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2024 Supreme(Telangana) 32

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
SUREPALLI NANDA, J.
M/s Penna Cement Industries Limited – Appellant
Versus
Union of India and others – Respondents
W.P. No. 4961 of 2022
Decided on : 26-02-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr V.V.N.K.Sarath Saran
For the Respondents: Mr B.Jithender,

IMPORTANT POINT
The main legal point established in the judgment is the requirement for reasoned decisions based on relevant facts, the importance of providing an opportunity of personal hearing, and the need to record reasons in support of conclusions, especially in administrative decisions affecting individuals prejudicially.

Headnote:

Mines and Minerals - Writ of Mandamus - Mines and Minerals (Development & Regulation) Amendment Act 2021 - Section 10A(2)(b)

Fact of the Case:

The petitioner sought a Writ of Mandamus to challenge the refusal of the 3rd respondent to process their mining lease application under Section 10A(2)(b) of the Mines and Minerals (Development & Regulation) Amendment Act 2021. The petitioner argued that their application was in compliance with the MMDR Amendment Act 2015 and should not be affected by the 2021 amendment.

Finding of the Court:

The court directed the 3rd respondent to reconsider the refusal to process the mining lease application, taking into account the view taken by the Division Bench of High Court of Karnataka at Bengaluru in a similar case. The court emphasized the importance of providing an opportunity of personal hearing to the petitioner and passing an appropriate reasoned order within two weeks.

Issues: The main issues included the applicability of the MMDR Amendment Act 2021 to the petitioner's application, the retrospective effect of the amendment, and the failure of the 3rd respondent to provide an opportunity of personal hearing and reasons for the refusal.

Ratio Decidendi: The court emphasized the need for reasoned decisions based on relevant facts, the importance of providing an opportunity of personal hearing, and the requirement to record reasons in support of conclusions, especially in administrative decisions affecting individuals prejudicially.

Final Decision: The court directed the 3rd respondent to reconsider the refusal to process the mining lease application, taking into account the view taken by the Division Bench of High Court of Karnataka at Bengaluru in a similar case, and to pass an appropriate reasoned order within two weeks, while emphasizing the importance of providing an opportunity of personal hearing to the petitioner.

ORDER :

Heard Mr V.V.N.K. Sarath Saran, learned counsel appearing on behalf of the petitioner and Mr B.Jithender, learned Central Government Counsel appearing on behalf of respondents.

2. This Writ Petition is filed to issue a Writ of Mandamus, declaring that the action of the 3rd respondent in passing the order No. AP/KNL/MP/Lst-146/Hyd, dated 01.04.2021 refusing to process mining lease Application submitted by the petitioner company dated 15.02.2021 in respect of Kowlapalli limestone mine over an extent of 556.938 Hectares in Sy No 124 & 152 of Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh, under section 10 A (2) (b) of the Mines and Minerals (Development & Regulation) Amendment Act 2021 which came into force on 28.03.2021, by misapplication of the said provision as unlawful, arbitrary and violative of Articles 14 and 19(1) (g) of the Indian Constitution and consequently set-aside the same by directing the 3rd respondent to process the application in accordance with law as per MMDR Amendment Act 2015.

3. The case of the Petitioner in brief, as per the averments made by the petitioner in the affidavit filed by the petitioner in support of the present writ petition is as follows:

a) The Petitioner company is engaged in the business of manufacture of cement having an installed capacity of 10 Million tons per annum at it factories and achieved a turnover of Rs.3448 Crores in the financial year 2020-2021, by sales of 5.48 Million MTs of cement manufactured and marketed under its own brand name “PENNA” Cement.

b) On 13.07.2000, the Petitioner Company has submitted an application for the grant of Prospecting License in the mining of Limestone to an extent of Ac. 622.93 gts in Sy. No. 1 to 124 and 152, Kowlapalli Village, Peapully Mandal, Kurnool District. The Government of Andhra Pradesh, has scrutinized the Application filed by the Petitioner and has granted the prospecting license through G.O.Ms.NO. 193, dated 20.07.2007 for a period of 2 years.

c) On 14.09.2007, the Government of Andhra Pradesh has permitted the Petitioner Company to commence the Prospecting Operations and a Lease dated 14.09.2007 was also executed. On 02.06.2007, the Petitioner Company has also submitted another Application for Prospecting License for the mining of Limestone to an extent of Ac. 800.00 Gts in Sy. Nos. 151, 153 to 189, 233 to 304, 310, 316 to 352, 356, 359 to 363, 368 to 394 Kowlapalli Village, Peapully Mandal, Kurnool District and the Prospecting License was granted through GO MS NO. 91 dated 29.03.2008.

d) On 30.04.2008, the government of AP has issued the Proceedings permitting the Petitioner Company to commence the prospecting Operations and a Lease Deed was also executed to that effect. Having conducted prospecting operations, the?Petitioner company submitted the Prospecting Reports and made a?combined mining lease application for both Prospecting Lease?areas on 02.09.2009 in Form-I and filed the FORM-D with the Government of A.P, Dept. of mines, through letter No.?7541/M4/2009 dated 10-09-2009.

e) During the pendency of the petitioner’s application, the Mines and?Minerals (Development and Regulation) Act, 1987 (Hereinafter?referred to as MIMDR Act) was amended through MMDR?Amendment Act of 2015, wherein Section 10A was inserted and according to Section 10A(1) all applications received prior to the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall become ineligible. However, the petitioners Prospecting Licences of the subject mines were covered and saved under Section 10(A)(2)(b) of the said Act.

f) Since the petitioner fulfils all the conditions prescribed under Section 10A(2)(b), the Petitioner's Mining Lease Application is saved and is entitled to get approval of the mining plan by the 3rd respondent under the 2015 Act and the mining rights of the petitioner company did not lapse and the same were extended till 2023.

g) The Petitioner Company has made substantial progress

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