Dharmendra Kumar Singh v. the State of Uttar Pradesh & Ors.
SANJAY KISHAN KAUL, J.
1. An ideological battle often rages between preservation of
environment and economic development. Mining activity and the manner
in which it is carried on has had its proponents and opponents. Its necessity
as an input for economic development is recognised but mining activity
throughout our country for minerals or sands has had a troubled history
on account of large-scale violations. This has also resulted in a ban on
mining activity in certain areas at certain times – not the ideal method,
but leaving little option open because of the rampant misuse of the licences
to mine. The present litigation, in a sense, flows from t he concern to
regulate mining activity in eco-sensitive areas.
The Factual Development :
2. The fact flow of the present case shows that what we are
faced with today has its seeds in prior litigation and orders passed in the
past in the interest of ecology, yet some persons who had succeeded in
the initial battle to carry out mining activity are faced with the
consequences of orders passed in other litigations. It is this conundrum,
which would have to be resolved by this Court.
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS.
3. Mining leases granted to projects in the mineral rich district of
Sonbhadra, carved out of the district Mirzapur in the State of Uttar
Pradesh (for short ‘State of UP’) in 1989 is the starting point. The All
India Kaimur People’s Front (for short ‘AIKPF’) filed an a pplication
before the National Green Tribunal, New Delhi (for short ‘NGT’), being
O.A. No.429/2016, inter alia seeking directions for immediate prohibition
of alleged illegal mining in the vicinity of Kaimur Wildlife Sanctuary located
in Village Billi Markundi in Sonbhadra District. The area being ecologically
sensitive and preservation of wildlife being the objective, the NGT issued
notices in the matter.
4. In pursuance of this initial development, a Notificati on dated
20.3.2017 was issued by the Ministry of Environment, Forest and Climate
Change (for short ‘MoEFCC’) declaring the “area in question” as an
Eco-Sensitive Zone (for short ‘ESZ’) under sub-section (1) and clauses
(v) and (xiv) of sub-section(2) and (3) of the Environment (Protection)
Act, 1986 (hereinafter referred to as the ‘EPA’).
5. The State of UP set out the factual position about the grant of
leases before the NGT in an affidavit filed in this behalf. Thi rty-three
leases were stated to be operational outside ESZ. The NGT called upon
the State of UP to explain the position of these leases i n view of the
order it had passed on 4.5.2016 in T.N. Godavarman Thirumalpad v.
Union of India and Ors .1 by way of which the NGT had directed the
State of UP to cancel all mining leases and all other non-forestry activities
on the areas notified under Section 4 of the Indian Forest Act, 1927
(hereinafter referred to as the ‘Forest Act’). In order to appreciate the
ramifications, Section 4 of the Forest Act is extracted hereinunder:
“4. Notification by State Government.— (1) Whenever it has
been decided to constitute any land a reserved forest, the Stat e
Government shall issue a notification in the Official Gazette—
(a) declaring that it has been decided to constitute such land a
reserved forest;
(b) specifying, as nearly as possible, the situation and limits of
such land; and
(c) appointing an officer (hereinafter called “the Forest Settlement-
officer”) to inquire into and determine the existence, nature and
1 In M.A. No. 1166 and 1164 of 2015 decided on 4.5.2016
563
extent of any rights alleged to exist in favour of any person in or
over any land comprised within such limits or in or over any forest-
produce, and to deal with the same as provided in this Chapter.
Explanation .—For the purpose of clause (b), it shall be sufficient
to describe the limits of the forest by roads, rivers, ridges or other
well-known or readily intelligible boundaries.
(2) The officer appointed under clause (c) of sub-section (1) shall
ordinarily be a person not holding any forest-office except that of
Forest Settlement-officer.
(3) Nothing in this section shall prevent the State Governme nt
from appointing any number of officers not exceeding three, not
more than one of whom shall be a person holding any forest-
office except as aforesaid, to perform the duties of a Forest
Settlement-officer under this Act.”
The purport of the Notification is, thus, to specify as to what lies
within the limits of reserved forest area.
6. The NGT in the said proceedings noted the admission of the
State of UP that some active leases still remained in for ce on lands
which were covered under the Notification issued under Secti on 4 of
the Forest Act for which the corresponding notification under Section 20
of the Forest Act had still not been issued. Section 20 of the Forest Act
reads as under:
“20. Notification declaring forest reserved.— (1) When the
following events have occurred, namely:—
(a) the period fixed under section 6 for preferring claims have
elapsed and all claims (if any) made under that section or section
9 have been disposed of by the Forest Settlement-officer;
(b) if any such claims have been made, the period limited by section
17 for appealing from the orders passed on such claim s has
elapsed, and all appeals (if any) presented within such period have
been disposed of by the appellate officer or Court; and
(c) all lands (if any) to be included in the proposed forest, which
the Forest Settlement-officer has, under section 11, elected to
acquire under the Land Acquisition Act, 1894 (1 of 1894), have
become vested in the Government under section 16 of that A ct,
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
the State Government shall publish a notification in the Official
Gazette, specifying definitely, according to boundary-marks erected
or otherwise, the limits of the forest which is to be reserved, and
declaring the same to be reserved from a date fixed by the
notification.
(2) From the date so fixed such forest shall be deemed to be a
reserved forest.”
Thus, what had not been done was that the consequences of the
area falling in the reserved forest area in terms of Section 4 Notification
did not follow a Notification under Section 20 of the Forest A ct. The
NGT, thus, directed vide order dated 13.7.2018 that all leases under
Section 4 area be prohibited by the State of UP forthwith. The review
filed by the State of UP came to be dismissed vide order dated 29.8.2018.
We may note at this stage that what is impugned is the aforesaid order
dated 13.7.2018 by the appellants before us, except for appellants in
C.A. No. 5093/2019 where order dated 25.3.2019 of the NGT has been
impugned. However, this order was also decided in terms of the main
impugned order dated 13.7.2018
7. The fallacy, in our view, which occurred in the proceedings
before the NGT was that leaseholders of the leases wer e not made
parties, not even in a representative capacity, yet, they suf fered the
consequences of the aforesaid order inasmuch as the District Magistrate
(for short ‘DM’), Sonbhadra, issued administrative orders (on 29.8.2018
and 5.2.2019) in pursuance of the aforesaid order of the NGT prohibiting
mining and transportation of gettis/boulders till the next order . This
effectively stopped the mining activity. The appellants naturally being
aggrieved filed appeals before this Court as being the affe cted parties
under Section 22 of the National Green Tribunal Act, 2010 (hereinafter
referred to as the ‘NGT Act’) arraying the State of UP, i ts concerned
departments and officers, MoEFCC, as well as AIKPF (th e original
petitioners before the NGT) as respondents. The appeals, inter alia,
are predicated on the respective lands and corresponding leas es being
actually excluded from the purview of the Notification issued under
Section 4 of the Forest Act, the lands in question being ‘ pahadh lands’,
i.e., uncultivable waste lands belonging to the Revenue Department.
Since there are different appeals and different dates involved, for clarity
of facts, we are setting forth below the particulars of the lease details
and the suspension orders of the respective appellants as under:
565 DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
Prior Litigations :
8. In order to appreciate the contention of the appellants, it would
be apposite to trace out two lines of legal developments, which have
arisen since the issuance of Notification under Section 4 of t he Forest
Act wherein lies the genesis of the dispute. The first line of legal
development arose from Notification No. 3723/14-b-4(6 7)69 dated
5.11.1969 issued by the State of UP under Section 4 of the Forest Act.
The Notification included in its compass large tracts of land in Village
Billi Markundi declaring that it has been decided to constitute such land
as reserved forest. The corresponding Notification under Section 20 of
the Forest Act was to be issued. However, the 1969 Notification came
under scrutiny of this Court upon a letter being received from the Banwasi
Seva Ashram operating in Sonbhadra District highlighting the plight of
the Adivasis living in the area and their related rights with respect to the
land. The adjudication resulted in a judgment being pronounced on
20.11.1986 in Banwasi Seva Ashram v. State of U.P & Ors.2 wherein
a slew of directions were passed relating, inter alia to the land which
had been notified under Section 4 of the Forest Act but where no
subsequent notification had been issued under Section 20 of that Act. It
was directed that the Forest Settlement Officer (for short ‘FSO ’) shall
scrutinize all claims and thereafter the matter be pl aced before the
Additional District Judge (for short ‘ADJ’) as a suo moto appeal. The
State Government was required to give effect reserving such lands under
Section 20 of the Forest Act which were found to be covere d under
Section 4 of the Forest Act. Claims were filed before the FSO (including
those of the predecessors of the appellants herein) to be excluded from
Section 4 Notification and they succeeded in the same. A decision was
to be taken by the ADJ as the appellate authority and th e order passed
by the said authority on 30.9.1994 confirmed the findings of the FSO.
The Forest Department thereafter filed a large number of review petitions
against that order, which came to be allowed, albeit after a period of
eight (8) years, in terms of the order dated 31.5.2003. Thus, the appellants/
predecessors of appellants before us (who were affected parties in those
proceedings) approached the High Court by way of different writ petitions
and all these petitions came to be allowed in terms of the order in Writ
Petition No.29546/2003 titled Ved Prakash Garg & Ors. v. Additional
District Judge , which itself was deciding the grievance of a large number
2 (1986) 4 SCC 753
567
of claimants similarly placed as the appellants herein against the order
dated 31.5.2003. The view adopted was predicated on the stand of the
State of UP itself having taken a decision that the land in q uestion be
treated as land belonging to the Revenue Department of the S tate and
on which the mining operations should be permitted. A direc tion was
issued that the application for renewal of mining leases be considered
and the order dated 31.5.2003 was set aside. An SLP against this order
came to be dismissed by this Court on 22.11.2018, in SLP (C) (Diary)
No. 33675 of 2018. The proceedings in respect of exclusion of the
subject land in question from the purview of Section 4 of the Forest Act,
thus, attained finality.
9. The second line of litigation pertains to events of 1992 when
the Uttar Pradesh State Cement Corporation (for shor t ‘UPSCCL’)
became a sick industry and was put to auction where M/s Jay prakash
Associates Limited (for short ‘JAL’) emerged as the highest bidders.
The significance of this event is that it culminated in t he order in the
T.N. Godavarman case dated 4.5.2016, on which considerable reliance
has been placed in the impugned order before us. 3 The assets purchased
by JAL included a mining lease of 2168 hectares of area of which some
portions were included within Section 4 Notification area. Claims were
initiated by JAL praying for exclusion of the said lands from Section 4
Notification. This matter came up to this Court, when in 2010 it was
transferred to the NGT. The NGT passed a detailed judgment in this
very matter on 4.5.2016 with directions, inter alia to the State of UP to
cancel all mining leases whether fresh or renewed and all other non-
forestry activities on the Section 4 lands and to issue a notification under
Section 20 immediately. The effect of these directions was that the
finality of the settlement proceedings concluded in terms of Banwasi
Seva Ashram 4 case was reiterated and urgency to carry out the process
under Section 4 and Section 20 of the Forest Act was emphasised.
10. The significance of the aforesaid two rounds of litigati on
assumes importance in view of the reliance placed on them in the
impugned order but also by the appellants to buttress their claim that the
procedure with regard to the leases in their favour came to be settled in
terms thereof.
3 (supra)
4 (supra)
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
The Current Litigation :
11. We now turn to the present civil appeals in which notices
were issued and the matters were clubbed. In the counter af fidavit
dated 23.4.2019 filed by the State of UP the factual progression discussed
aforesaid in respect of the land excluded from the purview of Section 4
was set out. The State of UP also sought permission of the Court with
respect to issuance of the notification under Section 20 for those lands,
which did come under Section 4 of the Forest Act. The questi on was
crystallised in the counter affidavit as that if the notification under Section
20 had not been issued and certain parts of the lands covered under the
notification under Section 4 had been deleted by the competent authorities
(i.e., the FSO, thereafter ADJ, and finally the High Court) whether such
deleted lands shall be treated as non-forest lands without issua nce of
notification under Section 20 of the Forest Act. As is the normal working,
a series of orders had to be passed by this Court due to delay on behalf
of the State of UP and it is only on 15.7.2020 that this Court noted that
the Section 20 notification had finally been issued on 15.6.2020. Thus, it
was noted by this Court on that date that the only question now remaining
to be determined was with regard to the extension of lease s for the
period for which the mining leases of the appellants were not permitted
to operate and sought the assistance/view of the State of UP on this
aspect.
12. The State respondents filed an additional affidav it dated
6.8.2020 setting forth its stand. It was contended by the State of UP
that no permission for mining can be granted for the obstructed period
as there does not exist any provision for grant of such permi ssion for
mining in case of disruption of mining operations under the Uttar Pradesh
Mining Minerals (Concession) Rules, 1963 (hereinafter referred t o as
the ‘Mining Rules’). 5 On 10.8.2020 while noticing the aforesaid and
upon a query from the Court, the State of UP conceded that it was
willing to refund the proportionate amount of the lease money, for which
period the leases have not been permitted to operate. This was objected
to by the appellants. Thus, the Court crystallised the issue to be
determined and the only aspect to be examined by this Court, as whether
in view of judicial pronouncements the appropriate order to pass would
be for refund of the lease amount for the period it was not permitted to
5 Framed under Section 15 of the Mines and Mineral (Development and Regulation)
Act, 1957
569
operate, or whether the leases are liable to be renewed for the period of
obstructed time. It is within the contours of the afores aid proposition
that learned counsel for the parties have taken their stand, both in terms
of the written synopses and by making submissions in the Court.
The Stand of the State of UP :
13. The State of UP crystallised the factual issue by se tting out
that the total number of permitted operational mining leases prior to the
impugned order in the district in question were 82 – 64 leases in Village
Billi Markundi and only 29 of such leases were covered by the impugned
order. The impugned order resulted in 41 leases ceasing to exist/being
banned and 29 leases out of them have been covered by Section 2 0
notification. The notification had resulted in 5 out of 29 leases falling
within the radices of 100 metres of the forest land and out of the remaining
24 leases, 12 have expired and 12 subsist. We are concerned w ith the
latter. The consequence of the impugned order and the order of the DM
was that the mining operations had been obstructed pursuant to impugned
order dated 13.7.2018 till the issuance of the notification under Section
20 of the Forest Act. The State of UP contended that it had only complied
with the impugned order and if these mining leases are now ex tended
there would be consequences flowing to the State of UP, on account of
judicial orders. We may notice that some of the leases expired during
the obstructed period while other leases have continued and thus in the
latter cases the issue would only be to further extend the le ase for the
obstructed period while in case of the earlier situation permission would
have to be given to mine for an extended period relatable to the obstructed
period. The delay on the part of the State of UP in iss uance of the
Section 20 notification has been placed at the door of an apprehension
that it should not be construed as violative of the orders passed in Banwasi
Seva Ashram 6case .
