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M/S J.K. Construction Engineers & Contractor & Others v. Union Of India Thru Secy Mines And Mineral And Others.

Country/Territory
India
Type of court
National - higher court
Date
Feb 28, 2006
Source
UNEP, InforMEA
Court name
High Court of Allahabad
Judge
Agrawal, R.K.
Saroj Bala.
Language
English
Subject
Mineral resources
Keyword
Mining
Abstract
The petitioners have questioned the jurisdiction and competence of the State of Uttar Pradesh to levy/demand royalty on ordinary earth and other minor minerals which they supply to the Government Departments and other undertakings pursuant to the contract entered between the petitioners and the Ministry of Railways for the construction of broad gauge lines, earth work and embankment. The validity of the notification dated 3.2.2000 issued by the Government of India by which ordinary earth has been included in the definition of 'minor minerals' in Clause (e) of Section 3 of the Mines and Minerals (Regulation and Development) Act, 19, as also the Government Orders dated 2.2.2001 and 5.8.2002 are under challenge. In view of the settled principle of presumption of constitutionality, the Court considers it has to proceed on the premises that the notification dated 3.2.2000 issued by the Central Government, the Amendment Rules are valid unless it is otherwise proved by the petitioners. By Section 15 of the 1957 Act the State Government has been empowered by notification in the official gazette to make Rules for regulating the grant of quarry leases and mining leases or other mineral concessions in respect to minor minerals and for purposes connected therewith. Clause (g) of Sub-section (1-A) of Section 15 of the 1957 Act empowers the State Government to make Rules for fixing and collection of rent, royalty, fee, dead rent, fine or other charges and the time within which and the manner in which these shall be payable. As the word "mineral" has no fixed but a contextual connotation, even ordinary earth is a mineral provided it has been so declared by the Union under Clause (e) of Section 3 of the 1957 Act. The Government of India having notified ordinary earth used for the specific purposes to be a minor mineral, it cannot be said that it is wholly without jurisdiction or lacks legislative competence. About the possible clash of directive principles vis-a-vis fundamental rights, the Court finds that the Central Government has notified ordinary earth used for specified purposes as a minor mineral which classification does not violate any of the provisions of Article 14 of the Constitution of India nor it results in hostile discrimination, nor the provisions of Clauses (b) and (c) of Article 39 of the Constitution of India are at all attracted inasmuch as the levy of royalty on ordinary earth when used for specified purposes, the ownership of the land or material resources are not being affected at all. The question as to whether the notification issued by the Government of U.P.by which it has amended the Concession Rules by the Amendment Rules, is in exercise of the executive powers under Article 162 of the Constitution of India or not. The amendment has been made in exercise of the powers conferred under Section 3(e) of the 1957 Act and not under the executive power under Article 162 of the Constitution of India. In the present case, the Court finds that royalty has been fixed at Rs. 4/-per cubic meter by the State Government under the Amendment Rules. Thus, it cannot be said to be without authority of law as the Concession Rules have been framed in exercise of the powers under Section 3(e) of the 1957 Act. Regarding the question as to whether the amount of royalty can be recovered from the petitioners who are the contractors and suppliers of ordinary earth and other minor minerals, we are of the considered opinion that the royalty is payable on excavation of any minor minerals. The liability is primarily of the person holding the mining lease or a mining permit but if a person does not hold any mining lease or mining permit, the liability does not cease. Any person dealing in a minor mineral is required to maintain and keep documents to show that the royalty has been paid and in order to ensure that due royalty on minor minerals has been paid within the State of U.P.. Petitions are dismissed.
Full text
COU-156028.pdf
Website
www.indiankanoon.org