Karnataka High Court Sri H.G. Rangangoud S/O Late H.R. ... vs Ministry Of Coal And Mines, Department ... on 14 August, 2007 Equivalent citations: 2008(1)KARLJ199, AIR 2007 (NOC) 2435 (KAR.) 2007 (5) AIR KAR R 534, 2007 (5) AIR KAR R 534, 2007 A I H C 3711, (2008) 1 KANT LJ 199 ORDER D.V. Shylendra Kumar, J. Page 1749 1. These two writ petitions are by persons who had aspired for mining lease of government reserved forest lands in Kumaraswamy range of reserved forest of Sandur taluk in Bellary district, which land figures one amongst several parcels of lands notified for grant of mining lease by the government of Karnataka in terms of its notification No. Cl 16 MMM 2003 dated 1532007. The notification was issued under Rule 59 of the Mineral Concession Rules, 1960 [for short, the Rules], which in turn is the Rules framed under the provisions of the Mines & Minerals (Development & Regulation) Act, 1957 [for short, the Act]. 2. It appears that the writ petitioner in WP No. 20739 of 2005 M/s Salgaocar Mining Industries Pvt Ltd., had filed an application in form No. 1 and had sought for grant of mining lease in respect of an extent of 524.80 ha of forest land in Ramanamale block, Sandur range, Bellary district and a sketch plan had been enclosed along with the application, the application of the petitioner in WP No. 19339 of 2005 filed by one H.G. Rangagouda son of Gaviyappa of Hospet in Bellary district, was in respect of 350 ha of forest land in Yashwanthnagar forest range, Sandur taluk, Bellary district. 3. It appears when the processing of such applications was in progress, the state government had made a recommendation to the central government and had sought for grant of permission under Section 5(1) of the Act for granting an area of 509 ha of forest land in favour of the petitioner in WP No. 20739 of 2005 and to an extent of 16.80 has in favour of writ petitioner in WP No. 19339 of 2005. While the matter was pending for such process with the central government, two developments, it appears, took place. The State Trading Corporation (STC) of India also filed an application seeking grant of mining lease for an area of 524.80 ha in Kumaraswamy range, Sandur taluk in Bellary district by making an application, much later than the writ petitioners herein had applied for and that the state government indicating that it had already processed the other applications for grant of mining leases in respect of the lands, the STC having become active to obtain the mining lease and having moved the central government for issue of a notification in exercise of the powers of the central government under Section 17A(1A) of the Act, which reads as under: 17A. Reservation of area for purpose of conservation: 1) Xxx 1A) The central government, in consultation with the state government, reserve any area not already held under any prospecting licence or mining lease for undertaking prospecting or mining operations, through a government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the official gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved. Page 1750 to reserve this extent of land exclusively in favour of STC for the purpose of mining iron ore available in the land and for such purpose having issued the notification No SQ 889(E) dated 2762005, which would virtually snuff out the aspirations of both the petitioners, these two writ petitions have been filed praying for quashing of the said notification dated 2762005 issued by the central government through the ministry of mines and for further a direction to the state government to process, finalize and grant mining leases as had been sought for by the petitioners. The writ petitions are for such purpose and essentially for quashing the notification issued by the central government reserving land in favour of the STC for the purpose of exploiting the entire area available in 524.80 ha located in Kumaraswamy reserve forest area in Bellary district, for a period of 30 years. The impugned notification reads as under: MINISTRY OF MINES NOTIFICATION New Delhi dated the 27th June 2003 SQ 889 (E) In exercise of the powers conferred by Subsection (1A) of Section 17A of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government in consultation with the government of Karnataka, reserves for undertaking mining operations through the State Trading Corporation of India Ltd. (STCIL), a Public Sector Undertaking, owned and controlled by the Central Government, of the iron ore deposits in Kumarasway Reserve Forest area in Bellary district of the State of Karnataka, except the rea already held under prospecting licence or mining leases and declares that no prospecting licence or mining lease shall be gran