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Smart Summary

Factual and Procedural Background

The petitioners applied for and obtained from the State of Bihar a mining lease covering 415.45 acres for mining fire clay. The State sanctioned the lease by order dated 18-5-1983 for a period of 20 years; a lease deed was executed by the Deputy Commissioner, Hazaribagh on 25-7-1983, and possession was demarcated and delivered by the District Mining Officer on 30-9-1983. Petitioners commenced mining operations.

The Divisional Forest Officer (respondent) began to interfere with the mining operations and, by letter dated 14-1-1984, directed forest range officers not to permit the petitioners to carry on mining in areas of the lease-hold that were within reserved forest. The petitioners filed this writ application seeking a mandamus restraining the Divisional Forest Officer from interfering with their mining operations across the lease-hold.

The factual background also includes that prior to the petitioners' lease, the area had been under lease to India Fire Bricks and Insulation Company Pvt. Ltd., which had carried out mining there for a number of years; that history formed the basis of the petitioners' argument that they were exempt from the requirements of the Forest (Conservation) Act, 1980.

Legal Issues Presented

  1. Whether the petitioners are entitled to a writ of mandamus directing the Divisional Forest Officer not to interfere with the mining operations carried on by them on the leased area.
  2. Whether Section 2 of the Forest (Conservation) Act, 1980 (which requires prior approval of the Central Government for dereservation or use of forest land for non-forest purposes) applies to the lease granted to the petitioners when the lease was granted after the Act came into force and without prior Central approval.
  3. Whether prior mining activity or a prior lease (i.e., earlier operations by India Fire Bricks and Insulation Company) exempts the petitioners from the requirement of prior Central Government approval under Section 2, or allows renewal or fresh grant without such approval.

Arguments of the Parties

Petitioners' Arguments

  • The petitioners acknowledged the mandatory nature of Section 2 in general but contended that it did not apply to the area in question because the land had previously been under lease and mining operations had already been carried out by India Fire Bricks and Insulation Company Pvt. Ltd.
  • Relying on the Supreme Court decision in State of Bihar v. Banshi Ram, AIR 1985 SC 814, the petitioners argued that where permission to break up or clear forest land had been accorded and the land had been broken up or cleared before the Act came into force, Section 2 would not apply.
  • The petitioners also referred to a Bench decision of this Court in Mahabir Prasad Jhanjhari v. The State of Bihar (C.W.J.C No. 492 of 1981) permitting continuing mining operation within a specified portion, as supportive of their position.

Respondent's Arguments

  • The Divisional Forest Officer relied on the Forest (Conservation) Act, 1980 (and the Forest (Conservation) Ordinance, 1980) to assert that any forest land cannot be used for non-forest purposes except with the prior approval of the Central Government, and that the petitioners were therefore not entitled to carry on mining in the portion of the lease-hold that is reserved forest because the lease was granted after the Act without prior Central approval.
  • The respondent pointed to the mandatory language of Section 2 and to the policy aim of the Act to check further deforestation and ecological deterioration.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Bihar v. Banshi Ram, AIR 1985 SC 814 Held that if permission for breaking up or clearing forest land was granted before the Act came into force and the land had been broken up or cleared then Clause (ii) of Section 2 might not apply to that case. The petitioners relied on this decision to argue an exemption. The court noted the decision but treated it as fact-specific and subject to later explanation/distinguishment by the Supreme Court in Ambica Quarry Works.
Ambica Quarry Works v. State of Gujarat, AIR 1987 SC 1073; (1987) 1 SCC 213 Explained and distinguished State of Bihar v. Banshi Ram; held that renewals or fresh grants of leases (even where past mining had taken place) would lead to further deforestation or would not help reclaim deforested areas, and therefore Section 2 applies to renewals and fresh grants unless prior Central approval is obtained. The Court relied on Ambica Quarry Works to hold that Section 2's bar applies even to renewals and fresh grants covering reserved forest or forest land, and consequently to the petitioners' lease granted after the Act without prior Central approval.
Quinn v. Leathern, 1901 AC 495 (Lord Halsbury cited) Principle that a case is authority only for what it actually decides; caution in expanding ratio beyond facts of the case. Quoted within the Ambica discussion (as cited by the Supreme Court) to illustrate that the ratio of a decision must be understood in the factual background and cannot be over-generalised.
Mahabir Prasad Jhanjhari v. The State of Bihar (C.W.J.C No. 492 of 1981) Bench decision of this Court allowing continued mining operations within a specified portion (lease in that case had been granted prior to the Act). The petitioners cited this Court's earlier decision, but the bench in the present case observed that the earlier judgment predated the Supreme Court's authoritative pronouncement in Ambica and was factually distinguishable (lease there was prior to the Act).

