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Patna High Court · body

1989 DIGILAW 313 (PAT)

Surendra Prasad Saha v. State Of Bihar

1989-08-29

S.B.SINHA

body1989
Judgment 1. This application is directed against an order dated 8-4-1985 as contained in Annexure-1 to the writ application whereby and whereunder the District Mining Officer, Giridih informed the petitioner that his application for renewal of the mining lease for mineral sand cannot be renewed in view of the insertion of Rule-11A of the Bihar Minor Mineral Concession Rules, 1972 by the State of Bihar in terms of notification dated 6-11-1984 as contained in Annexure-2 to the writ application which, incidentally was replaced by another notification dated 14-1-1985 as contained in Annexure-2 to the writ application. 2. The facts of the case lie in a very narrow compass. 3. The petitioner was granted a mining lease for the minor mineral sand by reason of registered deed of lease dated 19-5-1980 in respect of an area comprising 11.38 acres of land in village Makatpur and Barmashia for a period of five years commencing from 19. (sic) 4. In terms of the aforementioned deed of lease allegedly the petitioner was entitled to renewal thereof for a further period of five years. 5. Allegedly in terms of the aforementioned deed of mining lease the petitioner filed an application on 16 (sic) for renewal of the lease before 90 days from the date of expiry thereof i.e. 19-2-1985 and also deposited the relevant renewal fee. 6. By reason of the impugned order dated 8-4-1985 as contained in Annexure-1 to the writ petition, the petitioner was intimated that in view of the aforementioned notification as contained in Annexure-2 to the writ application, his mining lease cannot be renewed. 7. It appears that the aforementioned notification dated 6-11-1984 was replaced by notification dated 14-1-1985 which as contained in Annexure-3 to the writ application. 8. The Parliament enacted Mines and Minerals (Regulation and Development) Act 1957 (Act 67 / 1957) (hereinafter referred to as the said Act) to provide for regulation of mines and the development of minerals under the control of the Union. 9. in terms of S. 14 of the said Act, Ss. 4 to 13 thereof do not apply to minor minerals. 10. 9. in terms of S. 14 of the said Act, Ss. 4 to 13 thereof do not apply to minor minerals. 10. Sec. 20 of the said Act provides that the said Act and rules made thereunder shall apply in relation to the renewal after the commencement of the Act of any prospecting licence or mining lease granted before such commencement as they apply in relation to the renewal of a prospecting licence or mining lease granted after such commencement. 11. The State of Bihar in purported exercise of its power conferred upon it under S. 15 of the said Act framed the rules known as the Bihar Minor Mineral Concession Rules, 1972. 12. By reason of an amending Act being Mines and Minerals (Regulation and Development) Amendment Act, 1972, Section (sic) of the said Act was amended. 13. Sec. 15 of the said Act reads as follows :- 1.A In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely : - (a) the person by whom and the manner in which applications for quarry leases and mining leases or other mineral concessions may be made and the fees to be paid thereof; (b) the time within which, and the form in which, acknowledgment of the receipt of any such applications may be sent; (c) the matters which may be considered where applications in respect of the same land are received within the same day. (d) the terms on which, and the conditions subject to which and the authority by which quarry leases, mining leases or other mineral concessions may be granted or renewed. (e) the procedure for obtaining quarry leases, mining lease or other mineral concessions; (f) the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations; (g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be payable. (h) the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in case where any such party is prejudicially affected by reason of any prospecting or mining operations. (h) the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in case where any such party is prejudicially affected by reason of any prospecting or mining operations. (i) the manner in which rehabilitation of flora and other vegetation such as trees, these shrubs and the like destroyed by reason of any quarrying or mining operations shall be made in the same or in any other area selected by the State Government (whether by way of re-imbrusement of the cost of rehabilitation or otherwise) by the person holding the quarrying or mining lease. (j) the manner in which and the condition subject to which, a quarry lease, mining lease or other mineral concession may be transferred. (k) the construction, maintenance and (sic) roads, power transmission lines, (sic) aerial ropeways, pipelines and the making of passage for wather for (sic) on any land concession; (l) the form of registers to be maintained under this Act. (m) the reports and statements to be submitted by holders of quarry or mining leases or other mineral concessions and the authority to which such reports and statements shall be submitted. (n) the period within which and the manner in which and the authority to which applications for revision of any order passed by any authority under these rules may be made the fees to be paid therefor, and the powers of the revision authority; and (o) any other matter which is to be or may be prescribed. 14. Prior to coming into force of the amendment as carried out by virtue of the notifications as contained in Annexures-2 and 3 to the writ petition, there existed a provision in the Bihar Minor Mineral Concession Rules, 1972 with regard to the renewal of the mining lease inter alia in respect of the sand. However, the State of Bihar inserted R. 11 A in the aforementioned Rules of 1972 by S.O. No. 1133 dated 19-8-(sic). It was substituted by S.O. No. 33 dated 14-1-1985 as contained in Annexure-3 to the writ application whereby and whereunder R. 11A was amended reads as follows : - "Notwithstanding anything contained in these rules the settlement of sand as minor mineral will be done by public auction by the Collector to the highest bidder on an annual basis. It was substituted by S.O. No. 33 dated 14-1-1985 as contained in Annexure-3 to the writ application whereby and whereunder R. 11A was amended reads as follows : - "Notwithstanding anything contained in these rules the settlement of sand as minor mineral will be done by public auction by the Collector to the highest bidder on an annual basis. Explanation: - Existing leases shall not be renewed nor fresh lease / permits for sand shall be granted." 