M/S. ORIENTAL SELECT GRANITE PVT. LTD. versus STATE OF KARNATAKA & ORS.

Citation: [2007] 13 S.C.R. 85 · Decided: 11-12-2007 · Supreme Court of India · Bench: G.P. MATHUR · Disposal: Dismissed

Judgment (excerpt)

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MIS. ORIENTAL SELECT GRANITE PVT. LT:i:>. 
A 
VS. 
STATE OF KARNATAKA & ORS. 
DECEMBER 11, 2007 
[G.P. MATHUR AND AFTAB ALAM, JJ.] 
B 
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Mines and Minerals - Mining leases - Grant of, for mining 
Granite - Litigation regarding grant/renewal of mining leases -
High Court set aside the grant/renewal of leases - Quarrying 
operations allowed by Supreme Court by interim orders dated c 
27.8.1993 -Appeals of lessees ultimately dismissed by Supreme 
Court on 18.1.1996 - Thereafter, transport permits granted to 
lessees for transportation of granite excavated prior to dismissal 
of appeals by Supreme Court - Subsequently, demand notices 
issued to lessees to make good the value of granite so transported D 
- Plea of lessees that they continued mining operations under 
interim orders dated 24.10.1990 and 24.6.1994 passed by High 
Court and they could not be clubbed with those carrying on mining 
operations under interim order dated 2 7. 8.199 3 passed by Supreme 
E 
Court - Held : Claim of lessees is not tenable - Interim order 
dated 24.10.1990 became ineffective with renewal of lease and 
lost all its force when grant/renewal of leases was struck down by 
High Court - Besides, once the same issues between the same or 
similarly placed parties are decided by Supreme Court, no order 
F 
or direction passed by High Court contrary to or at variance with 
decision of Supreme Court would survive - Karnataka Minor 
Minerals Concession Rules, 1969 - r. 34-Karnataka Minor Minerals 
Concession Rules, 1994. 
Prior to 1990, the petitioners held lease for mining granite. G 
On its expiry, the State Authorities did not renew the lease, in 
view of the bar created by rule 3A of the Karnataka Minor 
Minerals Concession Rules, 1969. The petitioners filed a writ 
petition seeking renewal of the lease. On 24.10.1990 the High 
85 
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86 
SUPREME COURT REPORTS 
[2007] 13 (Addi.) S.C.R. 
A Court passed an interim order in the writ petition. Operation of 
Rule 3 A was stayed and the respondents were restrained from 
interfering with petitioners' right to carry on quarry operations. 
While the writ petition was pending, on 18.06.1991 the State 
Government granted/renewed mining leases to different parties, 
B incmding the petitioners. Certain other writ petitions were filed 
challenging the action of the State Government. The Single Judge 
of the High Court set aside the leases granted/renewed by the 
State Government. The Division Bench of the High Court upheld 
c 
the judgment of the Single Judge. Appeals were filed before the 
Supreme Court and the same were referred to as Alankar 
Granites' case. The present petitioner's appeals also formed 
part of the batch of Alankar Granites, wherein the Supreme 
Court passed an interim order on 27.08.1993 to the effect that 
renewals of existing grants in favour of the petitioners would 
D continue till further orders of the Court. Meanwhile, the 1969 
Rules were replaced by.Karnataka Minor Mineral Concession 
Rules, 1994, and in the writ petition filed by the petitioners, the 
High Court by its order dated 24.07.1994 passed directions to 
maintain status quo and disposed of the writ petitions. Ultimately, 
E by order dated 18.01.1996, the appeals were dismissed by the 
Supreme Court and the grant of quarrying leases by the State 
Government was held to be bad and illegal. 
Thereafter, two of the lessees Mis. God Granites and 
p 
Karnataka Rare Earth, covered by the aforesaid decision dated 
18.1.1996 applied for and were granted transport permits by the 
State authorities for transportation of granites quarried before 
the dismissal of the appeals by the Supreme Court. Later on, 
the authorities issued notice to the lessees to make good the 
G value of granite that so transported. The demand notice was 
challenged. Both the Single Judge as also the Division Bench of 
the High Court upheld the demand raised. In the Karnataka 
Rare Earth · & Anr v Senior geologist, department of Mines & 
Geology & Anr (2004) 2 SCC 783, this Comt held that the 
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grantees were liable to make good to the State the value of 
MIS. ORIENTAL SELECT GRANITE PVT. LTD. v. 
87 
STATE OF KARNATAKA & ORS. 
granite excavated by them during the said period. 
A 
In the instant SLPs, the six petitioners challenged the 
demand notices to pay the value of the granite excavated and 
transported by them during 27.08.1993 to 18.01.1996, issued in 
the light of the observations made by the Division Bench of B 
Karnataka High

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