M.P. STATE MINING CORPORATION LTD. vs. SANJEEV BHASKAR .

Case Type: Civil Appeal

Date of Judgment: 02-07-2013

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Full Judgment Text

-1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION Civil Appeal No.   4950    of 2013 (arising out of SLP(C)No.13053 of 2011) M.P. STATE  MINING  CORPORATION LTD. … APPELLANT Versus SANJEEV  BHASKAR & ORS.     … RESPONDENTS With Civil Appeal No.  4951   of 2013 (arising out of SLP(C)No.29421 of 2011) J U D G M E N T SUDHANSU JYOTI MUKHOPADHAYA, J. Leave granted. These two appeals are preferred by  the   appellants   M.P.   State   Mining   Corporation   Ltd.  JUDGMENT (hereinafter referred to as the “Mining Corporation”)  and the State of Madhya Pradesh (hereinafter referred  to as the “State”)   against the common judgment dated  20th April, 2011 passed by the Division Bench of Delhi  High Court in LPA No. 742 of 2010 with LPA No. 284 of  2011.   By   its   impugned   judgment,   the   Division   Bench  dismissed   the   appeals   preferred   by   the     Mining  Corporation   and   the   State   with   costs   quantified   at  Rs.25,000/­ for each appeal and affirmed the judgment  Page 1 -2 dated 21st September, 2010 passed by the learned Single  Judge of Delhi High Court. 2 . The factual matrix  of the case is as follows:­
of Madh<br>g leaseya Prad<br>over an
in   Village   Kari,   District   Tikamgarh,   (M.P.)   to   one  Rajendra   Nath   Bhaskar   for   extraction   of   Pyrophyllite  and   Diaspore   minerals   under   the     Mines   and   Minerals  (Regulation   and   Development)   Act,   1957   (hereinafter  referred   to   as   “the   Act,   1957”)   read     with   Mineral  Concession  Rules, 1960 (hereinafter referred to as the  “Rules, 1960”) for a period of twenty years commencing  from 3rd November, 1966 to 2nd November, 1986.   After  about 13 years, a notice dated 18th September, 1979 was  issued to said Rajendra Nath Bhaskar by the Collector,  Tikamgarh   to   show   cause   as   to   why   his   mining   lease  should not be revoked on the ground of certain breaches  JUDGMENT committed   by   him   which   were   discovered   during   the  inspection made by the Mining Inspector on 28th  May,  1979.  Rajendra Nath Bhaskar submitted his reply on 3rd  October,   1979   and   denied   the   alleged   breaches.  Thereafter,   by   an   order   dated   5th   April,   1980,  determination   of   the  lease   was   done   by   the   State  Government in accordance with the then Rule 27(5) of  the Rules, 1960,   on the ground of contravention of  Clause(f) and (g) of sub­rule (1) of   Rule 27 of the  Page 2 -3 Rules, 1960.  A Revision  Application was preferred by  Rajendra Nath Bhaskar  to the Central Government under  Rule 54, read with Section 30 of the Act, 1957 which 
1981. 3 . Being   dissatisfied,   Rajendra   Nath   Bhaskar  challenged   the   order   of   determination   and   the   order  passed     in   revision   application     by   filing   Misc.  Petition No. 805 of 1981 before the Madhya Pradesh High  Court. The Division Bench of Madhya Pradesh High Court  by its judgment dated 16th July, 1986 held that the  impugned orders did not disclose the aspects which were  taken into account and accordingly set aside the orders  with direction to the State Government to decide afresh  the question of determination of lease in accordance  with law. 4.   In   the   meantime   and   before   the   decision   of   the  JUDGMENT Madhya   Pradesh   High   Court,   the   original   lessee,  Rajendra Nath Bhaskar died on 7th September, 1982, but  no application for  substitution was filed.  The period  of   lease   also     expired   on   2nd   November,   1986.  Subsequently, the  legal heirs,  Sanjeev  Bhaskar and  others–respondents herein, filed an application on 2nd  September,   1986   before   the   State   Government   praying  therein for  bringing them on record as the legal heirs  and to permit them to carry out the mining operation  Page 3 -4 for   the   remaining   period,   which   came   to   6   years,   6  months and 29 days as the lease could not be operated  for the aforesaid remaining period because of illegal 
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Pradesh   High   Court.   No   action   was   taken   thereon   for  about   four   years.   The   Collector,   Tikamgarh   issued   a  demand notice on 8th  June, 1990 determining the dead  rent for the period before expiry of the lease deed in  view of audit inspection note.  Subsequently, two other  demand notices were issued on 14th August, 1990 and 8th  December, 1993   which according to the State,   were  inadvertently sent. The stand of the State Government  was that as per term of the lease, the period of twenty  years expired on 2nd November, 1986 due to efflux of  time. Subsequently, legal heirs of the original lessee  made no application in the prescribed form and in the  manner for grant of mining lease either by way of a  JUDGMENT fresh grant or by way of   renewal. As the lessee was  not   a   holder   of   the   lease   the   dead   rent   for   the  subsequent   period   could   not   have   been   demanded   and  therefore,   notices   dated   14th   August,   1990   and   8th  December, 1993 were inadvertently sent. 5. The first respondent, one of the legal heirs, made  representations, inter alia, on 28th August, 1996, 14th  April, 1997 and 23rd September, 1997 to allow him to do  Page 4 -5 mining for rest of the period of  6 years, 6 months and  29 days but it has not been made clear as to why no  representation was made by legal heirs for more than 10 
1986.
