STATE OF JHARKHAND, THROUGH ITS CHIEF SECRETARY HAVING OFFICE AT JHARKHAND MANTRALAYA, PROJECT BHAWAN, HEC TOWNSHIP, DHURWA, P.O. & P.S. Vs. STEEL AUTHORITY OF INDIA LIMITED, THROUGH THE GENERAL MANAGER (LIASON) MR. DEBANANDA MARNDI, S/O LATE BALAI MARANDI, R/O ROOM NO.26, IEH, SAIL SATELLITE TOWNSHIP, P.O.
LAWS(JHAR)-2016-6-115
HIGH COURT OF JHARKHAND
Decided on June 27,2016

State Of Jharkhand, Through Its Chief Secretary Having Office At Jharkhand Mantralaya, Project Bhawan, Hec Township, Dhurwa, P.O. And P.S. Appellant
VERSUS
Steel Authority Of India Limited, Through The General Manager (Liason) Mr. Debananda Marndi, S/O Late Balai Marandi, R/O Room No.26, Ieh, Sail Satellite Township, P.O. Respondents

JUDGEMENT

Mr. D.N. Patel, J. - (1.) This Letters Patent Appeal has been preferred against the order dated 13.11.2014, passed in writ petition being W.P.(C) No. 5368 of 2014 whereby, the learned single Judge quashed an order dated 04.09.2014 passed by this appellant-State. By this order dated 04.09.2014, State of Jharkhand had directed respondent to stop mining activities. While quashing an order dated 04.09.2014, learned Single Judge has directed the State of Jharkhand to take a decision under Section 8(3) of Mines and Minerals (Development & Regulation) Act, 1957 (hereinafter referred to as "the Act, 1957 " for the sake of brevity).
(2.) Learned counsel appearing for the appellant-State has submitted that initially the lease was granted on 22.02.1949 for 30 years, which expired in the year 1979. An application for extension of the first lease was preferred and the same was granted for another 30 years. The said extended period for lease also expired on 21.02.2009. On 08.02.2008, an application for extension of the lease was preferred and the same has not been granted by the appellant-State. Meanwhile, Hon'ble Supreme Court has decided in the case of Goa Foundation v. Union of India and ors. reported in (2014) 6 SCC 590 , that there cannot be automatic extension of second lease period. Thereafter, an amendment has been brought and ultimately Section 8A has been added with effect from 12.01.2015 in the Act, 1957, which reads as under:- "8A. Period of grant of a mining lease for minerals other than coal, lignite and atomic minerals - (1) The provisions of this section shall apply to minerals other than those specified in Part A and Part B of the First Schedule. (2) On and from the date of the commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, all mining leases shall be granted for the period of fifty years. (3) All mining leases granted before the commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015 shall be deemed to have been granted for a period of fifty years. (4) On the expiry of the lease period, the lease shall be put up for auction as per the procedure specified in this Act. (5) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, where mineral is used for captive purpose, shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2030 with effect from the date of expiry of the period of renewal last made or till the completion of renewal period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with. (6) Notwithstanding anything contained in sub-sections (2), (3) and sub-section (4), the period of lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, where mineral is used for other than captive purpose, shall be extended and be deemed to have been extended up to a period ending on the 31st March, 2020 with effect from the date of expiry of the period of renewal last made or till the completion of renewal period, if any, or a period of fifty years from the date of grant of such lease, whichever is later, subject to the condition that all the terms and conditions of the lease have been complied with. (7) Any holder of a lease granted, where mineral is used for captive purpose, shall have the right of first refusal at the time of auction held for such lease after the expiry of the lease period. (8) Notwithstanding anything contained in this section, the period of mining leases, including existing mining leases, of Government companies or corporations shall be such as may be prescribed by the Central Government. (9) The provisions of this section, notwithstanding anything contained therein, shall not apply to a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Ordinance, 2015, for which renewal has been rejected, or which has been determined, or lapsed. ".
(3.) Learned counsel for the appellant-State has further submitted that before passing a renewal order in view of the provisions of the Act, 1957, quoted as above, and also in the light of the decision rendered in the case of Goa Foundation (Supra), a letter was issued on 04.09.2014 to the respondent (original petitioner) for bringing to an end of their mining activities in absence of renewal of lease period for their mines, which they are using for their captive purpose, and by an interim order dated 16.10.2014, the State of Jharkhand was directed to take a decision under Section 8(3) of the Act, 1957 which decision is yet to be finally taken by the State of Jharkhand and meanwhile, State of Jharkhand has issued one more letter dated 22.10.2014 seeking consent of the lessee for imposing conditions for renewal of the lease. This has given birth to one more writ petition being WP. (C) No. 5640 of 2014. Meanwhile, the writ petition being W.P.(C) No.5638 of 2014 has been finally disposed of by the learned Single Judge by quashing and setting aside the order dated 04.09.2014, passed by the appellant state and also the learned single judge passed an order that if an order under Section 8(3) of the Act, 1957 is not passed by the appellant-State within a period of one week from the date of the order, the respondent was allowed to continue with the mining activities, and against this order the present Letters Patent Appeal has been preferred by the State of Jharkhand.;


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