SUPREME COURT OF INDIA
J.B. Pardiwala and R. Mahadevan, JJ.
Salitho Ores Pvt. Ltd. And others – Appellant – Appellant
Versus
The Captain Of Ports And Others – Respondent
Civil Appeal No.4683 of 2018 with W.P.(C) No. 715 of 2024
Decided on : 28-02-2025
ORDER :
W.P.(C) No. 715/2024:-
1. We have two interim applications before us. One filed by the Union of India seeking extension of time to take an appropriate decision as directed by this Court in the main Judgment and the connected interim application is at the instance of the original petitioners pointing out that the directions issued by this Court in the main Judgment have not been complied with by the Union of India so far.
2. Today, when the mater was taken up for hearing, Mr. Shailesh Madiyal, the learned counsel appearing for the Union of India brought to our notice the events that have taken place after the Judgment was passed by this Court.
3. In Para 4 of the affidavit filed on behalf of the Union of India, the following has been stated:-
SL. NO. Date Action
1. 12.11.2024 The petitioner in the matter, Kirloskar Ferrous Industries Ltd. sent a representation dated 12.11.2024 to this Ministry raising various grounds for applying the proposed rules for removing the impact of royalty on royalty for the existing auctioned leases also.
2. 14.11.2024 The Petitioner's representation was received on 14.11.2024. The same was examined in the Ministry of Mines.
3. 18.11.2024 The draft Note for the Union Cabinet for amendment in the rules was modified to include the details regarding the judgment dated 07.11.2024 of this Hon'ble Court and views of the Ministry of Mines. A Note was initiated for seeking examination and concurrence of the Department of Legal Affairs on the said draft Note for the Union Cabinet. Also, detailed comments on representation of the Petitioner were incorporated in the proposal sent to the Department of Legal Affairs.
4. 21.11.2024 The proposal was sent to the Department of Legal Affairs after approval in the Ministry of Mines.
5. 19.12.2024 The Department of Legal Affairs provided its opinion and concurrence on the proposal received by it from the Ministry of Mines.
6. 27.12.2024 The matter was examined in the Ministry of Mines and a clarification on the opinion was sought from the Department of Legal Affairs.
7 07.01.2025 Application seeking extension of time period for compliance of judgment dated 07.11.2024 was filed by Respondent No. 01
8 07.01.2025 Concurrence of Department of Legal Affairs was received on the draft Note for the Cabinet.
9. 10.01.2025 The file was submitted for seeking the approval of the Hon'ble Minister of Mines on the draft Note for the Cabinet.
10 04.02.2025 The final proposal has been, sent to the Cabinet Secretariat. This as per the prescribed procedure contained in Handbook on Writing Cabinet notes for handling a cabinet note.
4. In Para 3 of the affidavit, referred to above, the Union has stated as under:-
5. Now we look into the averments made in Para 9 of the application filed by the Union of India seeking extension of time to comply with the Judgment passed by this Court. Para 9 reads thus:-
6. Prima facie on plain reading of Para 9 above, it appears that the Unio
The methodology for computing royalty under the MMDR Act is a policy decision, and courts should exercise restraint in reviewing such economic policies unless they violate constitutional provisions.
Royalty is a contractual obligation distinct from taxes; amendments to regulations cannot retrospectively apply to existing contracts unless explicitly stated.
Subordinate legislation must align with the parent Act; regulations exceeding authority are invalid. Royalty payment under mining laws can only be for minerals actually removed or consumed.
The demands raised by the Deputy Director of Mines were found to be unsustainable in the eye of law, in view of the law laid down in National Mineral Development Corporation Limited v. State of M.P.,....
Point of Law : MMDR Act, 1957, though takes away power of State to make laws under Entry 23 of List II, by S.15 of MMDR Act, power to regulate quarry leases, mining leases or other mineral concession....
Royalty, under the MMDR Act, is not a tax but a contractual consideration for mineral rights. State legislatures retain the power to tax mineral-bearing land, but this power is subject to any limita....
The court ruled that additional conditions in mining lease agreements can be imposed without central government approval, as they pertain to third-party claims and do not conflict with the interests ....
Only the Central Government can amend royalty rates under Section 9(3) of the MMDR Act, and demands for additional royalty based solely on audit findings lack legal basis.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.