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2002 Supreme(Mad) 161

IN THE HIGH COURT OF JUDICATURE AT MADRAS
A.S.Venkatachalamoorthy and K.Sampath, JJ.
Dalmia Cement (Bharat) Limited, Dalmiapuram and others
Versus
The State of Tamil Nadu represented by its Commissioner and Secretary to Government, Industries Department, Fort St.George, Madras and others
W.A.Nos.685, 686, 698, 713, 717 of 1991, 116 of 1992, 475 to 492 of 1993, W.P.No.12513 of 1999 and C.M.P.Nos.6894, 6895, 7266 of 1991, 1419 of 1992, 10169 of 1995, 16042 and 16405 of 1996
Decided On : 04 March 2002

Advocates:
S.Gopalratnam, Senior Counsel, for S.M.Loganathan, for Appellants in W.A.Nos.685, 686 and 717 of 1991.
S.Kalyanaraman, for Appellants in W.A.No.713 of 1991.
R.Vedantham Srinivasan, for K.Kuppusamy, for Appellants in W.A.No.698 of 1991.
P.R.Raman, for Appellants in W.A.No.116 of 1992.
N.R.Chandran, assisted by Ms.T.Kokulavani, Government Advocate, for Government in W.A.Nos.475 to 293 of 1993.
M.Sathyanarayanan, in W.A.No.12513 of 1999.

Demand of royalty at full rate cannot be made during existence of the lease.

Headnote:Mines and Minerals (Regulation and Development) Act, 1957-Sections 9, 10 and second schedule-Mineral concession Rules, 1960-Demand of royalty-Patta holders subjecting to levy on the ground that mineral wealth underground belonged to crown-Government has jurisdiction to demand levy at full rates instead of at half rates specified in second schedule of the Act-Held, during the existence of the lease demand of royalty at full rate cannot be made.

JUDGMENT

K.Sampath, J.: "This analogous cluster" to borrow the expression used by the Constitution Bench of the Supreme Court in Krishna Kumar v. Union of India, (1990)4 S.C.C. 207 of several writ appeals and one writ petition involves common questions. As was done by the learn at single Judge, it is enough if facts in one writ appeal are noticed. Though the substance of the reliefs in the various writ petitions is the same, the prayers vary from certiorari, to declaration of certiorarified mandamus.

2. The appellant in W.A.No.685 of 1991 was the petitioner in W.P.No.7783 of 1982, a ryotwari pattadar of a large extent of lands in and around Dalmiapuram, Tiruchirapalli District. For the purpose of manufacture of cement, the petitioners obtained license for quarrying limestone, gypsum etc. On the date of disposal of the writ petitions, the relevant licence/lease was in force in most of writ petitions. As enjoyed by Sec.9(1) of the Mines and Minerals (Regulation and Development) Act, 1957 (hereinafter referred to as ‘the Act’), the petitioners have been paying half royalty for the minerals quarried by them in their patta lands.

3. It would appear that on 10.5.1982 the Government of Tamil Nadu through the Joint Secretary to Government addressed letters to all the Collectors. In that letter it is stated that in 1977 the senior deputy accountant general in his audit report had pointed out the incorrect levy of royalty at half the rates for mining in patta lands since no proportion had been prescribed in the Minor Concession Rules, 1960 in regard to the shares in the minerals between the pattadar and the Government, that the omission of levy royalty in the State at the mandatory rate for mining patta lands where minerals fully vested in the Government resulted in the Government foregoing revenue amounting to Rs.40.26 lakhs on 39.12 lakhs tonnes of minerals in respect of 29 leases during 1974 to 1976 alone, that the Government, after taking into account the above facts and in order to of avoid further loss of revenue to the Government in future, had decided to levy full rates of royalty and dead rent prescribed in the second and the third schedules to the Act in respect of mining leases over patta lands as in the case of Government lands. The letter requested the Collectors to stop sharing 50% of the loyalty and dead rent with the patta land holders in respect of mining leases and to collect the whole amount due as royalty and dead rent prescribed in the second and the third schedules to the Act as in the case of land in which the minerals vested in the Government with effect from the date of issue of the order.

4. This was followed by a communication dated 22.5.1982 by the Collector of Tiruchirapalli in RC.Y1.68834 of 1982 wherein the petitioners were informed as follows:

"The Government in their letter cited have instructed to levy and collect the royalty and dead rent in respect of the patta lands leased out for mining purposes at the full rate of royalty and dead rent prescribed in the second and the third schedules to the Mines and Minerals (Regulation and Development) Act, 1957 with effect from 10.5.1982.

Please therefore remit the royalty and dead rent at the rates prescribed in the second and the third schedules to the Mines Act and apply for transport permits to the Special Tahsildar, Mines, Tiruchirapalli. The amount of royalty and dead rent should be remitted at the full rate as per the statute provision under the Act and Rules thereunder with effect from 10.5.1982."

This order was followed by a demand made on the petitioners by the Special Tahsildar, Mines, Tiruchirapalli, calling upon them to pay the amount mentioned against their respective rates for the quarters ended 31.3.1982 and 30.2.1982.

5. This provoked the various writ petitions. The prayer as already noted is either for the issue of a certiorari, to quash the memo Dated 22.5.1982 or for a declaration that no royalty or dead rent in excess of 50% is due or leviable or r








































































































































































































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