IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Sandeep Mehta, Kuldeep Mathur, JJ.
Hindustan Zinc Limited - Petitioner
Versus
Union Of India, Through Its Secretary/additional Secretary, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi and ors. – Respondents
D.B. Civil Writ Petition No. 7044 of 2021
Decided On : 19-12-2022
Illegal Mining - Rajasthan Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2007 - Act Section List: Mines and Minerals (Development and Regulation) Act, 1957 - Summary: The court upheld the legality and validity of the Rajasthan Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2007, dismissing the petitioner's challenge based on the Act of 1957 and the exclusive dominion of the State Government to frame rules for prevention of illegal mining, transportation, and storage of all categories of minerals.
Fact of the Case:
The petitioner challenged the legality and validity of the Rajasthan Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2007, on the ground that the State Government's jurisdiction to legislate for major minerals was beyond the rule-making power delegated under Section 23-C of the Mines and Minerals (Development and Regulation) Act, 1957.
Finding of the Court:
The court upheld the legality and validity of the Rules of 2007, stating that the State Government has exclusive dominion to frame rules for prevention of illegal mining, transportation, and storage of all categories of minerals, as per Section 23C of the Act of 1957.
Issues: The legality and validity of the Rajasthan Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2007, based on the State Government's jurisdiction to legislate for major minerals beyond the rule-making power delegated under Section 23-C of the Mines and Minerals (Development and Regulation) Act, 1957.
Ratio Decidendi: The State Government has exclusive dominion to frame rules for prevention of illegal mining, transportation, and storage of all categories of minerals, as per Section 23C of the Act of 1957.
Final Decision: The court dismissed the petitioner's challenge to the Rules of 2007, upholding their legality and validity.
ORDER :
Sandeep Mehta, J.
1. The petitioner M/s. Hindustan Zinc Limited has approached this court through this writ petition for assailing the legality and validity of the Rajasthan Mineral (Prevention of Illegal Mining Transportation and Storage) Rules, 2007 (for brevity, hereinafter referred to as ‘the Rules of 2007’). The validity of the Rules has been challenged on the ground that the framing thereof is beyond the rule making power delegated to the State Government under Section 23-C of the Mines and Minerals (Development and Regulation) Act, 1957 (for brevity, hereinafter referred to as ‘the Act of 1957’.
2. Learned counsel Shri Punit Singhvi, representing the petitioner, addressing the court through VC, vehemently and fervently urged that the Rules of 2007 are nothing but an attempt of the State to exercise control over major minerals/specified minerals, to be specific in the case at hand – Lead-Zinc Ore or Lead Zinc Concentrate, which is a specified mineral/major mineral within the meaning of the Act of 1957. He contended that as the Act of 1957 does not give any jurisdiction to the State Government to legislate for the specified minerals/major minerals, the Rules of 2007 are ultra vires the Constitution of India. It was further submitted that the rules do not have any effective, impartial, independent grievance redressal mechanism inasmuch as appeal/revision against an order of the authorized officer working under the aegis of the Mining Department of the State Government is to be filed to the same Department of the State Government instead of a Mining Tribunal and hence also, the Rules of 2007 are illegal and ultra vires the Constitution of India as well as of the Act of 1957. He submitted that the competent officer under the Rules of 2007 has issued notices/letters to the petitioner raising an issue of loss of revenue on account of mining data contained in the returns of the petitioner for the last 10 years and that the petitioner has challenged these letters by filing a writ petition before Hon’ble Jaipur Bench. He urged that the Act of 1957 is a Central Legislation enacted with reference to entry 54 to List I of the Constitution. By virtue of a declaration made under Section 2 of the Act of 1957, in the public interest, the Central Government holds absolute control on the regulation of mines and development of minerals to the extent provided in the Act of 1957. minerals have been defined under Section 3(aa) of the Act of 1957 to mean “all minerals other than mineral oils” and minor minerals have been defined under Section 3(e) of the Act of 1957. He urged that Lead, Zinc, Copper, Silver and Cadmium are not the minerals covered under Section 3(e) of the Act of 1957. He drew the court’s attention to Section 13 of the Act of 1957, and urged that the Central Government is exclusively empowered to make rules in respect of major minerals. Section 14 of the Act of 1957 excludes minor minerals from the ambit of Sections 5 to 13 of the Act of 1957. He further urged that power conferred upon the State Government is limited to grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for the purposes connected therewith. Further submission was made that the Rules of 2007 have been framed for purposes affiliated to mining activities. Thus, it was the fervent contention of Shri Singhvi that under the framework of the Act of 1957, the Central Government has exclusive domain to make rules and regulations for governing all aspects of mining related to major minerals/specified minerals and the State Government is precluded from exercising power in reference to such minerals. He urged that as the enabling provision contained in Section 23C of the Act of 1957 does not give any dominion to the State Government to legislate in relation to major minerals, the Rules of 2007, whereby the State Government has exercised jurisdiction qua major minerals, are clearly ultra vires the Act of 1957. He placed
Om Prakash and Ors. v. Union of India and Ors., 1970 3 SCC 942
The court found that including processed minerals in the definition of 'Mineral' exceeds delegated legislative power, violating the parent Act and fundamental rights, thus rendering the amendment ult....
Power of State Governments to make rules in respect of minor minerals and rules for preventing illegal mining, transportation and storage of minerals - State Government has no legislative competence ....
The main legal point established in this judgment is that the State Government does not have the jurisdiction to frame rules regarding payment of differential royalty on minerals, as it falls under t....
Point of Law : State Government is not competent to demand an amount equivalent to 10% of royalty from an exporter of minor minerals who has excavated such minor minerals in another State and seeks t....
The court validated the authority of the state to impose penalties for unauthorized quarrying, establishing compliance with statutory rules as per the MMDR Act.
The court reaffirmed the authority of state governments to impose penalties under minor mineral concession rules, emphasizing that such penalties are lawful per Sections 14, 15, and 21 of the MMDR Ac....
Point of Law : Under Sections 15 & 23-C of MMDR Act, State has the power to regulate transport of minor minerals to check and prevent illegal mining.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.