14. In what manner should such cases be dealt with, judicial opinions
expressed in this behalf have been sought to be referred to as a consistent
view of the Allahabad High Court in this behalf, being the l ocal court
dealing with the aspect of mining leases in the cases:
a. Sukhan Singh v. State of UP & Ors.7 an opinion was rendered
that the mere filing of an application either for the grant of a lease
6 (supra)
7 (2015) 2 All LJ 619
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
or for the renewal of a lease does not confer a vested right for the
grant or renewal of a lease and, an application has to be disposed
of on the basis of the rules as they stand on the date of the disposal
of the application. This was in the context of the applicability of
G.O. dated 31.05.2012 to pending applications seeking a fresh
lease or for renewal of a lease under Chapter II of the M ining
Rules as decided in Nar Narain Mishra v. The State of UP and
Ors .8 (This view received the imprimatur of the Supreme Court
in Sulekhan Singh & Company and Ors. V. State of Uttar
Pradesh & Ors. 9).
b. In Mohammad Yunus Hasan v. State of UP & Ors. 10 Rule
68 of the Mining Rules dealing with the relaxation of applicability
of the Mining Rules by the State Government was interpreted to
determine the contours of the power which could be exercised in
terms of the said Rule. Rule 68 reads as under:
“68. Relaxation of rules in special cases.- The State Government
may, if it is of opinion that in the interest of mineral development
it is necessary so to do, by order in writing and for reasons to
be recorded authorised in any case the grant of any mining
lease or the working of any mine for, the purpose of winning
any minerals on terms and conditions different from those laid
down in these rules.”
The aspect of ‘interests of mineral development’ was emphasised
and it was opined that the Rule does not confer a power on the State to
extend a lease beyond the contracted period without adhering to the
procedure under Chapter II 11 and IV 12 of the Mining Rules. The
conclusion reached was that this Rule 68 could not be an aid to extend
the term of an expired lease to compensate any loss caus ed to such
leaseholder, if their lease has been terminated or curtaile d during the
subsistence period due to an order of the competent authority. Moreover,
the right to an extension of lease must either flow from a statutory provision
or from the terms of the lease between the concerned par ties.
8 2013 SCCOnline All 13919
9 (2016) 4 SCC 663
10 (2016) 4 All LJ 4
11 Grant of Mining Lease
12 Auction Lease
571
c. In Vijay Kumar Dwivedi v. State of Uttar Pradesh 13 the
validity of permission granted by the State Governmen t to
leaseholders to continue with the excavation for the period during
which they were obstructed/restrained from carrying out suc h
activities during the subsistence of their leases due to or ders of
the High Court or of competent authorities was examined. Relying
upon the observations in Mohammad Yunus Hasan 14 case, the
Allahabad High Court directed that no person shall be permitted
to excavate minor minerals on the basis of lease de eds or
permission granted subsequent to G.O. dated 31.5.2012 under the
garb of renewal of an expired lease, extension of lease, grant of a
fresh lease, or permission to excavate during the obstructed period.
Additionally, no Form MM-11 shall be issued in favour of any
person with an expired lease or an order be granted subsequent
to 31.5.2012 in their favour for excavation of minor minerals in
the name of renewal of lease, extension of term of expired lease,
or permission for the obstructed period on the plea that a valid
lease was granted but excavation could not be carried fo r some
days during the subsistence period due to orders of the High Court/
competent authorities. This was so as the G.O. dated 31.5.2012
recorded a decision, which had been taken in the interests of
transparency and fair competition, to grant leases through the E-
tendering system by inviting tenders under Chapter IV of the
Mining Rules.
15. In the conspectus of the aforesaid facts and ju dicial
pronouncements, the developments which have taken place post t his
situation were set out. The State of UP issued a New Mining Policy on
12.6.2017. In terms of this policy there is no provision for gra nt of
extension of time for obstructed period of mining lease and all mining
leases were to be permitted by e-tendering or e-auction alone.
16. It is also contended before us on behalf of the State of UP by
learned senior counsel, Mr. V. Shekhar that there was no legal provision/
rule or any provision in the respective lease deeds to p ay damages in
case of disruption of mining leases and the consequenc es of such
disruption are set out in Rule 40(h) of the Mining Rules, which reads as
under:
13 (2006) 4 All LJ 690
14 (supra)
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
“40. Liberties, powers and privileges .— (h) In the event of
disruption of mining operation in the lease area owing to any special
circumstances, the District Magistrate with the prior approval of
the State Government shall adjust the amount equivalent to the
installment payable during the disrupted period, online against the
forthcoming installment.”
Thus, in the event of disruption of mining operations in the leased
areas owing to any special circumstances, the DM, with the prior approval
of the State Government shall adjust the amount equiv alent to the
installment payable during the disrupted period against the forthcoming
installment. Thus, it was contended that the State of UP is only liable to
refund (i) any security deposit, or (ii) advance royalties paid to it.
17. It was emphasised that in view of the judicial pronouncement
in Vijay Kumar Dwivedi 15 case it is clear that after 31.5.2012, no
permission for mining can be granted to excavate during the obstructed
period. In the absence of any provision under the Mining Rules f or
grant of extension of expired mining lease or renewal of the same for
the obstructed period in case of disruption to mining ope ration, any
extension of lease was contended to be unsustainable in law.
18. The sequitur to G.O. dated 31.5.2012 was pleaded to have
been explained in the Nar Narain Mishra case 16 where the Allahabad
High Court observed that any submission that ‘ imarti patthar or building
stone’ is not covered by the G.O. dated 31.5.2012 cannot be accepted.
This was predicated on the reasoning that the G.O. did not confine itself
to the word ‘boulder’ found in riverbeds as the same can be used for
minerals found in riverbeds as well as those found in ‘ in situ rock deposit’.
This was also stated to be evident from Schedule I and II of the Mining
Rules which make it clear that the word ‘boulder’ is incl uded in the
heading of ‘building stone’ as well as found in a mixed form in the
riverbed. Item 5 of Schedule I and Item 4 of Schedule II both us e the
word ‘boulder’ as building stones as well as when found in a mixed form
in riverbeds.
19. The High Court, thus, passed directions rejecting the prayers
made for consideration of applications for renewal of mining leases which
were pending on 31.5.2012 and applications for grant of fresh leases
15 (supra)
16 (supra)
573
under Chapter II of the Mining Rules which were also pending on the
same day. An SLP preferred against this judgment was dis missed on
4.3.2016. Not only that, it was emphasized that the Supreme Cour t
itself in the Sulekhan Singh 17 case approved of the decision in Nar
Narain Mishra 18 case.
20. The concluding argument was that the aforesaid position leaves
no manner of doubt that the appellants were not entitled to any extension
or renewal of their old leases and at the most are entitl ed to refund of
their respective lease amounts for the period for which the leases were
not permitted to operate, an aspect which has already been conceded on
behalf of the State Government in the proceedings dated 10.8.2020.
Thus, the permission sought by the appellants for operating the expired
mining lease for the obstructed period was strongly opposed, leaving it
for the appellants to file an application under Rule 40(h) if the amount is
to be refunded or adjusted.
21. We may note the supporting arguments of AIKPF qua the
impugned order of the NGT, which drew our attention to the prohibition
of mining in ESZ declared around the Kaimur National Park and that not
being challenged by the appellants and hence the consequences of mining
activity for the obstructed period did not facilitate extension of le ases.
The aspect arising from the GO dated 31.5.2012 and the contentions of
the State Government in that behalf was also sought to be supported by
the observations of the Supreme Court in Deepak Kumar and Ors. v.
State of Haryana and Ors. 19 which in turn had extracted the
recommendations of Ministry of Environment and Forest regarding the
definition of the term ‘minor mineral’, which it said meant building stone,
gravel, ordinary clay, ordinary sand other than sand used for prescribed
purposes and any other material which the Central Government may, by
notification declare to be a minor mineral. 20
The Appellants’ Case :
22. The contentions of the appellants, on the other hand, led by
learned senior counsel, Mr. Mukul Rohatgi and Mr. S.P. S ingh are
predicated on the settlement of the controversy in ques tion in the
aforementioned prior rounds of litigation which came up right to this
17 (supra)
18 (supra)
19 (2012) 4 SCC 629
20 Section 3(e) in The Mines and Minerals (Development and Regulation) Act, 1957
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
Court and the appellants had succeeded in the same. The land for which
mining leases were granted to the appellants were excluded from the
purview of the Section 4 notification in pursuance of the se ttlement
proceedings concluded as per directions in Banwasi Seva
Ashram 21 case. These settlement proceedings are pleaded to have been
ignored while passing the impugned order and that too without notice to
the appellants.
23. The appellants plead that suspension of the mining leases i s
not on account of any factor attributable to them, i.e., there is no illegal
mining or any such factor, which may weigh against the appellants. The
delay in issuance of the Section 20 notification was solely bec ause of
the delayed State action, and the issue was finalised only on 15.6.2020
whereby the land categorised as revenue land was excluded from t he
purview of forest land. The appellants alleged to have suffered f or no
fault of theirs but on account of the litigation initiated behind their back
and the inaction of the State. This was, it was contended, a “third chapter
of litigation” on the very question of the consequences of Section 4
notification – the first round in pursuance of the Banwasi Seva
Ashram 22 case right up to this Court and then the exclusion claim of
JAL which culminated in the order of the Tribunal dated 4.5.2016, which
it was contended, would have no bearing on their leases.
