(1.) The brief facts of the case are that the petitioner is a co-operative society consisting of members of Scheduled Cases and Scheduled Tribes. The society is registered under Section 9 of the Madhya Pradesh Co-operative Societies Act, 1960 (hereinafter referred to as the 'Act'). The petitioner society applied for grant of lease for extracting flag-stone from Lodupura area over survey Nos. 947,949,953,954,955, 956, 957, 958 and 959 ; the total area of 81.833 hectares. The application of the petitioner was considered and allowed by the State Government vide order dated 25.7.1995, Annexure R-5. The society was granted lease in lieu of payment of royalty of Rs. 40,000/- per year for a period of three years in respect of survey Nos. 947,949, 953 to 959; the total area of 81.833 hectares. The petitioner has deposited the amount on different dates as under: Rs. 34,000/- as advance money, Rs. (sic) against the right to extract for a period of four months. The registration amount of agreement amounting Rs. 65,875/-. The charges for the map of mine Rs. 27/- were also paid.
(2.) One Jandal Singh son of Kantan Singh (petition in writ petition No. 292/96) was having a lease of the aforesaid land. Jandal Singh has applied for renewal of lease on the ground that he has established polishing machine, therefore, he has right of extention of lease for a period of two years. His application was also considered and Mining Officer has passed an order for extention of lease on 7.1.1993, Annexure P-1. Subsequently, this order was challenged in an appeal by the petitioner society before the Commissioner, Gwalior Division, Gwalior. The Commissioner Gwalior Division, Gwalior held that the Collector or Mining Officer were not empowered to extend the lease. The Commissioner also found that Jandal Singh has not installed polishing machine over the mines, as such he was not eligible for extention of lease, therefore, the order extending the lease was cancelled. The action of the Collector auctioning the mine was challenged in Misc. Petition No. 180/93. This Court found that since the notification of auction has already been set aside by the Commissioner, Gwalior Division, Gwalior, the petition has rendered infructuous.
(3.) After the remand by the Commissioner, the application of Jandal Singh for extention of lease was rejected by the Additional Collector holding herein that Jandal Singh has not installed cutting and polishing machine and recommended for grant of lease to the petitioner society. The State Government has granted lease to the petitioner. Jandal Singh filed an application for review under Rule 28 of the Madhya Pradesh Minor Minerals Rules, 1961 (hereinafter referred to as the 'Rules') before the State Government against the grant of lease to the petitioner society. However, copy of review application has not been filed by any of the parties in both the petitions. The State Government, vide its order dated 22.11.1995, Annexure P-15, rejected the application for review filed by Jandal Singh. After rejecting the application, State Government also recalled the order dated 25.7.1995 and directed that a co-operative society be constituted consisting of local educated unemployed persons living below the poverty line, who should be as far as possible members of Scheduled Castes, Scheduled Tribes and backward classes, otherwise to the members of Scheduled Castes, Scheduled Tribes and backward class, who are below the poverty line,