Judgment Case ID: 3073

Judgment:
Appeal No. 2580 of 1969. Appeal from the judgment and order dated August 6	 1969 of the Andhra Pradesh High Court in Writ Petition No. 3124 of 1967. A.Subba Rao	 for the appellants. S.P. Nayar	 for respondent No. 1. P.Ram Reddy and A. V. V. Nair	 for respondents Nos. 2 and 3. P. P. Rao and T. V. section Narasimhachari	 for respondent No. 4. The Judgment of the Court was delivered by Beg	 J. This appeal	 from a Judgment and order of the Andhra Pradesh High Court dismissing the appeallant 's Writ Petition	 comes up before us by Certificate under Article 133(1)(a) of the Constitution	 in the following circumstances One Buchivenkata Rao had filed application on 1 9 1959 and 1 8 1960 under Mineral Concession Rules	 There in after referred to as 'the Rules ' before the Collector of Nellore	 for the grant of a mining lease to him of an area mentioned in his applications. He alleged that his applications complied with the rules framed under the Mines and Minerals (Regulation and Development Act of 1957. The State Government rejected the application of 11 8 1960 on 7 12 1960	 but granted the application made on 4th October	 1950	 by the Respondent Kumara Rajah of Venkatagiri (hereinafter referred to as Venkatagiri). The ground on which the application of the appellant Rao	 was rejected was that Venkatagin ' had a prior claim. The appellant Rao had then preferred a Revision application to the Central Government under the Mineral Concession Rules which came into force on 11th November	 1960	. 667 The Central Government had rejected the revision application on the ground that it was not filed within the prescribed time. Upon a Writ Petition filed in the High Court of Andhra Pradesh	 the order of rejection of the revision application by the Central Government was quashed. The Central Government was directed to consider Rao 's application on merits. The Central Government had	 after giving due opportunity to be heard to the appellant Rao	 dismissed his application on 18th October	 1967	 holding that Venkatagiri had priority over his claim. Rao then filed a second Writ Petition which was dismissed on 26th September	 1969. The judgment and order of dismissal are now under appeal before us. The judgment of the High Court shows that the appellant Rao had relied on the following three grounds only at the time of agruments on his Writ Petition : firstly	 that the application of Venkatagiri was not made in accordance with Rule 27 and 32 of the said Rules of 1949; secondly	 that the application of Venkatagiri was not for a fresh lease but for the continuation of a previous lease so that it did not fall within the purview of the rules; and	 thirdly	 that the Central Government had	 not considered in detail the various comments offered by the State Govt. with regard to each ground of revision. A contention noticed by the High Court	 as a separate ground of attack	 was that the Central Govt. had relied upon a ruling of a Single Judge of the Punjab High Court in J. A. Trivadi Brothers vs Union of India(1)	 holding that Rules 27 to 29 did not make defective applications void	 but this view had been reversed by a Division Bench of that Court. This was no really a separate ground but a contention relating to the effect of failure to comply strictly with Rules 27 to 29 of the Rules of 1949. The main contention of Rao was that the application of Venkatagiri had to be disregarded as it failed to comply with the rules	 and	 therefore	 was not an application in the eye of law	 so that	 out of several competing applications	 Rao 's application. ought to have been granted. The High Court	 made it clear that other grounds were taken in Rao* petition	 but were not argued there. In this Court	 a fresh ground	 neither taken nor argued before the High Court	 is sought to be urged in addition to the other grounds before the High Court which were repeated before us. We will take up the grounds advanced in the High Court and again in this Court before considering the entertain ability of the fresh ground. At this stage	 before dealing with the first ground	 we may set out the relevant rules 27 and 32 of 1949 which run as follows "27. Application for mining	 lease An application for a mining lease shall	 in case of land in which the mine (1) A.I.R. 1959 Punjab 589. 668 rals belong to Government	 be made to the State Government concerned through such officer or authority as it may appoint in this behalf and shall contain the following particulars : (a)(i) If the applicant is an individual	 his name	 nationality	 profession	 and residence	 and (ii) if the applicant is a partnership firm	 a company or an association or body of individuals	 whether in corporated or not	 its name	 nature and place of business	 place of registration of incorporation and except in the case of a company which is not a private company as defined in the Indian Companies Act	 1913 (VII )of 1913) the names and addresses of the individuals constituting such partnership firm	 company	 association or body. (b) The number and date of the notification of the grant or renewal of certificate: of approval of the