GHULAM MUHAMMAD TIWANA vs SECRETARY, GOVERNMENT OF PUNJAB, INDUSTRIES & MINERAL DEVELOPMENTDEPARTMENT And 8 Other
This matter concerns a dispute over the grant of a prospecting licence for coal mining in Khushab, involving competing applications filed by several parties. The core legal question is the determination of the correct date and time of expiry of a previous licence held by M/s Badar Sons, which dictates the priority of subsequent applications under the 'first come first served' rule. The High Court had previously held that the previous licence expired at midnight on June 15, 1989, thereby prioritizing the application of Amir Akbar over that of the petitioner, Ghulam Muhammad Tiwana. The petitioner challenged this, arguing that the previous licence had actually expired in 1987, which would render his earlier application of June 12, 1989, the first in time. The Supreme Court granted leave to appeal to examine whether the previous licence had indeed expired in 1987 and whether the petitioner's application should consequently be treated as the first in the field. The Court suspended the operation of the High Court's judgment pending the final disposal of the appeal.
- Does the 'first come first served' rule for granting prospecting licences apply based on the exact time of expiry of a previous licence?
- At what time does a prospecting licence legally expire for the purpose of determining the priority of new applications?
ORDER
SAAD SAOOD JAN, J. ---The dispute between the parties relates to the prospecting rights in respect of coal over 1065 acres in and around village Kalial Khushab. The prospecting licence was held by M/s Badar Sons prior to the period in dispute. The Industries and Mineral Development Directorate was not prepared to renew this firm's licence presumably on the ground of unsatisfactory performance. Five applications were made for the grant of the licence. These applications were:- S. No. Name of applicant with No. ApplicationDate & the of Receipt of Application
1. Mr. Ghulam Muhammad Tiwana 12-6-1989 43-Tiwana Park, Sargodha, 11.30 a.m.
APP. KHB. COAL (555)
2. Mr. Amir Akbar 15-6-1989 57-A, Block=L, Gulberg-III, Lahore. 10.30 a.m.
APP. KHB. COAL (556)
3. Malik Ghulam Muhammad Tiwana 15-6-1989 43-Tiwana Park, Sargodha 2.00 p.m.
APP. KHB. COAL (557)
4. Mr. Amir Akbar 17-6-1989 57-A, Block-L, Gulberg-III, Lahore 8.00 a.m.
APP. KHB. COAL (558)
5..M/s Muhammad Amin Brothers (Pvt.) 23-11-1989 Ltd., State 'Life Building Square Karachi 10.00 a.m.
APP. KHB. COAL (570)
2. The grant of the licence is governed by the rule of 'first come first served''. The petitioner was member of the Provincial Assembly at the relevant the. On the assumption that the licence given to M/s Badar Sons expired on 15-6-1989, at 12-30 p.m., the Directorate granted the licence to the petitioner on the ground `that after the expiry of the previous licence held by M/s Badar Sons his application was first in the. In doing so it disregarded the application of Amir Akbar which had been filed three and a half hours earlier for the reason that it had been made at a the when the licence granted to M/s Badar Sons had not yet expired.
3. Amir Akbar filed a Constitution petition in the High Court to call in question the preference given to the petitioner in the granting of the licence. A learned Single Judge accepted the Constitution petition, holding that the licence held by M/s Badar Sons should be taken to have expired at mid night on 15-6-1989; thus, the application of the petitioner should be treated to have been made at a the when the licence of M/s. Badar Sons had not yet expired; as Amir Akbar was the first person to apply for the licence after the expiry of the previous licence it was he who was entitled to the grant of licence on the first come first served basis. The petitioner seeks leave to appeal from the judgment of the High Court.
4. In support of this petition it is contended that the licence of the previous licensee, namely, M/s Badar Sons had expired in 1987. In this connection --reference has been made to a note prepared by the departmental authorities; that leaving the petition, it is urged, that the application which the petitioner made on 12-6-1989 has to be regarded the first in point of the consequently, the learned Single Judge erred in holding that Amir Akbar was first in the field.
5. The contention raised in support of this petition needs examination, Leave to appeal is granted.
The operation of the judgment of the High Court shall remain suspended during the pendency of the appeal.