MUDDURESHWARA MINING INDUSTRIES Vs. P G R SCINDIA

JUDGEMENT

(1.) ll these appeals except Appeal No. 1022/1992 are preferred against the order dated 13-3-1992 passed by the learned single Judge in W. P. No. 14241 of 1991 and W. P. No. 14783 of 1991. W.A. No. 1022/1992 is preferred against the order dated 18-3-1992 passed in W. P. No. 17142/1991. It may be mentioned here that the order in W. P. No. 17142/1991 is passed following the order in W.P. Nos. 14241 and 14783 of 1991. Under these circumstances, all these appeals are taken up together for final disposal.

(2.) The facts relevant for the disposal of these appeals, briefly stated, are as under : In exercise of the powers vested under Section 15 of the Mines and Mineral (Regulation and Development) Act, 1957, (hereinafter referred to as the Act) the Government of Karnataka made the Rules known as "Karnataka Minor Mineral Concession Rules, 1969" (hereinafter referred to as the Rules) by a notification dated 19-4-1969. Chapter II of the said Rules contains provisions relating to grant of quarrying lease in respect of land in which minor minerals belong to Government. We may point out here that the question in controversy in these appeals relates to leases in respect of land and minerals therein belonging to Government. Rule 3 provides for restrictions on grant of quarrying lease. Rule 3A was introduced by amending the rules by a notification dated 5-9-1979 placing restrictions with reference to lease of quarries in respect of black granite. Rule 3A was amended by a notification dated 21-5-1980 extending the definition of "black granite". By a notification dated 23-6-1981 Rule 3A was further amended by substituting the words "black granite or pink granite" for the words "black granite" in the heading as also in sub-rules (1) and (2), excluding the explanation to the same. By a notification dated 27-3-1982, Rule 3A was further amended as under : "Amendment of Rule 3A - In Rule 3A of the Karnataka Minor Mineral Concession Rules, 1969, -

(3.) The amendment of Rule 3A by way of substitution by 1990 Rules as also 1991 Rules were challenged in certain writ petitions and it is stated that this Court granted stay of the operation of the said Rule in some writ petitions. When the matter stood at that stage, the Government of Karnataka, issued an order dated 18-6-1991 under No.CI. 51. MMN 91(1) relating to grant of quarry leases for black, pink and multi-coloured granite under Rule 3 of the Rules. That is the order impugned in the aforesaid three writ petitions which is under consideration of this Court. With a view to appreciate the submissions made on either side, from a proper perspective it is indeed necessary to cull out the entire order which reads as under : "Proceedings of the Government of Karnataka Sub : Granting of quarry Leases for black pink and multi-coloured granite under Rule 3 of Karnataka Minor Mineral Concessions Rules, 1969. Read : Government letters No. CI 51 MMN 91 dated 3-5-1991, 4-5-1991 and 9-5-1991. Preamble : With a view to encash the favourable international market trend in respect of ornamental granite and keeping in view the export potential on the request of Government of India in this behalf besides brining in additional revenue to the State exchequer apart from checking the illegal and unscientific granite exploitation, the Government of Karnataka amended Rule 3A of the Karnataka Minor Mineral Concession Rules, 1969 providing for grant of Quarry Leases in favour of 100% Export oriented industries, private entrepreneurs who have already set up industries and those who have distinct industrial programme. In this behalf two notifications were issued as per No. CI 304 MRC 87(P) dated 22-5-1990 and CI. 214 MRC 90 (P) dated 4-1-1991. The amendment so effected have been the subject matter of litigations as the validity of these amendments have been challenged before the Hon'ble High Court and some of the writ petitioners obtained stay orders to operate these amendments. By virtue of such stay orders the purpose behind which Rule 3A has been amended could not be achieved. While the Government have made efforts to get the stay vacated the plethora of writ petitions filed before the High Court in the way of ensuring scientific quarry activities in this State forcing the Government to search for other provisions in the Karnataka Minor Mineral Concession Rules, 1969. Rule 3 of Karnataka Minor Mineral Concession Rules, 1969 is the principal Rule conferring power n the department of Mines and Geology to grant quarry leases with the prior approval of the Government. In the light of stay orders and availability of the principal Rule 3 the matter has been got legally examined. It is felt that because of the pendency of the litigation under Rule 3A, there is no systematic and scientific quarrying and the interest of the State Revenue is affected to a great extent and therefore it is felt that there is no bar to act under Rule 3 of the Karnataka Minor Mineral Concession Rules, 1969 until the validity or otherwise of the Rule 3A brought out by the two notifications dated 22-5-1990 and 4-1-1991 is determined. Government Order No. CI. 51 MMN 91(1) Bangalore, Dated 18-6-1991 In the circumstances explained in the preamble Government have decided to resort to Rule 3 of Karnataka Minor Mineral Concession Rules, 1969 and at the same time vest with the Director of Mines and Geology power to dispose of the applications seeking Quarry Leases in respect of all lands and that the Director of Mines and Geology shall be the controlling officer even in respect of land coming under Forest -one. However, in respect of Forest area, the grant of lease would be subject to the applicants obtaining clearance under the Forest Conservation Act. 2. Necessary amendments to Rule 2(1)(c) defining the Controlling Officer in respect of forest area also on the above lines are being issued separately. Similarly, the Government hereby notifies the Deputy Director (Mineral Administration) as the Competent Officer in respect of all specified minor minerals including the ornamental granites. 3. The Director of Mines and Geology while disposing of the applications received under Rule 3 of the Rules 1969 shall ensure that the area for which applications seeking Quarry Leases are received is not involved in any of the High Court Litigation. Further, the Director of Mines and Geology shall also follow scrupulously the separate set of guidelines issued in this behalf. By order and in the name of the Governor of Karnataka Sd/- (Manjegowda) Desk Officer, Commerce and Industries Dept., (Mines)" As pointed out earlier, the aforesaid order was challenged in the aforesaid three writ petitions by way of public interest litigation. In substance, the petitioners have challenged the said order mainly on two grounds. In the first place it was contended by them that the said Government Order was issued to oblige a favoured few who are close to the corridors of power. Secondly it was contended that Rule 3A is a special provision dealing with the leases of granite and that therefore Rule 3 could not have been invoked to grant lease of land for quarrying granite. It was also contended that even otherwise leases could not have been granted otherwise than by public auction. We may point out here that there is a mention in the course of the order passed by the learned single Judge that though Rule 3A was also challenged the same was given up by the petitioners. In that view of the matter, it was not necessary for us to advert to that aspect. The respondent who were mainly the Government and its Officers.