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Supreme Court of India

STATE OF GOA AND ORS.versusM/S. A.H. JAFFAR AND SONS

Citation
1994 INSC 373
Decided
9 September 1994
Disposal
Appeal(s) allowed

Holding

The proper remedy is a revision before the Central Government under Section 30 of the Act, and the delay in filing such revision can be condoned under the proviso to Rule 54, so the revision filed within four weeks will not be barred.

Summary

M/s A.H. Jaffar and Sons applied for a bauxite mining lease in Goa, but the application was not disposed of within the 12‑month period prescribed by Rule 11 of the Mineral Concession Rules and was deemed rejected. The respondents filed a revision under Section 30 of the Mines and Minerals Regulation and Development Act, 1957 before the Central Government, which directed the State Government to consider the application. The State Government rejected the application; the High Court set aside that rejection and ordered a fresh hearing, after which the Commissioner and Secretary for Industries again rejected it under Section 10(3). The Minister for Mines subsequently directed the lease be granted, but the Government set aside the Minister's order, leading to further litigation in the High Court, which restored the Minister's order. The State of Goa appealed to the Supreme Court, raising the question of the correct remedial forum and whether the delay in filing the revision was barred by Rule 54. The Court held that the statutory remedy of revision under Section 30 is the proper avenue, and that the proviso to Rule 54 permits condonation of delay when the applicant is bona‑fide litigating in the High Court. Accordingly, the appeal was allowed, the High Court order set aside, and the respondents were directed to file a revision within four weeks, which will not be dismissed as time‑barred.

Issues considered

  • The appropriate statutory remedy for a deemed rejection of a mining lease application under the Mines and Minerals Regulation and Development Act, 1957.
  • Whether the delay in filing a revision under Section 30 of the Act is barred by the limitation period in Rule 54 of the Mineral Concession Rules, 1960.
  • Whether the proviso to Rule 54 allows condonation of delay when the applicant is pursuing a bona‑fide remedy in the High Court.

Legislation cited

Subjects

mining leaserevisionlimitation periodcondonation of delayadministrative lawhigh court jurisdictionmineral concession rulesMines and Minerals Regulation Act

Judgment

                           STATE OF GOA AND ORS.                                  A
                                         v.
                         M/S. A.H. JAFFAR AND SONS

                               SEPTEMBER 9, 1994
                                                                                  B
                       [R.M. SAHAI AND N.P. SINGH, JJ.]

          Mines and Minerals Regulation and Development Act, 1957 :

          Sections 10(3), 26 and ;JO.
                                                                                  c
           Mineral Concessions Rules, 1969: Rules 11 and 54. Mining lease-Ap-
    plication for grant of-Rejection-l?.emedy against-Held proper remedy is
    revision before Government and not before High Court-Applicant bona fide
    pursuing remedy before High Court-Direction that applicant shall approach
    the Revising Authority and application· should not be treated as time barred. D


-         The Respondent made an application for grant of a lease for mining
    mineral boxite in Goa which was not disposed of within U months as
    stipulated in Rule 11 of the Mineral Concession Rules, 1960 and was thus
    deemed to have been rejected. They filed a Revision, under Section 30 of E
    the Mines and Minerals Regulation and Development Act, 1957, to the
    Central Government and pursuant to the direction issued by the Central
    Government the State Govt. considered the application but rejected the
    same. The High Court set aside this order and directed the State Govt. to
    decide the application afresh after hearing the respondents and consider-
    ing the applicability of the amendment to the Act. Thereafter, the applica- F
    tion was heard by the Commissioner and Secretary for Industries to the
    Govt. of Goa but was rejected. Against this order, the respondents ap·
    proached the State Government and the order was set aside by the Mini-
    ster for Mines and a direction· was issued to grant the lease to the
    respondents. The order of the Minister was set aside by .the Government
    Respondents challenged this order before the High Court which quashed G
    the o.rder of the Government and restored the Minister's order. Against
    the judgment of the High Court, State of Goa filed an appeal in this Court.

            Allowing the appeal and setting aside the order of High Court, this
    Court                                                                         H
                                         259
    260                       SUPREME COURT REPORTS (1994) SUPP. 3 S.C.R.

