IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF OCTOBER 2017 PRESENT THE HON’BLE MR.H.G.RAMESH ACTING CHIEF JUSTICE AND THE HON’BLE MR. JUSTICE P.S.DINESH KUMAR WRIT PETITION NO.44260/2017 (GM-MM-S) BETWEEN:
M/S MAHADEVA MINERALS REPRESENTED BY ITS MANAGING PARTNER SRI ALLUM PRASHANTH AGED ABOUT 40 YEARS R/AT GADAGI PALACE CAR STREET, BELLARY – 583 101 ...PETITIONER (BY SRI K.N.SRINIVASA, ADVOCATE) AND:
1. STATE OF KARNATAKA BY ITS SECRETARY (MINES, SSI & TEXTILE) COMMERCE & INDUSTRIES DEPARTMENT M.S.BUILDING, BANGALORE– 560 001 KARNATAKA 2. THE COMMISSIONER & DIRECTOR DEPARTMENT OF MINES & GEOLOGY KHANIJA BHAVAN RACE COURSE ROAD BANGALORE – 560 001 3. THE SENIOR GEOLOGIST DEPARTMENT OF MINES & GEOLOGY 2ND GATE, BELLARY, CANTONMENT BELLARY – 583 104 4. THE DISTRICT TASK FORCE REPRESENTED BY DEPUTY COMMISSIONER BELLARY DISTRICT BELLARY – 583 104 …RESPONDENTS (BY SRI V.G.BHANUPRAKASH, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH AN ENDORSEMENT/ORDER DATED 8.9.2017 VIDE ANNEXURE-A AND DIRECT THE RESPONDENTS TO GRANT AND EXECUTE THE MINING LEASE TO AN EXTENT OF 4.00 ACRES SITUATED IN SY.NO.76 OF LAKSHMIPURA VILLAGE, BELLARY TALUK AND DISTRICT FORTHWITH ETC.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE ACTING CHIEF JUSTICE MADE THE FOLLOWING:
O R D E R Ag.CJ (Oral):
1. This writ petition is directed against the order dated 08.09.2017 whereby respondent No.3-the Senior Geologist, Department of Mines & Geology has rejected the petitioner’s application dated 22.12.2014 filed for grant of quarrying lease in 4 acres of land in Survey No.76 to quarry a minor mineral namely, ordinary building stones.
2. We have heard learned Counsel appearing for the parties and perused the record.
3. It is stated by the learned Additional Government Advocate that the application is rejected by the aforesaid order on the ground that the application became ineligible in view of Rule 8-B(1) of the Karnataka Minor Mineral Concession Rules, 1994 (‘the Rules’).
The case of the petitioner is that his application comes under the exception stated in Clause (d) of Rule 8-B(2) of the Rules, and therefore, the application remained eligible.
4. It is appropriate to refer to Rule 8-B of the Rules as amended by the Karnataka Minor Mineral Concession (Amendment) Rules, 2017; it reads as follows:
“8-B. Status of applications received.—(1) All applications received and pending for grant of lease or license prior to the date of commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016, shall become ineligible including the applications received for grant of mining leases of the minerals that are now classified as minor mineral.
(2) Notwithstanding anything contained in sub-rule (1), the following shall remain eligible on and from the commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016, namely.-
(a) Applications received upon the notification issued under rule 8B existed before the Karnataka Minor Mineral Concession (Amendment) Rules, 2016.
(b) Where the Committee that existed under the provisions of Rule 11 or District Task Force Committee has recommended for grant of a quarrying lease or license for grant of mining lease, before the commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016.
(c) Where in the case of minerals now re-classified as minor mineral by the Central Government by Notification No. S.O. 423(E), dated 10-2-2015, no objection certificates from revenue and forest departments and the approved mining plan from the Indian Bureau of Mines (IBM) have been received before commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016.
