the order passed in SCA No. 5316/2021 dated 24.3.2021.

3. Having heard learned counsels for the respective parties, it is not in dispute that the LOI in this petition is either prior or after the amended Rules of 2017. Admittedly, the case of the petitioner as referred in the order dated 24.3.2021 passed in SCA No. 5316/2021 shall be governed by the Gujarat Minor Mineral Concessions Rules, 2017 and the notifications dated 9.3.2018 and 6.1.2020. By the notification dated 6.1.2020, sub-rule (3) of Rule 29 was substituted by which the substituted rule provided that the Government shall issue a order in writing for grant of a quarry lease to the holder of a letter of intent upon satisfaction of the following conditions within a period of four years from the date of commencement of these rules, failing which the right of such an applicant for grant of quarry lease shall be forfeited automatically. In view of the amended Rules of 2017 having come into force on 24.5.2017, the time limit for the grant of lease in favour of the petitioner would expire on 23.5.2021.

4. The order dated 24.3.2021 passed in SCA No. 5316 of 2021 governed the case, would require this Court to reproduce the order which reads as under:

    "1. In this petition, which is filed under Article 226 of the Constitution of India, petitioners have prayed that the concerned respondent authorities be directed to grant the quarry lease permission and execute the mining lease agreement in pursuance of the LOI dated 17.08.2015 issued by the respondent No. 3 in favour of the petitioner in respect of the private Nonagricultural land in question on certain terms and conditions.;

2. Heard learned advocate Mr. Rutvij Oza for the petitioner and learned AGP Mr. Ronak Raval for the respondents.

3. Looking to the issue involved in the present petition, learned advocates appearing for the parties have jointly requested that this petition be disposed of at an admission stage.

4. Learned Advocate for the petitioner submitted that the petitioner had succeeded in getting permission for conducting mining activities as per the provision of Mines and Minerals (Regulation and Development) Act, 1957 (hereinafter referred to as "Act, 1957" for short) and Gujarat Minor Mineral Concessions Rules, 2017 (hereinafter referred to as "Rules, 2017" for short) and pursuant to which, LOI was executed on 17.08.2015. It is submitted that mining of mineral, which the petitioner intended to, was blacktrap from the land bearing Survey No. 283 of Village Kesiya, Taluka Jodiya, District Jamnagar, admeasuring 01.00.00 Hectare. He further submitted that under the said LOI, mainly four conditions viz. Environmental Clearance Certificate, measurement by the DILR, to get it decided the amount of stamp duty for lease deed and approved mining plan from the competent authorities were necessary.

5. It is submitted that peculiar situation has arisen on account of the decision of the NGT with regard to the constitution of the Committee, which is responsible for issuing necessary sanction and therefore, as time limit prescribed under the relevant Rules for the period of two years is to expire, the present petition is filed.

6. Learned advocate for the petitioner draws attention of this Court to relevant Rule No. 29, wherein sub-rule (3) provides for the Government to issue an order in writing for grant of quarry lease to the holder of LOI upon following of certain conditions prescribed within a period of two years from the date of commencement of the Rules. It is submitted that Rules came into effect from 24.05.2017 and therefore, period of

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