Rule empowering levy of additional lease amount on existing leases is ultra vires.

(Writ Petitions filed under Article 226 of the Constitution of India for the issuance of writ of declaration declaring Rule 8-E of the Tamil Nadu Minor Mineral Concession Rules, 1959 as introduced by G.O.Ms.No.603 Industries Department, dated 17.9.1998 and the consequential proceedings of the 2nd respondent made in Ref.A/G&M/1615-98-1 dt. 18.12.98 as unconstitutional and illegal.)

Common Judgment:

P.K. Misra, J.

In this batch of writ petitions, the petitioners, who are the holders of leases granted under the provisions of erstwhile Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959 (hereinafter referred to as "the Rules") have challenged the validity of Rule 8-E, which has been introduced as per G.O.Ms.No.603 Industries Department, dated 17.9.1998.

2. First of all it is necessary to have a bird's eye view of the various Constitutional and statutory provisions.

Entry 54 of List I of 7th Schedule of the Constitution of India is to the following effect:-

"54. Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest."

Entry 23 of List II of 7th Schedule of the Constitution is to the following effect:-

"23. Regulation of mines and mineral development subject to the provisions of List I with respect to regulation and development under the control of the Union."

3. The Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as "the Act") Act No.67 of 1957, is a Central Act to provide for development and regulation of mines and minerals under the control of Union. Under Section 2 of the Act following declaration as to the expediency of Union Control has been made:-

"2. Declaration as to the expediency of Union control - It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided."

Section 3 of the Act contains the definition clause. As per Section 3(a), "minerals" include all minerals except mineral oils. As per Section 3(e), "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral.

Under Section 3(c) "mining lease" means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose.

As per the definition of "minor minerals" and the notifications issued by the Central Government under Section 3(e) of the Act, granite and other decorative stones with which we are concerned in the present batch of cases, are minor minerals.

As per Section 4 of the Act, no person shall undertake any minor operation in any area except under and in accordance with the terms and conditions of a mining lease granted under the Act and the Rules made thereunder. Under sub-Section (2) no mining lease shall be granted otherwise than in accordance with the provisions of the Act and the Rules made thereunder.

4. Section 15 empowers the State Government to make Rules in respect of minor minerals. The relevant provisions of Section 15 are extracted hereunder: -

“15. Power of State Governments to make rules in respect of minor minerals- (1) The State Government may, by notification in the Official Gazette, make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith.

(1A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

(a) the person by whom and the manner in which, applications for quarry leases, mining leases or other mineral concessions may be made and the fees to be paid therefor;

...

(d) the terms on which