K.THIRUMALESH Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This group of petitions concerns interpretation of various provisions of the Karnataka Minor Mineral Concession Rules, 1994 (for short 'the said Rules') and in particular Rule 8-B as well as a challenge to constitutional validity of sub-rule (1) of Rule 8-B. The Rules have been framed by the State Government in exercise of the power conferred by Section 15 of the Mines and Minerals (Development and Regulations) Act, 1957 (for short 'the said Act of 1957'). Under Section 15, a power is vested in the State Governments of making Rules for regulating the grant of quarry leases, mining leases, or other mineral concessions in respect of the minor minerals and for the purposes connected therewith. Minor Minerals are defined in clause (e) of Section 3 of the said Act of 1957. There were extensive amendments made to the said Act of 1957 by the Act No.10 of 2015 and in particular, by incorporating Section 10A, with effect from 12th January, 2015. By the said Act, the Central Legislature sought to remove discretion in the manner of granting mining leases or quarry leases. With the object of eliminating the discretion and improving transparency in the allocation of mineral resources, auction regime was introduced as a method of allotment of mining leases/prospecting licenses. Thus, with effect from 12th January, 2015, auction regime was introduced in the said Act of 1957.

(2.) Extensive amendments were made to the said Rules with effect from 12th August 2016, inter alia, for introducing auction regime. Rules 8-A and 8-B of the said Rules were substituted by the Karnataka Minor Mineral Concession (Amendment) Rules, 2016 (for short "the said Amending Rules") which were published by the Notification dated 12th August, 2016. The substituted Rule 8-B provided that all applications for grant of mining lease or license received and pending on the date of commencement of the amendment (i.e 12th August, 2016), shall become ineligible. Certain exceptions were carved out to the said Rule as provided in sub-rule (2) of Rule 8-B. The substituted Rule 8-A provided that from 12th August 2016, all the applications for grant of quarry leases shall be granted for a period of thirty years for specified minor minerals and for a period of 20 years for the non-specified minor minerals. It was also provided that all quarry leases or licenses granted before 12th August, 2016 shall be deemed to have been granted for a period of thirty years in respect of specified minor minerals and for a period of twenty years in respect of non-specified minor minerals from the date of its original grant. Rule 8-B, as amended by the said Notification, is relevant for our consideration and it reads thus:

(3.) Rule 8-B which is quoted above was substituted for the earlier Rule 8-B. The earlier Rule 8-B was an enabling provision, permitting the Competent Authority to direct that the quarrying leases to quarry specified or non-specified minor mineral in any area belonging to the State Government and available for grant shall be granted by tender-cum-auction in accordance with the provisions of Chapter IV-A. Rule-8 underwent an amendment on 16th December 2013 and on 12th August, 2016. Rule 8, as amended by the aforesaid two notifications reads thus: