MINING LEASES (MODIFICATION OF TERMS) RULES, 1956

R.1 Short title and commencement. -

These rules may be called the Mining Leases (Modification of Terms) Rules, 1956.

R.2 Definitions. -

       In these rules unless the context otherwise requires:
       (a) 'Act' means the Mines and Minerals (Regulation and Development Act, l957 (67 of 1957 ) ;
       (b) 'Controller' means a Controller of Mining Leases appointed under rule 3
       (c) 'Existing mining lease' means a mining lease granted before the commencement of the Mines and Minerals(Regulation and Development) Amendment Act, 1972 and subsisting at such commencement, but does not include any such lease in respect of -
       i) Natural gas;
       ii)Petroleum;
       iii)Coal or
       iv)any minor mineral within the meaning of clause (e) of section 3 of the Act;
     &nb

R.3 Controller of Mining Leases. -

The Central Government may, by notification in the Official Gazette, appoint one or more Controller of Mining leases for the purposes of these rules and any such Controller may be appointed for any specified area or in respect of any specified class of mining leases. .

R.4 Existing 1eases to be brought into conformity with the Act, Mineral Concession Rule and Minerals Conservation and Development Rules. -

       (1) As soon as may be after the commencement of these rules, the Controller shall by notice served in the manner specified in rule 15 ca11 upon every lessee and the lessor to show cause why the term and conditions of the existing mining lease should not be brought into conformity with the Act, Mineral Concession Rules and Minerals Conservation and Development Rules.
       (2) Where the parties or any of them appear before he Controller in pursuance of a notice issued under sub-rule (1), the Controller, after giving the parties or party, as the case may be, a reasonable opportunity of being heard, shall issue an order making such modifications and alterations in the terms and conditions of the existing mining lease as may necessary for the purpose of bringing it into conformity with the Act, Mineral Concession Rules and Minerals Conservation and Development Rules.
   &nb

R.5 Lessees to submit returns.-

       (1) Every lessee shall submit to the Controller within sixty days of the date of a notification published by the Controller in the Gazette of India in this behalf a return in the form specified in the Schedule:
       Provided that the Controller may in any particular case extend the said period of sixty days by such period or periods, as he deems fit, if he is satisfied that the lessee was prevented by sufficient cause from submitting the return in time.
       (2) Every such return shall be accompanied by a true copy of the existing mining lease to which the return relates.

R.6 Modifications of the terms of existing mining leases

       (1) The Controller shall in respect of every existing mining lease prepare a statement of the modifications and alterations which he proposes to make in the terms and conditions of the lease so as to bring the lease into conformity with the Act, Mineral Concession Rules and Minerals Conservation and Development Rules.
       (2A) The Controller may not propose all modifications and alterations referred to in sub-rule (1) at one time but may exercise the power of making such modifications and alterations from time to time.
       (10) Where the Controller proposes a reduction in the area covered by an existing mining lease, the Controller shall observe the following principles:
       (a) in any case where there is an area which is not being worked and which is not contiguous to any area which is being worked, the

R.7 Power of revision of the Central Government. -

       (1) The Central Government may of its own motion or on the application of any interested person call for the record of any proceedings in which the Controller has passed any order under sub-rule (2) of rule 4 or sub-rule (12) or sub-rule(13)of rule 6 or in which the Tribunal has passed any order under clause (b) of sub-rule (1) of rule 10 for the purpose of satisfying itself as to the legality or propriety of any such order and may pass such order in relation thereto as it thinks fit.
       (2) Every application under this rule for the revision of any such order of the Controller or the Tribunal shall be made within sixty days of the date of the order sought to be revised ;
       Provided that the Central Government may entertain any such application after the expiry of the said period of sixty days if it is satisfied that the applicant was prevente

R.8 Furnishing of copies of final order ,and pubIication in Gazette.

A copy of every order made under these rules modifying or altering the terms and conditions of an existing mining lease shall be furnished free of cost to the lessee and the lessor and to any other interested person, and shall also be published in the Official Gazette of the State in which the mine to which such lease relates is situated.

R.9 Payment of compensation in certain cases.

Where the area of an existing mining lease is reduced, there shall be paid to thc lessee compensation, the amount of which shall determined in the manner and in accordance with, the principles set out in, rule 10:
Provided that no such compensation shall be payable unless the controller is satisfied that the transaction relating to the existing mining lease was a bona fide one and was entered into in the ordinary course of business.

