The State Government in exercise of it's powers under the provisions of Section 4-A (2) of the Mines and Minerals (Regulation & Development) Act, 1957 terminated the lease that had been granted to the petitioner. The lease was for mining rough stones.

2. Rule 36-E of the Tamil Nadu Mines and Minerals Concession Rules requires the Government to refund the proportionate lease amount in cases of premature termination. That Rule reads as under:

"36-E Refund of lease amount, etc., in certain cases:

Where the State Government have made premature termination of a quarrying lease or permit under the provisions of sub-section (2) of Section 4-A of the Act, the District Collector or the District Forest Officer, as the case may be, shall fix the amount of proportionate lease amount or seigniorage fee, etc., that may be refunded to the quarrying lessee or permit holder for the unexpired portion of the lease or permit period with the approval of the State Government and make the refund to the person concerned within a reasonable period after the premature termination of the quarrying lease or permit."

3. The termination was with effect from 31.05.1999 against which an appeal was preferr