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2026 Supreme(Cal) 217

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

Advocates Appeared:
For the Petitioner:Mr. Ashoke Kumar Banerjee, Sr. Advocate, Mr. Arijit Dey
For the Respondent:Mr. Tapan Kumar Mukherjee, Sr. Advocate, Mr. Supratim Dhar, Sr. Advocate, Ms. Tuli Sinha, Mr. Sanjay Saha, Mr. Raju Mondal

In the absence of enabling statutory provisions, a fixed-term mining lease cannot be extended. Furthermore, a lessee who accepts the refund of performance security upon the expiration of a lease is estopped from subsequently seeking a continuation or extension of that contract through judicial intervention.

Headnote:(A) Constitution of India - Article 226 - Mining lease - Extension - Availability of alternative statutory remedy - Where a statute provides for a specific appellate remedy, writ jurisdiction should be exercised sparingly. (Paras 13, 14, 39)

(B) Mining Law - Lease extension - Statutory framework - In the absence of specific enabling provisions in mining rules and policies, a request for the extension of a fixed-term lease cannot be entertained. (Paras 29, 31)

(C) Natural Justice - Reasoned order - Where the administrative authority addresses each objection raised by the party and provides specific findings, the requirements of procedural fairness are fully satisfied. (Paras 23, 28)

(D) Acquiescence - Conduct of parties - A party that formally requests and accepts the release of performance security and financial assurance upon the expiry of a lease term acts in alignment with the termination of said agreement, thereby precluding a subsequent claim for extension. (Para 38)

Facts of the case:
A corporate entity engaged in mineral extraction challenged the refusal of authorities to grant an extension to a fixed-term mining lease. The petitioner claimed the extension was warranted due to earlier operational disruptions and disputed the show cause notices issued regarding alleged lease violations. Previous judicial orders had mandated that the authority conduct hearings to address these disputes.

Findings of Court:
The court noted that all points raised in the petitioner's written objections were specifically addressed in the administrative order. It was determined that no provision under existing mining rules or state policy permits the extension of a mining lease after its term has expired. The court further emphasized that the petitioner’s actions in securing the return of bank guarantees and performance security upon the expiry of the lease constituted a clear acceptance of the contract's termination by efflux of time.

Issues: The main issues were whether the administrative authority erred in denying the lease extension and whether valid grounds existed for judicial intervention under the writ jurisdiction, particularly when the petitioner had previously accepted the finality of the lease expiry.

Ratio Decidendi: The court held that without explicit statutory authority allowing for lease extensions, the administrative refusal must be upheld. The judicial intervention is further barred by the petitioner's own conduct in seeking the return of financial security, acknowledging the end of the lease period. The administrative process was compliant with principles of natural justice and reasonableness.

Result: Writ petition dismissed.

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

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