Karnataka High Court Quashes Mining Lease Cancellation Orders for Violation of Natural Justice. Orders Set Aside as Passed Without Hearing the Lessee Under Karnataka Minor Mineral Concession Rules, 1994.

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

The petitioners, M/s. Abimani Publications Ltd. and Ganesh Stone Crushers, filed writ petitions under Articles 226 and 227 of the Constitution of India challenging two orders: (1) an order dated September 2, 2015, passed by the Deputy Director, Department of Mines and Geology, Tumakuru, cancelling their mining lease; and (2) an order dated November 2, 2015, passed by the Joint Director, Department of Mines and Geology, Mysore, in Revision Application No.222/2015, affirming the cancellation. The petitioners contended that both orders were passed without giving them an opportunity of being heard, in gross violation of the principles of natural justice. The respondents, represented by the Additional Government Advocate, did not seriously contest the procedural lapse. The High Court, after hearing the parties, found that the impugned orders were indeed passed without affording any hearing to the petitioners. The court held that the cancellation of a mining lease is a serious matter affecting the rights of the lessee, and therefore, the principles of natural justice must be strictly adhered to. Consequently, the court quashed both the order of the Deputy Director dated September 2, 2015, and the order of the Joint Director dated November 2, 2015, and remitted the matter back to the Deputy Director for fresh consideration after giving the petitioners a reasonable opportunity of being heard. The court directed that the Deputy Director shall pass a fresh order in accordance with law, after hearing the petitioners, within a period of eight weeks from the date of receipt of a copy of the order. The writ petitions were allowed with no order as to costs.

Headnote

A) Natural Justice - Audi Alteram Partem - Cancellation of Mining Lease - Karnataka Minor Mineral Concession Rules, 1994 - The Deputy Director cancelled the mining lease without affording an opportunity of hearing to the lessee. The revision authority also dismissed the revision without hearing. Held that such orders are unsustainable and liable to be quashed. (Paras 1-3)

B) Mining Law - Revision Application - Dismissal Without Hearing - Karnataka Minor Mineral Concession Rules, 1994 - The Joint Director dismissed the revision application without hearing the petitioners. Held that the revisional authority must also follow principles of natural justice. (Paras 1-3)

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Issue of Consideration

Whether the orders cancelling the mining lease and dismissing the revision application were passed in violation of principles of natural justice as the petitioners were not heard before the impugned orders were made.

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Final Decision

The writ petitions are allowed. The order dated September 2, 2015, passed by the Deputy Director, Department of Mines and Geology, Tumakuru, and the order dated November 2, 2015, passed by the Joint Director, Department of Mines and Geology, Mysore, in Revision Application No.222 of 2015, are quashed. The matter is remitted to the Deputy Director for fresh consideration after giving the petitioners a reasonable opportunity of being heard. The Deputy Director shall pass a fresh order in accordance with law within eight weeks from the date of receipt of a copy of this order. No order as to costs.

Law Points

  • Natural justice
  • audi alteram partem
  • mining lease cancellation
  • Karnataka Minor Mineral Concession Rules
  • 1994
  • writ jurisdiction
  • revision application
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Case Details

2016 LawText (KAR) (01) 27

WP Nos.51325-51326/2015(GM-MM-S)

2016-01-22

Subhro Kamal Mukherjee, Acting Chief Justice, Ravi Malimath

Sri Udaya Holla, Senior Advocate for Sri M.S. Rajendra, Advocate and Sri Vivek Holla, Advocate; Sri Y.H. Vijay Kumar, AGA

M/s. Abimani Publications Ltd. and Ganesh Stone Crushers

State of Karnataka, Deputy Director, Department of Mines & Geology, Tumkur, and Joint Director, Department of Mines & Geology, Mysore

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Nature of Litigation

Writ petitions under Articles 226 and 227 of the Constitution of India challenging orders cancelling mining lease and dismissing revision application.

Remedy Sought

Quashing of the order dated 2.9.2015 passed by the Deputy Director, Department of Mines & Geology, Tumkur, and the order dated 2.11.2015 passed by the Joint Director, Department of Mines & Geology, Mysore, and direction to respondents to pay costs.

Filing Reason

The petitioners' mining lease was cancelled without affording them an opportunity of hearing, and the revision application was also dismissed without hearing them.

Previous Decisions

The Deputy Director passed the cancellation order on 2.9.2015, which was affirmed by the Joint Director in Revision Application No.222/2015 on 2.11.2015.

Issues

Whether the impugned orders were passed in violation of principles of natural justice as the petitioners were not heard before cancellation of mining lease and dismissal of revision.

Submissions/Arguments

Petitioners argued that the orders were passed without giving them an opportunity of being heard, violating natural justice. Respondents did not seriously contest the procedural lapse.

Ratio Decidendi

Cancellation of a mining lease without affording an opportunity of hearing to the lessee is a violation of the principles of natural justice. The revisional authority also must follow natural justice. Orders passed without hearing are unsustainable and liable to be quashed.

Judgment Excerpts

These petitions are filed invoking the writ jurisdiction of this Court to quash the order dated September 2, 2015, passed by the Deputy Director, Department of Mines and Geology, Tumakuru, which has, since, been affirmed in Revision Application No.222 of 2015, dated November 2, 2015, passed by the Joint Director, Department of Mines and Geology, Mysore. The only ground urged is that the impugned orders have been passed without giving any opportunity of hearing to the petitioners. In view of the above, the impugned orders are quashed. The matter is remitted to the Deputy Director for fresh consideration after giving the petitioners a reasonable opportunity of being heard.

Procedural History

The Deputy Director, Department of Mines and Geology, Tumkur, passed an order on 2.9.2015 cancelling the mining lease of the petitioners. The petitioners filed Revision Application No.222/2015 before the Joint Director, Department of Mines and Geology, Mysore, which was dismissed on 2.11.2015. Thereafter, the petitioners filed the present writ petitions under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Karnataka Minor Mineral Concession Rules, 1994:
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High Court Karnataka High Court Quashes Mining Lease Cancellation Orders for Violation of Natural Justice. Orders Set Aside as Passed Without Hearing the Lessee Under Karnataka Minor Mineral Concession Rules, 1994.