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The State of Rajasthan & Ors. vs. Sharwan Kumar Kumawat Etc. Etc.

Civil Appeal · 2023 INSC 661Decided 1 Aug 2023
Civil Appeal Nos. 1162-1171 of 2016
A.S. Bopanna · M.M. Sundresh

Background

Under the Rajasthan Minor Mineral Concession Rules, 1986, numerous applicants had applied for mining leases (mainly for sandstone) years earlier on a first-come-first-served basis. After earlier rounds of litigation, the State amended the Rules in 2011 and again in 2013, ultimately rejecting all pending applications and introducing a new system where 50% of delineated mining areas would be allotted by auction and the rest reserved for specified categories (SC/ST/OBC workers, ex-servicemen, unemployed youth societies, etc.). The Rajasthan High Court struck down these amended rules as illegal, holding that the old applicants should have been heard and that their applications had a legitimate expectation of being processed under the earlier rules.

Decision Breakdown

The Supreme Court held that a mere pending application for a government mining lease does not create any vested right: no one has a fundamental right to a mining lease over government land, and rights over natural resources exist only insofar as a statute confers them. It found that legitimate expectation is a "weak and sober" doctrine that cannot override the Government's power to change policy in the public interest (such as introducing auctions for fairness), especially when no clear promise was made to specific applicants. The Court also held there was no "legal malice" behind the amendments, since the State had substantially complied with earlier court orders, and clarified that the earlier High Court rulings concerned only sandstone in a few districts, not all minor minerals generally. It therefore set aside the High Court's judgments and restored the validity of the amended Rules, allowing all the appeals.

Lesson Learnt

Applying for a government license or lease (such as a mining lease) does not by itself create a vested or enforceable right; the government retains the power to change the rules of allotment in the public interest (such as moving to a fairer, more transparent auction system) even while applications remain pending for years.

Official source (sci.gov.in)View Judgment (PDF)

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