In Brief
Mining leases in Sonbhadra, Uttar Pradesh were suspended following a 2018 National Green Tribunal order prohibiting mining in areas notified under the Indian Forest Act, Section 4. Leaseholders sought extension of leases for the suspension period. The Supreme Court held that judicial interdicts do not authorize lease extension outside statutory procedures. Rule 68 of the Mining Rules permits relaxation only in cases advancing mineral development and must follow prescribed Chapter II/IV procedures. The Court ordered refund of security deposits and advance royalties with 9% simple interest, rather than lease extension, as Rule 40(h) provides only monetary adjustment for operational disruption. A 2017 Mining Policy mandating e-tendering for all leases further precluded granting extensions on terms relating to the original lease date.
The lawyer headnote and full judgment text are available to registered users.