BHARAT COKING COAL LTD. AND TATA IRON AND STEEL COMPANY Vs. THE STATE OF BIHAR, THROUGH SPECIAL SECRETARY TO THE GOVERNMENT AND ORS.
LAWS(JHAR)-2006-8-146
HIGH COURT OF JHARKHAND
Decided on August 22,2006

Bharat Coking Coal Ltd. And Tata Iron And Steel Company Appellant
VERSUS
The State Of Bihar, Through Special Secretary To The Government And Ors. Respondents

JUDGEMENT

Permod Kohli, J. - (1.) PETITIONERS in all these petitions are mining lessees/ licensees of minerals like coal, iron ore and copper ore. They are aggrieved by Notification No. SC -10 -A/99 -547/M dated 10th February, 1999 issued by the Mines and Geology Department, allegedly issued under Rules 64 of the Mineral Concession Rules 1960 framed under Section 13 of the Mines and Minerals (Development & Regulation) Act, 1957, whereby direction has been issued to all the lessees/licensees of iron ore, copper ore and coal to ensure the payment of the royalty in respect of daily despatches of minerals through the Treasury challans or bank draft on the following day. It is further provided that payment shall be adjusted against the amount payable by the lessees. It further stipulates that earlier directions to the extent in consistent with this notification shall be deemed to be amended. This notification was made effective from the date of its issue.
(2.) PETITIONERS have challenged the constitutionality, legality and propriety of this notification on following amongst other grounds: a. Impugned notification is beyond the power, authority and jurisdiction of the State; b. It is violative of Rule 64A of the Mineral Concession Rules framed under Mines and Minerals Act, 1957; c. It is in violation of Regulation 4 framed under Section 57 of the Mines and Minerals (Development & Regulation) Act, 1957; d. Notification has not been approved by the State Legislature, as required under Section 28(3) of Mines and Minerals (Development & Regulation) Act, 1957; and e. It is unreasonable, impracticable and discriminatory in nature. Impugned notification dated 10th February, 1999 is reproduced hereunder: Notification 10 February, 1999 No. N.C.10 -1/99 -547/M - In exercise of the powers delegated under Rule 64 of the Mineral Concession Rules, 1960, The Governor of Bihar directs all the lease holders of iron ore, copper ore and coal to ensure the payment of royalty in respect of daily despatches of minerals through treasury challan or bank draft on the day following. 2. Payment made in respect of royalty by the lease holders shall be adjusted as against the present demand. 3. All the directions issued earlier shall be deemed amended to this extent. This order shall be treated taking effect from the date of its notification. By the order of the Governor, Sd/ - Siyaram Sharan Sharma, Special Secretary to the Govt. The State Government in its affidavit filed through Additional Director, Mines, Ranchi, has defended the notification tracing the power of the State to issue such a notification to Rule 64 of the Mineral Concession Rules. It is further pleaded that the notification is to be read in the light of provisions of Section 9 of Mines and Minerals (Development &Regulation) Act, 1957. It has also been urged that the State Government was facing difficulty in realizing the royalty and the delay in release of payments affects the execution of governmental schemes adversely.
(3.) RESPONDENTS have placed on record details of amount of royalty payable in respect to the years 1994 -95 to 1997 -98, relating to three minerals, namely, coal, copper and iron ores and it is stated that more than 95% of the royalty is raised by the State in respect to these minerals.;


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