Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
2023INSC824
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 8238 OF 2022
STATE OF WEST BENGAL AND ANOTHER ..... APPELLANTS
VERSUS
M/S. CHIRANJILAL (MINERAL) INDUSTRIES
OF BAGANDIH AND ANOTHER
.....
RESPONDENTS
J U D G M E N T
SANJIV KHANNA, J.
This appeal, by way of special leave, takes exception to the
judgment of the division bench of the High Court of Calcutta,
whereby the intra-court appeal preferred by the State of West
Bengal and Others in F.M.A. No. 1458 of 2017 with CAN No. 6596
of 2017 has been dismissed with the direction to the Appellant No.
2 – Joint Secretary, Department of Industries, Commerce and
Enterprises, West Bengal or any authorised officer to execute a
mining lease in favour of the Respondent No. 2 – Dinesh Agarwal,
sole proprietor of Respondent No. 1 - M/s. Chiranjilal (Mineral)
Signature Not Verified
Digitally signed by
Narendra Prasad
Date: 2023.09.12
19:14:02 IST
Reason:
Industries of Bagandih.
C.A. No. 8238 of 2022 Page 1 of 37
2. The facts are rather chequered, albeit are required to be noticed in
detail. On 07.08.1985, West Bengal Mineral Development and
1
Trading Corporation Limited had filed an application for grant of
long term mining lease for Dolomite, Limestone and Quartzite at the
plots in Mouza - Khariduara, Kumari and Boch. An application was
also filed by WBMDTCL for grant of long term mining lease for Iron
Ore, Manganese and Fireclay at the plots in Mouza - Khariduara,
Kumari, Boch and Kangametya. Grant Order dated 07.04.1986 was
issued in favour of WBMDTCL by the Assistant Secretary,
Commerce and Industries Department, Mines Branch, West
Bengal.
2.1. On 06.03.1998, Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih. had filed an application before the Mining
Officer-in-charge, Purulia Zone, Directorate of Mines and Minerals,
West Bengal, for the grant of a mining lease for the purpose of
extracting Dolomite at Mouza - Khariduara, Kumari and Boch, in 76
acres of land.
2.2. The Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih filed Writ Petition No. 7808 (W) of 2001 before the High
Court of Calcutta, seeking disposal of their application for grant of
1
For Short,’ WBMDTCL’.
C.A. No. 8238 of 2022 Page 2 of 37
mining lease. The High Court vide order dated 13.06.2001, directed
the State authorities to dispose of the application of Respondent
No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih at an early
date and in accordance with law.
2.3. The Joint Secretary, Commerce and Industries Department, West
Bengal, vide order dated 13.03.2003, rejected the application of
Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih, on the ground of non-availability of land in view of the
previous application of WBMDTCL. By another order dated
26.03.2003, the Joint Secretary, Commerce and Industries
Department, West Bengal reiterated that the mining application of
Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih
overlaps with the area applied for in the previous application by
WBMDTCL. The application of the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih was accordingly
rejected.
2.4. Aggrieved, the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih had filed Writ Petition No. 7505 (W) of 2003
in the High Court of Calcutta challenging the orders passed by the
Joint Secretary, Commerce and Industries Department, West
Bengal, dated 13.03.2003 and 26.03.2003. During the pendency of
the said Writ Petition, the Joint Secretary, Commerce and Industries
C.A. No. 8238 of 2022 Page 3 of 37
Department, West Bengal, reviewed the aforesaid orders and
passed a fresh order dated 13.10.2006 for apportionment of land
between WBMDTCL and the Respondent No. 1 - M/s. Chiranjilal
(Mineral) Industries of Bagandih. This order states that two hearings
were held on 24.05.2006 and 19.06.2006 to review the matter, and
thereupon at the hearing dated 19.06.2006, in the presence of the
representatives of WBMDTCL and the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih, it was agreed that
Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih
will be granted the whole of the mining area of 76 acres, and the
lease for the rest of the area will be granted in favour of WBMDTCL.
No other reason has been stated and indicated in the said order.
Thus, the orders dated 13.03.2003 and 26.03.2003 rejecting the
application of the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih were recalled. Consequently, the Letter of
Intent dated 26.10.2006 was issued in favour of the Respondent
No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih for an area
of 76 acres of land subject to fulfilling/submission of various
documents, including approval of the Mining Plan duly approved by
the Chief Mining Officer, Asansol and Clearance Certificate from
the Ministry of Environment and Forests, Government of India.
C.A. No. 8238 of 2022 Page 4 of 37
2.5. However, the order dated 13.10.2006 was cancelled or revoked
vide order dated 03.12.2010 by the Joint Secretary, Commerce and
Industries Department, Mines Branch, West Bengal, inter alia,
recording that this order was passed without ascertaining the exact
position of the land and in ignorance of the fact that the rejection
orders dated 13.03.2003 and 26.03.2003 had already been
challenged before the High Court in Writ Petition No. 7505 (W) of
2003. The authorities had not ascertained the status of the case.
The order of cancellation or revocation dated 03.12.2010 was not
challenged by the respondents.
2.6. This order dated 03.12.2010 was also not brought to the notice of
the High Court, when the Writ Petition No. 7505 (W) of 2003 was
disposed of ex-parte vide order dated 25.03.2014 by relying upon
the supplementary affidavit filed by the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih, which had referred to
the recalled order dated 13.10.2006. This order of the High Court
states that a decision as to whether a lease or licence to be granted
in favour of the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih shall be taken within a period of eight weeks
and Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih would be accordingly informed. It was made clear that the
C.A. No. 8238 of 2022 Page 5 of 37
decision as to the grant will be on the basis of the law and the rules
applicable at the time of consideration.
