Simple interest under Rule 114 of the K.M.M.C. Rules is discretionary and not automatic; it requires a specific demand from the competent authority and can only be levied after the mandatory 60-day period following the default date.

JUDGMENT

The petitioner approached this Court, aggrieved by Ext.P3 Order issued by the 3^rd respondent/Geologist, calling upon him to pay the penalty amount, as fixed by Annexure R3(a) Government Order, together with interest at the rate of 12% per annum, in respect of the 4 instalments afforded vide Annexure R3(a). The compass of controversy is confined only to the demand for interest, which, according to the petitioner, is neither permissible going by Rule 115, nor as per Rule 114 of the Kerala Minor Mineral Concession Rules, 2015 (for short, 'the K.M.M.C. Rules'), except in respect of the balance amount due, that too, from the date of expiry of 60 days from the date stipulated for payment.

2. Heard Sri.P.B.Krishnan, the learned Senior counsel, duly instructed by Sri.Vishak K. Johnson, on behalf of the petitioner, and Smt.Vidhya A.C, the learned Government Pleader, on behalf of the respondents.

3. Learned Senior Counsel would submit that Rule 115 of the K.M.M.C Rules does not permit levy of any interest. The rule is strictly confined to grant of instalments for the mining dues payable to the Government. Now, coming to Rule 114 of the K.M.M.C. Rules, the interest is leviable only on delayed payments, that too, from the 60^th day of expiry of the date fixed by the authority for payment of such sum. Elaborating on facts, it was pointed out that Ext.P1 was the demand issued by the 3^rd respondent/Geologist, claiming a sum of ₹1,99,56,686/-, towards excess quarrying. Challenging Ext.P1, the petitioner approached this Court, which culminated in Ext.P2 judgment, which directed the petitioner to approach the Government for instalment facility. Accordingly, the petitioner approached the Government, which resulted in Annexure R3(a) Order dated 19.12.2023. Annexure R3(a) afforded 4 instalments, over and in addition to the payment of the first instalment to the extent of 25% of the amount demanded vide Ext.P1. After adjusting the first instalment of 25% of the amount demanded vide Ext.P1, the rest of the amount has to be paid as 4 equal monthly instalments. It is following Annexure R3(a) that Ext.P3 Order has been issued by the 3^rd respondent/Geologist, dated 16.01.2024. There, the principal amount of ₹1,99,56,686/- is referred to, and the 25% amount is calculated at ₹49,89,172/-. Ext.P3 directs the same to be paid on or before 18.01.2024. It is in respect of the rest of the amounts to be paid in 4 equal monthly instalments, that Ext.P3 directed levy of interest at the rate of 12%, to be paid before 18^th of every month. Learned Senior Counsel would submit that the first instalment was paid on 16.02.2024, well ahead of the time fixed. The second instalment was paid on 18.03.2024 and the third on 25.04.2024. The balance amount due, according to the learned Senior Counsel, as could be seen from paragraph no.5 of the counter affidavit filed, is Rs.24,87,067/-. That amount was due on 18.05.2024. The 60 days period expired only on 18.07.2024. Thus, according to the learned Senior Counsel, interest can be levied on the said Rs.24,87,067/- from 18.07.2024 upto the date of payment. The purport of Ext.P3, to levy interest on the entire amount of ₹1,99,56,686/-, is illegal, is the submission made.

4. Per contra, the learned Government Pleader would submit that the interest on delayed payments will start running from the expiry of 60 days, from the date fixed on Ext.P1 notice. Ext.P1 notice is dated 14.02.2023. The 15 days period Will expire on 01.03.2023. 60 days period, as stipulated in Rule 114 of the K.M.M.C. Rules, will expire on

01.05.2023. From that date onwards, the petitioner is liable to pay the interest, is the point mooted. All what has been done, vide Annexure R3(a), in e