Court's Reasoning and Analysis

The Court began by setting out Section 2 of the Forest (Conservation) Act, 1980 and its Explanation, and concluded that the restriction on a State Government or other authority from dereserving forest or permitting forest land to be used for non-forest purposes without prior Central Government approval is imperative and mandatory in character.

The Court observed that the petitioners' counsel did not dispute the mandatory nature of Section 2 but contended that the requirement was inapplicable because mining had previously been carried out in the area under an earlier lease. The petitioners relied on State of Bihar v. Banshi Ram for the proposition that if permission had been granted and the land broken up before the Act, Section 2 would not apply.

The Court then examined and applied the Supreme Court's later ruling in Ambica Quarry Works v. State of Gujarat, which explained and distinguished Banshi Ram. Ambica held that the protective purpose of the Act—to prevent further deforestation—meant that renewals or fresh grants of leases (even where earlier mining had taken place) could not be allowed without prior Central approval because such renewals would likely perpetuate or increase deforestation and would not aid reclamation.

On that basis, the Court held that the bar under Section 2 applies to renewals and fresh grants covering reserved forest or forest land, and therefore applies to the petitioners' lease, which was granted after the Act came into force and without prior Central approval.

The Court also noted administrative correspondence: a Deputy Secretary's letter dated 21-1-1982 had taken the contrary position (that no prior approval was required for renewals or fresh grants where mining had taken place before) but the Central Government protested that direction by letter dated 27-11-1982, stating that prior approval is necessary even for renewals. The protest is part of the record by annexure to the Divisional Forest Officer's counter-affidavit.

Finally, the Court relied on the Divisional Forest Officer's own 14-1-1984 letter (annexed by the petitioners) which showed that land outside reserved forest within the lease-hold had already been demarcated, and that the portions covering reserved forest were to be treated as void and inoperative insofar as the State had not obtained prior Central approval.

Holding and Implications

Holding: Petition dismissed.

Immediate consequences for the parties:

  • The petitioners' lease is valid only insofar as it covers areas outside reserved forest and forest (these areas have been demarcated).
  • Any portion of the lease-hold that covers reserved forest or forest land and was granted without the prior approval of the Central Government is deemed void and inoperative; the petitioners have acquired no right to carry on mining in those reserved forest portions.
  • The Court refused to issue a writ of mandamus preventing the Divisional Forest Officer from interfering with mining in the reserved forest portions.
  • The Court made no order as to costs.

Broader implications:

The opinion applies the Supreme Court's interpretation in Ambica Quarry Works to hold that Section 2's prior-approval requirement is mandatory and extends to renewals and fresh grants that would affect reserved forest or forest land. The judgment does not purport to create new precedent beyond applying and following the Supreme Court authority cited.

Disposition: Petition dismissed. (B.P. Singh, J. agreed.)

    Upendra Jha v. State Of Bihar And Others

    N.P Singh, J.:— This application has been filed for a writ of mandamus, directing the respondent-Divisional Forest Officer, not to interfere with the mining operation carried on by the petitioners in the area which is part and parcel of his lease-hold.

    2. It is the case of the petitioner that a mining lease in respect of the area in question had been granted previously to India Fire Bricks and Insulation Company Private Limited. On the basis of that lease, the aforesaid Company did mining operation in the aforesaid area for a number of years. Thereafter the lease in their favour was terminated and fresh advertisement was made for grant of the mining lease. The petitioner applied for the grant of a lease covering a total area of 415.45 acres of land. The State of Bihar sanctioned the grant of the lease, by its order dated 18-5-1983, for a period of 20 years, for mining Fire Clay in the said area. The Deputy Commissioner, Hazaribagh executed a deed of lease on 25th July, 1983 in favour of the petitioner. The District Mining Officer, Hazaribagh is said to have demarcated the aforesaid area of 415.45 acres and delivered possession to the petitioner on 30-9-1983. The petitioner claims to have started mining operation. However, the Divisional Forest Officer started interfering with the mining operation carried on by the petitioner and threatened to take coercive action. The Divisional Forest Officer issued letter dt. 14-1-1984 to all the Forest Range Officers under him directing them not to allow the petitioner to carry on the mining operations, in the areas leased to the petitioner by the State Government, which was within reserved forest.

    3. The stand of the respondent-Divisional Forest Officer appears to be that after the promulgation of the Forest (Conservation) Ordinance, 1980 with effect from 25-10-1980 which was replaced by the Forest (Conservation) Act, 1980 (hereinafter referred to as ‘the Act’), any forest land cannot be used for non-forest purpose, except with the prior approval of the Central Government. As the lease in question had been granted to the petitioner covering even the reserved forest, without the prior approval of the Central Government, the petitioner was not entitled to carry on any mining operation in that portion of the lease-hold, which is part of the reserved forest area.

    4. Section 2 of the Act is as follows:—

    “2. Restriction on the dereservation of forests or use of forest land for non-forest purpose.— Notwithstanding anything contained in any other law for the time being in force in a State, no State Government or other authority shall make except with the prior approval of the Central Government, any order directing.

    (i) that any reserved forest (within the meaning of the expression, “reserved forest” in any law for the time being in force in that State) or any portion thereof, shall cease to be reserved:

    (ii) that any forest land or any portion thereof may be used for any non-forest purpose.

    Explanation.— For the purposes of this section “non-forest purpose” means breaking up or clearing of any forest land or portion thereof for any purpose other than re-afforestation.”

    In view of the clear and unambiguous provisions contained in S. 2 read with Explanation thereof, without prior approval of the Central Government, State Government or any other authority cannot direct that any forest or any portion thereof may be used for any non-forest purpose. From the statement of object and reasons of the Act it appears that with a view to checking further deforestation which causes ecological imbalance and leads to environmental deterioration, it was decided to frame the Act in question making encumbent on the State Government to seek prior approval from the Central Government for dereservation of reserved forest and for use of forest land for non-forest purpose.

    5. From the language of S. 2 of the Act it appears that the bar placed on the power of the State Government to make order to dereserve a reserved forest or to order the use of forest land for any non-forest purpose, without prior approval of the Central Government, is imperative and mandatory in nature. As such before granting a lease covering any reserved forest or any forest land for use of non-forest purpose which will include mining operation, prior approval of the Central Government is a must. The counsel appearing for the petitioner did not and could not contest the legal position about the mandatory requirement of prior approval of the Central Government, but according to him, the requirement of S. 2 is not applicable to the area in question because before the lease was granted in favour of the petitioner it was in the lease-hold of aforesaid India Fire Bricks and Insulation Company Private Limited which had carried on mining operation in the area. According to the petitioner, the restriction and bar imposed on the power of the State Government in respect of reserved forest or forest land shall not operate in respect of areas where mining operations have already been carried on at one stage or the other. In support of this contention reliance was placed on the judgment of the Supreme Court in the case of State of Bihar v. Banshi Ram, AIR 1985 SC 814 where it was observed that if the permission for breaking up of the forest land or for clearing of forest on any such land has been accorded before the coming into force of the Act and the forest land has been broken up or cleared, then obviously S. 2 shall not be applicable.

    6. In the instant case, admittedly the order sanctioning the grant of the lease in favour of the petitioner has been passed by the State Government after coming into force of the Act without prior approval of the Central Government. The aforesaid judgment of the Supreme Court in the case of State of Bihar v. Banshi Ram (supra) has been explained and distinguished later by the Supreme Court itself in the case of Ambica Quarry Works v. State of Gujarat, (1987) 1 SCC 213 : (AIR 1987 SC 1073). About the aforesaid observation of the Supreme Court regarding the land having been broken earlier or cleared it was observed as follows:—

