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2025 Supreme(SC) 1635

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

Headnote:(A) MCR, 2016 - Explanation(s) to Rule 38 and Rule 45 of MCDR, 2017 - Important considerations regarding the calculation of royalty and the cascading effect of royalty on royalty were examined - Union of India urged for time extension regarding compliance with earlier directives regarding mining leases (Paras 3, 4, 9, 74-84).

(B) Judicial scrutiny of executive actions - The court emphasized the need for timely governmental response to directives and the accountability expected from the State relating to public expectations and policies (Paras 78-82).

Facts of the case:
The Union of India sought time for compliance concerning amendments to the mineral legislation, with concerns regarding the economic impact of how royalties are calculated in the auctioning of mining leases (Paras 1, 9, 10).

Findings of Court:
The court highlighted the need for the Union to conclude public consultation on the issues related to royalty computation and directed timely decision-making, potentially impacting state revenues (Para 84).

Issues: Whether the method of calculating royalty has adverse economic implications and whether the Union has complied with the court's directives (Paras 9, 10).

Ratio Decidendi: The court underscored the importance of prompt government action regarding the public consultation on policies, asserting the need for fairness and transparency in governmental processes (Paras 78, 79).

Result: The Union of India was granted additional time to finalize its decision-making process regarding mining royalty calculations.

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:-

    "4. In view of the directions of this Hon'ble Court contained in the order dated 03.02.2025 in the instant matter, Respondent No. 1 humbly states and submits the details of action taken for compliance of the judgment dated 07.11.2024 as under:

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:-

    "It is humbly submitted that the submissions as set out in application filed by the Respondent No. 1 seeking extension of time period for compliance of judgment dated 07.11.2024 may be read as part and parcel of this affidavit and the same are not repeated herein for sake of brevity."

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:-

    "That it is respectfully submitted that the process of public consultation has already been completed and the decision on the proposal is at the level of Union Cabinet. It is humbly submitted that the Respondent Ministry has made substantial compliance of the direction of this Hon'ble Court, but some more reasonable time would be required to take a final decisive call and accordingly, Respondent Ministry has moved an application dated 07.01.2025 seeking direction of this Hon'ble Court for extension of time"

6. Prima facie on plain reading of Para 9 above, it appears that the Unio

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