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2017 Supreme(Jhk) 392

IN THE HIGH COURT OF JHARKHAND AT RANCHI
PRAMATH PATNAIK, J.
M/S Singhbhum Mineral Company & Ors. – Petitioners
Versus
The Union of India & Ors. – Respondents
W.P. (C) No. 2509 of 2016
Decided On : 07-07-2017

Advocates Appeared:
For the Petitioners:Mr. Ashok Kumar Parija, Sr. Advocate, Mr. N.K. Pasari, Advocate
For the Respondents: Mr. Rajiv Sinha, ASGI., Ms. Nitu Sinha, CGC, Mr. Ajit Kumar, A.A.G., Ms. Aprajita Bhardwaj, J.C to A.A.G., Mr. Chanchal Jain, J.C to A.A.G.

Headnote:Mines and Minerals (Development and Regulation), 1957 – Sections 4- and 8-A – Mineral Concession Rules, 1960 – Rule 24A(1) – Lease cannot lapse automatically unless an order is passed by State Government after giving notice and opportunity of hearing – There cannot be a deeming provision for automatic lapsing of lease as lease holder could have valid reasons for discontinuance which could be because of an order passed authority or any other legal compulsion – Impugned order passed by State Government rejecting application of extension of lease, order passed by Revisionary Authority and consequential orders quashed and set aside and matter remitted to respondent-State of Jharkhand to pass appropriate order.

JUDGMENT :

Pramath Patnaik, J.

1. In the instant writ application, the petitioners have inter alia prayed for quashing impugned order dated 02.03.2016, whereby the revision application filed by the petitioners has not been admitted by the Revisionary Authority; for quashing impugned order dated 22.01.2016 whereby application dated 29.06.2015 and 20.08.2015 made by the lessee for extension of the lease in question was rejected by respondent no. 2; for quashing impugned order dated 02.02.2016 passed by the Deputy Commissioner, Chaibasa whereby it was ordered to hand over the mining lease to District Mining Officer, Chaibasa and for quashing impugned notification dated 08.03.2016 whereby it was declared that now petitioners have no legal right upon the mining area and the same is vacant for settlement/auction. The petitioner has further prayed for declaration to the effect that the petitioner is entitled to avail the benefit of deemed extension of mining lease in terms of provisions of MMDR (Amendment) Act, 2015 and also for declaration to the effect that the subject mining lease of the petitioners is over the entire leasehold area of 141.64 hectares and further the petitioner is entitled to operate the mines in terms of statutory clearance.

2. The factual matrix, as delineated in the writ application in a nutshell is that initially on 26.04.1956, the then State of Bihar vide its order dated 26.04.1956 granted a mining lease over an area of 500 Acres in Karampada Forest Block, Singbhum West, Chaibasa for a period of 20 years w.e.f 12.12.1956 to 11.12.1976 in favour of one Shri Nanalal Vajrang for Iron & Manganese ore. However, during currency of the lease, the then lessee, after obtaining prior approval of the State Government vide order dated 27.05.1965 transferred 350 Acres of lease mining area to the present petitioner-M/S Singhbhum Mineral Company and remaining 150 acres was surrendered to State Government.

3. Thereafter, the petitioner applied for first renewal of mining lease, which was granted vide order dated 06.09.1978 for a further period of 20 years w.e.f 12.12.1976 to 11.12.1996. It is averred that due to impending expiry of the lease period, the petitioners applied for second renewal of mining lease on 27.10.1995, much prior to one year before due date of expiry of tenure of the mining lease under Rule 24A(1) of Mineral Concession Rules, 1960 (hereinafter referred to as “M.C Rules, 1960” for the sake of brevity) for further period of twenty years.

4. In order to make out a case that mining lease of the petitioners was subsisting and petitioners time to time obtained pre-requisite clearances, it has further been averred in the writ application that the petitioners submitted application for forest clearance on 29.11.1995 seeking diversion of forest land for the purpose of conducting mining operations over an area of 18.975 hectare and petitioner also got prepared the mining plan as per the provisions of Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to “MMDR Act, 1957” for the sake of brevity) and Mineral (Conservation & Development) Rules and the said mining was duly approved by Indian Bureau of Mines (IBM) vide letter dated 13.05.1998. It has been averred that even the Central Government, Ministry of Environment and Forest vide letter dated 27.11.1998 granted temporary working permission for a period of nine months to the petitioner. It has further been averred that the State Government, Department of Mines & Geology vide letter dated 01.11.2007 certified that the subject mining lease was valid and subsisting. The petitioner vide letter dated 14.08.2008 also submitted forest diversion proposal before Principal Chief Conservator of Forest, Ranchi. The State Govt vide letter dated 03.09.2009 issued a mining dues clearance certificate certifying that no mining dues towards royalty, deed rent etc was due and payable on the part of petitioner and ‘NOC’ was accorded by the D.C., Chaibasa and fur
















































































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