High Court of Karnataka Quashes State Government's Withdrawal of Mining Lease Recommendation for Violation of Natural Justice. Prior Approval Under Section 5(1) of MMDR Act, 1957 Cannot Be Revoked Without Hearing the Applicant.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, D. Ramesh, filed a writ petition under Article 226 of the Constitution of India challenging a letter dated 04.01.2017 issued by the State of Karnataka (Commerce and Industries Department) which withdrew its earlier recommendation for grant of an iron ore mining lease over 14.59 acres and requested the Government of India to withdraw the prior approval granted under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957. The petitioner had applied for the mining lease in 1997. On 04.04.2008, the State Government recommended the grant and sought prior approval from the Government of India, which was granted on 03.06.2008. Thereafter, the petitioner took steps for forest clearance. However, without any notice or hearing, the State Government issued the impugned letter withdrawing the recommendation. The court held that the withdrawal of the recommendation and the request to revoke prior approval directly affected the petitioner's rights and could not be done without affording an opportunity of hearing. The court quashed the impugned letter and directed the respondents to consider the petitioner's application for mining lease afresh in accordance with law, after giving him a reasonable opportunity of hearing. The court also directed that the prior approval granted by the Government of India shall remain in force until a fresh decision is taken.

Headnote

A) Constitutional Law - Natural Justice - Right to be Heard - Withdrawal of Recommendation - The State Government's letter dated 04.01.2017 withdrawing its earlier recommendation for grant of mining lease and requesting the Government of India to withdraw prior approval under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957 was quashed as it was issued without giving any opportunity of hearing to the petitioner, violating principles of natural justice. (Paras 2-5)

B) Mines and Minerals - Mining Lease - Prior Approval - Section 5(1) of Mines and Minerals (Development and Regulation) Act, 1957 - The prior approval granted by the Government of India on 03.06.2008 under Section 5(1) of the Act could not be withdrawn by the State Government unilaterally without hearing the petitioner, as the petitioner had acted upon the approval and taken steps for forest clearance. (Paras 2-5)

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Issue of Consideration

Whether the State Government could withdraw its recommendation for grant of mining lease and request the Government of India to withdraw prior approval under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957, without affording an opportunity of hearing to the petitioner.

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Final Decision

The writ petition is allowed. The impugned letter dated 04.01.2017 (Annexure-A) is quashed. The respondents are directed to consider the petitioner's application for grant of mining lease afresh in accordance with law, after giving the petitioner a reasonable opportunity of hearing. The prior approval granted by the Government of India on 03.06.2008 shall remain in force until a fresh decision is taken.

Law Points

  • Natural justice
  • prior approval under Section 5(1) of MMDR Act
  • 1957
  • withdrawal of recommendation without hearing
  • Article 226 of Constitution of India
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Case Details

2019 LawText (KAR) (09) 14

Writ Petition No.14301 of 2017 (GM-MM-S)

2019-09-11

Abhay S. Oka, Chief Justice, Mohammad Nawaz, Justice

Shri Jayakumar S. Patil, Senior Counsel for Shri Joseph Anthony, Advocate for Petitioner; Shri Vikram Huilgol, HCGP for R1-R4; Shri K.A. Ariga, Advocate for R5 & R6

D. Ramesh

State of Karnataka, Department of Mines and Geology, Department of Environment and Forests, Principal Chief Conservator of Forests, Union of India, Department of Environment and Forests

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the State Government's letter withdrawing recommendation for grant of mining lease and requesting withdrawal of prior approval.

Remedy Sought

Quashing of the letter dated 04.01.2017 issued by Respondent No.1 withdrawing the recommendation for grant of mining lease and requesting withdrawal of prior approval.

Filing Reason

The State Government withdrew its recommendation for grant of mining lease and requested the Government of India to withdraw prior approval under Section 5(1) of the MMDR Act, 1957 without giving any opportunity of hearing to the petitioner.

Issues

Whether the State Government could withdraw its recommendation for grant of mining lease and request withdrawal of prior approval without hearing the petitioner.

Submissions/Arguments

The petitioner argued that the impugned letter was issued without any notice or opportunity of hearing, violating principles of natural justice. The respondents did not file any counter affidavit and the court proceeded on the basis that the facts stated by the petitioner were not disputed.

Ratio Decidendi

The withdrawal of a recommendation for grant of mining lease and the request to revoke prior approval under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957 directly affects the rights of the applicant and cannot be done without affording an opportunity of hearing, as principles of natural justice require that no adverse order be passed without hearing the affected party.

Judgment Excerpts

The dispute involved in this writ petition under Article 226 of the Constitution of India is in a very narrow compass. The impugned letter dated 04.01.2017 has been issued without giving any opportunity of hearing to the petitioner. Therefore, the impugned letter cannot be sustained. We, therefore, pass the following order: (i) The writ petition is allowed. (ii) The impugned letter dated 04.01.2017 (Annexure-A) is quashed. (iii) The respondents are directed to consider the application made by the petitioner for grant of mining lease afresh in accordance with law, after giving the petitioner a reasonable opportunity of hearing. (iv) The prior approval granted by the Government of India on 03.06.2008 shall remain in force until a fresh decision is taken.

Procedural History

The petitioner filed a writ petition under Article 226 of the Constitution of India challenging the letter dated 04.01.2017. The respondents did not file a counter affidavit. The court heard the matter and delivered judgment on 11.09.2019.

Acts & Sections

  • Mines and Minerals (Development and Regulation) Act, 1957: Section 5(1)
  • Constitution of India: Article 226
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High Court High Court of Karnataka Quashes State Government's Withdrawal of Mining Lease Recommendation for Violation of Natural Justice. Prior Approval Under Section 5(1) of MMDR Act, 1957 Cannot Be Revoked Without Hearing the Applicant.
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