6. Receiving   no   reply,   the   first   respondent   filed   a  contempt   petition  No.  186  of   1998  before   the  Madhya  Pradesh High Court which was dismissed on the ground  of being time barred. However, an observation was made  by Madhya Pradesh High Court that it could  hope  and  trust that the Government would implement   the order  passed in the year 1986, if they had not implemented  the same so far. 7 . For the first time, the State Government responded  on 21st April, 1999   declining   to extend the mining  lease.  It was communicated that in view of the order  passed by the High Court on 16th July, 1986, the mining  JUDGMENT lease   was   automatically   restored   for   the   remaining  period upto   2nd November, 1986.   In absence of any  direction given by the High Court for renewal of lease  and   the   only   direction   being   given   for   the   State  Government   to   decide   afresh   the   question   of  determination of lease of original lessee, no renewal  could be made. 8.    The first respondent on 7th July, 1999,   filed a  Revision   Application   before   the   Central   Government  Page 5 -6 under Section 30 of the Act, 1957 read with Rule 55 of  the   Rules,   1960.   During   the   pendency   of   the   said  revision   application,   the   State   Government   granted   a 
P. StateMining
Central Government vide order dated 12th August, 1999,  granted an interim stay directed the State Government  not to grant the mining lease to the third party.   The  Mining Corporation filed a Writ Petition No. 3914/1999  before the Madhya Pradesh High Court on 24th August,  1999   seeking   a   writ   of   mandamus   directing   the  respondents to execute a lease deed for a period of 20  years commencing from the date of execution in terms of  the  grant made  on 30th   July, 1999.    But  the  first  respondent was not made a party therein. 9. In the said case on 15th September, 1999 , interim  mandamus was issued on the State to execute the mining  JUDGMENT lease   in   favour   of   the   Mining   Corporation   which   was  executed   on   25th     September,   1999.   According   to  appellants,   the   writ   petition   filed   by   the   Mining  Corporation became infructuous.   10 . The   first   respondent   filed   another   Revision  Application on 15th December, 1999, inter alia, praying  for quashing of the grant made on 30th July, 1999 in  favour of the  Mining Corporation.  The first revision  application was dismissed on 7th November, 2001 by the  Page 6 -7 Mines   Tribunal,   which   was   challenged   by   the   first  respondent in Writ Petition (Civil) No. 8033/2002  but  this time before the High Court of Delhi.  The Second 
on theground
executed in favour of the   Mining Corporation by the  State Government in compliance of  the order dated 15th  September,   1999   of   interim   mandamus   by   the   Madhya  Pradesh High Court.   The said order was assailed by  first respondent by filing a Writ Petition(Civil) No.  5809/04     before   the   High   Court   of   Delhi.   Both   the  aforesaid   Writ   Petitions   were   heard   by   the   learned  Single   Judge   of     High   Court   of   Delhi   who   by   common  impugned   judgment   dated   21st   September,   2010   allowed  both   the   writ   petitions   filed   by   first   respondent  holding that the grant could not have been   made in  favour   of   the   Mining   Corporation   and   that   the   first  respondent   was   entitled   to   the   benefit   of   remaining  JUDGMENT expired period of the original lease to begin from the  date the decision was taken by the State Government,  but  subject to the first respondent complying with all  the requirements of the Act and   Rules and any other  applicable   law   and   paying   the   dead   rent   and   other  charges as required by law.  The common order passed in  those   two   writ   petitions   was   upheld   by   the   Division  Bench of Delhi High Court by its common Judgment dated  20th April, 2011. Page 7 -8 11. Learned   counsel   for   the   State   and   the   Mining  Corporation   assailed   the   impugned   judgment   on   the  following grounds:
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1982,   the   lease   comes to an end. As  per   Rules,   1960   as   was   prevailing   in  June,   1982,   if     lessee   dies   during   the  continuation   of   the   lease,   a   fresh  application   has   to   be   presented   by   his  heirs   or   legal   representatives   if   they  are   continuing   the     business   of   the  deceased   and   have   the   required  qualification   to   obtain   a   grant   on  account of special reason for grant.  In  absence of any such application filed by  legal heirs for grant of lease in their  JUDGMENT favour, they are not entitled for renewal  of   lease     or   to   continue   for   the  remaining period. (b) The   High   Court   of   Delhi     had   no  jurisdiction   to   interfere   with   the  impugned order of grant passed in favour  of the Mining Corporation, being granted  by the State Government pursuant to the  Page 8 -9 direction   of   the   Madhya   Pradesh   High  Court dated 15th September, 1999.
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Court dated 16th July, 1986 it was the duty on the part  of the State Government to re­examine and decide the  matter afresh regarding the question of  determination  of the lease.  Admittedly, the State Government did not  proceed to decide the matter afresh.   Therefore, the  first   respondent   was   entitled   for   mining     for   the  remaining period of six years, six months and twenty  nine   days.     Learned   counsel   for   the   respondents  contended  that first respondent, Sanjeev  Bhaskar, son  of     Rajendra   Nath   Bhaskar,   original   lessee   moved   an  application on 2nd September, 1986 for mutating   his  name saying that in view of family settlement his name  JUDGMENT be mutated.  He also requested for grant of benefit for  the   period   during   which   mining   was   unlawfully  interrupted.     In   this   background,     the   High   Court  rightly interfered with the order as well as the order  issuing grant in favour of the Mining Corporation which  was   passed   during   the   pendency   of   the   Revision  Application. 13 . Further,   according   to   learned   Counsel   for   the  first respondent, part of the cause of action having  Page 9 -10 taken   place   at   Delhi,   the   orders   in   the   Revision  Applications had been passed by the Central Government,  the Writ Petitions were maintainable before the Delhi  High Court.
uted that much
of the Madhya Pradesh High Court, the original lessee,  Rajendra Nath Bhaskar died on 7th September, 1982. The  Miscellaneous Petition No. 805/1981 pending before the  Madhya Pradesh High Court abated in   absence of any  petition for substitution filed by the legal heirs. 15. Further, in the year 1982 when the original lessee  died, there was no provision for orders to continue the  application   for   a   mining   lease.   Legal   heirs/  representatives of the original lessee, if they wanted  to   continue   the   business   or   mining   activity   of   the  deceased and also if they had required qualification,  could at best file an application for grant of fresh  JUDGMENT mining   lease.     Admittedly,     after   the   death   of   the  lessee (7th September, 1982), legal heirs including the  first   respondent   never   applied   for   fresh   grant   of  lease.   It has also not been made clear that whether  any one of them have required qualification for grant  of mining lease.  16 . In view of the aforesaid fact, we hold that after  the   death   of   the   original   lessee,   Rajendra   Nath  Bhaskar,   all   rights   come   to   an   end   and   the   first  Page 10 -11 respondent   or   any   other   legal   heir(s)   were   neither  entitled to continue with the lease nor entitled for  renewal of lease.
