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2012 Supreme(Jhk) 661

JHARKHAND HIGH COURT
PRAKASH TATIA, C.J. & APARESH KUMAR SINGH, J.
Surendra Mohan Sarda - Appellant
Vs.
Union of India & Ors. - Respondent
W.P. (C) No.5449 of 2010
Decided on: 30th April, 2012

Advocates appeared:
For the Appellant/Petitioner:Mr. Indrajit Sinha, Advocate.
For the Respondents UOI: M/s. Md. M. Khan, ASGI, Y.N. Mishra, CGC
For the Respondent State: M/s. A.K. Sinha, A.G. and R. Shankar, G.A.

The quality of evidence required for mining lease and compliance with the National Mineral Policy, 2008 were central to the court's decision.

Headnote:

ultra vires - Mines & Minerals (Development & Regulation) Act, 1957 - 5(2), Rule 22(3)(g), Rule 26, National Mineral Policy, 2008 - 7, 7.3, 6.1, 5(2)(a), 5(2)(b), Rule 27(3) - The court discussed the compliance of section 5(2) of the Mines & Minerals (Development & Regulation) Act, 1957, the requirements under Rule 22(3)(g) and Rule 26, and the implications of the National Mineral Policy, 2008. It emphasized the need for evidence of mineral existence and the quality of evidence required for mining lease, and concluded that the guidelines issued were not in contravention of the Act or Rules.

Fact of the Case:

The petitioner challenged guidelines issued by the Government of India, Ministry of Mines, as ultra vires to the Mines & Minerals (Development & Regulation) Act, 1957, due to rejection of their lease application for a mine.

Finding of the Court:

The court found that the guidelines were not in contravention of the Act or Rules, emphasizing the need for evidence of mineral existence and the quality of evidence required for mining lease.

Issues: Validity of guidelines under the Mines & Minerals (Development & Regulation) Act, 1957 and rejection of lease application.

Ratio Decidendi: The court emphasized the need for evidence of mineral existence and the quality of evidence required for mining lease, and concluded that the guidelines issued were not in contravention of the Act or Rules.

Final Decision: The writ petition was dismissed.

JUDGMENT

1. Heard learned counsel for the parties.

2. By this writ petition, the petitioner has challenged the guidelines as contained in letter dated 24.06.2009 issued by the Government of India, Ministry of Mines, under the signature of the Deputy Secretary to the Government of India, on the ground of the same being ultra vires to the provisions of the Mines & Minerals (Development & Regulation) Act, 1957. The petitioner sought the relief because of the reason that the petitioner was the applicant for allotment of lease of the mine situated at Badajamda, Dist. West Singhbhum, measuring 106.230 hectare, which mine was earlier leased out to M/s. General Produce company Limited, whose lease expired on 19.05.1965. After 19.05.1965, this mine was initially notified only on 3.1.1979 and then again it was notified on 26.2.2007. The petitioner's said prayer was rejected by the order dated 1.9.2010 passed by the Deputy Secretary, Mines & Geology Department, Government of Jharkhand. It will be worthwhile to mention here that along with the petitioner, there were 63 more applicants and therefore, by the order dated 1.9.2010, the claim of all such applicants has been rejected. The petitioner's and others claim for the said mine was rejected on the ground of coming into force of the National Mineral Policy, 2008, which required more scientific details and data with respect to the minerals in the mining area which can be gathered by undertaking certain exercises and that exercise yet has not completed.

3. According to the learned counsel for the petitioner, mine in question was already leased out to the earlier lessee which is evident from the notification itself wherein that fact has been mentioned and the mine became available because of the expiry of the earlier lease of the lessee and in view of the above reason, there was full compliance of section 5(2) of the Mines & Minerals (Development & Regulation) Act, 1957, which provides that where there is already evidence of lease of mine and evidence of earlier prospected the area which is sought to be offered, then in that situation there is no other requirement of obtaining any further evidence. It is submitted that as per rule 22(3)(g) of the Mineral Concession Rules, 1960, the applicant is required to submit an affidavit showing particulars of area mineral-wise in the State which the applicant or any person jointly with him is holding or has already held or has applied for and certain other information are also required to be given by the applicant. It is submitted that refusal could have been done only under rule 26 of the Rules of 1960. This refusal is permissible only if certain particulars in the application in the Form “I” or Form “J” are not supplied in spite of a notice under sub-rule (3) of rule 26. Learned counsel for the petitioner drew our attention to the contents of the application form, which is required to be given under rule 22(1) of the Rule of 1960 and according to the learned counsel for the petitioner, in this form also, the applicant is required to disclose under column (xvi)(e) whether the area is virgin and if not, the extent to which it has already been worked; therefore, the applicant is also required to disclose reserves assessed with their grade (chemical analysis reports of representative samples are to be attached), which are also to be assessed. Therefore, the applicant himself is required to complete the requirements of section 5(2)(a) of the Act of 1957 and is required to furnish the evidence to show that the area for which lease has been applied has been prospected and there is existence of mineral contents in the area.

4. It is submitted that if the State or the Union of India wanted to implement any National Policy for mining operation, then that policy may require the amendment of the rules which are already occuping the field but merely because of framing of policy, the rules cannot stand amended by virtue of any notification issued in the name of gi












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