SOHAN LAL PUNGALIA Vs. ASSTT MINING ENGINEER RECOVERY BIKANER
LAWS(RAJ)-2006-1-122
HIGH COURT OF RAJASTHAN
Decided on January 09,2006

SOHAN LAL PUNGALIA Appellant
VERSUS
ASSTT MINING ENGINEER RECOVERY BIKANER Respondents

JUDGEMENT

MATHUR, J. - (1.) THE instant petition for writ is directed against the demand made by Assistant Mining Engineer (Recovery), Bikaner for the sum of Rs. 3,51,608/- from the petitioner against royalty with regard to excavation of minor mineral for the contract of widening the road from Jodhpur to Pokaran within the kilometer stones from 78 to 102.
(2.) THE facts necessary for adjudication of present writ petition are that the petitioner is a partnership firm to whom a contract was granted by Public works Department for widening of Jodhpur-Pokaran road from kilometer stores No. 78 to 102. A short term permit was granted to the petitioner firm by the Assistant Mining Engineer, Balesar on 13. 6. 1990 to excavate certain minor minerals required for executing the construction work i. e, of widening the road of Jodhpur to Pokaran. The short term permit was granted subject to the condition of payment of royalty which was assessed as Rs. 3,54,830/ -. A condition in the short term permit was also mentioned to the effect that the royalty was payable in a tune of 3% of the cost of mineral excavated and used by the petitioner. The petitioner for certain reasons failed to complete the work of widening of road under the contract referred above. According to the averments contained in the writ petition the work only upto 15% was done by the petitioner and the remaining work was completed by certain other contractors. it is also averred by the petitioner that only 15% of the mineral from the area comprised in the short term permit was excavated and utilised and, therefore, the petitioner firm was responsible to pay royalty only against the minor mineral excavated and utilised by it. The Assistant Mining Engineer, Balesar under a communication dated 13. 9. 1991 directed the petitioner to deposit the amount of Rs. 3,54,000/- against royalty in the terms of short term permit. In response to communication dated 13. 9. 1991 he petitioner submitted a representation dated 27. 9. 1991 denying his liability to make the payment of the sum of Rs. 3,54,000/- against royalty as he completed only 15% of the work granted on contract. The petitioner averred in the representation that the liability to pay entire amount of royalty could not be fixed upon him as the royalty is required to be charged against the mineral excavated and utilised. By an another communication dated 16. 12. 1991 the petitioner made a request to the Assistant Mining Engineer, Balesar and also to Public Works Department for verification of the final measurement of work done by him so that a proper assessment of mineral excavated and used could be made. The respondents, according to the petitioner, instead of making proper assessment of the mineral excavated by the impugned order dated 6. 4. 1992 ordered for recovery of the royalty in the tune of Rs. 3,51,608/ -. Hence, this petition for writ is preferred.
(3.) A reply to the writ petition has been filed on behalf of the respondents stating therein that the petitioner is required to make the payment of royalty as it was predetermined under the short term permit. According to the respondents, the permit was granted to the petitioner under Rule 63 of the Rajasthan Minor Mineral Concession Rules, 1986 (hereinafter referred to as "the Rules of 1986") and he was authorised to excavate the mineral from the area specified in the permit. The royalty was predetermined on basis of work contract granted to the petitioner by Public Works Department for widening of road. Heard counsel for the parties. Precisely, the controversy in the petition is as to whether under the Rules of 1986 can the Mining Department charge royalty from a person in favour of whom a mining lease is granted without assessing mineral excavated. the definition of royalty is prescribed under the Rules of 1986 as under:-      " Rule 3 (xx) "royalty" means the charges payable to the Government in respect of ore on mineral excavated, removed or utilised from any land as prescribed in Schedule-I". ;


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