The court's decision emphasized the importance of adhering to the limitations set forth in Section 9(3) of the Mines and Minerals (Regulation and Development) Act, 1957, regarding the enhancement of royalty rates.

VENKATARAMIAH, J.

( 1 ) THE Petitioner is a company engaged in the business of manufacture of. cement at Bagalkot. For the purpose of its factory, it had obtained a mining lease over certain areas in the District of bijapur to win lime-stone under a mining lease deed dated 27-10-1955 granted by the government of Bombay, Under the lease the petitioner had to pay a certain sum of money by way of royalty over the quantity of lime-stone won by it. The said rate of royalty was varied from time to time by the Government of India in exercise of its powers under Section 9 of the mines and Minerals (Regulation and Development) Act. 1957 (hereinafter referred to as the act ). One such variation was made by a notification dated 29-6-1968 bearing No. GSR 1263, which is marked as Exhibit 'b' in the case. Under that notification the royalty payable on limestone was notified as follows:-

"8. Limestone: (a) Superior grade with One rupee 45% or more of Ca. O and twenty-five paise per tonne. (b) Inferior grade with Seventy-five less than 45% Ca. O paise per tonne. The rate of royalty fixed under the above notification was again modified by the Government of india by a Notification bearing No. GSR 200 dated 29-1-1970. The said notification reads as follows:-"in exercise of the powers conferred by Sub-section (3) of "section 9 of the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), the Central Government hereby makes the following further amendment in the second schedule to the said Act namely: in the said Schedule, for item 8 and the entries relating, thereto, the following item and entries snail be substituted, namely 8. Limestone: One rupee and twenty, five paise per tonne'. This notification shall come into force on the date of its publication in, the official gazette. "

( 2 ) AGGRIEVED by the notification dated 29-1-1970, the petitioner has filed this writ petition.

( 3 ) SRI K. R. Karanth, the learned counsel for the petitioner, contended, Inter alia,

(i) that the notification was ultra vires of section 9 of the Act; (ii) that the variation of the rate of royalty to the disadvantage of the lessee was opposed to principles of natural justice; (iii) the power conferred on the Central Government by, Section 9 of the Act to vary, the second schedule of the Act in which the rates of royalty had been fixed by the Parliament, was unguided and arbitrary, and, therefore, Section 9 of the Act suffered from the vice of excessive delegation of Legislative power; and (iv) that the impugned notification was violative of Articles 14, 245 and 263 of the Constitution.

( 4 ) IT is unnecessary for us to deal with points (ii), (iii) and (iv) mentioned above, since we are of the opinion that this petition has to succeed on the first ground.

( 5 ) SECTION 9 of the Act reads as follows:-

"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 by him 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 by him from the lease area at the rate for the time being specified in the Second Schedule in respect of that mineral, (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 Government shall not (a) fix the rate of royalty in respect of any mineral so as to exceed twenty per cent of the sale price of the mineral the pit's head, or (b) enhance the rate of royalty in respect of any mineral more than once during any pe

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