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ix. the purpose of trade quarry to be allotted by auction in respect of minerals at Serial No.1 and 3 of Schedule-II of the 1996 Rules is the revenue maximization, which cannot be the only parameter for alienation of natural resources by the State. Therefore, the direction to auction the quarry lease for Mineral-G, which is meant for grant as per preferential rights, cannot be sustained in the eye of law;
x. the application submitted by the petitioner is to be considered by the competent authority in accordance with the provisions contained in the Rules 18 and 21 of the 1996 Rules and therefore, withholding the process on any ground which is not contemplated in the said Rules is arbitrary;

18. Preferential rights are governed under Rule 21 of the 1996 Rules. Under Sub-Rule (2) thereof, the quarry lease of the minerals specified at Serial No.4, 6 and 7 of Schedule-I and Minerals specified in Schedule-II excluding Serial No.1 and 3 shall be preferably given to the Co-operative Society/Association of Scheduled Tribe/Scheduled Caste/Backward Classes, Co-operative Society/ Association of educated unemployed youths or individuals subject to the further stipulations contained thereunder. Here also the Legislature has purposely excluded the quarry lease of the minerals specified at Serial No.3 of Schedule-II from being given to certain category of bodies unlike the mineral specified at WP 25364/2019 & connected matters

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Serial No.6 of Schedule-I i.e. the Mineral-G because it is easier to give the quarry lease of the Mineral-G as per the preferential rights enumerated in Rule 21 of the 1996 Rules and not the minerals specified at Serial No.3 of Schedule- II, which are meant to be allotted only by auction. It is a common ground that while putting the grant of trade quarry for allotment by auction the rates for allotment would vary and therefore, it would be difficult to allot the quarry through auction which is meant to be given as per preferential rights. The said grant/renewal of quarry lease for Mineral-G under Rule 6 and in terms of Rule 21 of the 1996 Rules as per preferential rights is in tune with the Directive Principles of State Policy under Part-IV of the Constitution of India. Article 39 thereunder, provides for certain principles of policy to be followed by the State and that the State shall, in particular, direct its policy towards securing that the citizens, men and women equally, have the right to an adequate means of livelihood under clause (a) thereof and under clause (b) thereof, it is mandated that the ownership and control of the material resources of the community are so distributed as best to subserve the common good. In view of these principles, the State has thought out that the quarry lease of certain minerals at Serial Nos.4, 6 and 7 of Schedule-I is given in order of preference to certain class of persons whereas it is not so in the case of minerals specified at Serial No.3 of Schedule-II. If the Mineral-G at Serial No.6 of Schedule-I is held to be allotted through auction, the scope and purpose of Rule 21 shall become redundant because the grant or renewal as per preferential rights cannot be taken care of through the process of auction. Thus, the Legislature has purposely excluded the minerals specified at Serial No.3 of Schedule-I to be given as per the preferential rights. The Rule 21 of the 1996 Rules, is extracted as under:-

"21. Preferential Rights. - (1) (sub-rule (1) omitted by No.12 (19.9.2008).
WP 25364/2019 & connected matters
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(2) The quarry lease of the minerals specified at S.No.4, 6 and 7 of Schedule I and Minerals specified in Schedule II excluding Serial No.1 and 3 shall be preferably given to the following category, namely:-
(i) Co-operative Society/Association of Scheduled Tribe/Scheduled Caste/Backward Classes, Co-operative Society/Association of educated unemployed youths or individuals where more than fifty per cent, of the members belong to the concerned category and also where the Chairman of the Society is of the concerned category and also where the executive committee have the representation in the ratio of the members of the concerned category and hail from below Poverty Line families listed in the District Rural Development Agency or educated unemployed youth belonging to Scheduled Tribe/Scheduled Caste/Backward Classes in that order.