High Court Of Madhya Pradesh
R. S. GARG, A. K. MATHUR
RAM DAS AGRAWAL - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
M. P. 686 Of 1993
Decided On : 05/04/1995
MINERAL CONCESSION - MAJOR MINERALS - TRANSIT PASSES - M.P. MINOR MINERAL RULES, 1961 - RULE 25 (VIII-B) - ULTRA VIRES - STATE GOVERNMENT'S AUTHORITY - MINERAL CONCESSION RULES, 1960 - SECTION 27 - CONDITIONS FOR MINING LEASE - CENTRAL GOVERNMENT'S APPROVAL - SECTION 24 - POWERS OF ENTRY AND INSPECTION - M.P. CONTRACTORS SANGH V. STATE OF MADHYA PRADESH (AIR 1987 MADH PRA 74) - STATE GOVERNMENT'S DUTY TO ENGAGE ADEQUATE STAFF TO AVOID THEFTS OF MINOR MINERALS.
Fact of the Case:
Petitioners, holders of mining leases for major minerals, challenged the State Government's action of compelling them to issue transit passes under Rule 25 (viii-b) of the M.P. Minor Mineral Rules, 1961, and seizing vehicles and goods in the absence of such passes. They contended that the State Government lacked the authority to impose such conditions since their leases were governed by the Mineral Concession Rules, 1960, and not the Minor Mineral Rules.
Finding of the Court:
The court held that Rule 25 (viii-b) of the M.P. Minor Mineral Rules, 1961, was ultra vires as it was not applicable to major minerals. The State Government could not impose such conditions without the prior approval of the Central Government under Section 27(3) of the Mineral Concession Rules, 1960. The court also clarified that the State Government's authority under Section 24 of the Mines and Minerals (Regulation and Development) Act, 1957, to enter and inspect mines did not extend to issuing directions for the issuance of transit passes or the maintenance of transit pass books.
Issues: 1. Whether Rule 25 (viii-b) of the M.P. Minor Mineral Rules, 1961, was applicable to major minerals. 2. Whether the State Government had the authority to impose such conditions without the prior approval of the Central Government. 3. Whether the State Government's authority under Section 24 of the Mines and Minerals (Regulation and Development) Act, 1957, extended to issuing directions for the issuance of transit passes or the maintenance of transit pass books.
Ratio Decidendi: 1. The court interpreted the Mines and Minerals (Regulation and Development) Act, 1957, and the Mineral Concession Rules, 1960, to conclude that the State Government's authority was limited to minor minerals. 2. The court relied on the principle that the State Government could not exercise powers beyond those granted by law and that any action taken without the requisite approval was illegal. 3. The court distinguished the powers of entry and inspection under Section 24 from the power to issue directions for the issuance of transit passes or the maintenance of transit pass books.
Final Decision: The court declared Rule 25 (viii-b) of the M.P. Minor Mineral Rules, 1961, ultra vires and prohibited the State Government from applying it to major minerals. It also declared that the State Government had no authority to direct lease holders of major minerals to maintain transit pass books or issue transit passes. Any action taken by the State Government in this regard from the date of the judgment was deemed illegal.
( 1 ) THIS order shall also dispose of M. P. No. 3727/93 Satya Narayan Mishrilal v. State of Madhya Pradesh, M. P. 3807/93, Laxmi Narayan Mining Company v. State of M. P. , M. P. No. 4246/93, Nirmal Chand Jain v. State of Madhya Pradesh and M. P. No. 5113/93 M. P. Lime Manufacturers Association v. State of Madhya Pradesh and others. By these petitions the petitioners in various petition above prayed for issuance of the writ that Rule 25 (viii-b) of M. P. Minor Minerals Rule, 1961 be declared ultra vires, to quash the action of the agents of the respondents by which they are issuing pitpasses and also to declare that the respondents had no power or authority to insist for a transit pass issued by their officers for transportation of major minerals and / or to restrain them for seizing the vehicles in absence of the transit passes and have also prayed fot a writ of prohibition against the respondents for restraining them from prohibiting the petitioners from transporting the major minerals without transit passes from pit-head.
( 2 ) XXX xxx xxx
( 3 ) THE petitioners in all petitions have submitted that they are holding mining leases for extraction / excavation in various parts of Madhya Pradesh in relation to the major minerals. It is submitted by them that the State Govt. granted mining leases to the petitioners and the petitioners have entered into mining lease agreement with the respondent State in form 'k' of Mineral Concession Rules, 1960. The grievance of the petitioners states that without there being a provision of law or a condition in the lease deed the State through its officers especially the mining officers is compelling them to issue transit passes under Rule 25 (viii-b) of M. P. Minor Mineral Rules, 1961. It is also the grievance of the petitioners that if the transit passes are not issued by the mine holders then the State through its officers are seizing the vehicles and goods which is causing regular interference in their day-to-day work. It is submitted by the petitioners that the State Govt. has no powers to ask for maintenance of the transit pass book or issuance of such transit passes because the M. P. Minor Mineral Rules, 1961 governed the mining and regulation of the minor minerals while in fact the leases in favour of the petitioners are in relation to the major minerals. They have also submitted that they are being compelled to issue the transit passes under Rule 25 (viii-b) of 1961 Rules while in fact there is no such rule in existence. On the above premises they have prayed for issuance of the writs as stated above.
( 4 ) THE State Govt. in its return has submitted that the petitioner's leases are governed by the provisions of Mineral Concession Rules, 1960 and in pursuance to the Rules, 1961 and in Rules, 1960 the procedure has been adopted. According to them, rules give power and authority to the authorised persons and, therefore, the authorised persons would have power to examine any documents, books, registers or record which are in possession or power of any person having the control of or connected with any mines. It is also submitted by the State Govt. that in pursuance to Rule 27 which deals with the condition for grant of a mining lease a lessee has to keep the correct accounts showing the quantity and other particulars of minerals obtained, and despatched from the mine. According to them above referred rules would show that a lessee has to maintain the correct and accurate account pertaining to the obtaining and despatch of minerals from the mines. According to the State Govt. the utility of the transit pass is only to put a effective check on the mineral and its despatch. If the lessee is maintaining the proper account then he should not feel sorry in issuing the transit passes. The State wants to cross check the production, despatch and delivery of the minerals so that there is no pilferage and the royalty is properly paid. The State wants to avoid the illegal extraction and
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.