- (1.) The grant of in all 203 leases for quarrying granites in government lands under Rule 3 of the Karnataka Minor Mineral Concession Rules, 1969 contrary to the prohibition contained in Rule 3-A therein was challenged in the Karnataka High court in writ petitions which were allowed by the learned Single Judge and those grants were quashed. The writ appeals by the grantees of the mineral concession have also been dismissed by a division bench of the High court. Hence, these appeals by special leave by the grantees.
(2.) All the 203 leases, out of which 61 were of renewal while the rest were fresh grants relate to quarrying of minerals in government lands.
(3.) In exercise of the powers conferred by Section 15 of the Mines and Minerals (Regulation and Development) Act, 1957, government of Karnataka made rules known as Karnataka Minor Mineral Concession Rules, 1969 (for short "the Rules"). Rule 3 provides for restriction on grant of quarry leases. Rule 3-A was introduced by amendment by a notification dated 5/9/1979 restricting grant of quarry leases in respect of Black Granites. Rule 3-A was amended by a notification dated 21/5/1980 extending the definition of "black Granite". Then by a notification dated 23/6/1981. Rule 3-A was further amended by substituting the words "black Granite or Pink Granite" for the words "black Granite". A further amendment was made in Rule 3-A by a notification dated 27/3/1982. Later by a notification dated 22/5/1990 the government amended Rule 3-A by which the absolute restriction on the grant of lease of government lands for quarrying granites in favour of private parties was relaxed in favour of certain categories of persons specified therein; and then by a notification dated 4/1/1991 a further amendment in Rule 3-A was made. A challenge to the validity of the amendment made in Rule 3-A in 1990 and 1991 was made in certain writ petitions wherein the High court granted a stay in favour of the petitioners therein. At this stage the government of Karnataka issued an order dated 18/6/19911 for grant of quarry leases for black, pink and multi-coloured granite under Rule 3. It is under the said order dated 18/6/1991 that these 203 quarry leases were granted under Rule 3. The challenge in the writ petitions which have been allowed leading to these appeals is to the 203 quarry leases so granted under Rule 3.;