The Supreme Court last week allowed the appeal of the Andhra Pradesh Mineral Development Corporation against the decision of the full bench of the high court allowing the extension of sub-leases to certain mining firms. The high court had held that the withdrawal of consent by the state government for grant of sub-leases and their cancellation were void.
The apex court stated that there were at least three weighty reasons why the period of sub-leases for mining barytes ore could not have been extended after the expiry of the period of original lease. Firstly, the interruptions due to litigation were only for periods up to 10 months. The sub-leases had expired in some cases in 1998. It would not be appropriate to direct the extension of lease now. Secondly, the claim for renewal of leases has been refused already, as the policy of the government is not to grant lease or sub-lease in favour of private parties. Thirdly, the legislative house committee had pointed out several malpractices in the deals. Therefore, it would not be in public interest to extend the lease which will perpetuate the illegalities.
Regarding the claim of the mining firms for compensation for the lost period of their sub-leases during litigation, the Supreme Court stated that the remedy lies in a civil suit. The question of breach of contract could be decided in a civil court, the judgment said.
