( 1 ) THE petitioner was holder of a quarry lease for lime stone for a period of five years commencing from 3rd November, 1961. Under Clause (3) of the lease, he was liable to pay royalty at the rate of 10 per cent of the sale value at the pit's mouth subject to a minimum of 0. 50 paise per ton for lime stone, 0. 75 paise per ton for slacked lime and Re. 1 per ton for unslacked lime. This was also the rate of royalty then prescribed for lime stone in Schedule I to the Madhya Pradesh Minor minerals Rules, 1961. There was a proviso to Clause (3) of the lease, which enabled the lessor to revise the rate of royalty every five years commencing from the date of the lease. By a notification dated 9th December, 1965 Schedule I to the Minor Minerals Rules was amended by the State Government and the rate of royalty for lime stone was fixed at Rs. 2 per tonne from 1st January, 1966. For the period after 1st January, 1966, the petitioner was assessed to royalty by the mining Officer at the rate of Rs. 2 per tonne. The petitioner protested and claimed that in his case the rate of royalty could not be revised before expiry of five years, and that he was governed by the rate of royalty contained in the lease deed. The matter was referred to the Collector under Clause 21 of the lease, who in his order passed in January, 1968 held that the petitioner was liable to pay royalty at the revised rate of Rs. 2 per tonne. The petitioner then filed this petition under Article 226 of the Constitution praying that the order of the Collector be quashed and that the Mining Authorities be directed to reassess the royalty according to the rate given in the lease deed.

( 2 )

"before we proceed to set out and examine the contentions raised by the learned counsel for the petitioner, it is necessary to notice the relevant statutory provisions. By Section 15 of the Mines and Minerals Act, 1957 the State government has been conferred power to make rules in respect of minor minerals. Sub-section (1) of Section 15 reads as follows:-"

15 (1) The State Government may, by notification in the Official gazette, make rules for regulating the grant of prospecting licences and mining leases in respect of minor minerals and for purposes connected therewith. " in exercise of the powers conferred by the aforesaid provision, the State government made the Madhya Pradesh Minor Minerals Rules, 1961. The Rules define quarry lease to mean a mining lease for minor minerals and provide detailed procedure for the grant of quarry lease in respect of such minerals, Rule 25 of the Rules deals with the conditions of quarry lease. This Rule is divided into three sub-rules. Sub-rule (1) enumerates the conditions which apply to every quarry lease. We are here concerned only with Clause (1) (a) of Sub-rule (1), which reads as follows:-"25 (1) Every quarry lease shall be subject to the following conditions:- (i) (a) The lessee shall pay royalty on minor minerals despatched from the leased areas at the rates specified in the First Schedule. " sub-rule (2) enumerates the conditions which may be included by the Slate government, if deemed necessary, in a quarry lease. Sub-rule (3) does not by itself contain any condition but empowers the State Government to specify any other special condition that may be included in a quarry lease. The rate of royalty for minor minerals is contained in the First Schedule to the rules. Sub-rule (2) of rule 24 enables the State Government to revise the rate of royalty from time to time subject to this limitation that the rate shall not be revised more than once during any period of five years. Rule 24 (2) reads as follows:--"24 (2) The StateGovernment may, by notification in the Official gazette, amend thy First Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any minor minerals with effect from such date as may be specified in the notification. Provided that the rate of royalty in respect of any minor mineral sh