applicant; (c) A description	 illustrated by a map or plan	 showing as accurately as possible the situation	 boundaries and area of the land in respect of which the lease is required; (d) The mineral or minerals which the applicant intends to mine; (e) The areas and minerals within the jurisdiction of the State Government for which the applicant or any person joint in interest with him already holds a mining lease; (f) If the applicant holds a prospecting license for the area applied for	 the number and date of such license; (g) The period for which the lease. is required; and (h) The industry	 if any	 which the applicant proposes to develop and the location of such industry. Explanation : The map or plan referred to in item (c) should give sufficient information to enable identification of the area in respect of which the lease is required". Priority (1) If more than one application regarding the same land is received	 preference shall be given to the application received first. unless	 the State Govern 669 ment	 for any special reason	 and with the prior approval of the Central Government decides to the contrary. Provided that where more than one application in respect of the same land is received on the same day	 the State Government	 after taking into consideration the matters specified in sub rule (2) and after obtaining the prior approval of the Central Government	 may grant the mining lease to such one of the applicants whom it considers to be the most suitable. Provided further that no application shall be deemed to be incomplete for the purposes of this rule on account of the omission or misdescription of the number and date of the prospecting licence and of the profession or residence or nationality in the case of an individual or of the place of business in the case of a partnership firm	 a company or an association or body of individuals	 whether incorporated or not	 if such omission or misdescription	 is corrected within a period specified by the State Government or an Officer appointed by that Government in this behalf. (2) The matters referred to in the proviso to subrule (1) shall be the following namely: (i) experience of the applicants in mining; (ii) financial soundness and stability of the applicants; (iii) special knowledge of geology or mining and the technical staff already employed or to be employed for the work. It is clear to us that the details mentioned in Rule 27 are intended for the correct identification of the individual to whom the lease is to be granted	 the minerals which are to be mined	 the area in respect of which the lease was to be granted	 and the qualifications of the applicant. Considerable emphasis was placed on the word 'shall ' in Rule 32 with regard to the priority to be given between different applicants. This rule does not directly affect the question whether an application for a lease could be considered a proper application or not by the authorities concerned. The second proviso to this rule	 however	 provides for the manner in which certain defects may be cured. Rule 32	 sub rule (2)	 introduced in 1955 before the grant of the application of Venkatagiri	 shows that the individual qualifications of the applicants including their special knowledge	 their capacity to engage technically efficient staff	 their financial soundness and stability	 had to be taken into account in determining the question of priority. Again Rule 670 26	 imposing certain restrictions	 prohibits the grant of the lease to any person who does not hold a certificate of approval from the State Government or who has not produced an Income tax clearance certificate. It does not prohibit any grant on the ground that the application for it is defective or not accompanied by a map. The form of the application seems to be subordinate to the essential facts	 to be taken into account before granting a lease. There is no provision in the Act showing that the defects in an application which is accompanied by the fee prescribed in Rule 28 cannot be subsequently removed. The information given in the application is intended for the satisfaction of the authorities granting the lease so that	 after considering inherits and making a grant	 proper details are embodied in the lease actually granted. It was not urged anywhere that	 as a result of any defects in the applica tion	 of Venkatagiri	 the lease. itself could not be executed. This indicates that the omission to file a proper map initially was cured. The High Court had relied on a decision of this Court in Banarsi Das vs Cane Commissioner	 U.P.