A
              '
           HELD : The remedy of revision having been provided by Section 30
    of the Minerals Regulation and Development Act, 1957, the proper course
    for the respondent was to approach the Central Government and not the
    High Court. Proviso to rule 54 of the Mineral Concession ·Rules, 1960
    empowers the revising authority to condone delay if it is satisfied that the
    revision could not be presented for sufficient cause within time. Since the
B   respondent was pursuing its remedy in High Court bona fide, it would be
    a sufficient cause to condone the delay. The revision, if preferred within
    four weeks from today, shall not be dismissed as being barred by time. The
    Central Government shall decided the same in accordance with law.
                                                             (261-F, G, 262-A]
c            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6040 or
    1994.

          From the Judgment and Order dated 26.2.93, 1.3.93, 2.3.93 & 3.3.93
    of the Bombay High Court in W.P. No. 449 of 1992.
D
             Siraj Seth, H.O. Pathak and P.O. Sharma for the Appellants.

             AS. Nambiar, T.V.S. Ratna and Ms. A. Subhashni for the Respon-
    dents.

E            The following Order of the Court was delivered :

             Leave granted.

          This appeal filed by the State of Goa and others, is directed against
    the judgment and order of the Bombay High Court, (Goa Bench). The
F   respondents made an application for a lease for mining mineral boxite in
    Mopa, Chandal, Warkhan, Kasarwarne Villagers of Pernem Taluk in Goa.
    As this application was not disposed of by the State Government within 12
    months as stipulated in Rule 11 of the Mineral Concession Rules, 1960 the
    application was deemed to have been rejected. Against this order of
    deemed rejection the respondents filed a revision under Section 30 of the
G   Mines and Minerals Regulation and Development Act, 1957 (hereinafter
    referred to as 'the Act') to the Central Government in which a direction
    was issued to the State Government to dispose of the respondents' applica-
    tion on merits. In pursuance of the direction issued by the Central Govern-
    ment the State Government decided the application of the respondent and
H   rejected it on 18th August 1987. This order was set aside by the High Court
                     STATEOFGOA v. AH.JAFFAR                           261

and the.State Government was directed to decide the application, afresh, A
after hearing the respondents and deciding the applicability of the amend-
ment to the Act which had come into force with effect from 10th February
1987. The application was heard this time by the Commissioner and
Secretary for industries to the Government of Goa who being a delegate
of State Government by virtue of notification issued under Section 26 of B
the Act was empowered to decide the application. The application was
rejected in exercise of power under sub-section (3) of Section 10 the Act.
Against this order the respondents approached the State Government. The
order was set aside by the Minister for Mines and direction was issued to
grant the lease. What happened thereafter is not necessary to be narrated.
But the order of the Minister was set aside by the Government. Validity of C
this order was challenged in the High Court under Article 226 of the
Constitution of India. Various issues were raised. They were decided in
favour of the respondents. The order of the Government dated 14.1.1993
was quashed and that of the Minister dated 31.10.1991 was restored. It is
the correctness of this order that has been challenged by the State.       D

        The appeal has been argued at length. Shri Siraj Sait has attempted
 to support the judgment with industry and precision. But it does not appear
 necessary to decide whether the finding recorded by the High Court that
 the order of Commissioner being administrative in nature it could be
 reviewed by the State Government nor it is necessary to decide whether E
 the Minister could exercise any power where the grant of lease is regulated
 by the Statute as in our opinion the remedy of revision having been.
 provided by Section 30 of the Act, the proper course for the respondent
 was to approach the Central Government and not the High Court. Learned
 counsel for the respondent expressed apprehension that the period for F
 limitation provided in rule 54 of the Minerals Concession Rules, 1960
 having expired, the revision might not be entertained. The proviso to the
 rule, however, empowers the revising authority to condone delay if it is
satisfied that the revision could not be presented for sufficient cause within
time. Since the respondent was pursuing its remedy in High Court bona G
fide, it would be sufficient cause to condone the delay and we trust that
the revision if preferred within four weeks from today shall not be dis-
missed as being barred by time.


      In the result, this appeal succeeds and is allowed. The order of the   H
    262                  SUPREME COURT REPORTS (1994] SUPP. 3 S.C.R.

A High Court is set aside subject to the observations made above that the
    respondent shall be entitled to approach the revising authority, namely, the
    Central Government within four weeks from today which shall decide the
    same in accordance with. law.

          Parties shall bear their own costs.
B
    T.N.A·                                                     Appeal allowed.·


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