Case Note & Summary
The appeals by special leave arose from writ petitions filed by mining lessees (respondents) before the High Court of Andhra Pradesh challenging the refusal of the State Government to grant renewal of mining leases. The lessees had been granted mining leases under Rule 31 of the A.P. Mining Rules, 1966 before the Forest Conservation Act, 1980 came into force on October 25, 1980. Subsequent to the commencement of the Central Act, the respondents applied for renewal of their leases. The State Government refused renewal citing the prohibition contained in Section 2 of the Forest Conservation Act, 1980. The High Court Division Bench, by its judgment dated June 9, 1982, directed the State Government to consider the renewal applications and seek approval of the Central Government under Section 2 of the Act. The State of Andhra Pradesh and others filed appeals by special leave challenging the legality of the High Court's directions. In some of the cases, the renewal applications were filed after the Act had come into force, but the court observed that this made no difference to the question of law. The point raised was held to be no longer res integra. The Supreme Court referred to its earlier decision in Ambica Quarry Works v. State of Gujarat & Ors., [1987] 1 SCC 213, where it was held that the expression 'may' in a statute is construed as 'shall' when the conditions for the exercise of the power are fulfilled and the power is coupled with a duty. However, in the present case, the statutory prohibition contained in Section 2 of the Forest Conservation Act, 1980 made renewal impermissible after the Act came into force. The court emphasized that the purpose of the Act is conservation of forests and prevention of depletion. Therefore, any grant of renewal must be consistent with the Act. In view of the prohibition on grant of lease in reserved forest areas, grant of renewal in such prohibited areas would be in violation of law. The authorities, though having the power to grant renewal, had a duty to refuse renewal to conserve forests. The court held that the Government's refusal to grant renewal was not illegal. Furthermore, even if the authority considered that renewal could be granted, prior approval of the Central Government was mandatory under Section 2 of the Act. The High Court's direction to consider renewal was held to be clearly in violation of the statute, and no mandamus or direction could be issued to violate mandatory provisions of law. Accordingly, the appeals were allowed, the order of the Division Bench of the High Court was set aside, and the State's refusal to renew was upheld. No costs were awarded.
Headnote
A) Forest Law - Mining Lease Renewal - Prohibition Under Section 2 Forest Conservation Act, 1980 - Renewal of mining leases in reserved forest area prohibited after commencement of Act; High Court direction to consider renewal was illegal; State Government's refusal to grant renewal was legal. Held that the Forest Conservation Act, 1980, Section 2, intended to conserve forest and prevent depletion, and any grant of renewal in prohibited area violates law. B) Administrative Law - Interpretation of 'May' as 'Shall' - A.P. Mining Rules, 1966, Rule 31 - Expression 'may' construed as 'shall' when conditions for exercise of power are fulfilled and coupled with duty, but this duty yields to statutory prohibition under Forest Conservation Act, 1980; authority has duty to refuse renewal to conserve forest. Held that although authority had power to grant renewal, it had duty to refuse when forest conservation so required. C) Constitutional Law - Writ of Mandamus - Prior Approval Mandatory Under Section 2 Forest Conservation Act, 1980 - Prior approval of Central Government is mandatory before grant of lease or renewal; mandamus cannot be issued to violate mandatory provisions. Held that High Court direction to consider renewal and seek approval was in violation of statute and was set aside.
Issue of Consideration
Whether the High Court could direct the State Government to consider renewal of mining leases and seek approval of the Central Government under Section 2 of the Forest Conservation Act, 1980 despite the prohibition contained therein; whether prior approval of Central Government is mandatory before grant of renewal.
Final Decision
Appeals allowed; order of Division Bench of High Court set aside; State Government's refusal to grant renewal held not illegal; no costs.
Law Points
- Forest Conservation Act
- 1980 Section 2 prohibits grant of lease or renewal in reserved forest area
- prior approval of Central Government mandatory
- expression 'may' construed as 'shall' when conditions fulfilled and coupled with duty
- public authority has duty to refuse renewal to conserve forest
- mandamus cannot issue to violate mandatory provisions
