The State of Tamil Nadu represented by its Secretary to the Government Industries Department & Others v. M. Ramaswamy
2007-09-26
CHITRA VENKATARAMAN, K.RAVIRAJA PANDIAN
body2007
DigiLaw.ai
Judgment :- K. Raviraja Pandian, J. The issue involved in these writ appeals is squarely covered by the Division Bench judgment of this Court dated 22. 2007, made in W.P.No.28461 of 2003, wherein the Division Bench, following the judgment of the Supreme Court in the case of STATE OF TAMIL NADU VS. KRISHNAMURTHY reported in (2006) 4 SCC 517 , has passed an order to the following effect: "...... 2. Similar matter came up for consideration before the Supreme Court in the case of State of Tamil Nadu Vs. P.Krishnamurthy, reported in 2006-4-L.W.635, therein, while the Court upheld the validity of Rule 38A, which vests the exclusive right to quarry sand in the State Government and that part of Rule 38A, which purports to terminate quarrying leases/ permissions, observed as follows:- "26. In regard to mining leases subsisting as on 10. 2003, we have read down Rule 38A as terminating such leases in terms of the contract (lease deeds) by six months, without assigning cause and without any liability to pay compensation. Such of those writ petitioners (respondents herein) whose leases were subsisting on 10. 2003 (and whose activities were stopped with effect from that day) will be entitled to carry on the quarrying activities for a period of six months or for the actual unexpired period of the lease (as on 10. 2003), whichever is less. This benefit will be available to even those who have orders of court for grant of mining leases, but where mining leases were not executed for one reason or the other. It is, however, made clear that the State Government is at liberty to prematurely terminate the leases for any of the causes mentioned in Section 4A (2), by giving a notice and hearing under Section 4A(3), if they want to terminate any lease within the said period of six months. 27. We, accordingly, allow these appeals in part. In place of the conditions stipulated by the Division Bench while upholding the validity of Rule 38A, we hold and direct as follows: (i) That part of Rule 38A which vests the exclusive right to quarry sand, in the State Government, is upheld. (ii) That part of Rule 38A which purports to terminate quarrying leases/permissions forthwith (from 10. 2003) is read down in terms of Para 26 above.
(ii) That part of Rule 38A which purports to terminate quarrying leases/permissions forthwith (from 10. 2003) is read down in terms of Para 26 above. (iii) The provision in Rule 38A for refund of proportionate lease amount for the unexpired period of lease and unadjusted seigniorage fee, shall remain undisturbed. (iv) It is made clear that except to the limited relief as a consequence of reading down as per para 26 above, the respondents will not be entitled to any other reliefs which have been granted by the High Court. (v) Parties to bear their respective costs. 3. The present case being covered by the Supreme Court decision rendered in the case of State of Tamil Nadu Vs. P.Krishnamurthy, reported in 2006-4-L.W.635 (stated supra), this Writ Petition is also disposed of with same and similar terms. Consequently, the connected W.P.M.P.No. 34768 of 2003 is closed. There will be no order as to costs." 2. The Supreme Court in the above referred judgment granted relief to the lease holder and others which reads as under: "In regard to mining leases subsisting as on 2-10-2003, we have read down Rule 38-A as terminating such leases in terms of the contract (lease deeds) by six months, without assigning cause and without any liability to pay compensation. Such of those writ petitioners (the respondents herein) whose leases were subsisting on 23-10-2003 (and whose activities were stopped with effect from that day) will be entitled to carry on the quarrying activities for a period of six months or for the actual unexpired period of the lease (as on 2-10-2003), which ever is less. This benefit will be available to even those who have orders of the court for grant of mining leases, but where mining leases were not executed for one reason or the other. It is, however, made clear that the State Government is at liberty to prematurely terminate the leases for any of the causes mentioned in Section 4-A(2), by giving a notice and hearing under Section 4-A(3), if they want to terminate any lease within the said period of six months." (emphasis supplied) 3. Here in this case also, the appellant has obtained an order from this Court for alternative site. However, lease deed was not executed.
Here in this case also, the appellant has obtained an order from this Court for alternative site. However, lease deed was not executed. Therefore, in the light of the judgments of the Supreme Court and the Division Bench of this Court, we are of the view that the appellant is entitled to the relief as ruled out by the Supreme Court, which we have extracted above. 4. With this observation, the writ appeals are allowed to that extent on similar terms as held by the Supreme Court. However, there is no order as to costs.