Case Note & Summary
The dispute concerned a mining lease for extraction of minerals in a forest area in Andhra Pradesh. The respondent had been granted a mining lease by the Director of Mines on 18 September 1979 for a period of five years, expiring on 12 September 1984. The Forest (Conservation) Act, 1980 came into force on 25 October 1980, during the subsistence of the original lease. After the lease expired, an application for renewal was made on 13 September 1989, but no prior approval of the Central Government was obtained as required by Section 2 of the Forest (Conservation) Act, 1980. A joint inspection conducted by the Forest Department on 7 February 1990 discovered that the respondent was extracting minerals within the forest area, leading to cancellation of the lease. The respondent filed a writ petition before the High Court. After a joint survey, the High Court directed that the respondent be allowed to remove stacked minerals from the forest area, subject to obtaining prior approval from competent authorities. The Divisional Forest Officers appealed to the Supreme Court by special leave. The respondent argued that only the removal of already stacked minerals was being permitted, not fresh extraction, and that the High Court direction was lawful. The Supreme Court rejected this argument, holding that Section 2 of the Forest (Conservation) Act, 1980 imposes a total prohibition on mining operations in forest areas unless the State Government grants a lease with prior concurrence of the Central Government. The Court noted that renewal of a mining lease is not a vested right and must be governed by the law in force at the date of renewal. Since the Forest (Conservation) Act, 1980 had come into force before the renewal, the prior approval of the Central Government was mandatory. The Court also observed that the guidelines issued by the Department of Environment and Forest for relaxation of rules did not apply to this case, which involved a routine grant of renewal without compliance. Consequently, the Supreme Court held that the High Court's direction was illegal, allowed the appeal, and set aside the High Court order without costs.
Headnote
A) Forest Conservation - Prohibition on Mining Operations - Section 2, Forest (Conservation) Act, 1980 - Mining operations in a forest area are totally prohibited unless the State Government grants a mining lease with the prior concurrence of the Central Government. The respondent's mining lease was renewed without such concurrence, rendering the renewal invalid. Held that the High Court erred in directing removal of stacked minerals on the premise that the lease was valid; the direction is illegal and is set aside. B) Mines and Minerals - Renewal of Mining Lease - Renewal not a vested right - Section 2, Forest (Conservation) Act, 1980 - Renewal of a mining lease must be disposed of according to the law prevailing on the date of renewal. Since the Forest (Conservation) Act, 1980 came into force during subsistence of the original lease, any renewal thereafter required compliance with Section 2. Held that the application for renewal made after expiry without prior Central approval could not confer any right to extract or remove minerals from the forest area.
Issue of Consideration
Whether renewal of a mining lease in a forest area requires prior approval of the Central Government under Section 2 of the Forest (Conservation) Act, 1980, and whether the High Court could direct removal of stacked minerals in absence of such approval
Final Decision
Appeal allowed; High Court direction set aside; no costs
Law Points
- Section 2 of Forest (Conservation) Act
- 1980 imposes total prohibition on mining operations in forest area without prior approval of Central Government
- renewal of mining lease is not a vested right
- renewal must be according to law in force on date of renewal
