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2014 Supreme(Online)(AP) 22

ANDHRA PRADESH HIGH COURT
Nooty Ramamohana Rao, J.
Phani Kumar N. v. Government of Andhra Pradesh by its Principal Secretary to Industries and Commerce Hyderabad
Writ Petition No. 12345 of 2013



Advocates:
For the Appellants/Petitioners: Sri Unnam Muralidhar Rao
For the Respondents: Assistant Government Pleader for Mines and Geology

Consent from the legal heir of the deceased lessee is mandatory for transferring mining leases, reinforcing regulatory compliance under the Mines Act.

Headnote:(A) Mines and Minerals (Development and Regulation) Act, 1957 - Sections 4, 5, 6, 13 - Mineral Concession Rules, 1960 - Requirement of consent for transfer of mining lease and the role of the State Government in overseeing these transfers is mandated under R.37. (Paras 19, 20, 28)

(B) Legal Representatives - Definition of 'lessee' under mining lease and principles governing transfers upon death of a lessee requiring consent of the legal representatives for validity. (Paras 4, 26)

Facts of the case:
The petitioner challenged the order of the Director of Mines and Geology relating to transfer of mining lease following the death of the original lessee. The appropriateness of requiring consent from the legal heir was contested, citing mandatory regulatory frameworks in the Act and Rules.

Findings of Court:
The Court reiterated the necessity for State's consent for lease transfers and upheld the recognition of the deceased lessee's legal representative as the successor, affirming the requirement for their consent in any future transfer applications.

Issues: Whether the legal successors must provide consent for the transfer of mining lease after the original lessee's death.

Ratio Decidendi: The court emphasized that under existing law, the transfer of a mining lease cannot be assumed without the explicit consent of the State and the legal successor of the deceased lessee, maintaining that regulatory adherence must be upheld.

Result: Writ petition dismissed.

Table of Content
1. petitioner challenges order regarding mining lease transfer. (Para 1 , 2)
2. contentions regarding necessity of consent for transfer. (Para 3 , 4)
3. state consent required for validity of mining lease transfers. (Para 19 , 20 , 21 , 28)
4. court's dismissal of the writ petition based on legal interpretation. (Para 29 , 30)

1. The petitioner herein challenges the order passed by the Director of Mines and Geology through his memo dated 19.12.2013 requiring the Assistant Director of Mines and Geology, Nizamabad to submit proposals on the transfer of mining lease application after obtaining the consent from the legal heir and the present mining lease holder for taking further action in the matter. The petitioner also seeks a consequential direction to the 1st respondent State Government to pass appropriate orders by transferring the un - expired period of mining lease of Quartz over an extent of 3.920 hectares in Sy. No. 629/2 of Nandipet village and Sy. Nos. 62 and 63 of Chimarajpally village, Nandipet Mandal, Nizamabad District in favour of the petitioner pursuant to the recommendations made by the respondent Nos.2, 3 and 4.

2. The State Government, the 1st respondent herein passed orders through their GO. Ms. No. 352, Industries and Commerce (M.III) Department dated 17.12.2007 granting mining lease for Quartz over an extent of 3.920 Hectares situated in Sy. No. 629/2 of Nandipet Village and Sy. Nos. 62 and 63 of Chimarajpally Village of Nandipet Mandal, Nizamabad District for a period of 20 years in favour of M/s Sri Venkateswara Minerals subject to obtaining Consent For Establishment (CFE) from the A. P. Pollution Control Board and subject to satisfaction of Mineral Concession Rules, 1960 (henceforth called Rules) and the Provisions of Mines and Minerals (Development and Regulation) Act, 1957 (for brevity referred to as Act from now on). The State Government passed further orders through their Memo No. 1090 dated 11.02.2009, after due consideration of the request of M/s Sri Venkateswara Minerals, granted extension of time for a further period of six months from the last expiry date for execution of lease deed. Accordingly, upon satisfactorily complying with all statutory requirements and other related formalities, a mining lease has been executed on 28.07.2009 for a period of 20 years i.e. up to 27.07.2029, according permission to commence mining operations over the leased extent of land. It appears on 28.10.2009, an application for transfer of the mining lease for the un - expired portion in favour of the writ petitioner has been filed. Sri Mohd. Abdul Hai, the sole proprietor of M/s Sri Venkateswara Minerals signed the transfer application and also filed an affidavit setting out that due to financial and age related problems he desired to transfer the mining lease in favour of the writ petitioner herein for the un - expired lease period up to 27.07.2029. That application has been processed by the Assistant Director of Mines and Geology, Nizamabad, who recommended the transfer to be accorded. The Zonal Joint Director of Mines and Geology, Hyderabad, has also considered the matter and agreed with the recommendations of the Assistant Director of Mines and Geology for transfer of the mining lease in favour of the writ petitioner herein for the un - expired portion. The Director of Mines and Geology, through his communication dated 02.06.2010 required Sri Mohd. Abdul Hai to submit the necessary declaration within 15 days by way of notarized affidavit with regard to the consideration amount received by the transferor from the transferee so as to consider the justification for the transfer proposals and also to make an assessment as to whether the transfer proposal is a speculative one or not. It is the case of the petitioner that Sri Mohd. Abdul Hai has accordingly submitted the notarized affidavit vouching for the fact that he has received an amount of Rs.50,000/- towards consideration for the transfer of the mi






































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