2.7. By the order dated 09.07.2014 passed by the Joint Secretary,
Commerce and Industries Department, West Bengal, the
application filed by the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih was rejected inter alia relying upon the
earlier application filed by WBMDTCL. Significantly, this order
mentions that the two rejection orders dated 13.03.2003 and
26.03.2003 were recalled by the Joint Secretary vide his order
dated 13.10.2006. This order also refers to the factum that the
Grant Order dated 07.04.1986 to WBMDTCL for Iron Ore,
Manganese and Fireclay in the plots in question had been revoked
and the application for Long-Term Mining Lease filed by WBMDTCL
for Dolomite and Limestone was rejected by a common order dated
24.09.2009. The order dated 24.09.2009 has not been placed on
record, though it is necessary to ascertain and know the reasons
for cancellation and rejection in favour of WBMDTCL. WBMDTCL
had applied earlier in point of time, and is a government of West
Bengal undertaking. The order dated 09.07.2014 does indicate that
the cancellation and rejection against WBMDTCL had something to
do with the Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries
of Bagandih, and possibly the order dated 13.10.2006 in favour of
C.A. No. 8238 of 2022 Page 6 of 37
the Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih. This is reflected from the reason given in the order dated
09.07.2014, which states that since the recall order dated
13.10.2006 was cancelled or revoked vide order dated 03.12.2010,
the rejection orders dated 13.03.2003 and 26.03.2003 were still
valid and the application for mining lease dated 07.08.1985 for
Dolomite and Limestone by WBMDTCL still subsists. Thereupon,
reference in the order dated 09.07.2014 is made to sub-section (2)
2
to Section 11 of the Mines and Minerals (Development and
2
11. Preferential right of certain persons . - (1) Where a reconnaissance permit or prospecting
licence has been granted in respect of any land, the permit holder or the licensee shall have a
preferential right for obtaining a prospecting licence or mining lease, as the case may be, in respect of
that land over any other person:
Provided that the State Government is satisfied that the permit holder or the licensee, as the case may
be, -
(a) has undertaken reconnaissance operations or prospecting operations, as the case may be, to
establish mineral resources in such land;
(b) has not committed any breach of the terms and conditions of the reconnaissance permit or the
prospecting licence;
(c) has not become ineligible under the provision of this Act; and
(d) has not failed to apply for grant of prospecting licence or mining lease, as the case may be, within
three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or
within such further period as may be extended by the said Government.
(2) Subject to the provisions of sub-section (1),where the State Government has not notified in the
Official Gazette the area for grant of reconnaissance permit or prospecting licence or mining lease, as
the case may be, and two or more persons have applied for a reconnaissance permit, prospecting
licence or a mining lease in respect of any land in such area, the applicant whose application was
received earlier, shall have a preferential right to be considered for grant of reconnaissance permit,
prospecting licence or mining lease, as the case may be, over the applicant whose application was
received later:
Provided that where an area is available for grant of reconnaissance permit, prospecting licence or
mining lease, as the case may be, and the State Government has invited applications by notification
in the Official Gazette for grant of such permit, licence or lease, all the applications received during the
period specified in such notification and the applications which had been received prior to the
publication of such notification in respect of the lands within such area and had not been disposed of ,
shall be deemed to have been received on the same day for the purposes of assigning priority under
this subsection.
Provided further that where any such applications are received on the same day, the State
Government, after taking into consideration the matters specified in sub-section (3), may grant the
C.A. No. 8238 of 2022 Page 7 of 37
3
Regulation) Act, 1957 , which states that in cases where the State
Government has not notified in the Official Gazette an area for grant
of reconnaissance permit, prospecting licence for mining lease, and
two or more persons had applied for the permit, licence or mining
lease, the person whose application received earlier in point of time
shall have preferential right for grant of permit, licence or lease over
the person whose application was received later. The order states
that WBMDTCL is very much interested in mining Dolomite and
Limestone in the area and has confirmed the said fact in writing vide
letter dated 05.06.2014.
reconnaissance permit, prospecting licence or mining lease, as the case may be, to such one of the
applicants as it may deem fit.
(3) The matters referred to in sub-section (2) are the following:-
(a) any special knowledge of, or experience in, reconnaissance operations, prospecting operations or
mining operations, as the case may be, possessed by the applicant;
(b) the financial resources of the applicant;
(c) the nature and quality of the technical staff employed or to be employed by the applicant;
(d) the investment which the applicant proposes to make in the mines and in the industry based on
the minerals;
(e) such other matters as may be prescribed.
(4) Subject to the provisions of sub-section(1), where the State Government notifies in the Official
Gazette an area for grant of reconnaissance permit, prospecting licence or mining lease, as the case
may be, all the applications received during the period as specified in such notification, which shall not
be less than thirty days, shall be considered simultaneously as if all such applications have been
received on the same day and the State Government, after taking into consideration the matters
specified in sub-section(3), may grant the reconnaissance permit, prospecting licence or mining lease,
as the case may be, to such one of the applicants as it may deem fit.
(5) Notwithstanding anything contained in sub-section (2), but subject to the provisions of sub-section
(1), the State Government may, for any special reasons to be recorded, grant a reconnaissance permit,
prospecting licence or a mining lease, as the case may be, to an applicant whose application was
received later in preference to an applicant whose application was received earlier:
Provided that in respect of minerals specified in the First Schedule, prior approval of the Central
Government shall be obtained before passing any order under this sub-section.
3
For short, ‘MMDR Act, 1957’
C.A. No. 8238 of 2022 Page 8 of 37
2.8. The Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih challenged the order dated 09.07.2014 passed by the
Joint Secretary, Commerce and Industries Department, West
Bengal in Writ Petition No. 21358 (W) of 2014 before the High Court
of Calcutta. This petition was disposed of vide order dated
10.09.2014 observing that the Joint Secretary, who had passed the
order dated 09.07.2014 had failed to exercise jurisdiction vested in
him as the applications filed by WBMDTCL had been rejected vide
common order dated 24.09.2009 and were therefore not pending.
Direction was issued by the High Court to grant a long term lease
in respect of 76 acres of land to the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih by observing that the
respondent had a Rayati status and that the remaining land can be
given to WBMDTCL. It may be relevant to note here that this order
records that the files relating to the application of WBMDTCL were
untraceable. WBMDTCL was not made a party to the said writ
petition. Notably, the application filed by WBMDTCL, being earlier
in point of time in terms of the applicable rules was to be given
preference, whereas the application filed by the Respondent No. 1
- M/s. Chiranjilal (Mineral) Industries of Bagandih was rejected vide
orders dated 13.03.2003 and 26.03.2003. However, the rejection
orders were recalled vide order dated 13.10.2006 and the Letter of
C.A. No. 8238 of 2022 Page 9 of 37
Intent dated 26.10.2006 was issued in favour of the Respondent
No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih.
Subsequently, the Grant Order dated 13.10.2006 in favour of the
Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih
was cancelled and recalled vide order dated 13.12.2010. This order
dated 13.12.2010 was never challenged and has attained finality. It
is during the period between the order dated 13.10.2006 and the
order dated 13.12.2010 that the request/application of WBMDTCL
was rejected and the mining lease cancelled vide order dated
24.09.2009.
2.9. On 10.02.2015, vide notification No. S.O. 423 (E), Dolomite was
notified as a minor mineral, and accordingly henceforth, fell under
the legislative and administrative jurisdiction of the State
Government.
