Case Note & Summary
These appeals arise from a common judgment of the Jharkhand High Court dated April 4, 2007, dismissing writ petitions filed by several companies engaged in iron and steel production. The appellants, including Monnet Ispat and Energy Ltd., Adhunik Alloys & Power Ltd., Abhijeet Infrastructure Ltd., and Ispat Industries Limited, had applied for mining leases for iron ore in Mauza Ghatkuri, West Singhbhum District, Jharkhand, for captive consumption in their proposed integrated steel plants. They entered into Memoranda of Understanding with the State Government between 2003 and 2004. The State Government initially recommended their applications to the Central Government for grant of mining leases under the Mines and Minerals (Development and Regulation) Act, 1957. However, in September 2005, the State Government requested the Central Government to return the proposals, citing issues including prior reservation of certain areas for public sector undertakings under notifications issued by the Government of Bihar in 1962 and 1969. The Central Government accepted the withdrawal in March 2006. The appellants challenged the withdrawal, the reservation notifications, and the Central Government's return of recommendations before the High Court, seeking quashing and directions to proceed under Rule 59(2) of the Mineral Concession Rules, 1960. The High Court dismissed the writ petitions. The present appeals involve common issues concerning the interpretation of the Bihar Land Reforms Act, 1950, which vests mines and minerals in the State, and the validity of the State Government's actions in withdrawing recommendations. The Court heard the matters together and reserved judgment.
Issue of Consideration
Whether the withdrawal of recommendation for grant of mining lease by the State Government and the return of proposals by the Central Government were lawful; whether the notifications reserving areas for public sector exploitation were valid; entitlement of appellants to mining leases under the applicable laws.
Law Points
- State government's power to withdraw mining lease recommendations
- effect of vesting of mines and minerals under Bihar Land Reforms Act
- requirement of prior approval under Mineral Concession Rules
- validity of reservation notifications for public sector