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(1972) 1 SCC 734.  In the said  case, this  Court held  as follows: “14.   It has to be remembered that, in  order to enable a legal representative  to   continue   a   legal   proceeding,   the  right to sue or to pursue a remedy must  survive   the   death   of   his   predecessor.  In   the   instant   case,   we   have   set   out  provision showing that the rights which  an applicant may have had for the grant  of a mining lease, on the strength of  an   alleged   superior   claim,   cannot   be  separated   from   his   personal  qualifications.   No   provision   has   been  pointed   out   to   us   in   the   rules   for  impleading   an   heir   who   could   continue  the application for a mining lease. The  scheme   under   the   rules   seems   to   be  that,   if   an   applicant   dies,   a   fresh  application has to be presented by his  heirs or legal representatives if they  themselves   desire   to   apply   for   the  grant of a lease. It may be that the  heirs   and   legal   representatives,   if  they   are   continuing   the   business   or  industry of the deceased and have the  required   qualifications,   obtain  priority   over   an   earlier   applicant   on  account   of   special   reasons   for   this  preference.   But,   in   each   case,   they  have to apply afresh and set out their  own   qualifications.   It   has   not   been  shown   to   us   that   any   legal  representatives   have   applied   afresh.  The legal representatives only claim to  be   entitled   to   succeed   the   deceased  JUDGMENT Page 11 -12
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JUDGMENT . After a period of more than 9 years from the death  18 of original lessee,  Rule 25A was inserted in the Rules  Page 12 -13 1960 by GSR 129(E), dated 20th February, 1991, which  reads as follows:
plicant f<br>ease die<br>m a mior grant<br>s befor<br>ning le
(1.2)In   the   case   of   an   applicant  in   respect   of   whom   an   order  granting   or   renewing   a   mining  lease   is   passed,   but   who   dies  before   the   deed   referred   to   in  sub­rule   (1)   of   rule   31   is  executed,   the   order   shall   be  deemed to have been passed in the  name   of   the   legal   representative  of the deceased.” 19.The aforesaid substituted provision of Section 25A  is not applicable in the present case as it was not a  case of death of the applicant during the pendency of  JUDGMENT grant or renewal of mining lease. Further Section 25A  having   inserted   nine   years   after   the   death   of   the  assessee,   the   first   respondent   and   the   other   legal  heirs  cannot derive advantage of the same. 20 . The   Original   Lessee   died   on   7th   September,   1982  during   the   pendency   of   Miscellaneous     Petition   No.  805/81 and much before the final order dated 16th July,  1986   passed in the said case by the Madhya Pradesh  High Court. In the absence of petition for substitution  Page 13 -14 of legal heirs,  the said case got abated.  The legal  heirs including the first respondent cannot derive the  advantage of the order dated 16th July, 1986, which was 
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petitioner/lessee. 21 . From the impugned judgment, it is clear that after  1986, the first respondent made representations on 28th  August, 1996, 14th April, 1997 and 23rd November, 1997.  In 1998, a Contempt Application No. 186/98   was filed  by the first respondent which was dismissed for being  barred by time. The first respondent had not explained  the   delay of more than 14 years after the death of  the original lessee and   delay of 10 years after the  order   dated   16th   July,   1986   passed   by   the     Madhya  Pradesh High Court as to why they did not choose to  move before any Court of Law.  In absence  of  any such  JUDGMENT valid explanation, we are of the view that the High  Court ought  to have  dismissed the case on the ground  of delay and latches.  22 . Admittedly,   the third party rights were created  in   the   meantime   in   favour   of   the   Mining   Corporation  pursuant   to   the   order   of   Madhya   Pradesh   High   Court  dated 16th  July, 1986. The order passed by the Madhya  Pradesh High Court was not challenged in any appeal.  The   Delhi   High   Court   also   failed   to   notice   the  Page 14 -15 aforesaid fact and failed to decide the jurisdiction of  the   High   Court   to   entertain   the   appeal   against   the  order passed in favour of the Mining Corporation which 
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desirable   for   the   Delhi   High   Court   to   entertain   the  writ   petition.   Even   though   the   revisional   order   was  passed by the Central Government, the Delhi High Court  ought to have asked the first respondent to move before  the Madhya Pradesh High Court for appropriate relief. 23 . In   view   of   our   findings   given   in   the   preceding  paragraph, the order dated  21st September, 2010 passed  by   the Single Judge of the   High Court of Delhi and  the impugned order dated 20th April, 2011 passed   by  the Division Bench of the Delhi High Court cannot be  upheld.     They   are   accordingly   set   aside.     Both   the  appeals are allowed  but there shall be no order as to  JUDGMENT costs. ……………………………………………………………………………J.   (T.S.THAKUR) …………………………………………………………………………J.            (SUDHANSU JYOTI MUKHOPADHAYA) NEW DELHI, JULY 2,2013. Page 15