The Supreme Court has directed the subordinate court in Hospet to settle the boundary issue between two iron ore mining companies in Karnataka in six months, pending disposal for the past 41 years.

A bench headed by Justice H K Sema disposed of the petition filed by Hospet-based S B Minerals against MSPL Ltd and directed the trial court to complete the trial expeditiously.

Both companies, engaged in mining iron ore in Bellary district, had been fighting court cases over a piece of ‘knife-shaped’ iron ore mine since July 2, 1966.

The issue had not been resolved despite the civil judge at Hospet, in a specific order on January 22, 1976 saying: “It is a fit case in which department should redraw the respective mining blocks of the parties in order to avoid unnecessary litigation between the parties”.

As the matter could not be resolved, it went up to the Karnataka High Court on January 16, 2007. The high court directed both parties not to carry out mining activities on the disputed area and asked the trial court to dispose of the suit in 6 months.

In the meantime, the Department of Mines and Geology had directed S B Minerals not to carry out mining activities on the leased areas.

“It is also not in dispute that defendants (S B Minerals) is bound to carry on the mining activities as per the boundaries and measurements shown in the sketch annexed to its lease deed. In other words, defendant cannot carry on the mining activities in the area not leased to the defendant,” said the high court order quoting the office communication.

S B Minerals had challenged the order of the high court and sought direction to the government for demarcation of the mines and withdrawal of the office order. 

 In March 1952, the State Government of Madras had leased 858 acres of mines in Vyasanakera village of Hospet taluka in Bellary district to K Narayanaiah.

According to the petition, Mr Narayanaiah transferred the lease of the mines to MSPL Ltd for mining in April 1962.
Between 1954-56, the government leased out another 200-acre mines to B H Shankar Singh.
The sketches provided by the authorities to both the companies had discrepancies and the areas were not demarcated.

Despite periodic extension of lease of both the companies, the authorities failed to demarcate the exact location of the mines of both companies.