M.P. State Mining Corporation Ltd vs Sanjeev Bhaskar & Ors

2. The factual matrix of the case is as follows:-

4. In the meantime and before the decision of the Madhya Pradesh High Court, the original lessee, Rajendra Nath Bhaskar died on 7th September, 1982, but no application for substitution was filed. The period of lease also expired on 2nd November, 1986. Subsequently, the legal heirs, Sanjeev Bhaskar and others–respondents herein, filed an application on 2nd September, 1986 before the State Government praying therein for bringing them on record as the legal heirs and to permit them to carry out the mining operation for the remaining period, which came to 6 years, 6 months and 29 days as the lease could not be operated for the aforesaid remaining period because of illegal determination of lease, which had been quashed vide order dated 16th July, 1986 passed by the Madhya Pradesh High Court. No action was taken thereon for about four years. The Collector, Tikamgarh issued a demand notice on 8th June, 1990 determining the dead rent for the period before expiry of the lease deed in view of audit inspection note. Subsequently, two other demand notices were issued on 14th August, 1990 and 8th December, 1993 which according to the State, were inadvertently sent. The stand of the State Government was that as per term of the lease, the period of twenty years expired on 2nd November, 1986 due to efflux of time. Subsequently, legal heirs of the original lessee made no application in the prescribed form and in the manner for grant of mining lease either by way of a fresh grant or by way of renewal. As the lessee was not a holder of the lease the dead rent for the subsequent period could not have been demanded and therefore, notices dated 14th August, 1990 and 8th December, 1993 were inadvertently sent.

6. Receiving no reply, the first respondent filed a contempt petition No. 186 of 1998 before the Madhya Pradesh High Court which was dismissed on the ground of being time barred. However, an observation was made by Madhya Pradesh High Court that it could hope and trust that the Government would implement the order passed in the year 1986, if they had not implemented the same so far.

8. The first respondent on 7th July, 1999, filed a Revision Application before the Central Government under Section 30 of the Act, 1957 read with Rule 55 of the Rules, 1960. During the pendency of the said revision application, the State Government granted a lease for five hectares out of the mining area in question to the M.P. State Mining Corporation. The Central Government vide order dated 12th August, 1999, granted an interim stay directed the State Government not to grant the mining lease to the third party. The Mining Corporation filed a Writ Petition No. 3914/1999 before the Madhya Pradesh High Court on 24th August, 1999 seeking a writ of mandamus directing the respondents to execute a lease deed for a period of 20 years commencing from the date of execution in terms of the grant made on 30th July, 1999. But the first respondent was not made a party therein.

10. The first respondent filed another Revision Application on 15th December, 1999, inter alia, praying for quashing of the grant made on 30th July, 1999 in favour of the Mining Corporation. The first revision application was dismissed on 7th November, 2001 by the Mines Tribunal, which was challenged by the first respondent in Writ Petition (Civil) No. 8033/2002 but this time before the High Court of Delhi. The Second Revision application was dismissed on 31st December, 2002, inter alia, on the ground that the lease was executed in favour of the Mining Corporation by the State Government in compliance of the order dated 15th September, 1999 of interim mandamus by the Madhya Pradesh High Court. The said order was assailed by first respondent by filing a Writ Petition(Civil) No. 5809/04 before the High Court of Delhi. Both the aforesaid Writ Petitions were heard by the learned Single Judge of High Court of Delhi who by common impugned judgment dated 21st September, 2010 allowed both the writ petitions filed by first respondent holding that the grant could not have been made in favour of the Mining Corporation and that the first respondent was entitled to the benefit of remaining expired period of the original lease to begin from the date the decision was taken by the State Government, but subject to the first respondent complying with all the requirements of the Act and Rules and any other applicable law and paying the dead rent and other charges as required by law. The common order passed in those two writ petitions was upheld by the Division Bench of Delhi High Court by its common Judgment dated 20th April, 2011.

16. In view of the aforesaid fact, we hold that after the death of the original lessee, Rajendra Nath Bhaskar, all rights come to an end and the first respondent or any other legal heir(s) were neither entitled to continue with the lease nor entitled for renewal of lease.

23. In view of our findings given in the preceding paragraph, the order dated 21st September, 2010 passed by the Single Judge of the High Court of Delhi and the impugned order dated 20th April, 2011 passed by the Division Bench of the Delhi High Court cannot be upheld. They are accordingly set aside. Both the appeals are allowed but there shall be no order as to costs.