The central legal point established in the judgment is the requirement for government contractors to obtain a certificate of no mining dues under Rule 68 of M.P. Minor Mineral Rules, 1996, to ensure payment of royalty for minerals used in construction work.

” Heard on the question of admission.

2. The petitioner is a Class-B Civil Government Contractor. It is alleged that after lapse of months respondents have not finalized the final bill of the petitioner for want of Royalty Clearance Certificate as per terms and conditions of the agreement executed between the petitioner and Department.

3. According to the petitioner, in view of the law laid down by this Court as well as at Principal Seat, Jabalpur in various cases, including the cases of M.P. Contractors Sangh, Indore & Ors. v. State of M.P. & Ors., 1987 JLJ 743 : (AIR 1987 MP 74), M.P. Audhyogik Kendra Vikas Nigam v. Abrar Construction Company & Ors., 2005 Arb WLJ 379 (MP), Keti Construction Ltd. v. State of M.P., 2007 (3) MPHT 433 (DB) : (AIR 2007 (NOC) 2586 (MP)) and Tomar Construction Company v. State of M.P. & Ors., 2008 (2) MPLJ 40 and recently in Writ Appeal No.357/2012 (M/s. Arpit Heights (P) Ltd. v. Indore Development Authority) decided on 18.03.2013, the insistence of the respondents for production of the Royalty Clearance Certificate is illegal.

4. Learned counsel for the petitioner submits that in case of M/s. Arpit Heights (P) Ltd. (supra), this Court allowed the writ petition by directing the following:

' 11. In view of the aforesaid legal position, in our considered view, the learned single Judge has committed error in dismissing the writ petition on the basis of the aforesaid clause which runs contrary to the statutory provisions because the Collector can issue certificate with regard to payment of royalty only, if the royalty is payable by the contractor. If the contractor has purchased the material from a supplier and the supplier has purchased the material from the mine owner, who has extracted the mineral from a place which is not known to the contractor, the contractor cannot be expected to run from pillar to post finding out of source of extraction and the mineral consumed by him and then produce the certificate. This condition seems to be impracticable and inconsistent to the statutory provision.

12. Having regard to the aforesaid, we allow this writ appeal by setting aside the order passed by the learned single Judge and dispose of the writ appeal by issung the following directions, akin to the directions issued in the case of Tomar Construction Company (supra), which will safeguard and take care of the interest of the petitioner as also of the respondents:

(1) The State Government/Indore Development Authority/Competent Authority of the respondent shall clear the bills of the petitioner submitted in connection with execution of the contract in question without insisting upon producing no dues certificate from the Collector or any other authority with regard to payment of royalty for the minerals consumed. However, the State Government /Indore Development Authority/Competent Authority of the respondent can insist upon production of bills with regards to purchase of mineral and in case the bill is not available, an affidavit indicating the manner in which and the place or source from where the mineral is purchased. This affidavit can be used by the State Government/Indore Development Authority/Competent Authority of the respondent for verification and for taking further action for clearing the bills.

(2) Amount of royalty, if any, recovered from the bills of the petitioner, shall be refunded to the petitioner on the petitioner filing the bill or the affidavit as indicated hereinabove. In case, the petitioner is unable to produce the bill or the affidavit as indicated hereinabove, liberty is granted to the petitioner to represent the matter before the State Government/Indore Development Authority/ Competent Authority of the respondent pointing out the inability in producing the bills or the affidavit and it would be for the State Government/Indore Development Authority/Competent Authority of the respondent to consider the representation and take such steps as may be permissible or proper for clearing