13 June 2024 Business Laws >> Business & Commercial Law   |   Lease >> Property & Real Estate   |   Property/Real Estate Law >> Property & Real Estate  

A recent ruling by the Karnataka High Court has shed light on the importance of following proper procedures for quarry lease renewal. The case involved a petitioner seeking to extend his deceased father's quarry lease (QL No. 225) and challenge demands for dead rent and penalty.

Background:

The petitioner's father held a quarry lease that expired in 2008. He applied for renewal within the stipulated timeframe, and a committee recommended it in 2009. However, the renewal process stalled after the father's death in 2015. The petitioner, claiming to be the legal heir, sought recognition and lease extension benefits under amendments to the Karnataka Minor Mineral Concession (KMMC) Rules.

Key Arguments:

• Petitioner: Claimed eligibility for a deemed lease extension of 30 years (later amended to 50 years) due to KMMC Rule 8-A amendments.
• Respondent Authorities: Contested the petitioner's claims, citing:
• Failure to complete the renewal process by submitting required documents within the stipulated time after the 2012 renewal notification.
• Encroachment on adjacent land and illegal quarrying activities.
• Outstanding dead rent and penalty for violations.

Conclusion:

The High Court dismissed the petition due to the following reasons:

• The petitioner's inaction in completing the renewal process by submitting documents led to the application lapsing under Rule 18(1) of the KMMC Rules.
• Since the lease wasn't actively renewed, the benefits of the extended lease period under amended KMMC Rules (Rule 8-A) couldn't be applied.
• The identified violations, including encroachment and illegal extraction, justified the demands for dead rent and penalty.