LexGEM GRANITES AND ANR. versus STATE OF TAMIL NADU AND ORS.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A
GEM GRANITES AND ANR.
v.
.,.....
STATE OF TAMIL NADU AND ORS.
JANUARY 19, 1995
B
[J.S. VERMA, S.P. BHARUCHA AND K.S. PARIPOORNAN, JJ.]
Mines & Minerals (Regulation & Development) Act, 1957-Section
~
17A(2)-Tamil Nadu Minor Mineral Concession Rules, 1959-Rule 8-C as
.........
amended on 10th June 1992 & Rule 38-Val{dity of-Reservation of granites
c and rock for State Government and its cqmpanies and corporations-Ap-
proval of Central Government not obtained-:Rule 8-C as amended hit by
provisions of Section 17-A(2}-Rule declared bad in law-R.ule 38 must be
read as being subject to provisions of Section 17-A(2).
These writ petitions were filed challenging rule 8-C, as amended by
D G.O.M. No. 214 issued by the Government of Tamil Nadu on 10th June
1992 and rule 38 of the Tamil Nadu Minor Mineral Concession Rules,
1959, as bad in law. The challenge was based on the provisions of sub-sec-
tion 2 of Section 17-A of the Mines & Minerals (Regulation & Develop-
ment) Act, 1957 which was inserted in the statute by Amending Act 37 of
E 1986. The approval of the Central Government was not obtained to rule
8-C as amended on 10th June, 1992, either before or after that date.
The respondent State urged that rule 8-C, as amended, did not, in
any event, debar the State Government from making a rule that no lease
to quarry the said granites and rock would be granted to any person and
F that the State Government itself could engage in such quarrying. It was
then argued that the provisions of rule 8-C, as amended, were not intended
to make a reservation of such granites and rock in favour of the State
Government or its companies or corporations but to preserve the same
and, therefore, the State Government was not obliged to obtain the ap-
G proval of the Central Government thereto under the provisions of Section
17·A(2).
Disposing of the matter, this Court
~'
HELD 1.1. Rule 8-C, as amended by G.O.M. No. 214 issued by the
H Government of Tamil Nadu on 10th June, 1992, is intended to reserve the
476
GEMGRANITESv. STATE[BHARUCHA,J.)
477
quarrying of the said granites .and rock for the State Government and for A
State Government companies and corporations. Insofar as the reservation
is for State Government companies and corporations, it is hit by the
provisions of Section 17-A(2) of the Mines and Mineral (Regulation and
D~velopment) Act, 1957, because, for such reservation, the approval of the
Central Government was required and had not been obtained. (480-G]
B
1.2. Rule 38 of the Tamil Nadu Minor Mineral Concession Rules,
1959, purports to permit the State Government to reserve any area for
exploitation by the Government or Central or State Government corpora-
tions or companies. The provisions of rule 38, insofar as they relate to the
State Government itself, are unexceptionable b~t, insofar as they relate to C
Central or State Government companies or corporations, they must be
read in conjunction with the provisions of section 17-A(2). In other words,
the State Government may, by notificatio": in the Official Gazette, reserve
any area for exploitation by Central or State Government companies or
corporations only if it has obtained the approval of the Central Govern-
ment under section 17-A(2) for doing so. (480-H, 481-A-B]
D
Amritlal Nathubhai Shah and Ors. v. Union Government of India and
Anr., (19771 1 SCR 372, relied on..
CIVIL WRIT JURISDICTION : Writ Petiton (C) No. 819 of 1992 E
Etc.
(Under Article 32 of the Constitution of India.)
AK. Ganguli, C.S. Vaidyanathan, G.L. Sanghi, V. Ramasubrama-
nian, V. Krishnamurthi, K.R. Choudhury, S.R. Setia, Mrs. A. Mathur and F
A. Mariarputham for the appearing parties.
The Judgment of the Court was delivered by
BHARUCHA, J. What has been urged in these writ petitons is that
rule 8-C, as amended by G.O.M. No. 214 issued by the Government of G
Tamil Nadu on 10th June, 1992 and rule 38 of the Tamil Nadu Minor
Mineral Concession Rules, 1959, are bad in law. The challenge is grounded
on the provisions of sub-section 2 of section 17-A of the Mines & Minerals
(Regulation & Development) Act, 1957, which was inserted in the statute
by Amending Act 37 of 1986.
H
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B
c
D
478
SUPREME COURT REPORTS
(1995) 1 s):.R.
Rule 8-C is in Section II of the said Rules, which deals with Govern-
ment lands in which minerals belong to the Government. The relevant
portion of rule 8-C, as amended, reads thus :
"8-C. Lease of quarries in respectExcerpt shown. Read the full judgment & AI analysis in Lexace.