MADHYA PRADESH INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) This appeal by special leave is directed against the order of the Government of India rejecting the revision filed by the appellant against the order of the Government of Maharashtra.

(2.) The appellant, the Madhya Pradesh Industries Ltd.., is a public limited company engaged in mining manganese ore. On February 5, 1941, one Rai Bahadur Bansilal Abirchand took a lease of a land of extent 216 acres and 92 cents in the Government Forest, East Pench Range, in the Tahsil of Ramtek in the District of Nagpur, from the Governor of Central Provinces and Berar for a term of 15 years commencing from September 10, 1940. Under an indenture dated March 4, 1952, the appellant obtained a transfer of the said leasehold interest from the successors in interest of the said Bansilal Abirchand. After the transfer, the appellant entered into possession of the said extent of land and is alleged to have spent about Rs. 10,00,000 for the purpose of developing the area to carry out the mining operation. The said lease was to expire on September 9, 1955. On the expiry of the said lease the appellant applied for the renewal of the lease for a further period of 20 years to the appropriate authority, namely, the Secretary to Government, and Industries Department, Madhya Pradesh, Nagpur After protracted correspondence covering a period of about 3 years, the officer on special duty. Industries and Co-operation Department, State of Bombay, informed the appellant by letter dated September 2, 1958, that the said renewal could not be granted. The appellant filed a revision against that order to the Central Government, but that was dismissed on December 14, 1958 On April 9, 1959. the State of Bombay issued a notification calling for applications from the public in respect of the lease of the said mines. On May 15, 1959, the appellant filed an application for the grant of a lease for a period of 20 years in respect of the said mines. Presumably others also filed similar applications. On July, 8, 1959, the Government of Bombay made an order granting the entire of the said mines to the appellant and by letter dated July 14, 1959, informed him of the same. During the year 1960 the territories forming part of the State of Bombay were divided and the State of Maharashtra and the State of Gujarat came into being and the said mines fell in the Maharashtra State. On August 25, 1960, the Maharashtra Government issued a notification for the information of the public that the said mines were reserved for the exploitation of minerals in the public sector. Thereafter on January 16, 1961, the Collector of Nagpur informed the appellant that its application for the lease of the mines was rejected as the mines in question fell in a block reserved for State exploitation. On March 11, 1961, the appellant filed a revision to the Central Government against the said order. On June 22, 1961, the Central government informed the appellant that instructions had been issued to the Government of Maharashtra, Industries and Labour Department, Bombay, for reconsidering its application and, therefore, it might pursue the matter with the said Government. Accordingly, the appellant took up the matter with the Maharashtra Government. By letter dated December 19, 1961, the Government of Maharashtra informed the appellant that its application for the mining lease had been rejected. Thereafter, the appellant on or about February 17 1962, filed a revision application before the Central Government against the said order of the Government of Maharashtra. On October 17, 1964, the Central Government rejected the revision application. It is stated in the counter-affidavit filed by the Central Government that subsequently the Government of Maharashtra, after obtaining the consent of the Central Government, had issued a notification dated March 26, 1965, inviting applications from the public for the grant of mineral concessions in the said area. It is also stated therein that the appellant has submitted its application for the grant of mining lease in respect of the said area in response to the said notification. This is not disputed. The appellant filed the present appeal against the order of the Central Government dated October 17, 1964, dismissing its revision petition against the order of the Government of Maharashtra. To that appeal, the Central Government is made the first respondent; the Under Secretary to the Government of India in the Ministry of Steel and Mines, who made the said order the second respondent; and the State of Maharashtra, the third respondent.

(3.) Mr. Pathak, learned counsel for the appellant raised before us the following points:(1) The order passed by the Central Government is bad, because, though it is a judicial order, no reasons are given for rejecting the revision of the appellant. (2) The order is bad also because it has not complied with the principles of natural justice, namely, (i) though the appellant requested for a personal hearing, it was not acceded to; and (ii) the Central Government had taken into consideration extraneous matters without giving an opportunity to the appellant to explain them. (3) The order of the Central Government is illegal, because it ignored the final order made by the State Government granting the lease of the mines to the appellant and also because it should have held that the Central Government could not place the mines in the public sector without complying with the provisions of S. 17 of the Mines and Minerals (Regulation and Development) Act, 1957 (Act 67 of 1957), hereinafter called the Act.