(1) where conditions similar to those laid down by Rule 27 were held to be directory. It had also held that	 even assuming that some of the requirements in the rules may be mandatory	 it could not be held that the mere want of a map or of details	 describing the area for which the lease was applied for	 would make the application itself void or of no effect. We are	 therefore	 unable to find any error in the view adopted by the High Court that the supply of necessary details was directory and not mandatory. If it did not produce a defect which affected the validity of the lease	 and the details supplied in the application corresponded with the contents of the lease after the alleged lacuna had been filed up	 the grant of the lease to Venkatagiri was valid. As regards the second ground that the application of Venkatagiri had to be interpreted as an application for the continuation of an already existing lease and not for the grant of 'a fresh lease	 we find that the High Court had rejected this contention by pointing out that the application was on a form which complied	 with Rule 27 so that it could be treated as a fresh application. We find nothing wrong with the High Court 's interpretation of the application made by Venkatagiri. The High Court had also found	 as a fact	 that the order of the Central Government disclosed that it was based on relevant considerations and could not be said to have omitted consideration of anything material simply because the details of matters considered were not fully set out. We concur with this view and are (1) A.I.R. 1963 S.C. 1947. unable to hold that the order of the Central Government was vitiated on the third ground urged on behalf of Rao. We may now refer to the fresh question which was sought to be raised on behalf of the appellant by means of an application before us. This was	 that this Court had pointed out in Nookala Satharamaiah vs Kotaiah Naidu & Ors.(1)	 that	 on 15th September	 1956	 the Mineral Concession Rules were amended and. a new sub rule 28(1 A) was introduced which provided that every application under Rule 27	 shall be disposed of within nine months from the date of its receipt	 and had	 held that the effect of the amended Rule 57	 which was further amended on 14 9 1956	 was that an application remaining undisposed of within the period prescribed will be deemed to be rejected. It was urged that we should allow this point to be argued for the first time in this Court although it was neither raised nor argued in the High Court. it was submitted that this was a pure question of law on which no investigation of facts afresh was required. On the other hand	 it has been contended	 on behalf of the contesting respondent	 that a new _point should not be allowed to be urged at this stage for which reliance was placed on Bhagwati Saran & Anr. vs State of Uttar Pradesh(2)	 section L. Aggarwal v ' General Manager	 Hindustan Steel Ltd.(3)	 Chitra Ghosh & Anr.v. Union of India & Ors.(4) Even if we had been disposed to consider this new ground on the plea that exceptional circumstances justified our going into it	 we must here point out another fact which affects the very maintainability of the appeal before us now. The appellant B. Rao died on 18 2 1970. His sons filed an application in this Court on 20 7 1970 for impleading them as the heirs and legal representatives of the deceased. This application was tentatively allowed	 on 3 11 1970	 under the orders of the Registrar of this Court	 subject to such objections to the rights of the substituted appellants to be heard and to continue this appeal on behalf of the deceased ' as may be taken before us at the hearing of the appeal. It has to be remembered that	 in order to enable a legal re presentative to continue a legal proceeding	 the right to sue or to pursue a remedy must survive the death of his predecessor. In the instant case	 we have set out provisions showing that the rights which an applicant may have had for the grant of a mining lease	 on the strength of an alleged superior claim	 cannot be separated from his personal qualifications. No provision has been pointed out to us in the rules for impleading an heir who could continue. the application for a mining lease. The scheme under the rules (1) ; (3) ; at 365. (2) ; at 568. (4) ; at 420. 672 seems to be that	 if an applicant dies	 a fresh application has to be presented by his heirs or legal representatives if they themselves desire to apply for the grant of a lease. It may be that the heir		 and legal representatives	 if they are continuing the business or industry of the deceased and have	 the required qualifications	 obtain priority over an earlier applicant on account of special reasons for this preference. But	 in each case	 they have to apply afresh and set out their own qualifications. It has not been shown to us that any of the legal representatives have applied afresh. The legal	 representatives only claim to be entitled to succeed the deceased Buchivenkata Rao under a will. The assumption underlying the application is that	 whatever right the deceased may have had to .obtain a lease survived and vested in the heirs after his death. We are unable to accept the correctness of this assumption. In support of the contention on behalf of the heirs of Buchivenkata Rao	 our attention was drawn to the case of Dhani Devi vs Sant Bihari & Ors.