Gujarat High Court Allows Stone Crusher's Petition Against Closure of Mining Lease Account. Court holds that partnership firm is entitled to continue quarry lease operations under Gujarat Minor Mineral Concession Rules, 2017 despite change in constitution of firm.

High Court: Gujarat High Court In Favour of Accused
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Case Note & Summary

The petitioner, Shiv Stone Crusher, a partnership firm, filed a Special Civil Application under Article 226 of the Constitution of India and under the provisions of the Mines and Mineral (Development and Regulation) Act, 1957, the Gujarat Minor Mineral Concession Rules, 2017, and the Gujarat Mineral (Prevention of Illegal Mining, Storage and Transportation) Rules, 2017. The petitioner sought quashing of the order dated 30.08.2025 passed by the Section Officer, Industrial and Mines Department, and the order dated 20.11.2025 passed by the Collector, Bhavnagar, and also sought direction to open the online ATR account (QL No. 0401005515) for mining of black trap at survey no. 216/1/2/2 Paiki 1 and 216/2/2 Paiki 2, Village Sodvadara, Taluka District Bhavnagar. The court, after hearing the parties, held that the petitioner's case does not fall within the eligible criteria under Schedule II Rule 4(1) of the Gujarat Minor Mineral Concession Rules, 2017, and the petitioner is entitled to run the quarry lease in the name of the partnership firm as per the quarry lease executed on 30.08.2018. The court allowed the petition and directed the respondents to open the ATR account and permit the petitioner to do mining activities and issue royalty passes.

Headnote

A) Mining Law - Quarry Lease - Eligibility under Schedule II Rule 4(1) - The petitioner, a partnership firm, challenged the closure of its online ATR account and the order of the Collector, Bhavnagar dated 20.11.2025. The court held that the petitioner's case does not fall within the eligible criteria attached to Schedule II Rule 4(1) of the Gujarat Minor Mineral Concession Rules, 2017, and the petitioner is entitled to run the quarry lease in the name of the partnership firm as per the quarry lease executed on 30.08.2018. The court directed the respondents to open the ATR account and permit mining activities. (Paras 1-5)

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Issue of Consideration

Whether the petitioner's case falls within the eligible criteria under Schedule II Rule 4(1) of the Gujarat Minor Mineral Concession Rules, 2017, and whether the respondents were justified in closing the online ATR account of the petitioner.

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Final Decision

The petition is allowed. The order dated 30.08.2025 passed by the Section Officer, Industrial and Mines Department and the order dated 20.11.2025 passed by the Collector, Bhavnagar are quashed and set aside. The respondents are directed to open the online ATR account of the petitioner and permit the petitioner to do mining activities and issue royalty passes.

Law Points

  • Article 226 of the Constitution of India
  • Mines and Mineral (Development and Regulation) Act
  • 1957
  • Gujarat Minor Mineral Concession Rules
  • 2017
  • Schedule II Rule 4(1)
  • Gujarat Mineral (Prevention of Illegal Mining
  • Storage and Transportation) Rules
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Case Details

2026 LawText (GUJ) (03) 1118

R/SPECIAL CIVIL APPLICATION NO. 15553 of 2025

2026-03-20

Hemant M. Prachchhak

2026:GUJHC:21172

Mr. Jay N. Shah for Petitioner, Mr. Nikunj Kanara AGP for Respondents

Shiv Stone Crusher

State of Gujarat & Ors.

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Nature of Litigation

Writ petition under Article 226 challenging closure of online ATR account and orders of mining authorities.

Remedy Sought

Quashing of orders dated 30.08.2025 and 20.11.2025, and direction to open ATR account and permit mining activities.

Filing Reason

Respondents closed the online ATR account of the petitioner and passed orders preventing mining operations.

Previous Decisions

Order dated 30.08.2025 by Section Officer, Industrial and Mines Department; Order dated 20.11.2025 by Collector, Bhavnagar.

Issues

Whether the petitioner's case falls within the eligible criteria under Schedule II Rule 4(1) of the Gujarat Minor Mineral Concession Rules, 2017. Whether the respondents were justified in closing the online ATR account of the petitioner.

Submissions/Arguments

Petitioner argued that it is entitled to run the quarry lease in the name of the partnership firm as per the lease executed on 30.08.2018. Respondents argued that the petitioner's case does not fall within the eligible criteria under Schedule II Rule 4(1).

Ratio Decidendi

The petitioner's case does not fall within the eligible criteria attached to Schedule II Rule 4(1) of the Gujarat Minor Mineral Concession Rules, 2017, and the petitioner is entitled to run the quarry lease in the name of the partnership firm as per the quarry lease executed on 30.08.2018.

Judgment Excerpts

Present petition is filed by the petitioner under Article 226 of the Constitution of India and under the provisions of Mines and Mineral (Development and Regulation) Act, 1957 and under the provisions of the Gujarat Minor Mineral Concession Rules, 2017 and under the Gujarat Mineral (Prevention of Illegal Mining, Storage and Transportation) Rules, 2017 seeking following reliefs:- Your Lordships may be pleased to issue an appropriate writ, order or direction to the respondent authorities to consider that the case of the petitioner does not fall in the eligible criteria attached to Schedule – II Rule 4(1) of the Gujarat Minor Mineral Concession Rules 2017 and the petitioner is entitled to run the said quarry lease in the name of partnership firm as per the quarry lease executed on 30.08.2018.

Procedural History

The petitioner filed Special Civil Application No. 15553 of 2025 before the High Court of Gujarat at Ahmedabad challenging the order dated 30.08.2025 passed by the Section Officer, Industrial and Mines Department and the order dated 20.11.2025 passed by the Collector, Bhavnagar. The court heard the matter and delivered judgment on 20.03.2026.

Acts & Sections

  • Constitution of India: Article 226
  • Mines and Mineral (Development and Regulation) Act, 1957:
  • Gujarat Minor Mineral Concession Rules, 2017: Schedule II Rule 4(1)
  • Gujarat Mineral (Prevention of Illegal Mining, Storage and Transportation) Rules, 2017:
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