    “It is true that this Court held that if the permission had been granted before the coming into operation of the 1980 Act and the forest land has been broken up or cleared, Cl. (ii) of S. 2 of 1980 Act would not apply in such a case. But that decision was rendered in the background of the facts of that case. The ratio of any decision must be understood in the background of the facts of that case. It has been said long time ago that a case is only an authority for what it actually decides, and not what logically follows from it. (See Lord Halsbury in Quinn v. Leathern, 1901 AC 495). But in view of the mandate of Art. 141 that the ratio of the decision of this Court is a law of the land. Shri Gobind Das submitted that the ratio of a decision must be found out from finding out if the converse was not correct. But this Court, however, was cautious in expressing the reasons for the said decision in State of Bihar v. Banshi Ram Modi, (AIR 1985 SC 814). This Court observed in that decision that the result of taking the contrary view would be (SCC at p. 648 : (at p. 816 of AIR), para 10) that while the digging for purposes of winning mica can go on, the lessee would be deprived of collecting felspar or quartz which he may come across while he is carrying on mining operations for winning mica. That would lead to an unreasonable result which would not in any way subserve the object of the Act. There was an existing lease where mining operation was being carried on and what was due by incorporation of a new term was that while mining operations were being carried on some other minerals were available, he was given right to collect those. The new lease only permitted utilisation or collection of the said other minerals.”

    It was then pointed out in respect of the position regarding renewal of quarry leases in the following words:—

    “The appellants are asking for a renewal of the quarry leases. It will lead to further deforestation or at least it will not help reclaiming back the areas where deforestations have taken place. In that view of the matter, in the facts and circumstances of the case, in our opinion, the ratio of the said decision cannot be made applicable to support the appellants' demands in these cases because the facts are entirely different here. The primary purpose of the Act which must subserve the interpretation in order to implement the Act is to prevent further deforestation. The Central Government has not granted approval. If the State Government is of the opinion that it is not a case where the State Government should seek approval of the Central Government, the State Government cannot apparently seek such approval in a matter in respect of which, in our opinion, it has come to the conclusion that no renewal should be granted.”

    7. On the basis of the view expressed in the case of Ambica Quarry Works v. State of Gujarat, (AIR 1987 SC 1073) (supra), it has to be held that the bar imposed under S. 2 shall apply even to cases of renewal of leases because the Supreme Court pointed out that such renewal “will lead to further deforestation or at least it will not help reclaiming back the areas where deforestations have taken place”. Now even if any part of reserved forest or forest land was part of any lease-hold and such reserved forest had been broken or forest had been cleared on the basis of that lease granted prior to coming into force of the Act, no renewal of that lease or fresh grant in respect of that area can be given by the State Government without prior approval of the Central Government, because any such renewal or a fresh grant of such area is bound to lead to further deforestation and cannot help reclaiming back the areas where deforestations have taken place.

    8. It is unfortunate that the Deputy Secretary of the Department of Mines and Minerals has issued a letter dt. 21-1-1982 to all the officers concerned that in spite of coming into force of the Act aforesaid, no prior approval of the Central Government was required where there is question of renewing a lease or for grant of a fresh lease where mining operation had been carried in past. Rightly the Central Government has lodged a protest, by its letter dt. 27-11-1982, saying that the direction was against the provisions of the Act in question and prior approval is necessary even in case of renewal of mining leases granted prior to the coming into force of the Act. A copy of that letter has been annexed to the counter-affidavit filed on behalf of the Divisional Forest Officer.

    9. The learned counsel appearing for the petitioner referred to a Bench decision of this Court in the case of Mahabir Prasad Jhanjhari v. The State of Bihar, (C.W.J.C No. 492 of 1981 (R) disposed of on 24-7-1981 allowing the petitioner of that writ application to continue mining operation within the portion specified. Apart from the fact that the lease in that case had been granted prior to the coming into force of the Act, the aforesaid judgment was delivered before the authoritative pronouncement of the Supreme Court in the case of Ambica Quarry Works v. State of Gujarat, (AIR 1987 SC 1073) (supra).

    10. From the letter dt. 14-1-1984 addressed by the Divisional Forest Officer which has been annexed by the petitioner himself it appears that the lands falling within the lease-hold of the petitioner which are outside reserved forest and forest have already been demarcated. The lease-hold of the petitioner shall be deemed to be valid only in respect of such area which is outside the reserved forest and forest. The great covering the reserved forest and forest without prior approval of the Central Government shall be deemed to be void and inoperative. As the petitioner has acquired no right to carry on mining operation in those area, it is not possible for the Court to issue any writ of mandamus directing the Divisional Forest Officer not to interfere with the mining operation alleged to be carried on by the petitioner over any part of the reserved forest or forest area. The writ application for the relief aforesaid is, accordingly, dismissed. But, in the circumstances of the case, there will be no order as to costs.

    B.P Singh, J.:— 11. I agree.

    Petition dismissed.

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    Comments

    Upendra Jha v. State Of Bihar And Others
    (Apr 16, 1987)