KAYS CONCERN vs UNION OF INDIA & ORS.

The Supreme Court ruled that under Rule 24(3) of the Mineral Concession Rules, 1960, the failure of the State Government to decide on a mining lease application within nine months results in a deemed refusal. The Court held that the subsequent rejection of the application by the State Government, citing a policy decision to work the mineral in the public sector, was not valid as it contravened the statutory provisions. The appeal was allowed, directing the State Government to reconsider the application on merits.