The Central Government cannot interfere with a reservation notification issued by the State Government for exploitation of mines in the public sector, as the State has the paramount right over the minerals and the reservation is in the public interest.

G. B. PATNAIK, J.

( 1 ) THESE two writ applications - one at the instance of the Orissa Mining Corporation Ltd. and the other at the instance of the State of Orissa are directed against the one and the same order dt. 25-6-1987, annexed as Annexure 14, and both the cases were heard together and are being disposed of by this common judgment. By the impugned order of the Central Government dated 25-6-1987, the Central Government in exercise of powers conferred under Section 30 of the Mines and Minerals (Regulation and Development) Act, 1957 (hereinafter referred to as the "act") set aside the impugned order of the State Government as well as the reservation made by the State and has directed that the area in question be granted to opposite party No. 2 under a mining lease.

( 2 ) 2,499. 40 acres of land in villages of Siljora, Gurda, Balda and Kalimati in the district of Keonjhar had been given to M/s. Serajuddin and Company under a mining lease for extraction of manganese ore by order dated 1-11-1946. The lease in question was to expire on 31-10-1966. M/s. Serajuddin and Company filed an application for renewal of the mining lease and that application was rejected by the State Government by order dated 26-10-1973, annexed as Annexure 1 to O. J. C. No. 2552 of 1987. M/s. Manganese Ore (India) Ltd. (for short, MOIL) (opposite party No. 2) made an application to the State of Orissa on 8-9-1972 for the very area which was under occupation of M/s. Serajuddin and Company for grant of mining lease. M/s. Serajuddin and Company moved the Calcutta High Court in Civil Revision No. 8602 (W) of 1973 and on 12-11-1973 obtained an order of injunction against the State of Orissa not to interfere with the possession of said M/s. Serajuddin and Company. As the application filed by opposite party No. 2 on 8-9-1972 was not disposed of by the State Government within the period specified, in sub-rule (1) of R. 24 of the Mineral Concession Rules, 1960 (hereinafter referred to as the "rules"), it was deemed to have been refused under sub-rule (3) of Rule 24 of the Rules and against the deemed refusal, opposite party No. 2 moved the Central Government in revision under R. 54 of the Rules. The Central Government disposed of the said revision application by order dated 8-4-1974 calling upon the State Government to consider the application of opposite party No. 2 and pass orders within four months. The said order of the Central Government is annexed as Annexure 3. On receipt of the order of the Central Government, the State Government intimated that the application of opposite party No. 2 could not be considered in view of the injunction order issued by the Calcutta High Court. The writ petition filed by M/s. Serajuddin and Company in the Calcutta High Court was dismissed by order dated 21-4-1982 and the application to the Division Bench against the said order was also dismissed by the Division Bench on 12-5-1982. Ultimately the State Government took over possession of the mines on 5-6-1982 and then authorised the Orissa Mining Corporation Ltd. , the present petitioner in O. J. C. No. 2552 of 1987, to work out the mines as the agent of the Government. The Orissa Mining Corporation is a public sector undertaking of the State of Orissa. On 18-8-1982, the present petitioner filed an application to the State Government for grant of mining lease in respect of the area in question for extraction of manganese ore. When petitioner's application filed on 18-8-1982 was not disposed of within the period provided under the statute, against the deemed rejection, the petitioner moved the Central Government and the Central Government disposed of that revision by order dated 9-12-1983 requiring the State Government to pass final order on the application within 200 days. On 8-6-1984, the State Government issued a notification reserving the area in question for exploitation in the public sector. The said notification has been annexed as Annexure 8. Opposite party No. 2 mov