IMPORTANT POINT
Notification dated 26.12.2001 being clarificatory, would operate retrospectively.

JUDGMENT

AMITAVA ROY, J.

Leave Granted.

2. Vexed by the determination thereby limiting the application of the Notification SS-2/MM-11/2001-2361.../M dated 26.12.2001 to the date of issuance thereof, for the purpose of realizing royalty in respect of the minerals mentioned therein @ Rs. 100/- per cubic meter, otherwise prescribed by the Notification dated 24.03.2001 notifying the Bihar Minor Mineral Concession (Amendment) Rules, 2001, the State of Bihar and its concerned functionaries are in appeal seeking redress. The impugned judgment and order dated 21.08.2009 is common in both the appeals and consequently, marginal variation in the contextual facts notwithstanding, the legal issues raised are the same, permitting analogous disposal of the proceedings in hand.

3. We have heard Mr. Gopal Singh learned counsel for the appellants and Mr. Sunil Kumar, learned counsel and Mr. Nagendra Rai, learned senior counsel for the respondents in appeals corresponding to S.L.P. (C) Nos. 3652 of 2010 and 3653 of 2010 respectively.

4. The facts, as construed to be germane for the adjudication, fall in a short compass and for the sake of brevity and convenience would be lifted from the appeal corresponding to SLP(C) No.3652 of 2010. To reiterate, nothing turns on the facts with fringe differences in the two appeals and in course of the arguments as well, no marked distinguishable features have been highlighted warranting individual analysis thereof.

5. The respondent had been granted a lease for 10 years from the year 1992 under the Bihar Minor Mineral Concession Rules, 1972 (hereinafter referred to as "the Rules") and on the expiry of the term thereof, the same had not been renewed. The lease had been accorded to win pebbles (gutika) from the basin of Pandai river. The rate of royalty, as was fixed by the Notification dated 17.08.1991 initially at the commencement of the lease, stood revised thereafter on 29.08.1994. Eventually, by the aforementioned Notification dated 24.03.2001 ushering in the amendment to the Rules, amongst others the rate of royalty for "boulder, gravel, shingles, which is used for making chips", was prescribed to be Rs. 100/- per cubic meter. The relevant excerpt from Schedule II to the Rules qua the above Minerals is extracted herein below for ready reference :

Royalty      

At the foot of the Notification, the following note was attached :

"Note: In respect of Minerals mentioned in Sl. Nos.1 and 2 the identified areas of the two categories of the said Minerals, shall be notified separately, as per rules.

3. This order will come into force from 1.4.2001."

It would be appropriate as well to quote at this juncture, Rule 26 of the Rules pertaining to rent/royalty an assessment as herein below:

"26. Rent/royalty and assessment - (1) When a lease is granted or renewed:-

(a) Dead rent shall be charged at the rates specified in Schedule I;

(b) Royalty shall be charged at the rates specified in Schedule II; and

(c) Surface rent shall be charged at the rate specified by the Collector from time to time for the area occupied or used by the lessee.

(2) On and from the date of commencement of these rules, the provisions of sub-rule (1) shall also apply to the leases granted or renewed prior to the date of such commencement and subsisting on such date.

(3) If the lease permits the working of more than one Mineral in the same area, the Collector may charge separate dead rent in respect of each Mineral:

Provided that the lessee shall be liable to pay the dead rent or royalty in respect of each Mineral, whichever be higher in amount.

(4) Notwithstanding any thing contained in any instrument of lease the lessee shall pay rent/royalty in respect of any minor mineral o