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2025 Supreme(Gau) 186

THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Sthenos Cement Private Ltd - Appellant
Versus
Union Of India - Respondent
WP(C)/1104/2022
Decided On : 17-02-2025

Advocates Appeared:
For the Petitioner(s):Mr. D. Saikia, Senior Advocate:Mr. C.P. Sharma, Senior Advocate:Mr. A. Mathews, Advocate:Mr. G. Kaushik, Advocate
For the Respondent(s): Mr. N.N.B. Choudhury, Addl. AG, Arunachal Pradesh : Mr. U.K. Goswami, CGC

IMPORTANT POINT
Mining Lease approvals were revoked due to the petitioners' failure to comply with statutory requirements, rendering prior approvals void.

Headnote:

(A) Mines and Minerals (Development and Regulation) Act, 1957 - Section 5(2)(b) - Mining Lease - Petitioners challenged the revocation of Mining Plan approvals by the Indian Bureau of Mines - The State Government issued communications granting Mining Leases without compliance with required regulations, rendering them void - The court found that the approvals were revoked lawfully due to non-compliance with statutory requirements. (Paras 3 , 19 , 70 , 98 )

(B) Jurisdiction - The Respondent No.3 had the authority to revoke Mining Plan approvals as they were conditional - The court ruled that the Respondent acted within jurisdiction and justified in revoking the approvals. (Paras 86 , 88 )

Facts of the case:

The petitioners sought Mining Lease approvals after being granted Prospecting Licenses, but failed to comply with requisite conditions, leading to the revocation of approvals by the Indian Bureau of Mines. (Paras 3 , 19 )

Findings of Court:

The court found that the Mining Lease approvals were void due to non-compliance with Section 5(2)(b) of the Act and Rule 7 of the Rules of 2016. (Paras 66 , 70 )

Issues: The main issues included whether the court should entertain the writ petitions given the availability of alternative remedies and whether the Respondent had jurisdiction to revoke the approvals. (Paras 20 , 28 )

Ratio Decidendi: The court held that the Mining Lease approvals were void due to statutory non-compliance and that the Respondent had the jurisdiction to revoke the approvals based on the conditions set forth in the approvals. (Paras 66 , 88 )

Result: Writ petitions dismissed.

JUDGMENT :

Heard Mr. D. Saikia and Mr. C.P. Sharma, the learned Senior Counsels assisted by Mr. A. Mathews, the learned counsel appearing on behalf of the petitioners in the batch of the instant writ petitions. I have also heard Mr. N.N.B. Choudhury, the learned Additional Advocate General, Arunachal Pradesh and Mr. U.K. Goswami, the learned Central Government Counsel appearing on behalf of the respondent Nos. 1, 2 and 3.

2. The dispute involved in the instant batch of the writ petitions relates to respective challenges made to the revocation of the approvals of the Mining Plans of the petitioners by the Regional Controller of Mines, Indian Bureau of Mines, the respondent No.3 in the writ petitions.

3. Before dealing with the submission so made by the learned counsels appearing on behalf of the parties, this Court would briefly deal with the facts involved in the present batch of writ petitions.

    PLEADINGS IN THE WRIT PETITIONS WP(C) No.1104/2022 (I) The Department of Geology and Mining, State of Arunachal Pradesh had conveyed a decision for grant of a Prospecting License to the petitioner No. 1 herein for graphite over an area of 14 sq. kms. at Taliha in West Upper Subansiri District, Arunachal Pradesh. Pursuant thereto, the Deed of Prospecting License was executed by and between the petitioner No. 1 and the State of Arunachal Pradesh on 28.05.2014.
    (II) A perusal of the said Deed for Prospecting License reveals that certain rights and licenses were granted to the Petitioner No. 1 for a period of 3 years. Subsequent thereto, vide an order dated 08.08.2018, the Secretary (Geology and Mining) of the Government of Arunachal Pradesh renewed the said Prospecting License for a further period of two years with effect from the 29.05.2017 i.e. up to 28.05.2019. The deed for renewal of Prospecting License was executed on 09.08.2018. It is relevant to take note of that with this renewal, the Prospecting License granted to the Petitioner No.1 was extended till 28.05.2019.
    (III) On 16.08.2019, the Managing Director of the petitioner No. 1 submitted the Mining Lease Application along with the Geological Report, Forest Map, Mining Lease area map, Treasury Challan, Board Resolution for Authorized Signatory and along with an affidavit and requested for grant of a Mining Lease Letter of Intent for the area wherein the Prospecting License was issued. The said Application was filed taking benefit of Section 10A of the Mines and Minerals (Development and Regulation) Act, 1957 ( for short referred to as ‘ the Act of 1957 ’) and in terms with Rule 7(1) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, (for short, “ the Rules of 2016 ”). Along with the said application, the Managing Director of the petitioner No. 1 had also deposited an amount of Rs.24,80,000/-. On the very same date, the State Geologist,(Geology and Mining) Government of Arunachal Pradesh had acknowledged the receipt of the said application.
    (IV) At this stage, it is relevant to mention that though the Prospecting License was for an area of 14 sq. kms. but the application was for grant of a Mining Lease for mining graphite over an area of 4.96 sq. kms. in Taliha.
    (V) On 21.08.2019, the Secretary (Geology and Mining) of the Government of Arunachal Pradesh informed the Managing Director of the petitioner No. 1 that the Government of Arunachal Pradesh had approved the proposal for issue of a letter of intent for grant of Mining Lease for graphite over an area of 4.96 sq. kms. in Taliha, Upper Subansiri District in favour of the petitioner No. 1 for a period of 50 years. It was stipulated in the said communication that the petitioners were required to ensure compliance and submission within 3 years from the date of issue of the said letter and further extension of the said period would be upon the discretion of the Government.It appears that the said co


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