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Supreme Court of India

PALLAVA GRANITES INDUSTRIES INDIA (P) LTD.versusGOVERNMENT OF ANDHRA PRADESH AND ORS.

Citation
1997 INSC 284
Decided
17 March 1997
Disposal
Dismissed

Holding

Consent of the landlord is necessary for the grant of a mining lease; without it, the lease is invalid.

Summary

The petitioner applied for a 15‑year mining lease over 12.08 acres of private land in Prakasam district, Andhra Pradesh. The Director initially granted a six‑month lease, but the landowners challenged the grant and the High Court ordered that any lease could be issued only with the owners' consent. Despite this direction, a lease was executed on 5 January 1995 without consent, leading to a series of writ petitions and orders. The petitioner appealed to the Supreme Court, contending that earlier case law obviated the need for landlord consent. The Court held that the right to excavate minerals on private land is subject to the landowner’s agreement and that consent is indispensable. Accordingly, the special leave petitions were dismissed.

Issues considered

  • Whether the consent of a private landowner is required for the grant of a mining lease to excavate minerals beneath the land.

Subjects

mining leaselandowner consentprivate propertymineral rightswrit petitionSupreme Court of IndiaAndhra Pradesh

Judgment

           PALLAVA GRANITES INDUSTRIES INDIA (P) LTD.                              A

-                                        v.
            GOVERNMENT OF ANDHRA PRADESH AND ORS.

                                MARCH 17, 1997

                (K. RAMASWAMY AND G.T. NANAVATI, JJ.]                              B

          Lease:

           Mining Lease-Grant of-Right to excavate mines from lands of private
    owner-Consent of land owner-Held, is necessary-The right to excavate the C
    mines from die land of private owner is based on the agreement: unless the
    lessor gives his consent, 110 lessee has a right to enter upon his land and ca17)'
    on mining operations-The right to grant mining lease to excavate the mines
    beneath the surface is subject to the agreement of the land owners-Therefore,
    with a view to ensure that there will not be any obstruction in the working of
    the mining lease and also for the peaceful operation of the excavation of die D
    mines, insistence 011 the consent of the landlord is 11ecesswy-Mi11es and
    Minerals.

          CIVIL APPELLATE JURISDICTION : Special Leave Petition (C)
    Nos. 3146-47 of 1997.
                                                                                   E
         From the Judgment and Order dated 11.11.96 of the Andhra Pradesh
    High Court in W.A. No. 1191/96 and W.P. No. 19865 of 1996.

           Soli J. Sorabjee, K. Ramakrishna Reddy and K.K. Mani for the
    Petitioner.
                                                                                    F
          D.D. Thakur, G. Ramakrishna Prasad, V.S. Reddy and S. U.K. Sagar
    for the Respondents.

          The following Order of the Court was delivered:

          These special leave petitions arise from the Judgment of the Division G
    Bench of the Andhra Pradesh High Court, made on 11.11.1996 in Writ
    Appeal No. 1196/96 and Writ petition No. 19865/96. The petitioner had
    applied for grant of a lease of land from the owners thereof, respondents
    4-7 on August 22, 1991 for a period of 15 years to win over black granite
    over an extent of 12.08 acres of land in S. Nos. 105/1, 2, 3 of R.I. Puram H
                                        1173
    1174                  SUPREME COURT REPORTS                  (1997] 2,S.C.R.

A village, Chimakkurthy Mana!, Prakasam District in Andhra Pradesh. The
    Director gr;mtcd the mining lease for six months on· August 11, 1994,
    pending further proceedings. Aggrieved thereby, the respondent-owner
    filed writ Petition No. 15615/94 challenging the grant of lease without their
    consent. The writ petition was disposed of on 7.10.1994 with a direction
    that the lease could be granted only with consent of the respondent-owners.
B   However, without obtaining their consent, lease was executed on January
    5,1995 for 15 years. Notice was issued by the respondent- landlords on
    January 5, 1996 requesting the petitioner-lessee to handover the land by
    July 7, 1996 after the expiry of the initial lease. Thereafter there was
    exchange of the notices etc. and the petitioner filed a writ petition and the
c   High Court directed the authorities to extend the period of lease in terms
    of the lease granted by the Industries and Mining Department. W.P. No.
    13147/96_ was disposed of with a direction to the Industries to dispose of
    the application in accordance with the Rules applicable to them within
    eight weeks. The order dismissing the writ petition came to be passed on
D   July 10, 1996. The Director granted mining lease again on August 28, 1996.
    Writ Petition No. 13147/96 was dismissed on the ground of res judicata.
    Writ Petition No. 19865/96 filed by the petitioner to grant mining lease
    without reference to the consent of the landlords was dismissed on
    19.9.1996. Writ Appeal No. 1191/96 was filed by the petitioner against the
    order dated 23.8.1996 in Writ Petition No. 13147/96. Both came to be
E   dismissed by the Division Bench. Thus, this special leave petition.

          The primary contention raised before us by Shri Soli J. Sorabjee,
    learned senior counsel, is that there was an earlier judgment of the High
    Court wherein it was held that there was no need to obtain the consent of
    the landlords before grant of _mining lease and, therefore, the direction
F
    issued by the Division Bench on the ground of the prevailing practice is
    not correct in law.

          We find no force in the contention. The right to excavate the mines
    from a land of private owner is based on the· agreement; unless the lessor
G   gives his consent, no lessee has a right to enter upon his land and carry on
    mining operations. The right to grant mining lease to excavate the mines
    beneath the surface is subject to the agreement of the land owners. There-
    fore, with a view to ensure that there will not be any obstruction in the
    working of the mining lease and _aho for the peaceful operation of the
H   excavation of the mines, insistence on the consent of the landlord is
     r          PALLAVAGRANITESINDUSTRIESIN~IA(P)LTDv. GOVf. OFA.P.             1175

         necessary. Therefore, we do not find any illegality in the view taken by the   A
         High Court warranting interference.


--       R.P.
                The special leave petitions are accordingly dismissed.

                                                                 Petitions dismissed.


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