The dispute originated from the allocation of mining territories in Karnataka where M s Geomysore Services India Pvt Ltd and Deccan Gold Exploration Services Pvt Ltd obtained reconnaissance permits for ... gold exploration in the Hutti South Belt Gold Mines Following their reconnaissance both firms sought prospecting licenses as mandated by the Mines and Minerals Development and Regulation Act citing the discovery of gold deposits however M s Hutti Goldmines Co Ltd later attempted to reserve the same area for state-run exploitation a request ultimately rejected by the Central Government for contravening the National Mineral Policy The Karnataka High Court favored the state enterprise prompting an appeal to the Supreme Court by the private mining entities