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Y. S. Chitale (Dr.), Mrs. S. Ramachandran and Mukul Mudgal for Respondent Nos. 11 and 42.

P. Chidambaram and A. S. Nambiyar for the Respondents. F. S. Nariman, A. V. Rangam and R. N. Sachthey for the interveners.

V. Srinivasan, A. Venkatarayana and P. N. Ramalingam for Respondent No. 45.

The Judgment of the Court was delivered by CHINNAPPA REDDY, J.-Entry 23 of List II of the Seventh Schedule to the Constitution is, "Regulation of mines and mineral development subject to the provisions of List I with respect to regulation and development under the control of the Union". Entry 54 of List of the Seventh Schedule is "Regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest". Thus while 'regulation of mines and mineral development' is ordinarily a subject for State legislation. Parliament may, by law, declare the extent to which control of such regulation and development by the Union is expedient in the public interest, and, to that extent, it becomes a subject for Parliamentary legislation. Parliament has accordingly enacted the Mines and Minerals (Regulation and Development) Act, 1957. By S. 2 of the Act it is declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent thereafter provided. It is now common ground between the parties that as a result of the declaration made by Parliament, by S. 2 of the Act, the State legislatures are denuded of the whole of their legislative power with respect to regulation of mines and mineral development and that the entire legislative field has been taken over by Parliament. That this is the true position in law is clear from the pronouncements of this Court in The Hingir Rampur Coal Co. Ltd. & Ors. v. The State of Orissa & Ors. State of Orissa v. M.A., Tulloch & Co. and Baijnath Kedia v. State of Bihar & Ors. S. 3 of the Mines and Minerals (Regulation and Development) Act, 1957, defines various expressions occurring in the Act. S. 3 (a) defines 'minor minerals' and it includes any mineral declared to be a minor mineral by the Central Government by a notification in the Official Gazette. 'Black granite' has been so notified by the Central Government as a minor mineral. Section 4 to 9A are grouped under the heading 'General Restrictions on undertaking prospecting and mining operations'. These provisions as well as Sections 10 to 13 are made inapplicable to 'minor minerals' by S. 14. S. 4 prohibits all prospecting or mining operations except under a licence or a lease granted under the Act and the rules made thereunder. S.4A(1) enables the State Government on a request made by the Central Government in the interest of regulation of mines and mineral development to terminate a mining lease pre-maturely and grant a fresh mining lease in favour of a Government Company or Corporation owned or controlled by Government. Perhaps because s.4A(1) is inapplicable to minor minerals because of the provisions of S.14, S.4A(2) has been expressly enacted making somewhat similar provision, as in S.4A(1), in respect of 'minor minerals' also. S.4A(2) enables the State Government, after consultation with the Central Government, if it is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do, to prematurely terminate a mining lease in respect of any minor mineral and grant a fresh lease in respect of such mineral in favour of a Government Company or Corporation owned or controlled by Government. S.5 imposes certain restrictions on the grant of prospecting licences and mining leases. S.6 prescribes the maximum area for which a prospecting licence or mining lease may be granted. S.7 prescribes the period for which prospecting licences may be granted or renewed. S.8 prescribes the period for which mining leases may be granted or renewed. S.9 provides for the payment of royalty and S.9A for the payment of dead rent. Sections 10, 11 and 12 constitute a group of sections under the title 'Procedure for obtaining prospecting licences or mining leases in respect of land in which the minerals vest in the Government'. S.10 provides for making applications for prospecting licences or mining leases in respect of any land in which the minerals vest in the Government. S.11 provides for certain preferential rights in favour of certain persons in the matter of grant of mining leases. S. 12 prescribes the Register of prospecting licences and mining leases to be maintained by the State Government. S.13 empowers the Central Government to make rules for regulating the grant of prospecting licences and mining leases. In particular we may mention that S.13(2) (a) empowers the Central Government to make rules providing for 'the persons by whom, and the manner in which, applications for prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor". S.13(2) (f), we may add, empowers the Central Government to make rules providing for 'the procedure for obtaining a prospecting licence or a mining lease in respect of any land in which the minerals vest in a person other than the Government and the terms on which, and the conditions subject to which, such a licence or lease may be granted or renewed'. S.14 makes the provisions of Sections 4 to 13 inapplicable to minor minerals. S.15 empowers the State Government to make rules for regulating the grant of quarry leases, mining leases and other mineral concessions in respect of minor minerals and purposes connected therewith. S.15(3) provides for the payment of royalty in respect of minor minerals at the rate prescribed by the rules framed by the State Government. S.16 provides for the modification of mining leases granted before October 25, 1949. S.17 enables the Central Government, after consultation with the State Government to undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease, in which event the Central Government shall publish a notification in the official Gazette giving the prescribed particulars. The Central Government may also declare that no prospecting licence or mining lease shall be granted in respect of any land specified in the notification. S.18 casts a special duty on the Central Government to take all necessary steps for the conservation and development of minerals in India. Sections 19 to 33 are various miscellaneous provisions with which we are not now concerned.

Rivers, Forests, Minerals and such other resources constitute a nation's natural wealth. These resources are not to be frittered away and exhausted by any one generation. Every generation owes a duty to all succeeding generations to develop and conserve the natural resources of the nation in the best possible way. It is in the interest of mankind. It is in the interest of the Nation. It is recognised by Parliament. Parliament has declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals. It has enacted the Mines and Minerals (Regulation and Development) Act, 1957. We have already referred to its salient provisions. S. 18, we have noticed, casts a special duty on the Central Government to take necessary steps for the conservation and development of minerals in India. S. 17 authorises the Central Government itself to undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease. S.4A empowers the State Government on the request of the Central Government, in the case of minerals other than minor minerals, to prematurely terminate existing mining leases and grant fresh leases in favour of a Government Company or Corporation owned or controlled by Government, if it is expedient in the interest of regulation of mines and mineral development to do so. In the case of minor minerals, the State Government is similarly empowered, after consultation with the Central Government. The public interest which induced Parliament to make the declaration contained in S. 2 of the Mines & Minerals (Regulation and Development) Act, 1957. has naturally to be the paramount consideration in all matters concerning the regulation of mines and the development of minerals. Parliament's policy is clearly discernible from the provisions of the Act. It is the conservation and the prudent and discriminating exploitation of minerals, with a view to secure maximum benefit to the community. There are clear sign posts to lead and guide the subordinate legislating authority in the matter of the making of rules. Viewed in the light shed by the other provisions of the Act, particularly sections 4A, 17 and 18 it cannot be said that the rule making authority under S. 15 has exceeded its powers in banning leases for quarrying black granite in favour of private parties and in stipulating that the State Government themselves may engage in quarrying black granite or grant leases for quarrying black granite in favour of any corporation wholly owned by the State Government. To view such a rule made by the Subordinate legislating body as a rule made to benefit itself merely because the State Government happens to be the subordinate legislating body, is, but, to take too narrow a view of the functions of that body. The reasons that prompted the State Government to make Rule 8-C were explained at great length in the common counter affidavit filed on behalf of the State Government before the High Court. We find no good reason for not accepting the statements made in the counter affidavit. It was said there: