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Mining LawSupreme Court of India

Ramakant Dwivedi v. Rafiq Ahmad & Ors.

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 4 of 2016)Decided 4 Jan 2016
Civil Appeal No. 4 of 2016
Justice Anil R. Dave · Justice Adarsh Kumar Goel

Background

The appellant held a minor-mineral mining lease that had expired in November 2010 and was later renewed by the State of U.P. in April 2013 for a further three years, with the State's support, on the footing that an earlier Government Order restricting such renewals after 31 May 2012 did not apply to his case. A public interest litigant challenged this renewal before the Allahabad High Court, which passed an interim order halting the appellant's excavation, holding the renewal inconsistent with its own earlier rulings (Nar Narain Mishra and Sukhan Singh) that no pending lease application could be granted or renewed after 31 May 2012 except through e-tender/e-auction under a different chapter of the Rules.

Decision Breakdown

The Supreme Court held that the April 2013 renewal was issued under a State Government Order of February 2013 that had already been found, in the High Court's own binding precedents, to improperly try to carve out an exception to the 31 May 2012 cut-off, so the renewal in the appellant's favour was invalid regardless of the State's support for it. The Court relied on established mining-law principles (from Hind Stone and Monnet Ispat) that no one has a fundamental or vested right to a mining lease or its renewal, that such grants are governed strictly by the rules in force at the time of disposal, and that public interest in conservation of mineral resources overrides private economic interest in continued exploitation. It also declined to go into a separate, later cancellation order dated 22 October 2014, holding that question could be raised separately if needed. The appeals were accordingly dismissed, the Supreme Court's own earlier interim stay was vacated, and the State was directed to assess and recover from the appellant any pecuniary benefit gained from excavation carried out during that interim stay period.

Lesson Learnt

No one has a vested or fundamental right to the renewal of a government mining lease: such renewals must strictly follow the mineral rules and policy directives in force at the time of the decision, and benefiting financially from mining under a court's interim stay carries the risk of having to disgorge that benefit if the stay is later vacated.

Ramakant Dwivedi v. Rafiq Ahmad & Ors. – Legal Case Shots | LegalAware