SUN INDUSTRIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The facts giving rise to the present writ petition are as follows :- The petitioner was initially granted mining lease for quarrying Limestone over an extent of 5.29 acres in S.No.270/2B in Pandapuli Village, Sankarankoil Taluk in Tirunelveli District for a period of three years. The lease deed was executed on 18.8.1983 and the period of lease was to expire on 17.8.1986. Subsequently, the petitioner applied for grant of renewal of the said lease for a period of 20 years. The District Collector and the Director of Geology and Mines recommended for grant of renewal for a period of 10 years. Considering the recommendation, the Government granted extension over the said area for a period of 10 years with effect from 18.8.1986. Thereafter the petitioner filed further application for renewal for further period of 10 years. However, such application for renewal was kept pending on some ground or the other and ultimately it was rejected under the impugned order dated 5.3.2004 mainly on the ground that the area in question has been kept reserved for exploitation by the Government through Tamil Nadu Cements Corporation Limited by G.O.Ms.No.672 Industries ( MMD.2) dated 31.8.1999. Such order is being challenged in the present writ petition.

(2.) The main contention raised by the learned counsel appearing for the petitioner is to the effect that the basic reason for rejection of the renewal application is untenable as G.O.Ms.No.672 dated 31.8.19 99 itself indicates that such reservation in favour of Tamil Nadu Cements Corporation Limited would not be applicable to the area already held under the prospecting licence or mining lease. It is further submitted in this connection that without first deciding about the extension of lease in favour of the petitioner, such land should not have been reserved for exploitation by Tamil Nadu Cements Corporation Limited. Learned counsel appearing for the petitioner has pointed out that as per the provisions contained in Rule 24-B of the Mineral Concession Rules, the person is entitled for the period claimed by him not exceeding 20 years.

(3.) In the counter affidavit it is contended that even though the lease could have been extended for a maximum period of 20 years, the Government in its discretion extended lease for a period of 10 years and such lease must be taken to have been expired on expiry of 10 years from 1986 and therefore it cannot be said that the said area was not covered under the notification dated 31.8.1999, reserving the area for exploitation by the Tamil Nadu Cements Corporation Limited.