M/s. Shri. Venkateshwara Minerals' plea for lease extension dismissed due to non-compliance with statutory area requirements.
In a significant ruling, the Karnataka High Court has dismissed the plea of M/s. Shri. Venkateshwara Minerals for the deemed extension of its mining lease, citing non-compliance with the minimum area requirement as per Rule 22-D of the Mineral Concession Rules, 1960. The decision was made by a division bench comprising Chief Justice Vibhu Bakhru and Justice C.M. Poonacha, who upheld the rejection of the petitioner's application by the State of Karnataka.
The petitioner, who sought an extension of their lease over six acres of land in Thimmapura Village, Mudhol Taluk, Bagalkot District, argued that the lease should be deemed extended under Section 8A(3) of the Mines and Minerals (Development & Regulation) Act, 1957. However, the court found that the lease was granted in violation of Rule 22-D(c) of the MCR, 1960, which mandates a minimum area of four hectares for such leases.
The court emphasized that any lease granted in contravention of statutory provisions is void under Section 19 of the MMDR Act. The bench further noted that Article 14 of the Constitution does not allow for the perpetuation of illegality, thus rejecting the argument that the petitioner should receive similar benefits as those wrongfully granted to others.
This ruling underscores the judiciary's commitment to upholding statutory regulations in the mining sector, ensuring that concessions comply with legal requirements to prevent arbitrary and illegal grants.
Bottom Line:
Mining lease - Application for deemed extension under Section 8A(3) of the Mines and Minerals (Development & Regulation) Act, 1957 - Rejection of application for deemed extension based on non-compliance with Rule 22-D of the Mineral Concession Rules, 1960 (MCR, 1960) - Lease granted in violation of minimum area requirement under Rule 22-D(c) - Lease deemed void under Section 19 of the MMDR Act.
Statutory provision(s): Mines and Minerals (Development & Regulation) Act, 1957 Sections 8A(3), 19; Mineral Concession Rules, 1960 Rule 22-D; Constitution of India, Article 14.
