In Brief
The appellant mining company won its lease through e-auction for stone and minor minerals on 6.70 hectares. After complaints of illegal mining beyond the leased area, the State terminated the lease. The Company challenged this, but the High Court dismissed its petition. The Supreme Court allowed the appeal, finding the termination order suffered from non-application of mind: it failed to consider the Divisional Forest Officer's report absolving the Company of illegal mining, and the demarcation reports contained no conclusive evidence of the Company's wrongdoing. The Court held that since relevant material was omitted and no conclusive evidence supported termination, the order was arbitrary and unreasonable.
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