Case Note & Summary
The case involves appeals by the State of Gujarat against the Gujarat High Court's judgment striking down Rules that prohibited the export of ordinary sand from the State. The respondents were leaseholders and processors of sand who challenged the State's Resolution and subsequent Rules (Rule 44-BB of the Gujarat Minor Mineral (Amendment) Rules, 2010 and Rule 71 of the Gujarat Minor Mineral Concession Rules, 2010) that banned the movement of sand beyond Gujarat's borders. The High Court held these Rules ultra vires as they violated Article 301 of the Constitution. The Supreme Court examined the scheme of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), particularly Sections 15 and 23-C, which empower State Governments to make rules for minor minerals and to prevent illegal mining, transportation, and storage. The Court noted that the Rules were made under Section 23-C and were aimed at preventing illegal mining and ensuring proper regulation. On the constitutional challenge, the Court held that while Article 301 guarantees freedom of trade, it is subject to Article 304(b), which allows States to impose reasonable restrictions in public interest. The Court found that the prohibition on export of sand was a reasonable restriction imposed to conserve natural resources, prevent illegal mining, and ensure availability within the State. The Court also noted that the Rules were not discriminatory as they applied uniformly to all. Accordingly, the Supreme Court allowed the appeals, set aside the High Court's judgment, and upheld the validity of the Rules.
Headnote
A) Constitutional Law - Freedom of Trade, Commerce and Intercourse - Article 301 - Restriction on Inter-State Movement of Sand - The Gujarat High Court struck down Rules prohibiting export of sand as violative of Article 301. The Supreme Court reversed, holding that the Rules were saved by Article 304(b) as they were reasonable restrictions in public interest and not discriminatory. (Paras 1-4, 10-12) B) Mines and Minerals - Minor Minerals - Rule-making Power - Section 15 and Section 23-C of MMDR Act, 1957 - The State Government has power under Section 23-C to make rules for preventing illegal mining, transportation and storage of minerals. The prohibition on movement of sand beyond the State border is a measure to prevent illegal mining and is within the scope of Section 23-C. (Paras 5-9) C) Constitutional Law - Article 304(b) - Reasonable Restriction - Public Interest - The prohibition on export of sand was imposed to conserve natural resources, prevent illegal mining, and ensure availability within the State. The restriction was held to be reasonable and in public interest, thus saved by Article 304(b). (Paras 10-12)
Issue of Consideration
Whether the State Government, in exercise of its rule-making power under Section 15 read with Section 23-C of the Mines and Minerals (Development and Regulation) Act, 1957, can prohibit the movement of sand beyond the borders of the State, and whether such prohibition violates Article 301 of the Constitution of India.
Final Decision
The Supreme Court allowed the appeals, set aside the Gujarat High Court's judgment, and upheld the validity of Rule 44-BB of the Gujarat Minor Mineral (Amendment) Rules, 2010 and Rule 71 of the Gujarat Minor Mineral Concession Rules, 2010.
Law Points
- Article 301
- Article 304(b)
- Section 15
- Section 23-C
- Mines and Minerals (Development and Regulation) Act
- 1957
- Gujarat Minor Mineral Rules
- 1966
- Gujarat Minor Mineral Concession Rules
- 2010
- Rule 44-BB
- Rule 71
- freedom of trade
- reasonable restriction
- public interest