2.10. A Grant Order dated 16.07.2015 was issued by the Deputy
Secretary, Commerce and Industries Department, West Bengal for
Dolomite mining in favour of Respondent No. 1 - M/s. Chiranjilal
(Mineral) Industries of Bagandih in respect of 76 acres of land,
subject to certain conditions, including the requirement to submit
consent letters of owners of the land in question ( Raiyats ) before
the execution of the lease deed, or a condition to this effect would
be incorporated in the draft lease. Another stipulation mentioned
C.A. No. 8238 of 2022 Page 10 of 37
4
therein is the need for permission under Section 14-Y of the West
5
Bengal Land Reforms Act, 1955 for holding the required land and
furnishing of Conversion Certificate for plots of land from the
6
appropriate authority in terms of Section 4-C of the WBLR Act,
1955. It is also stipulated that the Grant Order and the subsequent
4
14-Y. Limitation on future acquisition of land by a raiyat .—If at any time, after the
commencement of the provisions of this Chapter, the total area of land owned by a raiyat exceeds the
ceiling area applicable to him under Section 14-M, on account of transfer, inheritance or otherwise, the
area of land which is in excess of the ceiling area shall vest in the State and all the provisions of this
Chapter relating to ceiling area shall apply to such land:
Provided that a person intending to establish a tea garden, mill, factory or workshop, livestock
breeding farm, poultry farm, or dairy, or township in accordance with the provisions of the West
Bengal Town and Country (Planning and Development) Act, 1979, may, with the previous
permission, in writing, of the State Government and on such terms and conditions and in such
manner as the State Government may by rules prescribe, acquire and hold land in excess of the
ceiling area applicable to him under Section 14-M:
Provided further that if such person, having been permitted by the State Government, does
not utilise within two years of the date of such permission such land for the purpose for which he
has been so permitted by the State Government to acquire and hold it, then, all the provisions of
this Chapter relating to ceiling area shall apply to the area of land which is held in excess of the
ceiling area applicable to him under Section 14-M.
Explanation .—For the purpose of this section, “person” includes an individual, a firm, a
company, an institution, or an association or body of individuals, whether incorporated or not.
5
For short, ‘WBLR Act, 1955’.’
6
4-C. Permission for change of area, character or use of land .—(1) A raiyat holding any land may
apply to the Collector for change of area or character of such land or for conversion of the same for
any purpose other than the purpose for which it was settled or was being previously used or for
alteration in the mode of use of such land.
(2) On receipt of such application, the Collector may, after making such inquiry as may be
prescribed and after giving the applicant or the persons interested in such land or affected in any way
an opportunity of being heard, by order in writing either reject the application or direct such change,
conversion or alteration, as the case may be, on such terms and conditions as may be prescribed.
(3) Every order under sub-section (2) directing change, conversion or alteration shall specify the
date from which such change, conversion or alteration shall take effect.
(4) A copy of the order passed by the Collector directing change, conversion or alteration, if any,
under sub-section (2), or in an appeal therefrom shall he forwarded to the Revenue Officer referred to
in Section 50 or Section 51, as the case may be, and such Revenue Officer shall incorporate in the
record-of-rights changes effected by such order and revise the record-of-rights in accordance with such
order.
(5) If the Collector is satisfied that any land is being convened for any purpose other than the
purpose for which it was settled or was being previously held, or attempts are being made to effect
alteration in the mode of use of such land or change of the area or character of such land, he may, by
order, restrain the raiyat from such Act.
C.A. No. 8238 of 2022 Page 11 of 37
execution of the lease deed are subject to the No Objection
Certificate to be obtained from the Central Government since
Dolomite was a major mineral at the time of the order dated
10.09.2014 passed by the High Court.
2.11. Aggrieved by the conditions and the requirements stipulated in the
Grant Order dated 16.07.2015, the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih filed two Contempt
Petitions in W.P. 21358 (W) of 2014. These contempt petitions were
disposed of, inter alia , observing that the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih was required to fulfil the
conditions, including furnishing of the Conversion Certificate under
Section 4-C of the WBLR Act, 1955 and No Objection Certificate
from the Government of India. The court, therefore, found that there
was no wilful, or contumacious violation of the order dated
10.09.2014. However, liberty was granted to the Respondent No. 1
- M/s. Chiranjilal (Mineral) Industries of Bagandih to question the
Grant Order dated 16.07.2015.
2.12. The Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih thereupon preferred Writ Petition No. 20309 (W) of 2016
before the High Court of Calcutta. However, WBMDTCL was not a
party to this writ petition. In the meanwhile, a clarification was
sought by the Deputy Secretary, Commerce and Industries
C.A. No. 8238 of 2022 Page 12 of 37
Department, West Bengal and vide clarification dated 26.08.2016
issued by the Government of India, Ministry of Mines, it was clarified
that even prior to 10.02.2015, Dolomite was a Non-Scheduled
major mineral, for which prior approval of the Central Government
was not required under sub-section (1) to Section 5 of the MMDR
Act, 1957.
2.13. This Writ Petition No. 20309 (W) of 2016 vide judgment and order
dated 12.04.2017 has been allowed inter alia observing that
Dolomite had become a minor mineral with effect from 10.02.2015
and hence prior approval of the Central Government is not required
under Section 5(1) of the MMDR Act, 1957. On the question of
requirements under Section 14-Y and 4-C of the WBLR Act, 1955,
it is observed that the land in question is recorded as ‘ Dungri’ as
per information provided by the Deputy District Land and Land
Reforms Officer, Purulia vide Memo No. V/RTI/775/15 dated
06.03.2017 and that the land classified as ‘ Dungri ’ is only used for
the purpose of mining lease and thus, there is no need for a
conversion certificate under Section 4-C of the WBLR, Act, 1955.
The clarification dated 07.04.2016 was issued by the Additional
District Magistrate and District Land and Land Reforms Officer,
Purulia, stating that the Respondent No. 1 - M/s. Chiranjilal
(Mineral) Industries of Bagandih had procured a No Objection
C.A. No. 8238 of 2022 Page 13 of 37
Certificate in respect of the major portion of Raiyati land from
different owners and that the State Government itself was the owner
of 20.87 acres of land, thus Section 14-Y of the WBLR Act, 1955
would not be applicable as the Respondent No. 1 - M/s. Chiranjilal
(Mineral) Industries of Bagandih has not acquired land in excess
ceiling limit prescribed under Section 14-M of the WBLR Act, 1955.
2.14. This judgment was challenged by the State of West Bengal in an
intra-court appeal being F.M.A. No. 1458 of 2017 with CAN No.
6596 of 2017 which has been dismissed vide the impugned
judgment dated 04.10.2018. Agreeing with the findings recorded by
the Single Judge, the division bench has held that the provisions of
7
the West Bengal Minor Minerals Concession Rules, 2016 will not
be applicable as the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih had made the application in March 1998,
and more so as the Joint Secretary, Government of West Bengal
had passed the order dated 13.10.2006 to grant mining lease. The
High Court’s direction given in Writ Petition No. 21358 (W) of 2014
vide judgment dated 10.09.2014 are prior to the enforcement of the
Concession Rules, 2016.
