HC dismisses mining lease renewal plea, imposes Rs 5 lakh costs on firm

Panaji: The Bombay high court has dismissed a petition filed by Shantilal Khushaldas & Bros Pvt Ltd seeking renewal of the mining lease for the Joleracho Dongor mine at Cavorem in Quepem taluka. The court also imposed a cost of Rs 5 lakh on the company for filing the petition.

The mining company had sought a declaration that its lease stood extended till March 31, 2020, under Section 8A of the Mines and Minerals (Development and Regulation) Act, 1951.

The petitioner argued that Portuguese govt had originally granted a mining concession for the mine (TC No. 44/1951 – Joleracho Dongor at Cavorem), which supported its claim for renewal.

However, advocate general Devidas Pangam submitted that the Supreme Court of India has already held that mining operations carried out under leases that expired on Nov 22, 1987, or were deemed to have expired on Nov 22, 2007, are illegal.

He further argued that the petitioner’s lease—whether expressly renewed or deemed renewed—would fall under the Supreme Court’s judgment in the Goa Foundation case, which leaves no scope for exceptions, even for leases renewed before that ruling.

The petitioner, on its part, told the court that Goa govt had, on July 11, 2007, decided to renew its lease subject to obtaining environmental clearance and permission from the forest department.

It added that both approvals were secured on March 2, 2009, and that mining operations were subsequently carried out in 2010 and 2011, during which royalty was also paid to govt.

While dismissing the petition, the high court observed that although the directorate of mines and geology had, on July 11, 2007, indicated that the renewal request could be considered subject to environmental clearance, no formal lease deed was ever executed in favour of the petitioner despite the clearances being obtained.

“There is no explanation in the petition as to why the petitioner did not seek a direction to the directorate of mines and geology to execute a lease deed in its favour,” the court noted.
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