M/S. GEOMYSORE SERVICES (I) PVT. LTD. & ANR.V. M/S. HUTTI GOLDMINES CO. LTD. & ORS. versus M/S. HUTTI GOLDMINES CO. LTD. & ORS

Citation: [2018] 6 S.C.R. 533 · Decided: 08-05-2018 · Supreme Court of India · Bench: MADAN B. LOKUR · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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M/S. GEOMYSORE SERVICES (I) PVT. LTD. & ANR.
v.
M/S. HUTTI GOLDMINES CO. LTD. & ORS.
(Civil Appeal No. 2537 of 2017)
MAY 08, 2018
[MADAN B. LOKUR AND DEEPAK GUPTA, JJ.]
Mines and Minerals (Development and Regulation) Act, 1957:
ss. 11(1) and 17A(2) – Reservation of mining area u/s. 17A(2)
– Permissibility – Grant of Reconnaissance Permit (RP) in favour
of two private Companies (appellants) – Reconnaissance conducted
by them – On the basis of reconnaissance report, further applied
for grant of Prospecting Licence (PL) u/s. 11(1) – Thereafter,
respondent (a Government Company) sought reservation u/s. 17A(2)
in respect of the areas for which the appellant-Companies were
granted RP – State Government sought approval for reservation –
Central Government rejected the proposal of State Government and
directed the State to consider the PL applications of the appellants
– Writ petition filed by respondent-Company allowed by High Court
– On appeal, held: s. 11(1) and s. 17A(2) operate in different fields
and have no connection with each other – State Government has
power to reserve an area u/s. 17A(2) with the approval of Central
Government – An RP holder is entitled to preference for grant of
PL u/s. 11(1)– But, there is no bar in reserving the land u/s. 17A(2),
if the land is covered under RP – Central Government while
considering the request for reservation u/s. 17A(2), can take into
consideration various factors which are relevant for deciding the
issue of reservation – Grant of RP though cannot be the sole ground
to reject the proposal for reservation, but the same can be one of
the factors along with other factors for deciding the issue of
reservation – Unless reservation takes place, a private company
stand on the same footing as a Government Company – In the present
case, the factors taken into consideration while deciding the issue
of reservation were relevant and germane to the issues – Appellants
were entitled to preference u/s. 11(1) – Central Government was
justified in rejecting the proposal of the State Government for
reservation u/s. 17A(2).
[2018] 6 S.C.R. 533
533
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SUPREME COURT REPORTS
[2018] 6 S.C.R.
Allowing the appeals, the Court
HELD: 1. State is the owner of the land and minerals.
However, the control and regulation of mines and development
of minerals are in the domain of the Union Government.  The
State Government is denuded of its legislative power to make
any law in respect of regulation of mines and mineral development
in so far as that field is covered by the provisions of the Mines
and Minerals (Development and Regulation) Act, 1957.  It is only
if the field is vacant that the State can exercise its legislative
powers.  Otherwise, it has to exercise its power strictly in
accordance with the powers specifically conferred on the State
Government by the Act and the Minerals Concession Rules, 1960.
While exercising the powers of reservation vested in Section
17A(2) of the Act, the State Government has to take approval of
the Central Government. [Para 39] [556-D-F]
2. Section 17A(2) of the Act clearly provides that the State
Government can reserve any area for undertaking prospecting
or mining operations through a Government company or
corporation with the approval of the Central Government.  The
Act does not lay down the parameters which the Central
Government is required to follow. Therefore, the Central
Government can take all the factors which are relevant for the
purpose of deciding whether reservation should be made or not.
The National Mineral Policy 2008 (NMP 2008) being a policy of
the country, can definitely be taken into consideration while
considering such a request. [Para 40] [557-B-C]
3. A policy of a Government is an important document.  It
cannot be brushed aside.  The Central Government, while
considering the request of the State Government, can take into
consideration various factors which may include economic factors,
the factors reflecting the image of the country internationally to
the global world community and also other factors of national
security etc.. Each case has to be decided on its own facts.
Therefore, it cannot be said that only those factors can be taken
into consideration, which flow from the Act or the Rules.
[Para 41] [557-E]
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4. Section 11(1) and Section 17A(2) of the Act have no
connection with each other. Section 11(1) of the Act deals with
preference to be given to Reconnaissance Permit (RP) holder
and Pr

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