SANJEEVAIAH LCC SOCIETY Vs. ASSISTANT DIRECTOR OF MINES

JUDGEMENT

(1.) This is a petition for issue of a Writ of Mandamus or any other appropriate writ directing the respondents to consider the application of the petitioner society on merits without reference to area of operation. In the affidavit filed in support of the writ petition it is stated that the petitioner society is constituted under the Co-operative Societies Aet for the object of promoting the economic interests of the labour members of the society. The petitioner society has been doing sand quarry business. In the course of its activity the petiliuntr applied for grant of quarry lease for sand in S. Nos. 183, 218, 244, 248, 263, 266 and 271 of Balanagar, Jedcherla taluk, Mahboobuagar district. All the necessary formalities for the application under Minor Mineral Concession Rules were complied with and the application was made on 20-10-81. The 3rd respondent inspected and surveyed the area pursuant to the application. The 2nd respondent did not pass any order on the application within the statutory period of 90 days prescribed under the rules. Therefore the petitioner society was obliged to file another application on 19-1-82 and this application also is not disposed of. In the counter-affidavit filed by the Deputy Director of Mines and Geology it is stated that the area of operation of the petitioner society is limited to the revenue village Amdapur, Chevella taluk, Rangareddy district as stated in by-law No. 1 of the society and the society has to restrict its activities to the area of operation specified in the by-laws and the society is clarified on the basis of area of operation under S. 18 of the Co-op. Societies Act. The petitioner applied for grant of quarry lease for extraction of sand in Balanagar village, Jedcherla taluk, Mahaboobnagar district. As the petitioner's application could not be disposed of within 90 days it shall be deemed to have been refused under Rule 13 of the A.F. Minor Mineral Concession Rules, 1966. The application of the petitioner society was not considered for grant of quary lease as the society activities should be confined only to Amdapur village as provided in the bylaws.

(2.) The learned counsel for the petitioner contends that there is absolutely no provision under the Mines and Minerals (Regulation and Development) Aet, 1957 or under the A.P. Minor Mineral Concession Rules 1966 to take into consideration the area of operation with respect to the application filed by the society registered under the Co-operative Societies Act and as such the failure to respond to the application made by the petitioner is not supported by the provisions of the statute. It is also contended that the extension of the activities beyond the area of operation provided under the bylaws is not illegal and the authority to grant lease under the Minor Mineral Concession Rules is not concerned with the variance of the bylaw of the society. The learned Government Pleader contends that the bylaws have been registered specifically for the activities within Amdapur village and therefore the activities cannot be extended beyond the village and the deviation from the byelaws will result in supersession of the management and ultimate winding up of the society and in any event under the provisions of the Co-operative Societies Act the society can carry on its activities in Amdapur village only and as such the application for grant of lease in the area other than Amdapur village is not competent.

(3.) To appreciate the rival contentions it is necessary to have the grasp of the relevant provisions of the A. P. Minor Mineral Concession Rules, 1966 and the Cooperative Societies Act. The A. P. Minor Mineral Concession Rules, 1966 : Rule 5 is concerned with the issue of lease or permit to quarry in accordance with the terms and conditions of a quarry lease. Rule 12 is concerned with the conditions for granting of lease and in the second proviso to rule 12 (2) it is stated that the Deputy Director may refuse to accord preference to the application of a Labour contract cooperative society, if he finds that the particular society does not work properly in the interest of the workers concerned. Rule 13 obligates the authorities to dispose applications for grant within 90 days and in the absence of the disposal, the application shall be deemed to have been refused. A. P. Cooperative Societies Act: Section 4 of the Act provides for the registration of the society which is formed with the main object of promoting of the economic interests of its members. Section 6 provides for the filing of the application for registration of the society accompanied by four copies of the proposed bylaws of the society and other particulars. Section 7 empowers the Registrar to register the society and its bylaws provided the application is in confiormity with the Act and the rules. Section 18 is concerned with the classification of the societies on the basis of the objects, area of operation and memerbship or any other matters specified in the rules. It is appropriate to refer to the rules touching the issue in this petition. Rule 3 prescribes the procedure pertaining to the filing of the application for registration. Rule 5 (2) is concerned with the specification of the subjectmatter of the by-laws and it is provided that the subject-matter of the bylaws should consist the name and members of the society, the area of its operation, the object of society, the purpose for which its funds are applicable and other requirements. Rule 12 refers to the classification of societies based upon the functions and objects of the society and Rule 12 (f) is with referenee to the labour contract society which is defined as society having its principal object the securing and provision of employment to its members by executing works with the help of its members.