Case Note & Summary
The petitioners, holders of mining leases for minerals not specified in the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), challenged the validity of Rule 8(1)(a) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. The rule required prior approval of the State Government for transfer of such leases. The petitioners argued that the rule was ultra vires the parent Act and inconsistent with Section 10A(2)(c) of the Amendment Act of 2015, which they claimed did not require such approval for minerals outside the First Schedule. The High Court of Karnataka, after hearing arguments, held that Rule 8(1)(a) was within the rule-making power conferred by Section 13 of the MMDR Act. The court reasoned that the rule did not add a substantive condition but merely provided a procedural mechanism for approval, which was consistent with the regulatory framework. The court found no inconsistency with Section 10A(2)(c) as that provision dealt with a different aspect of lease transfers. Consequently, the petitions were dismissed, upholding the validity of the rule.
Headnote
A) Mines and Minerals - Delegated Legislation - Vires of Rule - Rule 8(1)(a) of Minerals Concession Rules, 2016 - Section 13 of MMDR Act, 1957 - Challenge to rule requiring prior approval for transfer of mining leases for minerals not in First Schedule - Court held that the rule is within the rule-making power under Section 13 and is not inconsistent with Section 10A(2)(c) of the Amendment Act 2015 - The rule does not impose an additional condition but merely provides a procedural mechanism for approval - Petition dismissed (Paras 1-10).
Issue of Consideration
Whether Rule 8(1)(a) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, to the extent it applies to minerals 'not specified in the First Schedule to the Act', is ultra vires the Mines and Minerals (Development and Regulation) Act, 1957, and inconsistent with Section 10A(2)(c) of the Amendment Act of 2015.
Final Decision
The High Court of Karnataka dismissed the writ petitions, upholding the validity of Rule 8(1)(a) of the Minerals Concession Rules, 2016.
Law Points
- Interpretation of delegated legislation
- vires of subordinate legislation
- rule-making power under Section 13 of MMDR Act
- 1957
- consistency between rule and parent Act
- scope of Section 10A(2)(c) of Amendment Act 2015
Case Details
2016 LawText (KAR) (12) 4
Writ Petition Nos 36461-36463 of 2016, Writ Petition No 42947 of 2016, Writ Petition No 53285 of 2016
Subhro Kamal Mukherjee, Chief Justice, Budihal R B, Justice
Sri Sajan Poovayya, Senior Advocate a/w Sri Gururaj Joshi, Advocate for petitioner in WP 36461-36463; Sri S Ganesh, Senior Advocate a/w Sri K N Srinivasa, Advocate for petitioner in WP 42947; Sri K M Nataraj, Additional Solicitor General a/w Sri K A Ariga, Central Government Counsel for R-1; Dr Aditya Sondhi, Additional Advocate General a/w Sri I Tharanath Poojary, Additional Government Advocate for R-2 & 3
Smt A V Shakuntala and M/s Bharathkumar P Bora
Union of India, State of Karnataka, Director of Mines and Geology
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Nature of Litigation
Writ petitions challenging the vires of Rule 8(1)(a) of the Minerals Concession Rules, 2016.
Remedy Sought
Quashing of Rule 8(1)(a) to the extent it applies to minerals not specified in the First Schedule to the MMDR Act, as being inconsistent with Section 10A(2)(c) of the Amendment Act of 2015.
Filing Reason
Petitioners, holders of mining leases for minerals not in the First Schedule, contended that Rule 8(1)(a) requiring prior approval for transfer was ultra vires the parent Act and inconsistent with Section 10A(2)(c).
Issues
Whether Rule 8(1)(a) of the Minerals Concession Rules, 2016 is ultra vires the Mines and Minerals (Development and Regulation) Act, 1957?
Whether Rule 8(1)(a) is inconsistent with Section 10A(2)(c) of the Amendment Act of 2015?
Submissions/Arguments
Petitioners argued that Rule 8(1)(a) imposes an additional condition for transfer of leases for minerals not in the First Schedule, which is beyond the rule-making power under Section 13 and inconsistent with Section 10A(2)(c) which does not require such approval.
Respondents argued that the rule is within the rule-making power and provides a procedural mechanism consistent with the regulatory framework, and there is no inconsistency with Section 10A(2)(c).
Ratio Decidendi
Rule 8(1)(a) of the Minerals Concession Rules, 2016 is within the rule-making power under Section 13 of the MMDR Act, 1957, and is not inconsistent with Section 10A(2)(c) of the Amendment Act of 2015. The rule does not impose an additional substantive condition but merely provides a procedural mechanism for approval of transfer of mining leases for minerals not specified in the First Schedule.
Judgment Excerpts
The rule is within the rule-making power under Section 13 of the MMDR Act.
There is no inconsistency between Rule 8(1)(a) and Section 10A(2)(c) of the Amendment Act of 2015.
Procedural History
The petitions were filed under Articles 226 and 227 of the Constitution of India challenging the vires of Rule 8(1)(a) of the Minerals Concession Rules, 2016. The court heard arguments and delivered judgment on 1 December 2016.
Acts & Sections
- Mines and Minerals (Development and Regulation) Act, 1957: Section 13, Section 10A(2)(c)
- Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016: Rule 8(1)(a)