3. We have heard the learned Senior Advocate appearing for the State
7
For short, ‘Concession Rules, 2016’.
C.A. No. 8238 of 2022 Page 14 of 37
of West Bengal and the Respondent No. 2 – Dinesh Agarwal, who
has appeared in-person. They have also submitted their written
submissions.
4. We begin our discussion by first referring to Rule 61 of the
Concession Rules, 2016, which reads as under:
“ 61.Decleration of ineligibility of the pending minor
mineral applications for mining lease including the
applications of reclassified major minerals.- All
applications for mining lease of minor minerals including the
th
reclassified minor minerals vide SO No-423 (E) dated 12
February,2015 received prior to the giving-effect to this rules
irrespective of its duration of pendency shall become
ineligible.
Provided that if the applicant has been issued a Grant Order
or Letter of Intent (LoI) or any other Government Order
requiring the alteration of applicant's position then his
mining lease application may be considered after due
compliance of the all the necessary conditions”
5. An almost corresponding amendment was made to the MMDR Act,
1957 by incorporating Section 10-A vide Mines and Minerals
8
(Development and Regulation) Amendment Act, 2015 , which
reads as under:
10-A. Rights of existing concession holders and
applicants.— (1) All applications received prior to the date
of commencement of the Mines and Minerals
(Development and Regulation) Amendment Act, 2015,
shall become ineligible.
(2) Without prejudice to sub-section (1), the following shall
remain eligible on and from the date of commencement of
8
For short, ‘Amendment Act, 2015’.
C.A. No. 8238 of 2022 Page 15 of 37
the Mines and Minerals (Development and Regulation)
Amendment Act, 2015—
(a) applications received under Section 11-A of this Act;
(b) where before the commencement of the Mines and
Minerals (Development and Regulation) Amendment Act,
2015 a reconnaissance permit or prospecting licence has
been granted in respect of any land for any mineral, the
permit holder or the licensee shall have a right for obtaining
a prospecting licence followed by a mining lease, or a
mining lease, as the case may be, in respect of that mineral
in that land, if the State Government is satisfied that the
permit holder or the licensee, as the case may be,—
(i) has undertaken reconnaissance operations or
prospecting operations, as the case may be, to establish
the existence of mineral contents in such land in
accordance with such parameters as may be prescribed by
the Central Government;
(ii) has not committed any breach of the terms and
conditions of the reconnaissance permit or the prospecting
licence;
(iii) has not become ineligible under the provisions of this
Act; and
(iv) has not failed to apply for grant of prospecting licence
or mining lease, as the case may be, within a period of three
months after the expiry of reconnaissance permit or
prospecting licence, as the case may be, or within such
further period not exceeding six months as may be
extended by the State Government;
(c) where the Central Government has communicated
previous approval as required under sub-section (1) of
Section 5 for grant of a mining lease, or if a letter of intent
(by whatever name called) has been issued by the State
Government to grant a mining lease, before the
commencement of the Mines and Minerals (Development
and Regulation) Amendment Act, 2015, the mining lease
shall be granted subject to fulfilment of the conditions of the
previous approval or of the letter of intent within a period of
two years from the date of commencement of the said Act:
C.A. No. 8238 of 2022 Page 16 of 37
Provided that in respect of any mineral specified in the First
Schedule, no prospecting licence or mining lease shall be
granted under clause (b) of this sub-section except with the
previous approval of the Central Government.
6. Rule 61 of the Concession Rules, 2016 states that all applications
for mining lease of minor minerals including reclassified minor
minerals vide S.O. No. 423 (E) dated 12.02.2015 received prior to
9
giving effect to the Concession Rules, 2016 , irrespective of its
duration of pendency shall become ineligible. In other words, these
applications are not to be considered. The proviso makes an
exception and states that if an applicant, who had made an
application prior to 29.07.2016, had been issued a Grant Order or
a Letter of Intent, or any other order requiring alteration of the
applicant’s position, his application for mining lease may be
considered after due compliance of all necessary conditions. The
question is whether the respondents’ case is covered by the
exception in terms of the proviso to Rule 61 of the Concession
Rules,2016. We have already referred to the reasoning given by the
division bench of the High Court dealing with the Concession Rules,
2016, and would like to quote the findings which hold that the
proviso would not be applicable to the facts of the present case.
These observations read:
“25. ….Neither such recent policy nor can the provisions of
9
The Concession Rules, 2016 came into effect on 29.07.2016
C.A. No. 8238 of 2022 Page 17 of 37
| the West Bengal Minor Minerals Concession Rules, 2016 | |
|---|---|
| can apply to the application of the writ petitioners made in | |
| March, 1998 and more so as the order of the Joint | |
| Secretary to grant lease is dated 13th October, 2006 and | |
| that of this Court directing grant of long term lease is dated | |
| 10th September, 2014 are prior to such policy and prior to | |
| the said Rules came into operation. It further appears that | |
| necessary mining plan taking into account the | |
| environmental aspect has been submitted by the writ | |
| petitioners and the appellant/State has raised no grievance | |
| in respect thereof.” |
letter dated 02.02.2018 issued by the Principal Secretary, State of
West Bengal, wherein it is specified that obtaining a Conversion
Certificate is a mandatory condition for the purpose of a mining
lease. Reference in the impugned judgment to the order dated
13.10.2006, or for that matter, the Letter of Intent dated 26.10.2006
is inconsequential as the said orders were recalled and revoked on
03.12.2010. The orders did not survive and continue to operate
thereafter. Writ Petition No. 7505 (W) of 2003 was disposed of ex-
parte, without noticing that the order dated 13.10.2006 had been
recalled or cancelled, albeit the judgment had directed that the
application for grant of lease would be considered in accordance
with law and the rules applicable at the time of consideration. The
order dated 03.12.2010 was never challenged by the Respondent
No. 1 - M/s. Chiranjilal (Mineral) Industries of Bagandih and has
attained finality. At best, the case of the Respondent No. 1 - M/s.
C.A. No. 8238 of 2022 Page 18 of 37
Chiranjilal (Mineral) Industries of Bagandih is that the application
dated 06.03.1998 should be considered in accordance with law.
