IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
Nupur Bhati, J.
Mahaveer Kothari S/o. Shri Nathmal Kothari - Petitioner
Versus
State of Rajasthan through the Deputy Secretary to the Government of Rajasthan, Mines Department and ors. - Respondents
S.B. Civil Writ Petition No. 12278 of 2012
Decided On : 03-11-2023
Cancellation of Mining Lease - Natural Justice - Rajasthan Minor Mineral Concession Rules, 1986 - Rule 30
Fact of the Case:
The petitioner's mining lease was cancelled without affording an opportunity of hearing, leading to the petitioner's appeal and revision being dismissed. The petitioner sought restoration of the mining lease and quashing of the cancellation orders.
Finding of the Court:
The court found that the petitioner had deposited the due dead-rent and was not served with a notice before the cancellation of the mining lease. The court held that the cancellation without affording an opportunity of hearing violated the principles of natural justice.
Issues: Violation of natural justice, non-compliance with notice requirements, restoration of mining lease
Ratio Decidendi: The court emphasized the importance of affording an opportunity of hearing before cancelling a mining lease, as mandated by Rule 30 of the Rajasthan Minor Mineral Concession Rules, 1986.
Final Decision: The court quashed the orders of cancellation of the mining lease and directed the petitioner to deposit the amount of dead-rent as per the terms laid down in the rules.
ORDER :
SBCWP No.12278/2012 :
1. The instant writ petition has been preferred under Article 226 of the Constitution of India with the following prayers:-
ii) the mining lease of the petitioner may kindly be restored back in favour of the petitioner with effect from the date of taking over possession and the petitioner may be permitted to avail the remaining period of lease after taking over the possession till the expiry of the period of lease; and
iii) any other appropriate order which is deemed just and proper in the facts and circumstances of the case may kindly be also passed; and
iv) cost of writ petition be ordered to be awarded in favour of the petitioner.”
2. Brief facts of the case are that the petitioner was granted mining lease (ML No.20/87) for mineral Granite near Village Bithiya, Tehsil Sumerpur, District Pali in accordance with the provisions contained in the Rajasthan Minor Mineral Concession Rules, 1986 (hereinafter referred to as ‘the Rules of 1986’) for period of ten years from 10.08.1988. The period was thereafter further extended from 10 to 20 years vide order dated 22.07.1998 upto 09.08.2008. The petitioner has been depositing dead-rent etc., on regular basis in accordance with law. In the month of December, 2004 the petitioner fell seriously ill and upon regaining health, the petitioner approached the office of respondent no.4 for depositing dead-rent etc. The respondents verbally informed the petitioner that since all the documents had been summoned by higher authorities, therefore, upon receiving the documents the petitioner may deposit the dead-rent. The petitioner approached the respondent Authorities several times but no heed was paid. The petitioner came to know that the respondents have passed an order while cancelling the mining lease way back on 13.04.2005 on account of non-compliance of notice dated 22.12.2004 whereby the petitioner was directed to deposit a sum of Rs.9188/-as installment and a penalty of Rs.637/-. The petitioner was never served upon the aforementioned notice, however, the petitioner immediately offered the due amount as raised by the respondents, however, the same was refused to be accepted. The period of lease had expired on 21.07.2008 and, thus, the petitioner moved an application for renewal of mining lease but the application was not accepted on the ground that the mining lease has already been cancelled. The petitioner applied for certified copy of the order, which was duly furnished to the petitioner. The petitioner preferred an appeal before the respondent no.2 and during the pendency of appeal, the petitioner had deposited the whole amount of dead rent through the challan with SBBJ Bank. The respondent no.2 dismissed the appeal filed by the petitioner vide order dated 29.03.2010 (Annex.4). The petitioner thereafter preferred revision petition before the respondent no.1, which came to be dismissed vide order 25.4.2012 (Annex.5). Thus, the petitioner being aggrieved of order dated 13.04.2005 (Annex.2), order dated 29.03.2010 (Annex.4) and order dated 25.04.2012 (Annex.5) prefers this writ petition.
3. Learned counsel for the petitioner submits that the respondent no.4 proceeded without affording an opportunity of hearing to the petitioner. Learned counsel for the petitioner further submits that in the event of mining lease being restored, the balance of the mining lease period, which was not availed due to cancellation of mining lease shall be permitted to be availed after setting aside the cancellation order and in such circumstance there would be no question of filing renewal application until and unless the lease is restored in favour of petitioner and this aspect has not been considered by both the Authorities below. Learned counsel for the petitioner further submitted that the petitioner had invested huge amoun
Affording an opportunity of hearing before cancelling a mining lease is essential to comply with the principles of natural justice and the provisions of Rule 30 of the Rajasthan Minor Mineral Concess....
The court emphasized the necessity for authorities to follow procedural rules before canceling mining leases, allowing alternative penalties rather than outright cancellations.
Amnesty Scheme was floated to give benefit to mining lease holder.
The court emphasized the necessity of adhering to procedural requirements in administrative actions, particularly the right to a hearing and jurisdictional limits post-mineral classification changes.
The mandatory requirement of depositing dead rent for a mining lease and the automatic consequence of non-deposition leading to cancellation of the lease.
Non-deposition of dead rent leads to automatic cancellation of mining lease, and time-barred appeals lack merit.
The cancellation of the mining lease was found to be in accordance with the statutory provision of Rule 25(5) of the Orissa Minor Mineral Concession Rules, 2004.
The court emphasized the importance of considering extenuating circumstances, such as the petitioner's medical condition, and held that arbitrary decisions without due consideration are not permissib....
Rule 18 (21) of Rules, 1986, which provide for alternate consequences of breach of conditions of lease.
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