DHARAM CHAND JAIN vs THE STATE OF BIHAR

The Supreme Court held that the State Government is obliged to implement orders of the Central Government under Rule 54 of the Mineral Concession Rules, 1960, as the Central Government acts as a revisional tribunal. The Court ruled that the State's refusal to grant a mining lease, despite the Central Government's directive, was unlawful. The appeal was allowed, emphasizing that the State Government could not decline to follow the Central Government's order without valid grounds or a reference back to the Central Government.