24. The plea of the State of non-grant of extension of leases is
stated to be contrary to record as that power has been exerc ised in the
past under Rule 68 of the Mining Rules. Illustratively, two judgments
have been referred to where such extension of lease is recognised: J.P.
Yadav v. Kanhaiya Singh & Ors. 23 and Jagdish Prasad Nishad v.
State of UP & Ors. 24 In J.P. Yadav , the Apex Court observed that
Rule 68 confers upon the State the powers to extend l ease for the
obstructed period and subsequently in Jagdish Prasad Nishad , the High
Court reiterated that any different view taken with respe ct to Rule 68
and the powers it confers on the State would be in violati on of the
observations of the Supreme Court in J.P. Yadav . Rule 68, it was urged,
is comprehensive and complete in all respects and in the absence of any
specific legislation recourse can be had to the said Rule.
21 (supra)
22 (supra)
23 CA No. 8621/2013 decided on 19.9.2013
24 (2015) 128 RD 150
575
25. On a linked aspect, keeping in mind the predicament that the
appellants find themselves in on account of Court orders, learned counsel
relied upon the observations in Beg Raj Singh v. State of UP & Ors. 25
for the proposition that the ordinary rule is that the Court should try to
place the successful party in the same position which they had been in,
if the wrong complained against them would not have been done to
them. Moreover, it was argued that, it is a well-settled proposition of law
that an act of the Court shall prejudice no one and the same is reflected
in the maxim, ‘ Actus curiae neminem gravabit ’. The factual matrix
dealt with the same issue of extension of mining leases and in pursuance
of the judgment, the State of UP had issued a notification dated 31.7.2014
to all DMs stating that the judgment makes it clear t hat wherever no
third party interest had been created, the area is vacant and it is
established that the leaseholder has been prevented from opera ting its
mining lease for any period for no fault attributable to them, th en the
extension of mining lease for the corresponding period can be provided.
The case of the appellants is submitted to squarely fall within the aforesaid
compass.
26. The appellants plead that the G.O. dated 31.5.2012 and for
that matter the New Mining Policy of 2017 will have no bearing as that
aspect stands elucidated vis-à-vis the judgment in M/s. Peethambra
Granite Pvt. Ltd. v. State of UP & Ors. 26 by the High Court Judicature
at Allahabad. In this case, the directions issued in Vijay Kumar Dwivedi 27
case have been held to have no application to granite building stone ( in
situ rock) as the mineral was not covered by the G.O. dated 31.5.2012.
This aspect is stated to have been clarified by the subsequent G.O. dated
26.2.2013 and the G.O. dated 22.10.2014, the latter, in fact, cancelle d
the G.O. dated 31.5.2012 as also the G.O. dated 26.2.20 13. Since
31.5.2012 itself, a total of 35 mining leases are stated to have been
granted or renewed in District Sonbhadra.
27. We may add that Mr. Ranjit Kumar, learned senior counsel,
advanced the additional plea of G.O. dated 31.5.2012 not being applicable
on account of the lease being granted prior to that date in 2012.
28. On the aspect on which a Court query was posed, i.e., if this
Court is not agreeable to renew the leases, what could be the method of
25 (2003) 1 SCC 726
26 WRIT - C.No. - 30066 of 2017 decided on 18.2.2020
27 (supra)
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
grant of compensation, calculations have been filed by the appel lants.
Losses are stated to include idling of machinery and other infrastructure,
the payment of salaries, providing staff accommodation as also the costs
of litigation as part of calculation of compensation.
29. We may note in the end that one of the pleas advanced wa s
that the State Government itself had not been satisfied with the impugned
order and had preferred Civil Appeal Nos.8804-8805/2019. However,
when this fact was pointed out to Mr. V. Shekhar, learned senior counsel,
on instructions, sought to withdraw the appeal stating that whatever be
the grievance against the impugned order, the same did not survive and
that the State Government was not desirous of pursuing the appeal. The
appeal was, thus, dismissed as withdrawn on 29.9.2020 and the judgment
was reserved in these appeals.
The Path We Take :
30. We have given considerable thought to the issue at hand,
keeping in mind the past litigation, the statutory provisions and the narrow
compass in which we have to examine the issue at hand.
31. There is no doubt that the prior rounds of litigation resulted in
orders favouring the appellants. The present round of litigation, however,
arose on account of an endeavour to prevent alleged illegal mining in the
vicinity of the Kaimur Wildlife Sanctuary located in Village Billi Markundi
in Sonbhadra District. The Notification dated 20.3.2017 of the MoEFCC
declared the ‘area in question’ as an ESZ under the provisions of the
EPA. The sequitur was that the State of UP placed before the NGT the
factual position relating to the grant of leases and acc ording to them,
there were stated to be 33 leases operational outside the ES Z. The
NGT wanted to examine this on account of the orders passed on 4.5.2016
in T.N. Godavarman Thirumalpad 28 case for cancellation of all mining
leases and all other non-forestry activities on areas notified under Section
4 of the Forest Act. The whole object was to find out as to what lay
outside of the reserved limit of the forest area and it was found that
there were some active leases still in force on the lands which were
covered under the notification issued under Section 4 of the Forest Act.
