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Government Of Goa v. A.H Jaffar And Sons And Another

Supreme Court Of India
Mar 26, 2008
Smart Summary (Beta)

Factual and Procedural Background

The respondents had applied for a mining lease over 34.68 hectares situated in two villages in Ponda Taluka, Goa. Their application was rejected by two administrative orders—one dated 3-1-1991 issued by the Directorate of Mines and Labour and another dated 22-3-1999 issued by the Secretary, Mines, Government of Goa. Aggrieved, they filed Writ Petition No. 41 of 1993 before the Bombay High Court at Goa seeking (i) quashing of the two administrative orders and (ii) a direction to grant the mining lease and execute the necessary lease deeds in their favour.

On 1-3-2000, after noting the prolonged pendency of 16 years, the High Court directed the State authorities to dispose of the respondents’ application on merits within six weeks, to issue a reasoned order, and to pay exemplary costs of Rs 10,000. The State authorities (appellants) challenged this High Court judgment before the Supreme Court, which issued notice and granted a stay on 18-8-2000; leave was granted on 30-3-2001 and the stay was continued.

Despite the Supreme Court’s stay, the respondents pursued a statutory revision before the Central Government under Section 30 of the Mines and Minerals (Development and Regulation) Act, 1957 read with Rule 54 of the Mineral Concession Rules, 1960. The Revisional Tribunal allowed their revision by a final order dated 13-5-2002.

Legal Issues Presented

  1. Whether the High Court could direct disposal of the respondents’ lease application and impose costs when a prior Supreme Court decision between the same parties (State of Goa v. A.H. Jaffar and Sons) had already attained finality on identical issues.
  2. Whether the respondents could validly pursue a statutory revision before the Central Government during the subsistence of a stay order issued by the Supreme Court in the present appeal.

Arguments of the Parties

Appellant’s Arguments

  • The controversy is squarely covered by the Supreme Court’s earlier judgment in State of Goa v. A.H. Jaffar and Sons, 1994 Supp (3) SCC 651; AIR 1995 SC 333, which had attained finality inter partes.
  • Consequently, the High Court lacked jurisdiction to issue fresh directions inconsistent with that final decision.

Respondents’ Arguments

  • The respondents had already availed the revisional remedy under Section 30 of the Act/Rule 54 of the Rules; the Central Government’s Revisional Tribunal had decided the matter in their favour by order dated 13-5-2002.
  • This subsequent favourable decision should stand, and the appeal should therefore fail.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
State of Goa v. A.H. Jaffar and Sons, 1994 Supp (3) SCC 651; AIR 1995 SC 333 When a statutory remedy of revision under Section 30 of the MMDR Act exists, the aggrieved party should pursue that remedy rather than invoke the writ jurisdiction; limitation can be condoned when the party has been bona fide litigating in court. The Supreme Court held that this prior judgment had settled the controversy between the same parties; therefore, the High Court could not take a contrary view, and its directions were set aside.

Court's Reasoning and Analysis

The Supreme Court observed that its earlier decision in A.H. Jaffar and Sons had already resolved an identical dispute between the parties, attaining finality. The High Court failed to notice this binding precedent and thus acted without jurisdiction in issuing fresh directions.

The Court further noted that a stay had been operative since 18-8-2000, yet the respondents proceeded with a revision before the Central Government. Such conduct was deemed “not proper and desirable.” Any orders passed by the State or Central Government during the pendency of the Supreme Court’s stay were therefore declared inconsequential.

By reiterating the doctrine of finality of judgments and the supremacy of its own prior orders, the Court concluded that the High Court’s judgment was legally unsustainable.

Holding and Implications

Holding: The appeal is allowed; the Bombay High Court’s order dated 1-3-2000 is set aside. The earlier directions contained in paragraph 3 of the Supreme Court’s decision in A.H. Jaffar and Sons shall govern the present dispute. Any subsequent decisions of the State Government or Central Government rendered during the stay are of no effect.

Implications: The respondents’ favourable order from the Central Government’s Revisional Tribunal is rendered nugatory. The matter reverts to the legal position already settled in the earlier Supreme Court judgment. No new legal precedent is created beyond reinforcing the binding effect of prior Supreme Court decisions and the impropriety of parallel proceedings during the pendency of a stay.

Show all summary ...

