Bombay High Court Dismisses Petition Challenging Revisional Authority's Order Cancelling Mining Lease — Notification Under Section 17A(1A) of MMDR Act Upheld. State Government's Grant of Mining Lease Without Prior Central Approval Invalid Under Section 17A(1A) of Mines and Minerals (Development and Regulation) Act, 1957.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Vidarbha Mining Association, a partnership firm, applied for a mining lease for 69.10 hectares of land in village Chikhla, Taluka Tumsar, District Bhandara for manganese ore. The State Government of Maharashtra issued a notification on 12-10-2006 inviting applications for mineral concessions. The petitioner's application was granted by the State Government on 26-06-2008. However, the Central Government issued a notification on 29-09-2009 under Section 17A(1A) of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), which required prior approval of the Central Government for grant of mining leases in the notified area. The Central Government Tribunal (Revisional Authority) set aside the State Government's order granting the lease, holding that it was granted without prior approval. The petitioner challenged this order before the Bombay High Court. The Court examined the provisions of Section 17A(1A) and found that the notification was valid and the State Government's order was contrary to law. The Court dismissed the petition, upholding the Tribunal's order and the notification.

Headnote

A) Mining Law - Grant of Mining Lease - Section 11, Section 17A(1A), Section 30 of Mines and Minerals (Development and Regulation) Act, 1957 - Revision - The petitioner challenged the order of the Central Government Tribunal which set aside the State Government's order granting mining lease. The Court held that the State Government's order granting lease without prior approval of the Central Government as required under Section 17A(1A) was invalid. The notification under Section 17A(1A) was valid and the Tribunal's order was upheld. (Paras 2-10)

B) Mining Law - Prior Approval - Section 17A(1A) of MMDR Act - The Court held that the State Government cannot grant a mining lease in respect of an area notified under Section 17A(1A) without obtaining prior approval of the Central Government. The notification dated 29-09-2009 was valid and the State Government's order dated 26-06-2008 was set aside. (Paras 5-8)

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Issue of Consideration

Whether the Central Government Tribunal (Revisional Authority) was justified in setting aside the order of the State Government granting mining lease to the petitioner, and whether the notification under Section 17A(1A) of the MMDR Act was valid.

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Final Decision

The petition is dismissed. The order of the Central Government Tribunal dated 26-08-2010 is upheld. The notification under Section 17A(1A) is valid.

Law Points

  • Mining lease
  • MMDR Act
  • Section 17A(1A)
  • Section 30
  • Revision
  • Central Government Tribunal
  • Mineral Concession Rules
  • 1960
  • Rule 54
  • Prior approval
  • State Government
  • Central Government
  • Notification
  • Cancellation of lease
  • Partnership firm
  • Manganese ore
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Case Details

2014 LawText (BOM) (03) 122

Writ Petition No.3169 of 2011

2014-03-26

B.P. Dharmadhikari, P.R. Bora

S.V. Manohar, V.S. Kukday, M.G. Bhangde, G.G. Modak, S.K. Mishra

Vidarbha Mining Association

Central Government Tribunal, Union of India, Government of Maharashtra, Manganese Ore India Limited

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Nature of Litigation

Writ petition challenging the order of the Central Government Tribunal (Revisional Authority) setting aside the grant of mining lease by the State Government.

Remedy Sought

Quashing of the common order dated 26-08-2010 passed by the Central Government Tribunal and maintaining the order dated 26-06-2008 passed by the State Government granting mining lease.

Filing Reason

The petitioner's mining lease granted by the State Government was set aside by the Central Government Tribunal on the ground that prior approval of the Central Government was not obtained as required under Section 17A(1A) of the MMDR Act.

Previous Decisions

The State Government granted mining lease on 26-06-2008. The Central Government Tribunal set aside that order on 26-08-2010.

Issues

Whether the Central Government Tribunal was justified in setting aside the State Government's order granting mining lease? Whether the notification under Section 17A(1A) of the MMDR Act was valid?

Submissions/Arguments

Petitioner argued that the State Government's order granting lease was valid and the notification under Section 17A(1A) was not applicable. Respondents argued that the grant of lease without prior approval of the Central Government was invalid and the notification was valid.

Ratio Decidendi

The State Government cannot grant a mining lease in respect of an area notified under Section 17A(1A) of the MMDR Act without obtaining prior approval of the Central Government. The notification under Section 17A(1A) is valid and the Tribunal's order setting aside the lease is correct.

Judgment Excerpts

The petitioner has approached this Court for quashing and setting aside the common order dated 26-08-2010 passed by Central Government Tribunal. Entry at serial No.20 of the said notification shows that 69.10 H/R of area was notified for Manganese Ore from village Chikhla.

Procedural History

The petitioner applied for mining lease on 16-09-2004. State Government notified area on 12-10-2006. State Government granted lease on 26-06-2008. Central Government issued notification under Section 17A(1A) on 29-09-2009. Central Government Tribunal set aside the grant on 26-08-2010. Petitioner filed writ petition on 2011. Judgment pronounced on 26-03-2014.

Acts & Sections

  • Mines and Minerals (Development and Regulation) Act, 1957: Section 11, Section 17A(1A), Section 30
  • Mineral Concession Rules, 1960: Rule 54
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