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SIDDHARTHA VARMA, MANOJ BAJAJ
Kalpana Karwariya – Appellant
Versus
State Of U. P. – Respondent
JUDGMENT :
1. The question here for our determination is as to whether the security money which a miner deposits at the time of grant of lease under the Uttar Pradesh Minor Minerals (Concession) Rules, 1963 (hereinafter referred to as the “1963 Rules”) could be forfeited when a lease is determined for the non-payment of royalty, rent or other dues. In the instant case, the petitioner had applied by means of e-tendering when it was advertised that the lease would be settled on the highest bidder for the Yamuna River Khand no. 16/2 and 16/3 measuring 20.23 acres in Village Mahewa, Tehsil Manjhanpur, District Kaushambi. The availability of mineral was given out as 4,00,000 cubic meters per year. The lease was to be given for a period of five years. The petitioner who applied by e-tendering was found to be the highest bidder and was given a lease of five years commencing on 22.02.2018 and ending on 21.02.2023. The petitioner before the grant of lease had deposited Rs. 1,74,00,000/-as security and had also deposited Rs. 1,74,00,000/-as the first instalment. As per the agreement in the first year of the mining operation, the petitioner had to deposit four instalments of Rs. 1,74,00,000/-.
The authority can forfeit a mining lease security deposit for non-payment of lease installments under the terms established in the lease agreement, affirming contractual obligations.
The court clarified the specific penalty that could be imposed for non-compliance with the mining plan provision within one month of receiving the Letter of Intent, and emphasized the requirement for....
Compliance with mining lease terms is essential for valid surrender; failure to pay dues justifies lease termination and forfeiture of security deposit.
The court established that forfeiture of security deposits and royalty payments requires explicit legal authority, which was absent in the relevant rules governing mining leases in Uttar Pradesh.
The authority must provide adequate reasons for the complete forfeiture of a security deposit, especially when a lesser penalty has been imposed and already paid.
The Mines Tribunal has the authority to determine lease terms for mining operations under statutory provisions, affirming that statutory leases are bound by the same conditions as contractual ones, i....
The Principal Secretary lacked jurisdiction to issue directives on compensation and rent payable by mineral concessionaires, which is solely the District Collector's responsibility under the Mining R....
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