As per case facts, the petitioner was granted a mining lease for 20 years from 1964. After initial rejections and revisions, the lease was eventually renewed for a total of ...
IN THE HIGH COURT OF MADHYA PRADESH
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AT JABALPUR
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BEFORE
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HON'BLE SHRI JUSTICE VIVEK RUSIA
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&
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HON'BLE SHRI JUSTICE PRADEEP MITTAL
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ON THE 24
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th
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OF FEBRUARY, 2026
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WRIT PETITION No. 11364 of 2021
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M/S SHRI KRISHNADAS TIKARAM A PARTNERSHIP FIRM
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REPRESENTED THR ITS PARTEN SHRI ASHWANI GAUTAM
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Versus
THE STATE OF MADHYA PRADESH AND OTHERS
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Appearance:
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Shri Kishore Shrivastava, Senior Advocate with Shri Kapil Jain, Advocate
for the petitioner.
Shri Abhijeet Awasthi Dy. Advocate General for the State.
ORDER
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Per
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: Justice Pradeep Mittal
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The present writ petition has been filed under Articles 226 of the
Constitution of India against the order dated 02.03.2020 passed by respondent No.
1 whereby the representation for extension of lease period of the petitioner has
been dismissed.
2. The facts of the case are that the Petitioner /Company was granted a
Mining Lease for extraction of Bauxite and Limestone over an area of 10.16 acres
situated in Village Argat, Tehsil Amarpatan, District Satna, vide order dated
08.01.1964. The lease was executed for a period of 20 years from 16.01.1964 to
15.01.1984. Prior to the expiry of the lease period, the Petitioner has applied on
27.12.1984 for the first renewal of the lease. The said application was rejected on
17.12.1985 by the State Government on the ground of delay. Aggrieved thereby
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the petitioner preferred a Revision before the Central Government. The Revisional
Authority, vide order dated 29.11.1988, set aside the rejection order and directed
the State Government to reconsider the renewal application on merits of the
petitioner. In compliance of the order dated 29.11.1988, the State Government
granted renewal of the lease for a period of 10 years vide order dated 20.11.1992,
and the lease deed was executed on 18.03.1993. The petitioner, being aggrieved
by the grant of renewal for only 10 years instead of 20 years, preferred a second
revision before the Central Government. The Revisional Authority, vide order
dated 20.02.1998, held that the petitioner was entitled to renewal for a total period
of 20 years and accordingly directed modification of the lease period. In
compliance, the lease stood renewed for the period from 18.03.1993 to
17.03.2013. Thereafter, the petitioner applied on 27.02.2012, seeking second
renewal of the mining lease. During the pendency of the said application, the
Mines and Minerals (Development and Regulation) Amendment Act, 2015 came
into force with effect from 12.01.2015, whereby the provisions relating to renewal
of mining leases were abolished and Section 8-A was inserted. As per Section 8-A
(6) of the Act, all mining leases granted prior to the amendment shall be deemed to
have been extended up to 50 years from the date of grant or until 31.03.2020,
whichever is later, subject to compliance of the lease conditions.
3. The Petitioner submitted a representation dated 06.08.2018 seeking
extension of the lease period by an additional period of 09 years and 02 months on
the ground that mining operations remained closed from 16.01.1984 to 18.03.1993
due to litigation and administrative delay, and therefore the said period ought to be
excluded while computing the total lease period. The respondents rejected the
petitioner’s claim vide impugned order dated 02.03.2020 on the ground that there
is no provision under the Act or Rules permitting addition of the non-operational
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period to the lease period.
4. The Respondents submit that the original mining lease was granted on
16.01.1964 and, in terms of Section 8-A(6) of the MMDR Act, 1957 as amended
in 2015, the maximum statutory lease period of 50 years expired on 15.01.2014,
and by operation of law, the lease stood deemed extended only up to 31.03.2020,
whichever is later. It is further submitted that there is no provision under the Act
or the Rules permitting exclusion or addition of any non-operational period for
extending the lease beyond the statutory limit of 50 years, and the amendment has
abolished the concept of renewal by prescribing a fixed maximum lease period.
The representation of the petitioner was duly considered and rightly rejected vide
order dated 02.03.2020, as the petitioner failed to establish any statutory
entitlement for further extension. The judgment relied upon by the petitioner,
being prior to the 2015 amendment, cannot override the express statutory
provisions. Therefore, the impugned order is legal and valid, and the present
petition, being devoid of merit, deserves to be dismissed.
We have heard learned counsel for the parties and perused the record.
5. It is undisputed that the non-operational period lasted nine years and
two months. The contention of the petitioner that the non-operational period of 09
years and 02 months should be excluded and added to the lease period cannot be
accepted, as there is no provision under the MMDR Act, 1957, as amended in
2015, permitting such exclusion or extension beyond the statutory period of 50
years. The benefit of deemed extension is available only to leases which were
valid and subsisting in accordance with Section 8-A of the Act, and the statute
does not provide for grant of additional lease period on account of non-operation
due to litigation.