But despite this, the notification under Section 20 of the Forest Act had
not been issued. The directions which arose from the impugned order
of the NGT on 13.7.2018, were towards this objective.
28 (supra)
577
32. We have already noted that the leaseholders were, howev er,
not made parties, not even in a representative capacity. T his is the
reason that these aspects could not be examined with the assistance of
the appellants by the NGT, and the mining activity was stopped resulting
in the appeals before us. We, thus, called upon the State of UP to
perform their statutory duty of issuance of the notification under Section
20 of the Forest Act and after some delay, the same was issued only on
15.6.2020. It is only at that stage that the leases which were not covered,
as in the case of the appellants, had a final clarity and the issue, received
a closure. However, this did prevent the mining activity till then, from
the time it was banned by the NGT. In the mean time, there a re leases
which have expired and there are other leases which are still in force as
is apparent from the detailed chart which we have set out at the inception
of our judgment.
33. Insofar as the question whether to adopt the co urse of
extending the leases for the obstructed period or i n some way
compensating the appellants for the same, is what was debated and we
have already noted the rival contentions of the two parties.
34. We have, at the inception, stated that we are conscious of the
statutory provisions and, thus, would not like to infringe the same, apart
from the fact that it may not be an appropriate course of action as it may
open other floodgates as if these rounds are not enough!
35. The judicial opinions referred to by learned counsel for the
State of UP no doubt lead to a more or less consistent view that a mere
filing of an application either for the grant of a lease or for the renewal
of a lease does not confer a vested right for either grant or renewal of a
lease ( Sukhan Singh 29 case). The statutory provision of Rule 68 of the
Mining Rules, which has been strongly relied upon by learned counsel
for the appellants, is in the nature of a relaxation rule in s pecial cases
and has to be read with the Rules which provide the manner in which
the exploitation of minerals should take place ( Mohammad Yunus
Hasan 30 case). Thus, the expression used is “in the interest of mineral
development it is necessary so to do…” The idea, thus, is that the
29 (supra)
30 (supra)
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
objective of exercising such power should be to aid the development of
minerals and such judicial view is of significance as there was always a
possibility of the misuse of such power, considering the history of mineral
exploitation in our country. The statute was worded in a rest rictive
manner deliberately giving only a restricted window and this legislative
intent ought not to be defeated by supplanting it w ith any other
interpretation. It is a well settled principle of interpretation that when the
words of a statute are clear and unambigous, recourse to different
principles of interpretation, other than the rule of literal con struction,
cannot be resorted to. 31 If a fresh grant or extension has to be made
under the Mining Rules, it must be in accordance with Chapter II , and
the provision for auction of leases in Chapter IV is in furth erance of a
transparent procedure.
36. We do find ourselves in agreement with the submission of the
learned counsel for the State that the right to extension of lease either
flow from a statutory provision or from the terms of the lease between
the concerned parties. If there has been an obstructed period by reason
of a judicial interdict, that itself will not give window to extend the lease
by not following the statutory provisions, especially when the terms of
the lease do not provide for any consequences thereof.
37. We may notice that this view has been adopted b y the
Allahabad High Court in Vijay Kumar Dwivedi 32 case where the same
question was examined. The leaseholders were obstructed/rest rained
from carrying out the mining activity during the subsistence of their leases
upon the orders of the High Court or of the competent authori ty. The
High Court adopted the view that after the issuance of the G .O. dated
31.5.2012 this could not be done.
38. We are conscious of the fact that the G .O. dated 31.5.2012
also finds elucidation in certain other judicial pronouncements and that
this aspect was clarified by the subsequent G .O. dated 2 6.2.2013 and
then both the G.Os. were cancelled vide G.O. dated 22.10.2014, which
would hold the field. In pursuance thereof, 35 mining leases are stated
to have been issued but that itself would not make a difference because
31 Delhi Transport Corporation v. Balwan Singh and Ors., 2019 SCC OnLine SC 276
32 (supra)
579
we have to see what are the subsequent developments and what course
to adopt as on date. Even if we consider the interpretation sought to be
put forth by learned senior counsel for the appellants o f an expanded
view of Rule 68, giving power to the State to extend the leas e for the
obstructed period, would it now be exercisable is the question.
39. The State of UP had issued a New Mining Policy on 12.6.2017
and this policy has no provision for grant of extension of time for
obstructed period of mining lease and all mining leases were to be
permitted by e-tendering or e-auction alone. If the mi ning lease is
extended for the obstructed period, it would amount to violation of this
New Mining Policy and since the extension would have to be granted
now, we are unable to accept the contention of the learned senior counsel
for the appellants that this should relate back to the date of the lease and
not as on date.