8. The Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries of
Bagandih has relied upon judgment of this Court in Bhushan
Power and Steel Limited v. S.L. Seal , Additional Secretary
10
(Steel and Mines), State of Odisha and Others . In the said
case, the predecessor-in-interest of the petitioner therein had made
an application for grant of lease before the State of Odisha for
mining of Iron Ore in an area measuring 1250 acres. The
application was in view of the proposal to set up a steel plant in the
district of Sambalpur, Odisha. The rejection for the grant of the
mining lease to M/s. Bhushan Power and Steel Limited was
challenged in a Writ Petition in the High Court, which was
dismissed, but the appeal preferred before this Court was allowed
vide judgment dated 14.03.2012 in Bhushan Power and Steel
11
Limited and Others v. State of Orissa and Another , setting
aside the order of the State Government dated 09.02.2016, with the
following directions:
“41 . In the light of the above, the High Court erred in holding
that it could not interfere with the decision of the State
Government calling upon the appellants to sign a fresh
MoU with the Government, during subsistence of the earlier
10
(2017) 2 SCC 125.
11
(2012) 4 SCC 246.
C.A. No. 8238 of 2022 Page 19 of 37
MoU. Since the State Government has already made
allotments in favour of others in relaxation of the Mineral
Concession Rules, 1960, under Rule 59(2) thereof, no
cogent ground had been made out on behalf of the State to
deny the said privilege to the appellants as well.
Accordingly, we allow the appeal and set aside the
judgment and order of the High Court of Orissa and also
the decision of the State Government dated 9-2-2006,
rejecting the appellants' claim for grant of mining lease.
42 . During the course of hearing, we have been informed
that Thakurani Block A has large reserves of iron ore, in
which the appellants can also be accommodated. We,
accordingly, direct the State of Orissa to take appropriate
steps to act in terms of the MoU dated 15-5-2002, as also
its earlier commitments to recommend the case of the
appellants to the Central Government for grant of adequate
iron ore reserves to meet the requirements of the appellants
in their steel plant at Lapanga.”
9. The State of Odisha thereafter filed an application for review of the
judgment in Bhushan Power and Steel Limited and Others v.
12
State of Orissa and Another (supra) which was rejected vide
order dated 11.09.2012.
10. Alleging non-compliance and in-action of the judgment dated
14.03.2012, a contempt petition was filed by M/s Bhushan Power
and Steel Limited. The contempt petition was contested by the
State of Odisha on several grounds, including that the judgment
dated 14.03.2012 is incapable of enforcement, for which reliance
was placed on a subsequent judgment of this Court in Sandur
12
(2012) 4 SCC 246.
C.A. No. 8238 of 2022 Page 20 of 37
13
Manganese and Iron Ores Ltd. v. State of Karnataka . This
stand did not find favour with this Court and the officers of the State
Government were found to be in contempt of the judgment dated
14.03.2012 vide judgment dated 22.04.2014 in Bhushan Power
14
and Steel Limited v. Rajesh Verma . Under these circumstances,
the judgment dated 22.04.2014 had given one more opportunity to
the State Government to send requisite recommendation to the
Central Government inter alia observing that this Court cannot lose
sight of the fact that there is a judgment inter se the parties, which
has become final. Accordingly, the contention that the judgment of
this Court in Sandur Manganese and Iron Ores Limited (supra)
will not undo the directions given in the judgment dated 14.03.2012
was rejected. The relevant observations in the judgment dated
22.04.2014 read as under:
“ 21. We cannot lose sight of the fact that there is a
judgment, inter partes, which has become final . Even when
the civil appeal was being heard, certain other parties
claiming their interest in these very lands had moved
intervention applications which were dismissed. At that time
also it was mentioned that there are 195 applicants.
However, notwithstanding the same, this Court issued firm
directions to the State Government to recommend the case
of the petitioners for mining lease in both the areas. In view
of such categorical and unambiguous directions given in
the judgment which has attained finality, merely because
another judgment has been delivered by this Court
in Sandur Manganese case , cannot be a ground to undo
13
(2010) 13 SCC 1.
14
(2014) 5 SCC 551.
C.A. No. 8238 of 2022 Page 21 of 37
the directions contained in the judgment dated 14-3-
2012. Insofar as law laid down in Sandur Manganese is
concerned, that may be applied and followed by the State
Government in respect of other applications which are still
pending. However, that cannot be pressed into service qua
the petitioner whose rights have been crystallised by the
judgment rendered in its favour . It cannot be reopened, that
too at the stage of implementation of the said judgment.
22 . …. Once we hold that the respondents are bound to
implement the direction contained in the judgment dated
14-3-2012 , insofar as the State Government is concerned,
it is obliged to comply therewith and such matters, along
with other relevant considerations, can be left to the wisdom
of the Central Government while taking a decision on the
recommendation of the State Government .
xx xx xx
24 . …. However, we are giving one final opportunity to them
to purge the contempt by transmitting requisite
recommendations to the Central Government. It would be
for the Central Government to consider the said
recommendations on its own merits and in accordance with
law . In case the recommendation is sent within one month
from the date of copy of receipt of this order, we propose
not to take any further action and the
respondents/contemnors shall stand discharged from this
contempt petition. However, in case the respondents do not
purge in the manner mentioned above, it would be open to
the petitioners to point out the same to this Court by moving
appropriate application and in that event the contemnors
shall be proceeded against.”
(emphasis supplied)
11. Consequent to the directions dated 22.04.2014, the State
Government had sent the requisite recommendation to the Central
Government for grant of mining lease of the area in question. The
Central Government, however, took the stand that having regard to
the amendments in the MMDR Act, 1957, vide the Amendment Act,
C.A. No. 8238 of 2022 Page 22 of 37
2015 introducing Section 10-A, the request made by M/s Bhushan
Power and Steel Limited stands invalidated. In view of the aforesaid
stand, the Central Government had written letters to the State
Government, with a copy sent to M/s Bhushan Power and Steel
Limited. In the letter dated 13.05.2015, the Central Government had
stated that the proposal for according the prior approval for grant of
mineral concession was ineligible in terms of sub-section (1) to
Section 10-A of the MMDR Act, 1957 and, therefore, should be
treated as closed. However, the State Government might ascertain
whether the proposal was safe from ineligibility under Section 10-A
of the MMDR Act, 1957 and thereupon the State Government could
take action accordingly. Similar view was also expressed by the
Central Government in the letter dated 29.05.2015 therein.
Consequent to these communications, the State government vide
letter dated 09.07.2015 had informed M/s Bhushan Power and
Steel Limited that their applications for grant of mining lease had
become ineligible as per sub-section (1) to Section 10-A of the
MMDR Act, 1957.
15
12. This Court in M/s Bhushan Steel and Power Limited (supra),
specifically examined the contention whether in the facts of the said
15
(2012) 4 SCC 246.
