MANBHAR DEVI AGARWAL versus THE STATE OF RAJASTHAN & ORS.

MANBHAR DEVI AGARWAL versus THE STATE OF RAJASTHAN & ORS.

Government circulars and the statutory rules require payment of royalty only for minerals on which royalty was not paid previously; contractors are entitled to refund of royalty deducted from their bills if they prove royalty was already paid, and may approach the mining department for redressal.

Parties
Appellant: Manbhar Devi Agarwal; Respondent: State of Rajasthan; Respondent: Commissioner, Jaipur Municipal Corporation; Respondent: Mining Engineer (Respondent No.2)
Jurisdiction
India
Judgment Date
25 November 2016
Procedural Posture
Civil Appeal / Final Appellate Decision (supreme Court of India)
Outcome
Appeal disposed of with directions
Legal Topics
Royalty on Minor Minerals, Liability for Payment of Royalty by Contractors, Government Circulars and Departmental Orders, Writ Jurisdiction, Refund of Royalty Deducted From Contractors' Bills
Mining Law Contract Law Constitutional Law Administrative Law Royalty on Minor Minerals Liability for Payment of Royalty by Contractors Government Circulars and Departmental Orders Writ Jurisdiction +1 more

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Parties

Manbhar Devi Agarwal

Appellant

State of Rajasthan

Respondent

Commissioner, Jaipur Municipal Corporation

Respondent

Mining Engineer (Respondent No.2)

Respondent

Procedural Posture

Civil Appeal / Final Appellate Decision (supreme Court of India)

Legal Issues

  1. 1 Whether a contractor using minerals purchased from the open market for construction work is liable to pay royalty under Government circulars and the Rajasthan Mines and Minerals Concession Rules, 1986.
  2. 2 Whether deduction of royalty from contractors’ bills is lawful where royalty has already been paid on the minerals used.
  3. 3 Whether the High Court erred in disposing of the writ petition without adjudicating the legality of the Government circulars.

Ratio Decidendi

Government circulars and the statutory rules require payment of royalty only for minerals on which royalty was not paid previously; contractors are entitled to refund of royalty deducted from their bills if they prove royalty was already paid, and may approach the mining department for redressal.

Court Disposition

Appeal disposed of with directions

Orders

  • Appellant is given liberty to approach the mining engineer (Respondent No.2) with details and proof that royalty was paid as per rules for minerals used; the officer shall consider the representation and, if entitled, refund should be made expeditiously, preferably within three months.
  • No fault found with the letter dated 26.03.2002; writ petition challenging only that letter and not the underlying circulars was appropriately disposed of as per precedent.