State of Rajasthan & Ors. Vs. Gotan Lime Stone Khanji Udyog Pvt. Ltd.
Civil Law - Mines and Minerals
Rajasthan Minor Mineral Concession Rules, 1986, Rule 15, 72 - Mines and Minerals (Development and Regulation) Amendment Act, 2015, Section 12(A)(6) - Mining Lease Rights - Transfer of - Suppressio Veri and Suggestio Falsi - Doctrine of lifting of corporate veil - Original lessee sought transfer merely by disclosing that the partnership firm was to be transformed into a private limited company with the same partners continuing as directors and there was no direct or indirect consideration involved - It was specifically declared that no pecuniary advantage was being taken in the process which is clearly false -Permission to transfer the lease in favour of a private limited company was granted on that basis - Held that it was a case of suppressio veri and suggestio falsias original lessee did not disclose that the real purpose was not merely to change its partnership business into a private limited company as claimed but to privately transfer the lease by sale to a third party -Doctrine of piercing of corporate veil clearly applies as transfer of shares to cover up the real transaction which is sale of mining lease for consideration without the previous consent of competent authority, as statutorily required - Statutory requirement is sought to be overcome with the plea that it was a transaction merely of transfer of shareholding when on the face of it the transaction is clearly that of sale of the mining lease - View taken by the High Court cannot be sustained and liable to be set aside - State of Rajasthan directed to frame and notify its policy in the matter within one month from the receipt of a copy of this order and may within one month thereafter pass an appropriate order in respect of the mining lease in question in the light of the policy so framed - Till such a decision is taken, status quo directed be maintained.
Topic(s)-Mining Lease Rights - Transfer of - Suppressio Veri and Suggestio Falsi - Directions issued