40. We may also notice that the statutory rule, Rule 40(h) of the
Mining Rules, extracted in para 16 itself, provides for the consequences
of the disruption of mining operations in a lease area owing to any special
circumstances and requires the DM, with the prior approval of the State
Government, to adjust the amount equivalent to the installments payable
during the disrupted period against forthcoming installments. Thus,
monetary adjustment is all that has been provided for by the statute
making the legislative intent obvious, i.e., that if some am ounts have
been paid as installments under the mining lease for the period when the
beneficiary is not able to operate the mining area, only that amount is
liable to be refunded. This is what forms the basis of the submission
made on behalf of the State of UP that they are only liable to refund (i)
any security deposit; or (ii) advance royalties paid to t hem, for this
obstructed period – something to which the State of UP ha s already
consented before us as recorded in our order dated 10.8.2020. The
view taken by the High Court in Nar Narain Mishra 33 case no doubt
was in the context of the applicability of the G.O. dated 31.5.2012 and
received the imprimatur of the Supreme Court in Sulekhan Singh 34
33 (supra)
34 (supra)
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
case. But we have also to note that the observations dealt with the issue
also on the submission advanced that ‘ imarti patthar or building stone’
is not covered by the G.O. dated 31.5.2012 and that contention was not
accepted. The word ‘boulder’ was held to be included in the heading of
‘building stone’ as well as when found in a mixed form in riverbeds and
the prayer of the leaseholder was not accepted.
41. We are conscious of the fact, as already noticed, that the
appellants have suffered in the second round and the plea advanced on
their behalf that if there were interdicts posed by a competent court that
should not put a party at a disadvantage. This rule is ordin arily to be
accepted for placing a successful party in the same position, which they
had been in, if the wrong complained against them would not have been
done to them. 35 However, this cannot be a blanket proposition and we
have to consider the context in which the interdict was passe d, i.e., to
preserve the forest area. It is a different matter that some leases were
ultimately found as within the restricted area and some outside (as is the
case of the appellants). Even if we take the notification of the State of
UP dated 31.7.2014 into account, and the authorisation of the D Ms to
extend the lease where no third party interest was created and the leases
were prevented from operation for no fault attributable to the leaseholders,
the subsequent transparent policy of 2017 would weigh in favour of not
exercising the jurisdiction to extend the leases for the obstructed period.
42. We, thus, find that the appropriate course of action to b e
adopted in this case cannot be to extend the lease for the o bstructed
period but to direct that the security deposit, if not alre ady refunded,
should be refunded and the amount deposited by the appellants/
leaseholders as advance royalties to the respondent/State b e also paid
back to them along with something more.
43. We now come to that something more and we are taking
recourse to that course of action by exercising our jurisdicti on under
Article 142 of the Constitution of India to do complete justice inter se
35 (supra)
581
the parties. We do this, keeping in mind that the appellants’ monies have
remained blocked and mining prevented for no fault of theirs, despite
success in earlier legal proceedings, and this aspect has to be balanced
with the statutory provision or for that matter, even the c ontractual
provisions not providing for extension of leases. We are, thus, o f the
view that since these monies have remained blocked, the monies should
carry simple interest @ 9% per annum.
44. Insofar as the security deposit is concerned, if it has already
been refunded, it would naturally not carry any interest and if not, then it
will carry interest from the date it ought to have been refunded after the
expiry of the lease till it is actually refunded in case of expir ed leases.
On the other hand, so far as the advance royalties for the ob structed
period are concerned, the said amounts will carry interest @ 9% per
annum from the date the obstruction occurred, i.e., 2 9.8.2018 and
5.2.2019, as applicable to the respective appellants, till t he date of
payment.
Conclusion :
45. The appeals are, thus, decided as aforesaid with the lim ited
directions and to the extent the observations in the impugned order are
in contradiction thereto are set aside. It is directed tha t the following
amounts be refunded to the appellants:
i. Security deposit, if not already refunded, with simple interest @
9% per annum from the date it ought to have been refunded after
the expiry of the lease till it is now actually refunded, in cas e of
expired leases; and
ii.Advance royalties, if not already refunded, with simple interest
@ 9% per annum from the date of the obstruction occurred, i.e.,
29.8.2018 and 5.2.2019 as applicable to the respective appellants,
till the date of payment.
iii. Both the aforementioned amounts be refunded within two
months from today.
DHARMENDRA KUMAR SINGH v. THE STATE OF UTTAR
PRADESH & ORS. [SANJAY KISHAN KAUL, J.]
46. The appeals are disposed of in terms aforesaid, leav ing the
parties to bear their own costs. All pending applications also stand
disposed of.
Kalpana K. Tripathy Appeals diposed of.