- (1.) Heard the parties for final disposal.
(2.) According to the petitioner, the Railways-respondents cannot recover royalty charges from the running or final bill or from the security deposit, and they cannot withhold payment of final bill/release of security deposit for want of Royalty Clearance Certificate inasmuch as petitioner is merely purchasing and supplying stone ballasts. Petitioner has further prayed to declare clause 5 and clause 6 of the agreement on the ground that they are unenforceable as opposed to public policy and violative of Article 14 of the Constitution.
(3.) On 29-3-2005, petitioner entered into an agreement with the respondents for supply of stone ballasts. Clauses 5 and 6 of the Agreement reads as follows:- "5. Royalty charges, at the rate prescribed from time to time, will be recovered from the contractor's each and every on account bill and final bill of supply for the supplied ballast at the rate notified by the concerned State Govt. (Mining Authorities) and will be kept under deposit with Railway. The royalty charges so recovered will be refunded back to the contractor after submission of the royalty clearance certificate by the contractor to the Engineer. 6. The Railway reserves the right to remit the royalty amount, recovered from the contractor, to the concerned State Govt. (Mining Authorities) if the contractor fails to submit the royalty clearance certificate." Relevant portion of clause 16 reads as follows:- "16. The Tender conditions offered by Gita Enterprises/Asansol are furnished below along with the Rly's. remarks. JUDGEMENT_92_AIR(JHAR)_2007Html1.htm ;