A ONE GRANITES Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) This appeal by speecial leave is directed against the judgment dated 6-11-1998 of the Allahabad High Court rendered in a writ application filed by respondent No. 4 whereby the same has been allowed and order dated 24-9-1997 passed by the State Government sanctioning mining lease of granite sized dimensional stone in favour of the appellant for a period of 15 years in relation to 10 acres of land comprising of Plot No. 1 situate in Baghwa Mahoba and that dated 4-10-1997 passed by the District Magistrate, Mahoba, showing inability to decide the application filed on 4-7-1995 by respondent No. 4 for grant of mining lease in view of the aforesaid order of the State Government sanctioning mining lease in favour of the appellant have been quashed and a direction has been given to the District Magistrate to follow Rule 72 of the Uttar Pradesh Minor Minerals (Concession) Rules, 1963 (hereinafter referred to as "the Rules") and dispose of the aforesaid application filed by the respondent No. 4 on 4-7-1995.

(2.) The short facts giving rise to this appeal are that respondent No. 4 applied for grant of mining lease in plot No. 1, Baghwa Mahoba measuring 10 acres and on 17-8-1977 the same was granted in his favour under Chapter II of the Rules for a period of 10 years w.e.f. September 17, 1977. On the expiry of the said period, respondent No. 4 once again applied for re-grant of the lease which was granted this time for a period of five years, which period expired on 1-5-1992. In the year 1992 a declaration was made under Rule 23 of the Rules which is in Chapter IV declaring the area of Bhagwa Mahoba for grant of lease by way of auction or by tender or by auction-cum-tender and thereby the provisions contained, in Chapters II, III and VI of the Rules were made inapplicable to the said area. In view of the aforesaid declaration, mining lease was granted by auction in favour of respondent No. 4 on 22-5-1992 in relation to the aforesaid area of 10 acres for mining of minerals, viz., Khanda, Gitty and Boulder for a period of three years. On 30-3-1995 the respondent-District Magistrate issued a notification under Rule 24 of the Rules withdrawing along with other areas the area which was subject-matter of lease granted in favour of respondent No. 4 from Chapter IV w.e.f. 1-4-1995 and making provisions of Chapters II, III and VI of the Rules applicable to the area in question. In the meantime, on 27-8-1994 the Rules were amended by virtue of 20th amendment inserting therein Rules 72 to 79. Under Rule 72 a procedure was provided for giving 30 days notice for regrant of mining lease which rule was amended on 11-2-1995 by 21st amendment. Under the amended Rule 72 for re-grant of mining lease, apart from 30 days notice, seven working days time for receipt of applications is required to be given and the said rule in effect and substance does not relate to mining leases granted under Chapter IV.

(3.) After amendment of the said rule, the respondent-District Magistrate issued a notice dated 31-3-1995 under Rule 72 of the Rules calling for applications for grant of mining leases after 30 days from the date of the issuance of notice, i.e. 2-5-1995 in relation to the area which was subject-matter of lease of respondent No. 4 along with other areas. Pursuant to the said notice, respondent No. 4 applied for grant of lease in his favour and before completion of period of seven days from the date specified, i.e., 2-5-1995 an order was passed by the District Magistrate on 6-5-1995 sanctioning lease in his favour. As pursuant to the said order no lease deed was executed, the same necessitated respondent No. 4 to file a writ application on 24-5-1995 before the Allahabad High Court being C.W.P. No. 15290/95 for directing the authority concerned to execute a lease deed in his favour. After the filing of the said writ application, the State Government on 29-5-1995 cancelled the said notice dated 31-3-1995 issued by the District Magistrate on the ground that according to the policy decision of the State Government certain guidelines were provided for grant of granite lease. Thereafter, the district Magistrate issued fresh notice on 30-5-1995 under Rule 72 of the Rules inviting applications for grant of mining lease which was challenged by respondent No. 4 in a separate writ application filed before the Allahabad High Court being C.W.P. No. 16886/95. In view of the said notice, on 4-7-1995 respondent No. 4 applied afresh for grant of lease in his favour. Both the writ applications were heard and dismissed by the High Court on 24-4-1996 holding that the notice dated 31-3-1995 was invalid, being contrary to Rule 72 of the Rules as the period of seven days was not specified therein and, therefore, there was no illegality in cancellation of the said notice and issuance of fresh one on 30-5-1995. Challenging the said order respondent No. 4 filed two Special Leave Petitions in which leave was granted and the Civil Appeals were disposed of by a common judgment rendered on 9-4-1997 whereby the appeals were dismissed, but it was observed that the High Court was not justified in declaring that the notice dated 31-3-1995 was invalid as in the opinion of this Court the said notice was in accordance with the provisions of Rule 72 of the Rules, but cancellation of the same and issuance of fresh notice on 30-5-1995 was justified as the lease was sanctioned on 6-5-1995, i.e., before the expiry of the period of seven days. This Court while disposing of the said appeals granted liberty to issue a fresh notice for grant of lease in accordance with law.