6. In support of the above contention, the petitioner relied on the judgment
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in the case of Yogesh Khare vs State of Madhya Pradesh
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(W.P. No. 7760/2012,
decided on 13.10.2014), which was rendered prior to the MMDR Amendment
Act, 2015, and therefore cannot override the express statutory provisions
introduced by the amendment.
7. The contention of the petitioner is that the original mining lease was
granted on 16.01.1964. Therefore, in terms of Section 8-A (6) of the MMDR Act,
the maximum lease period of 50 years expired on 15.01.2014, and by operation of
law, the lease stood extended only up to 31.03.2020. It is further contended that,
after including the non-operational period of nine years and two months, the lease
ought to have been renewed up to 31.03.2029.
8. The above contention cannot be accepted because the lease period had
already expired before the amendment came into force in 2015.
9. Before the enactment of the 2015 Amendment, a mining lease could be
renewed only for ten years, and not for fifty years. After the expiry of the lease
period, by order dated 29.11.1988, the State Government renewed the lease for a
period of ten years vide order dated 20.11.1992. At the time of such renewal, the
petitioner did not claim that the non-operational period of nine years and two
months should be added to the lease period.
10. Being aggrieved by the renewal granted for only ten years, the
petitioner preferred a second revision before the Central Government. The
Revisional Authority, vide order dated 20.02.1998, held that the petitioner was
entitled to renewal for a total period of twenty years. This clearly indicates that the
Government had already taken into account the non-operational period while
granting renewal for twenty years instead of merely nine years and two months.
Therefore, in light of the above-mentioned judgment, the petitioner is not entitled
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to claim the benefit of that period twice.
11. The respondent No.1 also held in the impugned order that as per the
first proviso to Section 8(9) of the Act, the benefit of extension of the lease period
in the name of the lessee shall be granted, by operation of law, only in respect of
those leases which were valid and subsisting on the date on which the amended
provisions came into force. It is further provided that this provision shall not apply
to cases where only deemed renewal applications were pending prior to the
amendment. It was further held that in the present case, it is evident from the terms
and conditions of the lease period/approval that the extension of the lease in the
name of the lessee is subject to the provisions of the Act.
12. The petitioner’s lease had already lapsed upon expiry of the prescribed
period in 2013, prior to the enactment of the 2015 Amendment. Therefore, Section
8-A of the MMDR Act is not applicable to the present case. Consequently, the
lease period does not extend up to 31.03.2020.
13. This court in the case of Yogesh Khare Vs. State of M.P. and others
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in
W.P. No. 7760 of 2012 vide order dated 13.10.2010 held in para 5 that " it cannot
be gainsaid that the mandate of Section 8 of the Act of 1957 envisages grant of
mining lease for a period not less than 20 years from the grant. Realising this
position, the State Government vide order dated 10th May, 2011 accepted the
claim of the petitioner that the mining lease period should be for 20 years from the
date of original grant. However, the Authority did not deem it appropriate to
reckon the 20 years period by giving benefit to the petitioner from 2004 till 2011
during which period, the petitioner was pursuing remedy before the competent
Authority and including this Court by way of writ petition."
Further in para 7 it was held by this court as under:-
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"In the present case, the petitioner could not avail of the minimum lease
period of 20 years between 2004 to 2011 because of the inaction of the
Authorities and the lapse, in no way, was attributable to the petitioner.
On the contrary, the petitioner having pursued his remedy in accordance
with law, was entitled for continuation of the mining lease for further
seven years from 26th September, 2014, keeping in mind that 20 years
term of the original period prescribed under the lease deed vide order
dated 27th September, 1994 would have ordinarily expired on 26th
September, 2014. For, the petitioner was unable to avail of the mining
lease between 2004 to 2011 until the order was passed by the State
Government on 10th May, 2011. The order passed by the State
Government, therefore, could not have limited the mining lease period
till 26th September, 2014 but also added the period spent by the
petitioner before the Court of Law between 26th September, 2004 till
10th May, 2011. That period will have to be added from 26th
September, 2014 and the petitioner would be thus entitled to
commensurate extended mining lease period on that basis."
14. The contention of the respondent is also not acceptable that, in terms
of Section 8-A(6) of the MMDR Act, 1957, as amended in 2015, the maximum
statutory lease period of 50 years expired on 15.01.2014 and, by operation of law,
the lease stood deemed to be extended up to 31.03.2020, whichever is later. The
said contention cannot be accepted because the petitioner’s lease had already
expired prior to the 2015 Amendment. For the sake of argument, it may be
accepted that the period of the lease expired on 31.03.2020, and no further
extension of 9 years and 2 months for the non-operational period of the lease can
be granted, as the Government had already granted that benefit by extending the
lease for 20 years instead of 10 years.
15. In view of the above discussion, it is clear that the non-operational
period of nine years and two months had already been taken into account while
granting the second renewal to the petitioner, and that the lease had expired prior
to the enactment of the 2015 Amendment. Therefore, the respondents have rightly
rejected the petitioner’s claim.
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(VIVEK RUSIA)
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JUDGE
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(PRADEEP MITTAL)
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JUDGE
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16. Accordingly, we do not find any illegality or infirmity in the impugned
order that calls for any interference by this court. The petition, being devoid of
substance and merit, is hereby dismissed.
MSP
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