C.A. No. 8238 of 2022 Page 23 of 37
case, clause (c) to sub-section (2) to Section 10-A of the MMDR
Act, 1957 could be invoked in view of the contention raised by M/s
Bhushan Steel and Power Limited that the Letter of Intent was
issued by the State Government for grant of mining lease and,
therefore, their application stands protected. The submission was
that the recommendation dated 24.05.2014, given by the State
Government should be treated as a Letter of Intent by “whatever
name called”, as it signifies the intention to grant mining lease
insofar as the State Government is concerned. It was also argued
that under the new regime contained under Section 10-A of the
MMDR Act, 1957, approval of the Central Government was not
even required and the State Government could have proceeded
further and granted the lease.
13. The aforesaid arguments did not find favour of this Court in the case
of M/s Bhushan Steel and Power Limited (supra) in spite of the
earlier judgment of this Court dated 14.03.2012 and the order
passed in the contempt petition dated 22.04.2014 with the
observations therein that there was failure of the State Government
to comply with the directions. This Court rejected the submissions
in M/s Bhushan Steel and Power Limited (supra) and held as
under:
C.A. No. 8238 of 2022 Page 24 of 37
“17. Undoubtedly, as per sub-section (1) of Section 10-A,
all applications received prior to coming into force of the
Amendment Act, 2015, become ineligible. Reason for
interpreting such a provision is not far to seek. Before the
passing of the Amendment Act, 2015, it was the Central
Government which had the ultimate control over the grant
of licences insofar as mining of major minerals is
concerned. As per the procedure then existing, the State
Government could recommend the application submitted
by any applicant for grant of mining lease to the Central
Government and the Central Government was given the
power to grant or refuse to grant the approval. Thus,
“ previous approval ” from the Central Government was
essential for grant of lease, without which the State
Government could not enter into any such lease agreement
with the applicant. Shortcomings of this procedure were
noticed by this Court in its judgment rendered in Centre for
Public Interest Litigation v. Union of India [(2012) 3 SCC 1]
(for short “ CPIL case ”) and also in Natural Resources
Allocation, In re, Special Reference No. 1 of 2012 [ Natural
Resources Allocation, In re, Special Reference No. 1 of
2012 , (2012) 10 SCC 1] . In these judgments, this Court
expressed that allocation of natural resources should
normally be by auction. Judgment in CPIL case had a direct
relevance to the grant of mineral concessions as the
Government found that it was resulting in multipurpose
litigation which was becoming counterproductive. Mining
Ordinance, 2015 was passed on 12-1-2015 which was
ultimately replaced when Parliament enacted the
Amendment Act, 2015.
18. The exhaustive Statement of Objects and Reasons
reveals that the extensive amendment in the Act were
effected after extensive consultations and intensive
scrutiny by the Standing Committee on Coal and Steel, who
gave their Report in May 2013. As is evident from the
Statement that difficulties were experienced because the
existing Act does not permit the auctioning of mineral
concessions. It was observed that with auctioning of
mineral concessions, transparency in allocation will
improve; the Government will get an increased share of the
value of mineral resources; and that it will alleviate the
procedural delay, which in turn would check slowdown
which adversely affected the growth of mining sector.
C.A. No. 8238 of 2022 Page 25 of 37
19. The Amendment Act, 2015, as is evident from the
objects, aims at: ( i ) eliminating discretion; ( ii ) improving
transparency in the allocation of mineral resources; ( iii )
simplifying procedures; ( iv ) eliminating delay on
administration, so as to enable expeditious and optimum
development of the mineral resources of the country; ( v )
obtaining for the Government an enhanced share of the
value of the mineral resources; and ( vi ) attracting private
investment and the latest technology.
20. The Amendment Act, 2015 ushered in the amendment
of Sections 3, 4, 4-A, 5, 6, 13, 15, 21 and First Schedule;
substitution of new sections for Sections 8, 11 and 13; and,
insertion of new Sections 8-A, 9-B, 9-C, 10-A, 10-C, 11-B,
11-C, 12-A, 15-A, 17-A, 20-A, 30-B, 30-C and Fourth
Schedule.
21. These amendments brought in vogue: ( i ) auction to be
the sole method of allotment; ( ii ) extension of tenure of
existing lease from the date of their last renewal to 31-3-
2030 (in the case of captive mines) and till 31-3-2020 (for
the merchant miners) or till the completion of renewal
already granted, if any, or a period of 50 years from the date
of grant of such lease; ( iii ) establishment of District Mineral
Foundation for safeguarding interest of persons affected by
mining related activities; ( iv ) setting up of a National Mineral
Exploration Trust created out of contributions from the
mining lease-holders, in order to have a dedicated fund for
encouraging exploration and investment; ( v ) removal of the
provisions requiring “ previous approval ” from the Central
Government for grant of mineral concessions in case of
important minerals like iron ore, bauxite, manganese, etc.
thereby making the process simpler and quicker; ( vi )
introduction of stringent penal provisions to check illegal
mining prescribing higher penalties up to Rs 5 lakhs per
hectare and imprisonment up to 5 years; and ( vii ) further
empowering the State Government to set up Special Courts
for trial of offences under the Act.”
14. Thus, the object and purpose of the Amendment Act, 2015 is to
ensure that allocation of mineral resources is done through
auctioning. This is the reason why sub-section (1) to Section 10-A
C.A. No. 8238 of 2022 Page 26 of 37
of the MMDR Act, 1957 mandates that all applications received
prior to 12.01.2015 shall become ineligible. The exceptions or the
saving clause applies to three kinds of situations specified in sub-
section (2) to Section 10-A of the MMDR Act. 1957. The first
category is where an application has been received under Section
11-A of the MMDR Act,1957. The second category is where a
reconnaissance permit or a prospecting licence has been granted
the permit holder or the licensee has the right to obtain a
prospecting licence followed by a mining lease and the State
Government is satisfied that the permit holder or the licensee has
complied with the requirements specified in sub-clauses (i) to (iv) of
clause (b) of sub-section (2) to Section 10-A of the MMDR Act,
1957. The reason for protecting this class of cases is on account of
the fact that they had altered their position by spending money on
reconnaissance operations or prospecting operations. Accordingly,
the principle of legitimate expectation is applied. The third category
is where the Central Government had already communicated their
previous approval or the State Government had issue Letter of
Intent for grant of mining lease before coming into force of the
Amendment Act 2015. The raison dêtre, it is observed therein, is
that certain rights had accrued to these applicants inasmuch as all
C.A. No. 8238 of 2022 Page 27 of 37
necessary procedures and formalities had been complied with and
only formal lease remains to be executed.
