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1993 Supreme(Mad) 283
High Court of Judicature at Madras
THE HONOURABLE ACTING CHIEF JUSTICE MR. V. RATNAM & THE HONOURABLE MR. JUSTICE SOMASUNDARAM
Durairaju Naidu - Appellant
Versus
State of Tamil Nadu and Others - Respondents
W.P. No. 5793 of 1993
Decided On : 16 June 1993
Headnote:
RULE 39 - MINOR MINERAL CONCESSION RULES - CONSTITUTIONALITY - ARBITRARY POWER - VIOLATION OF ARTS. 14 AND 19(1)(G) OF THE CONSTITUTION OF INDIA: Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959, which empowers the State Government to grant or renew a lease or permission to quarry any mineral or allow the working of any quarry for quarrying any mineral on terms and conditions different from those laid down in the other Rules, is unconstitutional and void as it confers arbitrary, unfettered, and uncanalised power upon the State Government and violates Arts. 14 and 19(1)(g) of the Constitution of India.
Fact of the Case:
The petitioner, a quarry owner, challenged the validity of Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959, contending that it was unconstitutional, illegal, and null and void. The petitioner apprehended that the respondent could exercise their prerogative under the impugned Rule to grant a lease to somebody else and that he had filed the present writ petition to safeguard his interest.
Finding of the Court:
The Court held that Rule 39 was unconstitutional and void as it conferred arbitrary, unfettered, and uncanalised power upon the State Government and violated Arts. 14 and 19(1)(g) of the Constitution of India. The Court found that the Rule did not prescribe any principle or objective standard or norm or guidelines on which the State Government had to act in granting or renewing a lease or permission to quarry any mineral in exercise of the power under the said Rule. The expressions "in the interest of mineral development" and "public interest" used in Rule 39 were vague and uncertain and did not provide any objective standard or norm or guidelines on the basis of which the State Government had to act while exercising the power under the impugned Rule.
Issues: 1. Whether Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959, is unconstitutional and void? 2. Whether Rule 39 confers arbitrary, unfettered, and uncanalised power upon the State Government? 3. Whether Rule 39 violates Arts. 14 and 19(1)(g) of the Constitution of India?
Ratio Decidendi: 1. The power given to the State Government under Rule 39 is completely uncontrolled, uncanalized, and arbitrary. 2. Rule 39 does not provide any objective standard, norm, or guidelines on which the State Government has to act in granting or renewing a lease or permission to quarry any mineral. 3. The expressions "in the interest of mineral development" and "public interest" used in Rule 39 are vague and uncertain and do not provide any objective standard or norm or guidelines on the basis of which the State Government has to act while exercising the power under the impugned Rule.
Final Decision: The Court allowed the writ petition and declared that Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959, was unconstitutional and void.
SOMASUNDARAM, J.
This writ petition has been filed for the issue of a writ of declaration, declaring Rule 39 of the Tamil Nadu Minor Mineral Concession Rules, 1959 (hereinafter referred to as Rules), as unconstitutional, illegal and null and void.
2. According to the petitioner he was granted lease with respect to quarry in Survey No. 782/1 in Kulathur village and he has been agitating for the renewal of the said lease. His further case is that he apprehends that the respondent can exercise their prerogative under the impugned Rule to grant lease to somebody else and that he has filed the present writ petition in order to safeguard his interest.
3. Entry 54 of List I of the seventh Schedule to the Constitution of India reads as follows:
"Regulation of mines and mineral development to the extent of 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 the same Schedule to the Constitution of India reads as follows:
"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."*
The Parliament with reference to Entry 54, List I referred to above, enacted the Mines and Minerals (Regulation and Development) Act, 1957 (Central Act 67 of 1957), hereinafter called the Act. S. 2 of the Act reads thus:
"Declaration as to 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 development of minerals to the extent hereinafter provided."*
S. 3 of the Act defines certain expressions which include the expression "minor minerals" and S. 3(e) defines minor minerals as follows:
"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."
Ss. 4 to 12 of the Act deal with certain general restrictions on undertaking, prospecting and mining operations. S. 13(1) enables the Central Government, by Notification in the Official Gazette to make rules for regulating the grant of prospecting licences and mining leases in respect of minerals and for the purpose connected therewith. S. 14 says that the provisions of Ss. 5 to 13 shall not apply to quarry leases, mining leases or other mineral concessions in respect of minor minerals."
In exercise of the power conferred by S. 13 of the Act, the Central Government by Notification dated 11-11-1960 made the Mineral Concession Rules, 1960.
3.1 S. 15 empowers the State Government to make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purpose connected therewith. The sub-clauses of S. 15(1-A) specify various matters in respect of which such rules may be made, including collection of rent and royalty, transfer of lease, rehabilitation of flora destroyed by the quarrying or mining operations.
4. In exercise of the powers conferred by S. 15(1) of the Act, the State Government framed the Rules called Tamil Nadu Minor Minerals Concession Rules, 1959 hereinafter called as the Rules, S. 11 of the Rules deals with Government lands in which the minerals belong to the Government. S. 3 of the Rules deals with ryotwari lands in which minerals belong to the Government. S. 4 of the Rules deals with the lands in which minerals do not belong to Government. The said Rules were amended from time to time. Rule 8 deals with granting of lease in respect of stone quarries. Rule 8-A deals with granting of lease in respect of granite quarries in Government Poramboke lands. Rules 19 and 19-A deal with granting of quarrying permission in respect of ryotwari patta lands. According to Rule 8-C of the Rules then in force, no lease to quarry black granite in Go
