GEM GRANITES AND ANR. versus STATE OF TAMIL NADU AND ORS.

GEM GRANITES AND ANR. versus STATE OF TAMIL NADU AND ORS.

Rule 8-C, as amended, and Rule 38, insofar as they permit reservation for State Government companies and corporations without approval from the Central Government, are inconsistent with Section 17-A(2) and therefore invalid. Reservation by the State Government for its own exploitation is permissible; reservation for its companies/corporations requires Central Government approval.

Parties
Petitioner: GEM GRANITES AND ANR.; Respondent: STATE OF TAMIL NADU AND ORS.
Jurisdiction
India
Judgment Date
19 January 1995
Procedural Posture
Writ Petition (c) No. 819 of 1992 / Final Decision
Outcome
Rule 8-C (as amended) declared bad in law and struck down in so far as it permits leases in favour of State Government companies and corporations; Rule 38 to be read subject to Section 17-A(2); writ petitions partly allowed; no order as to costs.
Legal Topics
Regulation and Development, Minor Mineral Concession Rules, Reservation of Minerals, State Government Approval
Mines and Minerals Regulation and Development Minor Mineral Concession Rules Reservation of Minerals State Government Approval

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Parties

GEM GRANITES AND ANR.

Petitioner

STATE OF TAMIL NADU AND ORS.

Respondent

Procedural Posture

Writ Petition (c) No. 819 of 1992 / Final Decision

Legal Issues

  1. 1 Validity of Rule 8-C (as amended) and Rule 38 of Tamil Nadu Minor Mineral Concession Rules, 1959 in light of Section 17-A(2) of Mines & Minerals (Regulation & Development) Act, 1957
  2. 2 Whether reservation of granite quarrying for State Government companies/corporations without Central Government approval is lawful

Ratio Decidendi

Rule 8-C, as amended, and Rule 38, insofar as they permit reservation for State Government companies and corporations without approval from the Central Government, are inconsistent with Section 17-A(2) and therefore invalid. Reservation by the State Government for its own exploitation is permissible; reservation for its companies/corporations requires Central Government approval.

Court Disposition

Rule 8-C (as amended) declared bad in law and struck down in so far as it permits leases in favour of State Government companies and corporations; Rule 38 to be read subject to Section 17-A(2); writ petitions partly allowed; no order as to costs.

Orders

  • Rule 8-C, as amended by G.O.M. No. 214 dated 10th June, 1992, is declared bad in law and is struck down insofar as it permits the State Government to grant or renew leases in favour of State Government companies and corporations.
  • Rule 38 must be read as being subject to the provisions of Section 17-A(2) of the Act.