M/S Kalinga Mining Corporation vs Union Of India & Ors

3. We may notice here briefly the facts as noticed by the High Court.

4. On 27th October, 1953, the appellant M/s. Kalinga Mining Corporation applied to the Government of Orissa for a prospecting licence. This was granted by the State Government on 15th September, 1961 in respect of an area of 480 acres in Kalaparbat Hill range of Keonjhar district subject to compliance of lease stipulations. The appellant applied for the grant of mining lease also for iron manganese ore over 420 acres in Kalaparbat Hill range of Keonjhar district. As the same was not considered by the State Government, the appellant filed a revision before the Central Government. The same was disposed of by the Central Government on 23rd July, 1962 by intimating the State Government that since the prospecting licence was not granted in favour of the appellant, the mining lease application could not be considered. The direction was issued to the State Government to consider the application of the appellant for mining lease which was dated 4th September, 1961 on merit by 1st January, 1964. Since no decision was taken by the State Government by stipulated date, the application of the appellant dated 4th January, 1961 was deemed to have been refused. By notification dated 20th July, 1965, the State Government of Orissa threw open an area of 438.5 acres in Kalaparbat Hill Range area, Keonjhar district for mining under Rule 58(1) of Mineral Concession Rules, 1960 for mining in respect of manganese and iron ore. On 10th September, 1965, six applicants including the appellant and respondent No.10 submitted their applications for grant of mining lease in respect of the aforesaid area. It appears that the mining lease applications of the appellant as well as the respondent No.10 were not disposed of by the State Government within the statutory period, therefore, both of them separately moved the Central Government in revision. By an order dated 7th April, 1967, the Central Government allowed the revision petitions of the appellant and respondent No.10 and directed the State Government to consider their mining lease applications. Still no decision was taken by the State Government, as a result of which the appellant moved another revision petition before the Central Government on 22nd July, 1967. The Central Government rejected the revision of the appellant by its order dated 13th October, 1967.

6. Pursuant to the order of the Central Government dated 7th April, 1967, the State Government on 3rd September, 1971, for the first time, passed an order recommending the grant of mining lease in favour of respondent No.10 and sought the approval of the Central Government as required under Section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957. The Central Government by its order dated 18th January, 1972 refused to accord its approval in favour of respondent No.10. It appears that the State Government on 25th April, 1972 again requested the Central Government for grant of approval to its recommendation made in favour of respondent No.10 Dr. Sarojini Pradhan. However, by its letter dated 29th December, 1972, the Central Government directed the State Government to reject the mining lease application of Dr. Pradhan. Thereafter on 8th June, 1973, the State Government rejected all pending mining lease applications including the application of appellant and Dr. Sarojini Pradhan.

7. Challenging the aforesaid order, both the appellant and Dr. Pradhan filed the revision petitions before the Central Government. The Central Government by its order dated 2nd May, 1978 rejected the revision filed by Dr. Sarojini Pradhan but allowed the revision filed by the appellant with a direction to the State Government to pass a fresh order on merits.

9. We may notice here that in the aforesaid writ petition, the appellant and the other applicants had filed applications for intervention. However, the cases of interveners were not considered individually by the High Court, having regard to the directions which were given by it. Few days after the aforesaid decision dated 4th September, 1987, Dr. Pradhan died on 10th September, 1987. Since at that time Dr. Pradhan was only an applicant for the mining lease, the appellant claims that her application was lapsed.

12. In the meantime, another matter being OJC No.1431 of 1980 was filed. In the aforesaid matter, a Division Bench of the High Court rejected the contentions of the State that on the death of Dr. Pradhan, her writ petition will abate.

13. Thereafter on 11th May, 1990, the Central Government conveyed to the State Government its approval of grant of mining lease in favour of the legal representatives of Dr. Pradhan. The appellant, however, claims that no such order, with reasons, was made available to the parties. In view of the aforesaid approval, the State Government by its order dated 24th May, 1990 asked the legal representatives of Dr. Pradhan to furnish certain information and documents regarding the grant of mining lease. By a letter dated 26th June, 1990, the legal representatives of Dr. Pradhan furnished the information and documents to the State Government. At this stage, the appellant filed OJC No.4316 of 1990 challenging the order dated 11th May, 1990 passed by the Central Government, even though the said order was not made available to the parties.

On 18th December, 1990 the High Court passed an interim order staying the operation of the order of Central Government dated 11th May, 1990.

16. On 13th December, 1996, the High Court disposed of OJC No.4316 of 1990 directing the State Government to reconsider the matter and pass a fresh and speaking order after hearing the appellant, legal representatives of Dr. Pradhan and one M/s. Balasore Minerals. On 8th April, 1999, the Central Government approved the recommendations of the State Government for grant of lease in favour of legal representatives of Dr. Sarojini Pradhan. Thereafter, terms and conditions were offered by the State Government to the legal representatives of Dr. Pradhan on 8th July, 1999, which were accepted by them on 20th July, 1999.

20. On 2nd June, 2006, the High Court passed further order in OJC No. 3662 of 2002 directing that any action taken in connection with the grant of lease shall be subject to the result of the writ petition. On 21st February, 2007, the writ petition was allowed to be amended in view of the judgment in Saligram’s case (supra). The appellant raised a preliminary objection relating to the maintainability of the application for the grant of mining lease by the legal heirs of Dr. Pradhan, contending that on the death of the original applicant, her application for grant of mining lease abates and the legal heirs cannot maintain the said application. By order dated 31st August, 2007, the High Court held that the controversy stood concluded between the parties by the rejection of the earlier SLP (C) No. 13556 of 2001 on 24th August, 2001. It was held that the order dated 24th August, 2001 having attained finality, the question of allowing the legal heirs to be substituted for the deceased applicant had also attained finality between the parties and would operate as res judicata. The subsequent decision in Saligram’s case (supra) is of no consequence. Therefore, the preliminary objection raised by the appellant about the maintainability of the mining lease application by the legal heirs of Dr. Pradhan was rejected. It is this interim order which has been challenged in the present appeal.

21. We may further notice here that OJC No. 3662 of 2002 was ultimately dismissed by the High Court on 24th November, 2008. The dismissal of the aforesaid writ petition was challenged by the appellant by filing SLP (C) No. 5130 of 2009.

35. In view of the conclusions recorded by us above, it is not necessary to express an opinion on the interpretation of Rule 25A of the Mineral Concession Rules, 1960. In any event, the judgment in the case of Saligram (supra) has concluded that the Rule would have only prospective operation. The legal position having been so stated, it is not necessary for us to dilate upon the same.

The above are only the broad grounds but it does not rule out addition of further grounds in course of time…… ……………………………..

49. In view of the above, we find no merit either in Civil Appeal No. 1013 of 2013 arising out of SLP (C)No. 23141 of 2007 or Civil Appeal No. 1014 of 2013 arising out of SLP (C) No. 5130 of 2009. Both the appeals are, therefore, dismissed with no order as to costs.

February 07, 2013.