15. According to the learned counsel appearing on behalf of the petitioner the said R. 11A of Bihar Minor Mineral Concession Rules, 1972 had no application whatsoever in view of the fact that the petitioner was granted mining lease, as noticed hereinbefore, on 19-4-1980, and as such on the expiry of five years from the said date he was entitled to renewal of the said mining lease as matter of right despite the insertion of R. 11A in terms of S.O. No. 33 dated 14-1-1985. The learned counsel further submitted that renewal of a lease being a matter of right the same cannot be taken away with retrospective effect. 16. As noticed hereinbefore R. 11A was amended from time to time, the first being in year 1978. The provision for settlement of the mineral sand by holding public auction along with other mineral was made by virtue of notification dated 6-11-1984, as contained in Annexure-2 to the writ application. However, in supercession of the said notification dated 6-11-1984 the State of Bihar issued another notification on 14-1-1985 as contained in Annexure-3 to the writ application as a result whereof R. 11A was further amended. 17. True it is that the instant mining lease executed in favour of the petitioner contains a clause of renewal of mining lease, but such renewal can be allowed provided the same is permissible in terms of the provisions of the rule framed in the said Act. As noticed hereinbefore S. 20 of the said Act provides for a right of renewal in terms of provisions of the said Act and the rules thereunder. 18. It is absolutely clear that in a case where a conflict arises between the provision of an instrument and the statutory rule, the later shall prevail. As noticed hereinbefore S. 20 of the said Act provides for a right of renewal in terms of provisions of the said Act and the rules thereunder. 18. It is absolutely clear that in a case where a conflict arises between the provision of an instrument and the statutory rule, the later shall prevail. In this case R. 11A of the Bihar Minor Mineral Concession Rules, 1972 shall have effect notwithstanding contained anything in the instrument which by necessary logical colleing (sic) would mean that the said rule shall prevail inasmuch as the deed of mining lease was also executed in terms of the provision of the said Act and and the rules framed thereunder. 19. Further it is well known that renewal is fresh grant. Such a right of renewal, therefore, can be taken away or hedged with conditions by reason of statutory rules. 20. In terms of S. 15, sub-sec. 1A (Cl. (e)) of the said Act the State Government is empowered to make a rule with regard to the procedure for obtaining quarry lease, mining lease or other mineral concession. 21. As noticed hereinbefore in terms of S. 20 of the aforementioned Act the same procedure as provided for in the said Act and rules framed thereunder are to be followed in case of renewal of a mining lease which are to be followed at the time of grant of such lease. 22. It is, therefore, absolutely clear that in view of the amended rule, the State of Bihar had no other option but to grant mining lease in respect of Mineral sand except by holding auction. However, there is no doubt that even a successful bidder in an auction must be eligible to be granted a mining lease in terms of the said Act and the Bihar Minor Mineral Concession Rules, 1972. The Supreme Court, in the State of Tamil Nadu V/s. M/s. Hind Stone etc., reported in AIR 1981 SC 711 while considering the validity of Rr. 8(c) and 9 of Tamil Nadu Minor Mineral Concession Rules, 1959, whereby and whereunder the monopoly was sought to be created in respect of mineral black granite held that the said rules is intera vires the Constitution and further held that they apply also to a case of the renewal. 8(c) and 9 of Tamil Nadu Minor Mineral Concession Rules, 1959, whereby and whereunder the monopoly was sought to be created in respect of mineral black granite held that the said rules is intera vires the Constitution and further held that they apply also to a case of the renewal. In that case the Supreme Court held thus as follows "The next question for consideration is whether R. 8C is attracted when applications for renewal of leases are dealt with. The argument was that R. 9 itself laid down the criteria for grant of renewal of leases and therefore R. 8C should be confined, in its allocation to grant of lease in the first instance. We are unable to see the force of the submission. R. 9 makes it clear that a renewal is not to be obtained automatically for the mere asking. The applicant for the renewal has particularly to satisfy the Government that the renewal is in the interests of mineral development and that the lease amount is reasonable in the circumstances of the case. These conditions have to be fulfilled in addition to whatever criteria is applicable at the time of the grant of lease in the first instance, suitably adapted of course to grant of renewal. Not to apply the criteria applicable in the first instance may lead to absurd results. If as a result of experience gained after watching the performance of private entrepreneurs in the mining of minor minerals it is decided to stop grant of leases in the private sector in the interest of conservation of the particular mineral resource attainment of the object sought will be frustrated if renewal is to be granted to private entrepreneurs without regard to the changed out look. In fact some of applicants for renewal of leases may themselves be the persons who are responsible for the changed outlook. To renew leases in favour of such persons would make the making of R. C a mere exercise futlility. It must be remembered that an application for the renewal of a lease is in essence an application the grant of a lease for a fresh period. We are, therefore, of the view that R. 8C is attracted in considering applications for renewal of leases also. " 23. It must be remembered that an application for the renewal of a lease is in essence an application the grant of a lease for a fresh period. We are, therefore, of the view that R. 8C is attracted in considering applications for renewal of leases also. " 23. In this view of the matter, in my opinion the impugned order dated 8-4-1985 as contained in Annexure-1 to the writ application cannot be said to be illegal. 24. In the result this application is dismissed, but in facts and circumstances of the case there will be no order as to costs. Application dismissed.