JUDGEMENT
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(1.)This batch of Writ Petitions and Transferred Cases relate to mining in the State of Goa and as issues raised are common to the Writ Petitions and the Transferred Cases, the cases have been analogously heard and are being disposed of by this common judgment. Facts relating to mining in Goa:
(2.)Prior to 19.12.1961 when Goa was a Portuguese territory, its Portuguese Government had granted mining concessions in perpetuity to concessionaires. On 19.12.1961, Goa was liberated and became part of the Indian Union and on 01.10.1963, the Mines and Minerals (Development & Regulation) Act, 1957 (for short 'the MMDR Act') was made applicable to the State of Goa. On 10.03.1975, the Controller of Mining Leases issued a notification calling upon every lessee and sub-lessee to file returns under Rule 5 of the Mining Leases (Modification of Terms) Rules, 1956 and sent copies of the notification to the concessionaires in Goa. Aggrieved, the concessionaires moved the Bombay High Court, Goa Bench, and by judgment dated 29.09.1983, in Vassudeva Madeva Salgaocar vs. Union of India, 1985 1 BCR 36, the Bombay High Court restrained the Union of India from treating the concessions as mining leases and from enforcing the notification against the concessionaires.
(3.)Parliament thereafter passed the Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987 (for short 'the Abolition Act') which received the assent of the President on 23.05.1987. Section 4 of the Abolition Act abolished the mining concessions and declared that with effect from the 20th day of December, 1961, every mining concession will be deemed to be a mining lease granted under the MMDR Act and that the provisions of the MMDR Act will apply to such mining lease. Section 5 of the Abolition Act further provided that the concession holder shall be deemed to have become a holder of the mining lease under the MMDR Act in relation to the mines in which the concession relates and the period of such lease was to extend upto six months from the date when the Abolition Act received President's assent, i.e. upto 22.11.1987. On 14.10.1987, sub-rules (8) and (9) were inserted in Rule 24A of the Mineral Concession Rules, 1960 (for short 'the MC Rules') which deal with renewal of mining leases in Goa, Daman and Diu. The Abolition Act was challenged by the lessees before the Bombay High Court in a writ petition. The High Court passed an interim order permitting the lessees to carry on mining operations and the mining business in the concessions for which renewal applications had been filed under Rule 24A of the MC Rules. Subsequently, the High Court held in its judgment dated 20.06.1997 that the Abolition Act was valid but Section 22(i)(a) of the Abolition Act would operate prospectively and not retrospectively. The concessionaires filed special leave petition against the judgment dated 20.06.1997 before this Court. On 02.03.1998, this Court passed an interim order permitting the concessionaires to carry on mining operations and mining business in the mining areas for which renewal applications have been made on the condition that the lessee pays to the Government dead rent from the date of commencement of the Abolition Act. Subsequently, this Court granted leave in the special leave petition and continued the aforesaid interim order.
The Justice Shah Commission and its report: