ASSAM SILLIMANITE LTD. AND ANR. versus UNION OF INDIA AND ORS.

ASSAM SILLIMANITE LTD. AND ANR. versus UNION OF INDIA AND ORS.

The premature termination of mining leases under Section 4A without affording the lessee an opportunity to be heard is null and void as it violates principles of natural justice. Compensation/damages for wrongful termination to be determined by arbitration.

Parties
Petitioner: Assam Sillimanite Ltd.; Respondent: Union of India
Jurisdiction
India
Judgment Date
16 March 1990
Procedural Posture
Writ Petition Under Article 32 / Final Disposition, Supreme Court
Outcome
writ petition allowed in part; order of termination quashed as null and void
Legal Topics
Termination of Mining Lease, Natural Justice, Compensation for Premature Termination, Right to Hearing
Administrative Law Mining Law Constitutional Law Termination of Mining Lease Natural Justice Compensation for Premature Termination Right to Hearing

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Parties

Assam Sillimanite Ltd.

Petitioner

Union of India

Respondent

Procedural Posture

Writ Petition Under Article 32 / Final Disposition, Supreme Court

Legal Issues

  1. 1 Whether the premature termination of mining leases under Section 4A of the Mines and Minerals (Regulation and Development) Act, 1951 without notice violated principles of natural justice.
  2. 2 Whether compensation should be awarded for wrongful premature termination of mining leases.

Ratio Decidendi

The premature termination of mining leases under Section 4A without affording the lessee an opportunity to be heard is null and void as it violates principles of natural justice. Compensation/damages for wrongful termination to be determined by arbitration.

Court Disposition

writ petition allowed in part; order of termination quashed as null and void

Orders

  • Issue of compensation/damages for premature termination to be determined by arbitration.
  • Compensation/damages restricted to 5 years from date of termination or up to expiry of original lease deeds, whichever is less.