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2000 Supreme(MP) 175
C.K. Prasad, J.
Ghanshyamdas Vyas And Another
vs
Union Of India And Others
Decided On: 28 February, 2000
The main legal point established in the judgment is that the grant of prospecting licenses and the formation of a Joint Venture Company must adhere to the requirements and restrictions outlined in the Mineral Concessions Rules and the MMRD Act. The decision emphasized the importance of interpreting and applying these provisions in determining the legality of such actions.
Headnote:
Prospecting Licence - Mineral Concessions Rules - MMRD Act, 1957 - Sections 5, 6, 11, 17A - The court discussed the provisions of the Mineral Concessions Rules, 1960, and the Mines and Minerals (Regulation & Development) Act, 1957, particularly focusing on Sections 5, 6, 11, and 17A. The court analyzed the requirements and restrictions for granting prospecting licenses, the reservation of areas for conservation, and the approval process by the Central Government. The decision was influenced by the interpretation of these provisions and their application to the case at hand.
Fact of the Case:
The petitioner applied for prospecting licenses, which were initially rejected by the State Government. The matter was taken to the Central Government for revision. The State Government later appointed a corporation as its agent to explore and exploit mineral resources, leading to further rejections and legal challenges by the petitioner.
Finding of the Court:
The court found that the State Government had not given an undertaking to refrain from forming a Joint Venture Company (JVC) and that the formation of the JVC and the grant of prospecting license were in accordance with the law. The court also held that the grant of the prospecting license to the JVC was in the interest of mineral development and was permitted by the Central Government.
Issues: The issues revolved around the rejection of the petitioner's applications for prospecting licenses, the formation of a Joint Venture Company, and the grant of the prospecting license to the JVC. The interpretation and application of relevant provisions of the Mineral Concessions Rules and the MMRD Act were central to the issues.
Ratio Decidendi: The court's decision was based on the interpretation and application of the provisions of the Mineral Concessions Rules and the MMRD Act, particularly focusing on the requirements and restrictions for granting prospecting licenses, the reservation of areas for conservation, and the approval process by the Central Government.
Final Decision: The court dismissed both writ petitions, finding no merit in the petitioner's claims and upholding the legality of the formation of the JVC and the grant of the prospecting license to the JVC.
C.K. Prasad, J.
1. Both the writ petitions have been directed to be heard together. Facts emanating from the pleading of W.P. No. 5462/99 are being narrated hereinafter for disposal of both the writ petitions.
1-a. Petitioner applied for grant of prospecting licence in respect of an area measuring 44.82 hectares in village Sendmuda and Motrapara on 26-7-1998. He further filed application for grant of prospecting licence on 11-7-1989 for an area measuring 45.17 hectares in village Latapara. Third application filed by the petitioner for grant for prospecting licence over an area of 95.954 hectares at village Jangra was on 24-9-1990. These villages are in the district of Raipur. Aforesaid applications of the petitioner suffered deemed rejection, as the matter was not decided within the prescribed period and aggrieved by the same, petitioner preferred revision before the Central Government under Rule 54 of the Mineral Concessions Rules, 1960. The revisional authority set aside the deemed rejection and remitted the matter back to the State Government to decide the application preferred by the petitioner within 200 days from the date of communication of the order. The State Government however, rejected the prayer of the petitioner for grant of prospecting licence on the ground that it has decided to lease out whole of the area in Raipur District having deposits of precious minerals to the M.P. State Mineral Development Corporation. Petitioner, once again preferred revision before the Central Government against the order of rejection of his prayer for grant of prospecting licence. Revisional Authority, by order dated 19-5-1995, set aside the order of the State Government refusing to grant prospecting licence to the petitioner and remitted the matter back to the State Government to pass fresh order on his application on merits, in accordance with law. When no decision was taken by the State Government; in spite of directions of the Central Government, petitioner filed W.P. No. 2310/96 before this Court and the said writ petition was disposed of by order dated 28-6-1996 directing the State Government to take final decision, in pursuance of the order of the Central Govt. dated 19-5-1995 within six weeks from the date of receipt of copy of that order.
2. Thereafter, in exercise of powers conferred by Rule 75 of the Mineral Concession Rules, 1960, by notification dated 20th November, 1996, State Govt. appointed the M.P. State Mineral Development Corporation Limited (hereinafter referred to as the 'Mineral Corporation') as the agent of the State Govt. to explore and exploit gold and diamond resources in various districts including the District of Raipur. Eventually, by order dated 30-4-1997, the State Govt. rejected the prayer of the petitioner for grant of prospecting licence for Topaz and other same precious stones. Prayer of the petitioners for grant of prospecting licence was rejected on the ground that by notification dated 20-11-1996, the State Government has appointed Mineral Corporation as its agent to explore and exploit gold and diamond resources in the District of Raipur. As the petitioners' prayer for grant of prospecting licence was rejected, in view of the decision of the State Government to appoint the Mineral Corporation as its agent in exercise of power conferred by Rule 75 of the Mineral Concession Rules, petitioners filed W.P. No. 1081/97 before this Court challenging the validity of the said notification. The Mineral Corporation, in order to form a Joint Venture Company (hereinafter referred to as the 'JVC') to undertake survey, exploration, evaluation and subsequent exploitation and marketing of diamonds in 11 blocks located in the District of Raipur and other districts, issued advertisement inviting applications for the said purpose. Aforesaid notice inviting offers for formation of the JVC was published during the pendency of the aforesaid writ petition and the attempt of the Mineral Corporation to form the JVC was
