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2003 Supreme(Online)(AP) 13

ANDHRA PRADESH HIGH COURT
V. Ramasubramanian, J
Lakshmi S. T. Mining and Leasing Labour Contract Co-operative Society Ltd (M/s.) v. Govt. of A.P. and Others
Writ Petition No. [insert case number]



Advocates:
For the Appellants/Petitioners: Sri C. V. Mohan Reddy
For the Respondents: Smt. N. Shobha

The issuance of a mining lease without affording adequate opportunity for a hearing violates principles of natural justice.

Headnote:(A) Mineral Concession Rules, 1960 - Rule 26 - Principles of Natural Justice - Writ petition challenging the grant of mining lease on grounds of illegality and lack of fair hearing. The petitioner society filed for a lease before the respondent’s issued a memo to grant it favorably to the 3rd respondent. The court noted that the order prejudged the issue and breached natural justice principles, requiring reconsideration of the matter afresh after due process. (Paras 2, 11, 14)

(B) Writ Petition - Grant of mining lease - The court considered the urgency of natural justice before any decisions were finalized against the petitioner, emphasizing a fresh hearing to address grievances presented. (Paras 14)

Table of Content
1. challenge of mining lease based on procedure and priority of applications. (Para 2 , 5 , 9)
2. breach of natural justice as authority prematurely decided the application without hearing. (Para 11 , 14)

1. Heard the learned counsel for both the parties. At the request made by the learned counsel for the parties, the writ petition itself is heard and is being disposed of finally.

2. This writ petition is filed to issue a writ of Mandamus declaring the action of the 1st respondent in directing the 3rd respondent to submit approved mining plan by proposing to grant mining lease for Barytes over an extent of Ac.110-00 in Sy. Nos. 56, 58 of Pocharam village, Garla Mandal. Khammam District in favour of the 3rd respondent vide Memo No. 14956 / M.III - 2/2000 dated 18-12-2001 which was addressed to the 3rd respondent alone even before the consideration of the application of the petitioner society for grant of mining lease in respect of the very same area as illegal, arbitrary and discriminatory and contrary to the procedure specified in R.26 of the Mineral Concession Rules, 1960 .

3. The petitioner is a society formed for the welfare of the members of the society by undertaking mining activity, civil contracts etc. The Government of A.P. vide its G.O. Ms. No. 232, Ind. and Com. (M.III) Department, dated 6-4-1973 granted a mining lease in favour of M/s. Expo Chemicals, Kothagudem for Barites over an extent of 110 acres in Sy. No. 57 and 58 of Pocharam Village, Khammam District. Subsequently the lease was terminated on the ground that the lease area fall in Scheduled area where only Tribals should be preferred in granting mining / quarry leases. Thus, the lease granted to Ex - Chemicals came to an end by 6-4-1973.

4. Later, the Government of Andhra Pradesh vide G.O. Ms. No. 406 dated 23-11-1998 declared that an extent of 44,534 hectares comprised in Sy.Nos. 57 and 58 will be available for grant under mining lease after expiry of 30 days from the date of publication of notification in the Gazette. The said notification was published in the A.P. Gazette on 21-1-1999. As there was a mistake in the notification with regard to the name of the Mandal, the Government of Andhra Pradesh issued another notification in G.O. Ms. No. 20 Industries and Commerce department 23-1-1999.

5. As per the notification, the notified area of an extent of 44,534 Hectares (Ac 110-00) in Sy. No. 57 and 58 are available for grant of mining lease in favour of the persons belonging to Scheduled Tribes. Accordingly the petitioner - society submitted its application on 21-3-1999. The 3rd respondent society submitted its application on 4-6-1999 i.e. much later to the application submitted by the petitioner - society. As per the notification published in the Gazettee, the application could be made after expiry of 30 days from the date of publication of notification in the Gazettee. As stated earlier, the notification was published on 21-1-1999 and the applications could not be made with effect from 21-2-1999. Thus, the petitioner - society was the 1st applicant seeking grant of mining lease, pursuant to the notification published in the A.P. Gazettee. The petitioner society has also submitted an application on 18-2-1999 itself seeking grant of mining lease in respect of the very same area. Even the 3rd respondent submitted an application seeking grant of mining lease in respect of this area on 20-2-1999. Thus both these applications were submitted prior to the publication of the notification in the A.P. Gazettee. Hence, both these applications should be rejected on the simple ground that they are premature.

6. It is further stated that the Assistant Director of Mines and Geology, Khammam vide his letter no. 904 M 99 dated 22-3-1999 has requested them to attend for inspection and survey of the area on 30-3-1999, keeping in view the priority and during the inspection and survey of the applied area, their authorized representative has attended the same and shown














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