(1) which related to a right to obtain transfer of a permit for a Motor vehicle under Section 61	 sub. section 1(2) of the Motor Vehicle Act. It was held there that	 in the case of the death of an applicant for the grant of a permit in respect of his motor vehicle	 the Regional Transport Authority had the power to substitute the person succeeding to the possession of the vehicle in place of the deceased applicant. It was pointed out there that the right to the permit was related to the possession of the vehicle. Moreover	 there was a rule enabling the Transport Authorities to substitute the heir or legal representatives of the .deceased. No such rule applicable to the case of the heirs of the deceased Buchivenkata Rao has been pointed out to us. Therefore	 we are unable to hold that the heirs	 who have been heard	 had any right to continue	 the appeal before us. This feature of the case is decisive not only on the right to be heard on the fresh ground but also on the right to advance any argument in support of the appeal of the deceased. We may mention that it was also urged that the matter was so	 old that any reversal of the grant of the mining lease to Venkatagiri	 as long ago as 1960	 would involve considerable dislocation and injury to respondent Venkatagiri without any fault on his part. The respondent Venkatagiri must have invested considerable amount of money in mining operations. The acceptance of the claim of Venkatagiri by the Government on the strength of which Venkatagiri made his investment clothes Venkatagiri 's claim with an equity which could not be defeated without clear proof of some legal right or interest of another claimant. We are (1) ; 673 unable to see any such right in the heirs of the deceased Buchivenkata Rao. Consequently this 'appeal is dismissed but we make no orders as to costs in this Court. V.P.S. Appeal dismissed.

Summary:
The application of one B for a mining lease was rejected on the ground that another applicant V had a prior claim. B 's writ application was dismissed by the High Court and while his appeal in this Court was pending he died and his sons were allowed to be impleaded as legal representatives subject to any objection that may be taken to their right to continue the appeal. it was not in accordance with r. 27 of the Mineral Concession Rules and because of want of a map and 'some details regarding area	 and therefore	 whether B 'section appli cation should have been granted	 HELD : (1) The details mentioned in r. 27 are intended for the correct identification of the individual to whom the lease is to be granted	 the minerals which are to be mined the area in respect of which the lease was to be granted and the qualifications of the applicant. Rules 32(2)	 introduced in 1955	 before the grant of V 's application	 shows that individual qualifications of the applicants including their special knowledge	 .their capacity to engage technically efficient staff	 their financial soundness and stability	 bad to be taken into account in determining the question of priority. There is no prohibition against the grant of an application on the ground that the application is defective or not accompanied by a map. There is also no provision in the Act showing that defects in an application could. not be subsequently removed. The form of the application is subordinate to the essential facts to be taken into account before granting a lease. The information given in the application is intended for the satisfaction of the authorities granting the lease	 so that	 .after considering the merits and making a grant up Proper details are embodied in the lease actually granted. ply of necessary details is directory and not mandatory. It was not the cage here that as a result of the defects in V 's application the lease itself could not be executed. Therefore	 the mere want of a map or of details describing the area for which the lease was applied for	 would not make the application itself void or of no effect. If it did not produce a defect which affected the validity of the leak	 and the details supplied in the application corresponded with the contents of the lease after the alleged lacuna had been removed the grant of the lease to V was valid. [669 F H; 67OB F] (2) In order to enable a legal representative to continue a legal proceeding	 the right to sue or pursue a remedy must survive the death of his predecessor. Under the rules	 the right of an applicant on the strength of a superior claim cannot be separated 'from his personal qualifications. [671 G H] 666 Moreover	 there is no provision in the Rules for imploding an heir to continue the application for a mining lease. The scheme under the Rules is that if an applicant dies	 a fresh application has to be presented by the heirs or legal representatives if they desire to apply far the grant of a lease. It may be that they may obtain priority over an earlier applicant if they are continuing the business or industry of the decreased	 but it would be on a fresh application setting out their qualifications. Therefore	 the heirs had no right to continue the appeal in this Court. [672A C] Dhani Devi vs Sant Bihari & Ors. 	 ; 	 distinguished. (3) The acceptance of V 's claim by the Government on the strength of which he had made his investment	 clothes his claim with an equity which could not be defeated without clear proof of some overriding legal right or terest of another claimant	 and	 there is no such right in the heirs of B [672G H]