MSPL LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Petitioner in these writ proceedings seeks a direction for quashing of an order dated 24. 2. 2006, issued by the Central Government and a further direction that Section 17-A of the Mines and Minerals (Development and regulations) Act, 1957 (hereafter "the Act") is mandatory, and that all reservations made prior to and after the coming into force of that provision and contrary to it, are void. A consequential direction to the Central Government to grant the Petitioner, mining leases in terms of its application is also sought.

(2.) BRIEFLY the facts are that the Central Government issued the Industrial policy Resolution in 1956. In terms of the policy, mining was an industry listed in the Schedule (to that Policy) meant for exclusive responsibility of the State but without precluding private sector participation. Soon after this policy document was issued Parliament passed the Act; it was brought into force on 1. 6. 1958. Section 2 of the Act declared Parliamentary intention, that it was expedient in the public interest that the Union should take under its control, the regulation of mines and development of minerals. Section 17 enacted special powers enabling the Central Government to undertake mining operations on land in which the minerals vested on the Government of a State. On 7. 4. 1972 the government of the State of Andhra Pradesh (hereafter called "the State) issued goms No. 428 reserving certain areas in the Ongole, Addanki, Kandukur and Darsi taluks in Prakasham District for exclusive exploitation of Iron Ore in the public Sector.

(3.) THE Central Government had framed rules, known as the "minerals concession Rules" in 1960 (hereinafter called "the Rules" ). Rule 58 as it originally stood, provided that no area which was previously held or which was being held under a prospecting licence or a mining lease or in respect of which an order for grant had been made but the applicant had died before the application of lease or licence or in respect of which the licence has been revoked in exercise of the power under Rule 15 (1) and Rule 31 (1) could be available for grant unless an entry to that effect was made in the register under Rule 21 (2) or Rule 40 (2) and the date from which such area was to be available for grant was notified in the official gazette at least 30 days in advance.