Case Note & Summary
The petitioner, a company registered under the Companies Act, 1956 (originally ABG Cement Ltd., later Vadraj Cement Ltd.), filed a writ petition before the High Court of Gujarat challenging the constitutional validity of Section 10A(2)(c) of the Mines and Minerals (Development and Regulation) Act, 1957 and Rule 8(4) of the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 as ultra vires Articles 14, 18 and 21 of the Constitution of India. The petitioner also challenged an order dated 17.11.2017 issued by the Union of India and sought directions to the State of Gujarat to execute and register a mining lease deed for 300.6957 hectares at Village Naniber, District Kachchh. The background involved a prior approval for limestone mining lease granted by the Government of India in 1997, followed by a Letter of Intent issued by the State Government in 1998 for 730.60 hectares. Environmental clearance was obtained in 2011, but only a partial mining lease deed for 336.1843 hectares was executed. The balance area was subject to forest land deletion proceedings before the Supreme Court, where the petitioner intervened. The Supreme Court disposed of the intervention applications in 2011 and 2016, leaving certain issues open. The Mines and Minerals (Development and Regulation) Amendment Act, 2015 introduced an auction regime for grant of mining leases, with Section 10A(2)(c) providing a saving clause for cases where a Letter of Intent was issued before 12.01.2015, requiring grant of lease within two years. The petitioner contended that despite fulfilling all conditions, the mining lease for the balance area was not executed, and the authorities were not acting on the application. The petitioner also underwent corporate insolvency resolution process, and its management changed. The High Court heard the matter at length and reserved judgment. The decision of the court is not available in the provided excerpt.
Issue of Consideration
Whether Section 10A(2)(c) of the Mines and Minerals (Development and Regulation) Act, 1957 and Rule 8(4) of the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 are ultra vires of Articles 14, 18 and 21 of the Constitution of India; whether the order dated 17.11.2017 issued by the Union of India is valid; whether the petitioner is entitled to a direction for execution of a mining lease deed for the balance area.
Case Details
2026 LawText (GUJ) (03) 556
R/Special Civil Application No. 18353 of 2018 with Civil Application (For Fixing Date of Hearing) No. 3 of 2025
Shalin Mehta, Gaurav Mehta, Amit Laddha, Hardik P Modh (for petitioner); Hetal Patel (for respondent No.2); Kirtiman Singh, Harsheel D Shukla (for respondent No.1)
Vadraj Cement Limited & Anr.
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Nature of Litigation
Constitutional challenge to provisions of MMDR Act and MCR Rules, and challenge to an order of the Union of India; seeking mandamus to execute mining lease deed.
Remedy Sought
Declaration that Section 10A(2)(c) of the MMDR Act and Rule 8(4) of the MCR Rules are ultra vires the Constitution; quashing of order dated 17.11.2017; direction to State Government to execute and register mining lease deed for 300.6957 hectares.
Filing Reason
The petitioner's mining lease for balance area was not being executed despite LOI and prior approvals; new legal regime required compliance with auction rules, and the petitioner sought to be covered under the saving clause but was aggrieved by the inaction.
Previous Decisions
Prior proceedings before Supreme Court in T.N. Godavarman case, Intervenor Applications, orders dated 22.07.2011 and 08.09.2016; NCLT orders appointing IRP and approving resolution plan; prior approvals by Central and State Governments.
Issues
Whether Section 10A(2)(c) of the Mines and Minerals (Development and Regulation) Act, 1957 is ultra vires Articles 14, 18, and 21 of the Constitution of India?
Whether Rule 8(4) of the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 is ultra vires?
Whether the order dated 17.11.2017 issued by Union of India is valid?
Whether the petitioner is entitled to a direction for execution of mining lease deed for the balance area?
Submissions/Arguments
Petitioner argued that the provisions are unconstitutional and that despite having LOI and prior approvals, the mining lease was not executed within the time limit due to circumstances beyond control, and the authorities ought to execute the lease.
Judgment Excerpts
The writ petition has been filed to impugn the provisions of Section 10A(2)(c) of the Mines and Minerals (Development and Regulation) Act, 1957 ... to be declared ultra vires of Articles 14, 18 and 21 of the Constitution of India.
The final prayer is to issue necessary directions to the respondent No.2 ... to execute and register the mining lease deed with regard to the subject area admeasuring 300.6957 Hectares...
...the petitioner had approached the Apex Court by way of an Intervenor Application (IA) No.3026 – 3027 / 2009, seeking intervention in the said dispute stating that its rights were affected in the matter of grant of mining lease...
Procedural History
The petitioner company obtained prior approval for mining lease in 1997 and a Letter of Intent in 1998. After environmental clearance in 2011, a partial mining lease deed was executed. The balance area involved forest land deletion proceedings before the Supreme Court; the petitioner intervened and obtained orders in 2011 and 2016. The MMDR Amendment Act, 2015 introduced auction regime with a saving clause. The petitioner approached the Supreme Court for directions. The NCLT initiated CIRP and later approved a resolution plan. The petitioner filed the present writ petition challenging constitutional validity of provisions and seeking execution of lease deed. The High Court heard the matter and reserved judgment.
Acts & Sections
- Mines and Minerals (Development and Regulation) Act, 1957: 10A(1), 10A(2)(c)
- Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016: 8(4)
- Constitution of India: 14, 18, 21
- Indian Forest Act, 1927: 4
- Forest (Conservation) Act, 1980: 3