15. Delving on the question of whether the letter for approval dated
22.05.2014 granted by the State Government can be treated as a
Letter of Intent predicated on the words by whatever name, which
expression, it was submitted, should be given a broad interpretation
in view of the words ‘by whatever name called’ was examined in-
depth and in detail. Reference was made to the legal dictionary for
the meaning of the term ‘Letter of Intent’ as a preliminary
understanding between the parties who intend to make a contract
or join together for further action. Reference was also made to
decisions of this Court in Rishi Kiran Logistics Private Limited
16
v. Board of Trustees of Kandla Port Trust and Others and
Rajasthan Cooperative Dairy Federation Limited v. Maha Laxmi
17
Mingrate Marketing Service Private Limited and Others
However, the said contention was rejected inter alia holding as
under:
“ 26. Applying the aforesaid meaning, can it be said that
Letter dated 24-5-2014 of the State Government would
constitute a letter of intent? We are afraid, answer has to
be in the negative. Reason is simple. As mentioned above,
in order to enable the State Government to enter into any
lease agreement/contract with the prospecting licensee,
16
(2015) 13 SCC 233.
17
(1996) 10 SCC 405.
C.A. No. 8238 of 2022 Page 28 of 37
“ previous approval ” of the Central Government was
essential. Unless such approval came, the State
Government could not communicate to the prospecting
licensee/lessee its intention to enter into any contract as the
prerequisite prior approval would be lacking. Therefore, no
promise could be held by the State Government to any
applicant showing its intention to enter into a contract in the
future. Position would have been different had Letter dated
24-5-2014 been issued after receiving previous approval of
the Central Government. However, that is not so. This letter
to the Central Government was only recommendatory in
nature and ultimate decision rested with the Central
Government. It is a different thing if the Central Government
refuses to give its approval on any extraneous reasons or
mala fides or does not take into consideration relevant
factors/material while rejecting the application, which may
form a different cause of action and may become a reason
to challenge the action of the Central Government rejecting
the application on the grounds that are available in law to
seek judicial review of such an action. However, we are not
dealing with that situation in the instant case. Our
discussion is confined to the plea raised before us viz.
whether Letter dated 24-5-2014 can be termed as “letter of
intent”. For the reasons stated above, we are of the view
that it was not a letter of intent. The application of the
petitioner, therefore, would not be covered by clause ( c ) of
Section 10-A of the Act.
27. We are conscious of the fact that the petitioner herein
had originally succeeded in the appeal inasmuch as
judgment dated 14-3-2012 was rendered giving direction to
the State Government to recommend the case of the
petitioner, in terms of the MoU entered into between the
parties, to the Central Government. This was not done and
the decision was reiterated in orders dated 22-4-2014
passed in Bhushan Power and Steel Ltd. v. Rajesh
Verma [. It is possible that had the State Government acted
promptly and sent the recommendations earlier, the Central
Government might have accorded its approval. However,
whether it could have done so or not would be in the realm
of conjectures. Insofar as the Central Government is
concerned, no direction was ever given by this Court. On
the contrary, it was categorically observed in the order
dated 22-4-2014 in Bhushan Power and Steel
Ltd. v. Rajesh Verma that it would be for the Central
Government to consider the recommendations of the State
C.A. No. 8238 of 2022 Page 29 of 37
Government on its own merits and in accordance with law.
If that has not been done by the Central Government, it
cannot be the subject-matter of present contempt petition.”
16. The aforesaid judgment is relevant for our purpose, though in the
present case, post notification No. S.O. 423(E) dated 10.02.2015,
Dolomite was notified as a minor mineral and hence, the approval
of the Central Government was not required for the reason that the
Grant Order dated 16.07.2015 was hedged with pre-conditions,
including the requirement to submit consent letters of the owners of
the land in question ( Raiyats ) before the execution of the lease
deed, or there was to be a stipulation that a condition to this effect
would be incorporated in the draft lease. Therefore, in our opinion,
the Grant Order dated 16.07.2015 is provisional, and is subject to
fulfilment of the conditions therein. This is clear from the terms of
the Grant Order dated 16.07.2015, which are reproduced below:
“
xx xx xx
(a) You have to furnish a Draft Mining Lease Deed in
the model form K us prescribed in the Mineral
Concession Rules, 1960 , as amended upto date (1 rule
31 of MC Rules, 1960),
(b) The Draft Mining Lease Deed should be prepared in
durable papers neatly and sufficient space should be
kept in between two lines in order to permit, if
necessary, correction therein,
(c) The Deed of Lease, after execution, shall be
registered by you at your own cost and no mining
C.A. No. 8238 of 2022 Page 30 of 37
operation should be started before registration of the
Deed,
(d) You shall have to furnish the approved Mining Plan,
if not submitted rules 22(4) and 22A of MC Rules, 1960,
(e) You shall have to furnish the Environment Clearance
(EC), if not submitted from the M1EF Environment of
Protection Act, 1986,
(f) You shall have to furnish Consent to Establish and
Consent to Operate from the WBPCB before execution
of Deed of Lease [Section 25 and 26 of Water Act ,1974
and Section 21 of Air Act, 1981],
(g) You shall have to raise annually a minimum quantity
of minerals as stipulated in the approved Mine Plan
[rules 22A and 45(ia) of MC Rules, 1960],
(h) You shall have to deposit Rs. 10,000/ (Rupees ten
thousand ) only as Security for due observance of the
terms and conditions of the lease, under appropriate
Head of Account which shall be refundable to you after
expiry of the period of Lease, unless the whole or a part
of it is withheld or forfeited by the Government for any
default on you part including default in payment of
amount due to the Government [rule 32 of MC Rules,
1960],
(i) You shall have to submit consent letter(s) of the
owner(s) of the land under consideration before
execution of the Lease Deed (Consent of the Raiyats)
or a condition to that effect should be incorporated in
the Draft Deed (rule 22(3)(i)(1t)),
(j) You shall have to furnish the N.O.C., of the Forest
Authority in proper format in case the applied area falls
in the forest area as notified by the Appropriate
Authority, alongwith the Draft Lease Deed or a condition
to that effect should be incorporated in the Draft Deed
[Section 2 of Forest Conservation Act, 1980],
(k) For actual operation of quarrying or digging, ten (10)
yards clear margin shall be kept from the outer
boundary of the adjacent 1 plot or plots and maintain
throughout the operation and you shall have to give a
C.A. No. 8238 of 2022 Page 31 of 37
written undertaking to that effect or corporate a
condition in the Draft Lease Deed,
(l) You shall have to incorporate all the conditions as
mentioned in the M.C. Rules, 1960 in the Draft Lease
Deed,
(m) You shall have to furnish up to date Royalty
Clearance, Income Tac Clearance and VAT Clearance
certificates before execution of the Deed,
(n) You shall have to submit, along with the Draft Deed,
a Geo -Reference Map duly vetted by the DL&LRO and
DMM, West Bengal, if not submitted,
(o) You shall have obtained the permission under
Section 14Y of WBLR Act, 1955 for holding the required
land,
(p) You have to furnish the Conversion Certificate for
plots of land from the Appropriate Authority (Section 4C
of WBLR Act, 1955),
(q) You have to furnish the current Land Availability
Report (LAR) from the Appropriate Authority.
