STATE OF ORISSA vs M/S MESCO STEELS LTD.

The Supreme Court upheld the High Court's decision to quash an inter-departmental communication that denied a mining lease to M/s Mesco Steels Ltd., emphasizing that the State Government must comply with the provisions of the Mines and Minerals (Regulation and Development) Act, 1957 and the Forest (Conservation) Act, 1980. The Court clarified that the conditions imposed by the State for the mining lease were valid and necessary for ensuring the lessee's compliance with statutory requirements. The appeal by the State of Orissa was dismissed, affirming the High Court's directive to execute the mining lease in favor of the respondent-company.