The classification of 'ordinary earth' as a minor mineral under the Mines and Minerals Act is upheld, affirming royalty obligations regardless of mining permits.

1Leave granted in SLP(Civil) Nos. 12127 of 2006, 12722 of 2006 and 6808-6809 of 2008.

2. This group of seven appeals arises from the common judgment passed by the High Court of Judicature at Allahabad on February 28, 2006 and, therefore, all these appeals were heard together and are being disposed of by this judgment.

3. The core issue that calls for determination in these appeals is whether 'ordinary earth' used for filling or levelling purposes in the construction of embankments, roads, railways, buildings has validly been declared to be a 'minor mineral' by the Central Government vide notification dated February 3, 2000 issued under S.3(e) of Mines and Minerals (Development and Regulation) Act, 1957 (for short, 'Act, 1957').

4. It is not necessary to refer to the facts of each of these appeals. The brief narration of facts in Civil Appeal No. 2088 of 2007 will suffice. The appellant therein is a company incorporated under the Companies Act, 1956. It is engaged in the construction of business towers, hotels and various other infrastructural development projects. According to them, an agreement was entered into between the Company and National Highway Authority of India for widening of Grand Trunk Road from 393 kilometer stone to 470 kilometer stone at Sikandara, Kanpur. For the purpose of filling and levelling of road, the company entered into agreement with the local land holders / agriculturists for purchase of 'ordinary earth' and paid them accordingly. Various demand notices are said to have been issued to the appellant towards royalty for lifting 'ordinary earth' necessitating them to approach the High Court of Judicature at Allahabad challenging the constitutional validity of notification dated February 3, 2000 issued by the Central Government. They also challenged the amendment brought in the First Schedule by the State of Uttar Pradesh in Uttar Pradesh Minor Minerals (Concession) Rules, 1963 (for short, 'Rules, 1963') fixing royalty for the use of 'ordinary earth' at the rate Rs. 4/- per cubic meter.

5. S.3 of the Act, 1957 defines 'minerals' and 'minor minerals' as follows :
"S.3 Definitions In this Act, unless the context otherwise requires,--
(a) "minerals" includes all minerals except mineral oils;
(b) xxxx xxxx xxxx
(c) xxxx xxxx xxxx
(d) xxxx xxxx xxxx
(e) "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral; ......... "

6. In exercise of the power conferred under S.3(e), Central Government issued the following notification on February 3, 2000 :
"GSR 95(E). In exercise of the powers conferred by Cl.(e) of S.3 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby declares the 'ordinary earth' used for filling or levelling purposes in construction of embankments, roads, railways, buildings to be a minor mineral in addition to the minerals already declared as minor minerals hereinbefore under the said clause."

7. That a substance has to be mineral before it can be notified as a 'minor mineral' pursuant to the power under S.3(e) of the Act of 1957 is not in dispute. Whether 'ordinary earth' is a mineral is the primary question for consideration. The question is a little intricate one because the definition of 'minerals' in the Act, 1957 is not of much help in finding answer to the question.

8. The word 'mineral' has come up for judicial interpretation from time to time.

9. In Lord Provost And Magistrates of Glasgow v. Farie , 1888 LR 13 A.C. 657, the issue before the House of Lords was whether clay is included in 'other minerals' under the Waterworks Clauses Act, 1847. Lord Halsbur