M/S SHIV CONSTRUCTION COMPANY MORNAWRA, TEHSIL BAWADI DISTRICT JODHPUR THROUGH ITS PARTNER SHIV KARAN S/O SHRI KANCHAN SINGH JAKHAR AGED 45 YEARS R/O MORNAWRA LABERA BAWORI, JODHPUR (RAJ) Vs. STATE OF RAJASTHAN THROUGH PRINCIPAL SECRETARY TO GOVERNMENT, MINES DEPARTMENT, THE GOVERNMENT OF RAJASHAN, SECRETARIAT, JAIPUR

JUDGEMENT

(1.) These petitions for writ are before us to examine constitutional validity of Rule 37-A (xvi) of the Rajasthan Minor Mineral Concession Rules, 1986 (hereinafter referred to as 'the Rules of 1986'). As per learned counsels, the provision aforesaid is in contravention of Articles 14, 19(1)(g) of the Constitution of India and Sec. 56 of the Indian Contract Act, 1872.

(2.) The factual matrix necessary to be noticed for adjudication of these petitions for writ is that a royalty collection contract was granted to the petitioners for a period of two years. The terms and conditions of the contract entered in between the State Government and the petitioners were reduced in writing. A specific condition 3(xvi) was incorporated in the contract to the effect that in the event of cancellation/surrender of leases or sanction of new leases/revision of dead rent of existing leases, in the area concerned, shall not have any impact on yearly contract amount.

(3.) During currency of the contract the National Green Tribunal, New Delhi under an order dated 4.5.2016 directed that those quarry holders, who have not applied for environmental clearance upto 31.3.2016, shall stop mining operations and shall not undertake the same until having the clearance as required. The restriction aforesaid was also applicable for the quarry holders who though applied for having environmental clearance upto 31.3.2016 but was not accorded. The mining department of the Government of Rajasthan stopped Bajri mining operations in terms of the directions given by the National Green Tribunal on 4.5.2016. As a consequence to closure of mining operations in most of the parts of State of Rajasthan, it was not possible for the royalty collection contractors including the petitioners to collect any royalty.