(r) In the event of non-execution of the deed within the
stipulated period on compliance with the above
mentioned conditions the order sanctioning the lease
shall be liable to be revoked,
(s) You shall have to comply with all the statutory
requirements before presenting the Deed of Lease of
execution to this Department,
(t) This Grant Order and subsequent execution of Lease
Deed are subject to the No Objection Certificate (NOC)
to be obtained by this Department form the Govt. of
India since the applicant prayed for mining lease on the
ground that the Letter of Intent (Lol) was issued for the
mineral Dolomite which was a major mineral at the time
of order dated 10.09.2014 of the Hon’ble High Court.
xx xx xx”
C.A. No. 8238 of 2022 Page 32 of 37
17. Raiyat land is to be used for cultivation, etc., and not for mining.
Once the mining activity is undertaken, the Raiyats will not be able
to use the land. In terms of sub-section (10) to Section 2 of the
WBLR Act, 1955, a Raiyat means a person or an institution holding
land for any purpose whatsoever. However, the rights of Raiyat in
respect of the land in terms of sub-section (2A) to Section 4 of the
WBLR Act, 1955 does not permit any other person to quarry sand
from his holding, dig or use, or permit any person to dig or use, earth
or clay of his holding for the manufacture of bricks or tiles except
with previous permission in writing of the State Government. In
case of breach of the condition, the prescribed authority may, after
giving notice and opportunity to a Raiyat to show cause, can levy a
monetary penalty. Further, on an order being passed, the land shall
vest in the State free from all encumbrances. Section 4-B of the
WBLR Act, 1955 stipulates that every Raiyat holding any land shall
maintain and preserve such land in a manner that the area is not
diminished or its character is not changed or the land is not
converted for any purpose other than the purpose for which it was
settled or previously held except with the previous permission of the
Collector in writing. Equally significant for our purpose is Section 3A
of the WBLR Act, 1955, which states that the rights and interests of
all non-agricultural tenants and under-tenants shall vest in the State
C.A. No. 8238 of 2022 Page 33 of 37
free from all encumbrances and provisions of Section 5 and 5A of
the West Bengal Estates Acquisition Act, 1953 shall apply. An
exception is carved out by sub-section (2) to Section 3A of the
WBLR Act, 1955, where a non-agricultural tenant or under-tenant
is holding khas possession of any land, in which case he is entitled
to retain the land as Raiyat . There are also provisions relating to the
transferability of land by the Raiyat . If cultivation was not being
undertaken at the land in question, the classification requires a
change.
18. The controversy relating to Section 4-C of the WBLR Act, 1955,
cannot simply be decided on the basis of Memo No. V/RTI/775/15
dated 06.03.2017 issued by the Deputy District Land and Land
Reforms Officer, Purulia, that as per the revenue records the land
was recorded as ‘ Dungri ’. The reason is that Raiyat land is not for
mining. Thus, a contradiction arises, as the grant of Raiyat land and
the classification of the same land as ‘ Dungri ’ is contradictory.
19. Further, whether the consent letter of the owners of the land in
question ( Raiyats ) obtained by the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih still hold good, would be
relevant as there could be a change of hands on account of transfer,
inheritance, etc. Connected with this are the legal issues. First,
C.A. No. 8238 of 2022 Page 34 of 37
whether the Respondent No. 1 - M/s. Chiranjilal (Mineral) Industries
of Bagandih had altered its position post the issue of the Grant
Order dated 16.07.2015, but before enforcement of the Concession
Rules, 2016, to get the benefit of Rule 61 of the Concessions Rules,
2016? It is necessary to ascertain the facts and then alone one can
adjudicate and decide the question whether the Respondent No. 1
- M/s. Chiranjilal (Mineral) Industries of Bagandih is entitled to the
benefit of the proviso to Rule 61 of the Concession Rules, 2016.
This has not been verified and ascertained. An issue would arise
on whether the application filed by the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih way back in 1998 would
still hold good as at the time, when the application was filed,
approval of the Central Government was required. Another difficulty
is that WBMDTCL has not been impleaded as a party, though it was
always contesting the claim made by the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih. On the question of
cancellation or rejection of the application made by WBMDTCL, we
have made observations supra. However, we need not examine
these issues in light of the order and directions we are issuing.
Further, we feel that the remand order should not be passed at this
distinct point of time.
C.A. No. 8238 of 2022 Page 35 of 37
20. Having said so, it is the stand of the appellants – State of West
Bengal, that they are owners of 20.87 acres of the land in question
and to this extent, they have no difficulty in executing the mining
lease. This being the stated stand, which has also been affirmed
before us, there should be no difficulty in granting of mining lease
for the said area to the Respondent No. 1 - M/s. Chiranjilal (Mineral)
Industries of Bagandih.
21. During the course of arguments before us, reference was made by
the appellants to the provisions of the WBLR Act, 1955 and the
judgment of this Court in Thressiamma Jacob and Others v.
18
Geologist, Department of Mining and Geology and Others .
We have not examined the said aspects which are left open and not
adjudicated upon. However, we deem it appropriate to observe that
the judgment of this Court in Thressiamma Jacob and Others
(supra) is prior to the enforcement of the Amendment Act, 2015 and
the Concession Rules, 2016. The amendments made by the
Amendment Act, 2015 were not subject matter of decision in the
said case and would have to be considered by the courts and the
authorities as a judgment’s binding ratio depends upon the legal
provisions considered, interpreted and applied in a given judgment.
18
(2013) 9 SCC 725.
C.A. No. 8238 of 2022 Page 36 of 37
When the law changes by an amendment in the legislation, the
amended legal provisions have to be considered, interpreted and
applied.
22. Accordingly, and for the reasons stated, we partly allow the present
appeal and set aside the impugned judgment with a direction that
the government of West Bengal will execute a mining lease for
20.87 acres of land in favour of the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih. The Writ Petition No.
20309 (W) of 2016 will be treated as allowed to the extent as
indicated above. The claim of the Respondent No. 1 - M/s.
Chiranjilal (Mineral) Industries of Bagandih towards the balance
area for the grant of mining lease will be treated as rejected and
dismissed. In the facts of the present case, there will be no order as
to costs.
......................................J.
(SANJIV KHANNA)
......................................J.
(ARAVIND KUMAR)
NEW DELHI;
SEPTEMBER 12, 2023.
C.A. No. 8238 of 2022 Page 37 of 37