(d) Applications in case of Specified Minor Minerals received before 16-6-2015 and for which No Objection Certificates (NOCs) and reports as under sub-rule (5) of Rule 8 of these rules have been received from the concerned departments before commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016; and (d-1) Applications received and pending for grant of lease or licence in the case of non-specified Minor Minerals before 16-6-2015 and for which No Objection Certificates (NOCs) have been received in the Department of Mines and Geology of the concerned District Office, from the Deputy Conservator of Forest for all lands, Tahsildar in case of Karab lands, Assistant Commissioner and Deputy Director or Senior Geologist (Joint inspection report), in the case of Gomala lands, before commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016, and shall be processed and decided by the District Task Force Committee as under the existing rules before commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016.
(e) These applications shall be considered for grant of quarrying lease or license, or otherwise as per the provisions that existed before the Karnataka Minor Mineral Concession (Amendment) Rules, 2016 subject to fulfillment of the conditions specified for the same, if any and registration of leases or license deed within a period of twelve months from the date of commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016:
Provided that in case of grant of quarrying lease or license covered by clause (b), (c) and (d) of sub-rule (2), the lessee shall pay, in addition to the royalty, an amount which shall be equal to the Average Additional Periodic Payment payable by the holders of quarry lease or license granted through auction within the Taluk if such average is available for the Taluk, or within the District if such average is not available for the Taluk, or within the neighboring Districts if such average is not available for the District, and if such average is not available within the neighboring Districts, such Average Additional Periodic Payment shall be deemed to be fifty per cent of Royalty. This deemed percentage shall be reset after three years based on average obtained in auctions by 31-3-2019; and if no auctions have taken place by 31-3-2019 for deriving the average from Taluk, District or neighboring districts, as the case may be, then the deemed rate will become the final rate for the Average Additional Periodic Payment:
Provided further that when such Royalty and Average Additional Periodic Payment is paid, then the payment by the lessee for the District Mineral Foundation shall be as payable by the holders of lease or license through auction:
Provided also that in respect of any mineral that are now re-classified as minor minerals by the Central Government vide Notification No.S.O.423(E) dated 10-2-2015, no quarrying lease or license shall be granted except with the previous approval of the State Government.
(3) Where before the commencement of the Karnataka Minor Mineral Concession (Amendment) Rules, 2016 a reconnaissance permit or prospecting license 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 license followed by quarrying lease, or license, as the case may be, in respect of that mineral in that land, if they have carried out the reconnaissance or prospecting in accordance with the terms and conditions stipulated in their permit or license:
Provided that on grant of quarry lease or license in case of sub rule(3) the lessee shall pay, in addition to the royalty, an amount which shall be equal to the Average Additional Periodic Payment payable by the holders of quarry lease or license granted through auction within the Taluk if such average is available for the Taluk, or within the District if such average is not available for the Taluk, or within the neighboring Districts if such average is not available for the District, and if such average is not available within the neighboring Districts, such Average Additional Periodic Payment shall be deemed to be fifty per cent of Royalty. This deemed percentage shall be reset after three years based on average obtained in auctions by 31-3-2019;
and if no auctions have taken place by 31-3-2019 for deriving the average from Taluk, District or neighboring districts, as the case may be, then the deemed rate will become the final rate for the Average Additional Periodic Payment:
Provided further that when such Royalty and Average Additional Periodic payment is paid, then the payment by the lessee or holder of license to the District Mineral Foundation shall be as payable by the holders of lease or license through auction.”
5. Learned Additional Government Advocate submits that this Court in Writ Petition No.25421/2017 (DD 04.07.2017) and in several other matters has held that applications as that of the petitioner do not become ineligible if the application was received by the Competent Authority before 16.06.2015 and further, it is held that it is the responsibility of the Competent Authority to consult the authorities referred to in Rule 8(5) of the Rules and to obtain the certificates and reports referred to therein. He further submits that the application of the petitioner was received by the competent Authority before 16.06.2015.
6. In view of the above, the matter requires to be reconsidered by respondent No.3–the Senior Geologist. The impugned order dated 08.09.2017 is accordingly set aside. The matter is remitted to respondent No.3 for reconsideration in accordance with law. The reconsideration shall be made within eight weeks from the date of receipt of a copy of this order. The petitioner shall furnish a copy of this order to respondent No.3 to enable him to consider the matter within the time stipulated above.
Petition disposed of.
Sd/-
ACTING CHIEF JUSTICE Sd/- JUDGE LB