Dr. Arijit Pasayat, J.— Challenge in this appeal is to the judgment of a Division Bench of the Bombay High Court at Goa in Writ Petition No. 41 of 1993 filed by the respondents. Writ Petition No. 41 of 1993 was filed seeking quashing of the Orders dated 3-1-1991 passed by the Directorate of Mines and Labour and dated 22-3-1999 passed by the Secretary, Mines, Government of Goa. Further prayer was for direction for grant of the respondent's application for mining lease over an area of 34.68 ha situated at two different villages in Ponda Taluka after executing the necessary lease deeds in favour of the respondents.

2. After referring to the chequered history of the litigation the High Court ultimately directed as follows:

“18. Considering the fact that the matter is pending over 16 years, as the respondents were without addressing themselves to the main issue involved in the matter, virtually compelling the petitioner to approach the Court every now and then to make the respondents realise about the main issue involved in the matter, and considering all the observations made hereinabove, we are compelled to direct the respondents to dispose of the application of the petitioner on merits within the period of six weeks from today. The respondents should be careful in disposing of the matter bearing in mind the observations made therein and should pass a reasoned order addressing themselves to the main issue involved in the matter after considering all the materials placed on record. In the facts and circumstances of the case, we are constrained to impose exemplary costs of Rs 10,000 to be paid by the respondents to the petitioner. The costs to be paid within six weeks from today. The respondents shall furnish to the Additional Registrar of this Court a copy of the order to be passed in accordance with the directions issued herein within two weeks from the date of passing such order. Rule made absolute in above terms.”

3. Though various points were urged in support of the appeal, Mr H.L Agarwal, learned Senior Counsel, submitted that a dispute of similar nature involving the parties was before this Court and issues involved were identical in State of Goa v. A.H Jaffar and Sons 1994 Supp (3) SCC 651, AIR 1995 SC 333. It was, inter alia, held as under:

“3. The appeal has been argued at length. Shri Siraj Sait has attempted to support the judgment with industry and precision. But it does not appear necessary to decide whether the finding recorded by the High Court that the order of Commissioner being administrative in nature it could be reviewed by the State Government nor it is necessary to decide whether the Minister could exercise any power where the grant of lease is regulated by the statute as in our opinion the remedy of revision having been provided by Section 30 of the Act, the proper course for the respondent was to approach the Central Government and not the High Court. Learned counsel for the respondent expressed apprehension that the period for limitation provided in Rule 54 of the Mineral Concessions Rules, 1960 having expired, the revision might not be entertained. The proviso to the Rule, however, empowers the revising authority to condone delay if it is satisfied that the revision could not be presented for sufficient cause within time. Since the respondent was pursuing its remedy in High Court bona fide, it would be sufficient cause to condone the delay and we trust that the revision if preferred within four weeks from today shall not be dismissed as being barred by time.”

Therefore, it is submitted that when the matter had attained finality between the parties, the High Court could not have given the impugned directions.

4. Learned counsel for the respondents on the other hand submitted that much prior to the hearing of the matter by this Court, order dated 30-6-2000 was served on the respondents on 3-7-2000, and they had moved the Revisional Tribunal of the Central Government in terms of Section 30 of the Mines and Minerals (Development and Regulation) Act, 1957 (in short “the Act”) read with Rule 54 of the Mineral Concession Rules, 1960 (in short “the Rules”). The Revisional Tribunal of the Central Government by its final order dated 13-5-2002 has already decided the matter in favour of the respondents.

5. It is to be noted that notice was issued in the SLP on 18-8-2000 and stay was granted. Subsequently, leave was granted on 30-3-2001 and the stay was directed to continue. Much before that date the respondents were represented by counsel before this Court. It is surprising that notwithstanding the stay order passed by this Court, the respondents pursued their remedies before the Revisional Tribunal. That certainly was not proper and desirable. To add to the vulnerability it needs to be noted that the writ petition though filed in 1993 was disposed of on 1-3-2000, and by that time the decision of this Court in the earlier case between the same parties had been decided in a particular way. Unfortunately, the High Court did not notice that also. It needs no reiteration that once the decision is rendered inter partes and attains finality, a different view cannot be taken, more so, when finality is attached by this Court's order.

6. In the circumstances, we set aside the impugned order of the High Court and directions contained in para 3 of the earlier decision shall operate so far as this case is concerned. If any decision has been taken by the State Government or the Central Government in the present dispute, the same shall be of no consequence because of the stay order of this Court, while issuing notice on 18-8-2000 and order granting leave on 30-3-2001.

7. The appeal is allowed to the aforesaid extent with no order as to costs.