IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR BEFORE HON'BLE SHRI JUSTICE RAVI MALIMATH, CHIEF JUSTICE &

HON'BLE SHRI JUSTICE VISHAL MISHRA WRIT PETITION No. 2640 of 2004 Between:-

1. M/S BIRLA CORPORATION LTD. AN EXISTING COMPANY WITHIN THE MEANING OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT BIRLA BUILDING, 9/1, R. N. MUKHERJEE ROAD, KOLKATA (WEST BENGAL) WHICH, INTERALIA, OWNS A CEMENT INDUSTRIAL UNDERTAKING IN THE NAME AND STYLE OF SATNA CEMENT WORKS IN DISTRICT SATNA (M.P.) P.O. BIRLA VIKAS, SATNA-485005 (MADHYA PRADESH)

2. SHRI J.S.BANTHIA, A SHAREHOLDER OF PETITIONER NO.1, R/O. SATNA CEMENT WORKS STAFF COLONY, BIRLA VIKAS, SATNA (M.P.)

.....PETITIONERS (BY SHRI KISHORE SHRIVASTAVA- SENIOR ADVOCATE WITH SHRI ATUL CHOUDHARI - ADVOCATE)

AND

1. THE STATE OF MADHYA PRADESH THR. THE SECRETARY DEPTT. OF MINERAL RESOURCES VALLABH BHAVAN, MANTRALAYA, BHOPAL (MADHYA PRADESH)

2. THE COLLECTOR, DISTRICT SATNA SATNA (MADHYA PRADESH)

3. THE SUB-REGISTRAR, DISTRICT SATNA (MADHYA PRADESH)

.....RESPONDENTS (BY SHRI AMIT SETH – DEPUTY ADVOCATE GENERAL)

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Reserved on : 04.07.2022 Delivered on : 01.08.2022 -------------------------------------------------------------------------------------------------------

This petition coming on for hearing this day, Hon'ble Shri Justice Vishal Mishra, passed the following:

ORDER

The present petition has been filed challenging the validity of the Circular No.F-19-192/92/12/2 dated 15.03.1993 issued by the Department of Mineral Resources, Government of Madhya Pradesh, Bhopal (M.P.), whereby the procedure has been laid down for computation of the stamp duty exigible, inter alia, for execution of a fresh deed of mining lease prescribed in Form “K” under Rule 31 of the Mineral Concession Rules, 1960.

2. It is the case of the petitioners that the petitioner No.1/Company which is registered under the Companies Act, 1956 owns a Cement Industrial Undertaking in the name and style as M/s. Satna Cement Works, Tehsil Raghuraj Nagar, District Satna in the State of Madhya Pradesh. Petitioner No.2 is the shareholder of the petitioner No.1 carrying on business through the agency of the petitioner No.1. The cement units are registered under the Factories Act, 1948 for using limestone as a major raw material for manufacture of cement. Looking to the requirement of mineral for production of cement, the petitioner No.1 applied for grant of lease of limestone under the relevant provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as “the MMDR Act”) for an area of 56.27 Hectare in Village Birhauli, Tehsil Raghuraj Nagar, District Satna (M.P.). On 11.02.2004, a fresh lease was granted to the petitioner No.1 in pursuance to the execution of an agreement and registration of mining lease in Form “K” vide letter dated 02.07.2004 (Annexure P/2). He was directed to pay, inter alia, a stamp duty of Rs.4,32,00,000/- (Rupees Four Crores Thirty Two Lacs) by considering the anticipated amount of royalty payable at the rate of Rs.40/-per ton likely to be paid per annum in future by the prospective lessee.

3. It is argued that the demand which has been raised by the respondent department is on the higher side and is contrary to the relevant provisions, as the lease and the rent are two different concepts. It is argued that the lease defined under Section 105 of the Transfer of Property Act, 1882 being a transfer of right to enjoy such property is made for a certain time, expressed, implied or in perpetuity on consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee who accepts the transfer on such terms.

4. It is argued that Section 9 of the MMDR Act provides royalty in respect of mining lease and Section 9A of the MMDR Act provides dead rent to be