R.10 Principles and manner of determining compensation. -

       The amount of compensation payable under rule 9 shall be determined ` in the following manner :-
       (a) by agreement between the parties;
       (b) (i) if there is no such agreement, the amount of compensation shall be determined by the Controller holding such inquiry, as he may deem fit;
       (ii) if the amount so determined by the Controller is not acceptable to the person by or to whom the compensation is payable, the question shall on an application made within sixty days from the date of the Controller's order, be referred for decision to a Tribunal constituted by the Central Government which shall consist of a single member who is, or has been, or is qualified for appointment as, a Judge of a High Court and the decision of the Tribunal shall be final subject to the provisional of section 30 of the Act

R.11 Interest on compensation.-

Any compensation payable under these rules shall be due as from the date of the final order under rule 10 and shall carry interest at the rate of 21/2 per cent per annum from the date of such order.

R.12 The Tribunal to have certain powers of Civil courts.

       The Tribunal constituted under rule 10 and the Controllers of Mining Leases appointed under rule shall for the purpose of determining compensation under these rules have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (Act 5 of 1908) in respect of the following matters namely:-
       (a) summoning and enforcing the attendance of any person and examining him on oath;
       (b) requiring the discovery and production of any documents;
       (c) receiving of evidence on affidavit;
       (d) requisitioning any public record from any court or offices;
       (e) issuing commissions for examination of witnesses.

R.12(a) Power to rectify apparent mistakes. -

Any clerical or arithmetical mistake in any order passed by the Controller under these rules and any error arising therein from accidental slip or omission may within two months from the date of the order, be corrected by the Controller;
Provided that no order prejudicial to any person shall be made under this rule unless such person has been given reasonable opportunity of stating his case.

R.13 Power of Controller to obtain information, etc.-

       The Controller may for the purpose of exercising the power conferred upon him by these rules, by order require a lessee of lesson:-
       (a) to produce before him any books of account or other documents which may be in his possession or power relating to an existing mining lease;
       (b) to furnish to him such maps and charts relating to an existing mining lease as may be specified in the order, and
       (c) to give any information in his possession relating to an existing mining lease.

R.15 Service of Notice or order.-

       Every notice or order issued or made under these rules shall-
       (a) in the case of any notice or order of a general nature or affecting a class of persons be published in the Gazette of India ;
       (b) in the case of any notice or order affecting any corporation or firm be served in the manner provided for the service of summons in rule 2 of order XXIX or rule 3 of order XXX, as the case may be, in the. First Schedule to the Code of Civil Procedure, 1908 (Act 5 of 1908) if it cannot be served in such manner, by publication in the Official Gazette of the State and in at least one newspaper circulating in the district, where the mine, the terms and condition of the lease whereof are proposed to be altered or modified, is situated; and
       (c) in the case of any notice or order affecting an individual pers

R.16 Mode of recovery of compensation.-

The amount of any, compensation payable under these rules may on a certificate issued by the Controller, be recovered in the same manner as an arrears of land revenue:
Provided that where any such compensation is payable by the Government, the amount of such compensation may, on application made to the civil court having jurisdiction, be recovered as if that court had passed a decree for such amount.

R.17 .

       (1) If any person
       (a) refuses or fails-
       (i) to furnish a return as provided in rule 5: or
       (ii) to restore possession of any mine in accordance with the terms and conditions of an existing mining lease as modified under these rules; or
       (iii) to produce any books of accounts or other documents or furnish any maps and charts or give any information in compliance with an order made. under rule 13; or
       (b) obstructs the lawful exercise of any power conferred by these rules he shall be punishable with imprisonment which may extend to six month. or with fine which may extend to one thousand rupees or with both.
       (2) If any person makes any statement in any return furnis

Sch.1 SCHEDULE

       SCHEDULE
       (See rule 5)
       __________________________________________________
       To be used in respect of each lease or sub-lease
       __________________________________________________
       1. Name of lessee or sub-lessee.
       2. Address
       3. Status (whether individual or company or corporation or partnership firm or Hindu undivided family or Co-operative Society).
       4. Date on which the lease or sub-lease was granted.
       5. Location of the area leased (Name of the Village, district State).
       6. Minerals for which