Section 54(2) in The Petroleum Concession Rules, 1949
(2)Notwithstanding anything contained in rule 64, the Central Government shall be the sole judge as to what constitutes a national emergency in respect of petroleum, and its decision in this respect shall be final.(xx)Should the royalty or rent payable by the lessee be not paid within two months next after the date fixed in the lease for the payment of the same, the Central Government may enter upon the premises comprised in the lease and distrain any moveable property therein, and may order the sale of the property so distrained or so much of it as will suffice for the satisfaction of the royalty or rent due and all costs and expenses occasioned by the non-payment thereof: and if any royalty or rent remains at any time unpaid for six calendar months next after the date on which it is due the Central Government may determine the lease and take possession of the premises demised therein:Provided that if any dispute regarding the royalty or rent shall have been submitted to arbitration the period of two months or of six months, as the case may be, shall run from the date of announcement of the award.(xxi)In cases of breach of any of the conditions of the lease by the lessee of his transferee or assignee, the Central Government may, where it is satisfied that the breach is such as cannot be remedied, on giving thirty day's notice to the lessee or his transferee or assignee, forfeit the whole or part of deposit made under rule 45 or determine the lease. In case the Central Government considers the breach to be of a remediable nature, it shall give notice to the lessee, or his transferee or assignee, as the case may be, requiring him to remedy the breach within sixty days from the date of receipt of the notice and informing him of the penalty proposed to be inflicted if such remedy is not made within such period:Provided that, if the lessee, or his transferee or assignee, claims that he has not committed any such breach or that, the penalty proposed therefor is unduly sever, or that the breach is of a remediable nature, be may submit the dispute to arbitration as provided in rule 64, within thirty days from the date of receipt of the notice and if he does so, the Central Government shall not take any action under this clause till the award of the arbitration is announced and, in case the arbitrators of the umpire find that a breach as been committed and that it is of a remediable nature, the sixty days' time for remedying the same shall run from the date of announcement of the award.(xxii)The lessee shall be at liberty to, determine the lease or surrender or relinquish any part of the leased area, giving not less than twelve calendar months' notice in writing to the Central Government.
