IN THE HIGH COURT AT CALCUTTA
HIRANMAY BHATTACHARYYA, J.
S.G. Projects Limited – Petitioner
Versus
The State of West Bengal And Ors. – Respondents
WPA 23759 of 2025
Decided On : 05-05-2026
| Table of Content |
|---|
| 1. litigation history and procedural background regarding lease extension. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11) |
| 2. maintainability of writ petition and arguments on natural justice. (Para 12 , 13 , 14) |
| 3. judicial assessment of inspection reports and compliance procedures. (Para 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28) |
| 4. interpretation of lease extension rules and force majeure applicability. (Para 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37) |
| 5. estoppel and legality of the impugned administrative order. (Para 38 , 39 , 40 , 41) |
JUDGMENT :
Hiranmay Bhattacharyya, J.
1. The order of the District Magistrate, Bankura dated 21.08.2025 passed in Misc. Case no. 9 of 2025 is under challenge in this writ petition. By the said order, the prayer of the petitioner for extension of the mining lease stood rejected.
2. Petitioner, a private limited company, participated in an e-auction for grant of mining lease for sand mining within Mouza Mamudpur, J.L. No. 61 under Police Station Patrasayer, Plot no.-916-1126 in the District of Bankura. Petitioner was declared as the successful bidder and a Letter of Intent (for short “LOI”) dated 04.01.2018 was issued in favour of the petitioner for grant of a mining lease for sand with a direction upon the petitioner to comply with the requisite formalities for execution and registration of the mining lease. The petitioner complied with the requisite formalities and a mining lease for sand was executed in favour of the petitioner by the Government of West Bengal on 23.05.2018 for a period of five years.
3. Possession of the leasehold area was handed over to the petitioner and the petitioner started the mining activities at the said area. While the petitioner was carrying on with the mining activities, petitioner was served with a show cause notice dated 14.12.2020 alleging that certain mining activities were carried on by the petitioner in contravention with the provisions of the said lease. Petitioner submitted various representations praying for withdrawal of the said show cause notice. A hearing was conducted and the petitioner appeared before the 5th respondent on 28.02.2023. Petitioner alleges that no decision of such hearing was communicated to the petitioner.
4. In the meantime the lease period expired on 22.05.2023. Petitioner submitted a representation praying for extension of the period of lease as the petitioner could not carry on the sand mining activities for the period from 15.12.2020 till 22.05.2023.
5. Alleging inaction on the part of respondent authorities, petitioner filed a writ petition being no. WPA 18288 of 2024 which was disposed of by a co- ordinate bench by an order dated 23.09.2024 by directing the respondent authorities to decide the show cause notice dated 14.12.2020 after affording an opportunity of hearing to the petitioner and by passing a reasoned order within the time frame indicated in the same order.
6. Pursuant to the said order, the petitioner was called for a hearing and the District Magistrate, Bankura passed an order dated 19.11.2024 rejecting the prayer of the petitioner for extension of the period of lease.
7. Challenging the order dated 19.11.2024, petitioner filed a writ petition being WPA 30742 of 2024 which stood allowed by the co-ordinate bench by an order dated 28.04.2025 by setting aside the order dated 19.11.2024 passed by 5th respondent and directed the said authority to conduct a hearing and to pass a reasoned order in writing within the time limit mentioned in the said order.
8. Pursuant to the order dated 28.04.2024, a hearing was conducted by the 5th respondent dated 12.06.2025 rejecting the prayer of the petitioner for extension of the period of lease.
9. The order dated 12.06.2025 was challenged by the petitioner by filing a writ petition being WPA 15781 of 2025 and a co-ordinate bench by an order dated 04.08.2025 disposed of the writ petition by setting aside the order dated 12.06.2025 passed by the 5th
Mining authorities cannot refuse lease extensions based on policy when statutory provisions support such extension, especially if the delay was not the lessee’s fault.
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The court established that mining authorities must act on compliance and show cause responses, ensuring statutory obligations are met regarding unlawful mineral excavation.
A mining lease holder must obtain Environmental Clearance before commencing operations, and failure to do so precludes any extension of the lease period under the Rajasthan Minor Mineral Concession R....
The State must timely address mining lease renewals; otherwise, it risks allowing continued operations based on statutory provisions.
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