Karnataka High Court
Devika V.Patil - Appellant
Versus
Director, Dept.of Mines, Geology, Bangalore - Respondent
Decided On : 01-04-02
W.P. : 353 of 2002
Mines and Minerals - Dead Rent - Mines and Minerals (Regulation and Development) Act, 1957, Section 9, Section 9A
Fact of the Case:
The petitioner leased land for mining and was directed to pay dead rent. The petitioner challenged the demand, arguing that as no quarrying activities were conducted, she was not liable to pay dead rent.
Finding of the Court:
The court found that under Section 9A of the Mines and Minerals Act, the petitioner, as the lessee in possession of the land, was liable to pay dead rent, regardless of quarrying activities.
Issues: The issue revolved around the liability to pay dead rent under the Mines and Minerals Act, considering the absence of quarrying activities on the leased land.
Ratio Decidendi: The court interpreted Section 9A of the Mines and Minerals Act to establish that the lessee in possession of the land is liable to pay dead rent, irrespective of quarrying activities.
Final Decision: The writ petition was rejected, and the petitioner's challenge against the demand for dead rent was dismissed.
( 1 ) IN this petition, the petitioner has sought for quashing of Ann. P and for a direction to the respondent not to proceed with the recovery of a sum of Rs. 41,571/- as per Ann. L.
( 2 ) THE facts in this case are as follows : the petitioner has taken the land measuring 7, acres, 35 guntas in Sy. No. 120/3 of Budappanahalli village, Byadgi Taluk of Haveri District, on lease in a public auction. The lease deed was executed by the State Government somewhere in the year 1996 for a period of 5 years, in the first instance. Thereafter, the lease is being renewed from year to year. During the subsistence of this lease, the petitioner was directed to pay a sum of Rs. 41,571/- as dead rent. Under the Mines and Minerals (Regulation and Development) Act, 1957 (hereinafter referred to as the "act"), this was questioned by the petitioner by way of preferring a revision petition is No. 19/2001 before the Director of Mines and Geology. The learned Director dismissed the revision petition holding that the petitioner is liable to pay the dead rent as demanded by the Department. These proceedings are challenged by the petitioner in this petition.
( 3 ) THE learned Counsel for the petitioner submits that since the petitioner had not carried on any activities of quarrying, the petitioner is not liable to pay either royalty or the dead rent and therefore, the demand made by the Department is illegal. In support of this contention, he has relied upon the correspondence between the Office of the Govt. of India, Ministry of Steel and Mines and the Secretaries of the Department of Mines and Geology of all Governments and contended that as the petitioner has not taken any steps for quarrying in the land in question, she is not liable to pay the dead rent.
( 4 ) IN order to appreciate the said contention, it is useful to refer to Sections 9 and 9 (A) of the Act, which read as follows :"sec. 9: (1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any (mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee) from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral. (2) The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any (mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee) from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral. [ (2a) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month. ] (3) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification: (Provided that the Central Govt. shall not enhance the rate of royalty in respect of any mineral more than once during any period of four years.) sec. 9a: (1) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall, notwithstanding anything contained in the instrument of lease or in any other law for the time being in force, pay to the State Govt. , every year, dead rent at such rate as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of lease : provided that where the holder of such mining leas
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