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2024 Supreme(Gau) 1188

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Amar Deka, S/o Ratna Kanta Deka And Anr – Appellants
Versus
The State Of Assam And Ors – Respondents
WP(C) 4085 of 2024
Decided on : 24-09-2024

Advocates:
Advocate Appeared:
For the Appellant : Mr. I Choudhury
For the Respondent: Mr. D Gogoi, Mr. P Nayak, Mr. S Baruah

IMPORTANT POINT
Royalty obligations under the Assam Minor Mineral Concession Rules 2013 do not extend to private construction projects, only applying to government-related works.

Headnote:

Royalty - Construction Permission - Assam Minor Mineral Concession Rules 2013 - The court interpreted the provisions of the Assam Minor Mineral Concession Rules 2013, emphasizing that royalty obligations apply only to government projects and not to private constructions, leading to the quashing of the impugned communication imposing such fees.

Fact of the Case:

The petitioners sought permission to construct a residential apartment on their land but were required to pay forest royalty by the GMC and GMDA based on a government communication extending rules to private agencies.

Finding of the Court:

The court found that the imposition of royalty on private construction was contrary to the Assam Minor Mineral Concession Rules 2013 and the Mines and Minerals (Development and Regulation) Act, 1957, as these rules apply only to government projects.

Issues: Whether the GMC and GMDA can impose royalty on private construction projects as a condition for granting construction permission.

Ratio Decidendi: The court held that the royalty provisions in the Assam Minor Mineral Concession Rules 2013 apply exclusively to government projects and not to private constructions, thus invalidating the requirement for private entities.

Result: The court quashed the communication imposing royalty on private constructions and directed GMC/GMDA not to insist on such payments for construction permissions.

JUDGMENT :

Heard Mr. I Choudhury, the learned counsel appearing on behalf of the petitioners. Mr. D Gogoi, the learned counsel appears on behalf of the respondent Nos.1 and 2; Mr. P Nayak, the learned counsel appears on behalf of the respondent No.3, 6 and 7; and Mr. S Baruah, the learned counsel appears on behalf of the respondent Nos.4 and 5.

2. It is the case of the petitioners herein that the petitioner No.1 is the owner of a plot of land measuring about 1 katha 5 lechas covered by Dag No.2384 of KP Patta No.1299 under Revenue Village Dharapur, Mouza - Ramcharani in the district of Kamrup(M) Guwahati. The petitioners intend to build a residential apartment over the said plot of land and for the purpose sought for permission before the Guwahati Metropolitan Development Authority (for short, the GMDA) by paying the requisite application processing fee.

3. The case of the petitioners herein is that the petitioners herein proposed to construct buildings for their own use and for that purpose have sought for permission from the from both the GMC and the GMDA and these authorities had made it a condition precedent for deposit of forest royalty for the grant of the necessary permission.

4. It is the further case of the petitioners that the both the GMC as well as the GMDA are acting on the basis of the communication dated 02.03.2023, whereby the Joint Secretary to the Government of Assam Mines and Minerals Department had extended the ambit of the Notification dated 07.10.2021, even to private agencies.

5. The petitioners herein have assailed the communication dated 02.03.2023 issued by the Joint Secretary to the Government of Assam Mines and Minerals Department i.e. the respondent No.5 herein whereby the Notification dated 07.10.2021 by which the Assam Minor Mineral Concession Rules 2013 (for short, ‘the Rules of 2013’) which was amended was extended even to private agencies.

6. It is seen that this Court has issued notice. However, none of the respondents have filed any affidavit.

7. I have heard the learned counsels appearing on behalf of the petitioners as well as the respondents. It is seen from the materials on record that the Rules of 2013 was amended by the Notification dated 07.10.2021 whereby Sub-Rule (3) of Rule 5, Sub-Rule (6) of Rules 8 and Sub-Rule(4) of Rule 27 were substituted.

8. Rule 5 of the Rules of 2013 relates specifically to quarrying of minor minerals by the Government Departments/Agencies/Contractors engaged by Government Departments or Agencies as would be apparent from a perusal of the heading of the said Rule. It is relevant to note that in terms with Sub-Rule (1) of Rule 5 of the Rules of 2013, an application is required to be made by the Officer authorized by the concerned Department to the competent authority for grant of mining permit for quarrying of minor minerals by the Notified Departments of State or Central Government or any other agencies for any work/project. The fact that it is an officer authorized of the concerned Department who is required to make an application and the use of the words ‘for any work/project’ as appearing in Sub-Rule (1) of Rule 5 of the Rules of 2013 has also to be construed as work/project of the State Government/Central Government or their agencies. Sub-Rule (2) of the Rule 5 has a relation to Sub-Rule (1) of Rule 5 inasmuch as on the application so made in terms with Sub-Rule (1) of Rule 5, mining permit for required quantity would be issued to the contractors engaged for the work/project of the Government Department/Agencies.

9. In the backdrop of the above, let this Court take note of the amendment made to Sub-Rule (3) of Rule 5 vide the Assam Minor Mineral Concession (Amendment) Rules, 2021 (for short ‘the Amending Rules’). Sub-Rule (3) of Rule 5 as it stands post the amendment is quoted herein below:

    "(3) (l) - The minor minerals, when shall be used or consumed by Government Departments, the rates of Royalties shall be paid as per the rates prescribed in the Third Schedule

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