The court emphasized the necessity for authorities to follow procedural rules before canceling mining leases, allowing alternative penalties rather than outright cancellations.

JUDGMENT :

(Nupur Bhati, J.)

The present writ petition has been preferred under Article 226 of the Constitution of India with the following prayers:-

a. Quashed the impugned order dated 27-09-2017 (Annex-3) passed by the Non-Petitioner No.2: and

b. That the Non-Petitioner No.2 may be directed to consider the application of the Petitioner for condonation of delay on it's own merit and then decide the appeal in accordance with Law: and

c. any other appropriate relief which this Hon'ble Court deem just and proper in the facts and circumstances of this case, may kindly be also granted in favour of the Petitioner: and

d. award the cost of this writ petition to the Petitioner.

2. Brief facts of the case are that a mining lease for mineral lime stone was allotted in favour of the petitioner vide order No. 2914 dated 03.11.1995 in Mining Lease No. 1283/1995 situated near village Ransi Gaon, Tehsil Bilara, District Jodhpur. The petitioner fulfilled all the requisite conditions and started operating the mining lease which was allotted for the period of 20 years. The petitioner approached the concerned Officer of the Mining Department for depositing the due amount in the month of September, 2014 and came to know that on 09.11.1998, the mining lease had been revoked on account of default on the part of the petitioner in depositing the royalty. The petitioner being aggrieved of the aforementioned order dated 09.11.1998 (Annexure-1), preferred an appeal before the Additional Director (Mines), Mines and Geology Department, Jodhpur Zone, Jodhpur, which was transferred to the Additional Director (Mines) (Environment and Development), Directorate of Mines and Geology Department, Government of Rajasthan, Udaipur. The said appeal preferred by the petitioner was rejected on the ground that it was time barred. The petitioner being aggrieved of the order dated 27.09.2017 (Annexure-3), has preferred the present writ petition.

3. Learned counsel for the petitioner places reliance upon the order dated 06.11.2017 passed by this Court in S.B. Civil Writ Petition No. 14717/2016 (M/s Sojat Lime Company v. State of Rajasthan & Ors.), the relevant portion of the said order is reproduced hereunder :-

"For proper adjudication of the matter, it would be appropriate to reproduce the Rule 18 (21) (a) of the Rules of Rajasthan Minor Mineral Concession Rules, 1986, which reads as under:

"18(21) (a) : In case of any breach on the part of the lessee of any covenant or condition contained in the lease, the competent authority may determine the lease and take possession of the said premises and forfeit the security money or in the alternative may impose payment of a penalty not exceeding twice the amount of annual dead rent of the lease. Such auction shall not be taken unless the lessee has failed to remedy the breach after serving of 15 days notice."

A perusal of the said Rule shows that the respondents had directly cancelled the lease instead of adopting the alternative method of levying penalty to the extent of twice the amount of annual dead rent of the lease. This view is expressed by this Court in the case of M/s Neel Kanth Chemical Works, Jodhpur v. State of Rajasthan & Ors. (S.B. Civil Writ Petition No.1241/1980 decided on 10.10.1980, wherein the law with regard to cancellation of mining lease was considered and the order of cancellation of the lease deed was set aside by observing as under:

"After this second question would arise whether extreme penalty of determination of lease is necessary in the interest of justice or alternative penalty by imposing the amount not exceeding twice the amount of the annual dead rent of the lease, would meet the ends of justice. There should be application of mind on this aspect of the case also, and the impugned order or order of determination should show that the authority has applied its mind and come to the conclusion that because the lessee has failed to remedy the defects pointed out to the lessee within 15 days time allowed to