1

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

2. THE COLLECTOR, DISTRICT SATNA

SATNA (MADHYA PRADESH)

3. THE

SUB-REGISTRAR,

DISTRICT

SATNA (MADHYA PRADESH)

.....RESPONDENTS

(BY SHRI AMIT SETH – DEPUTY ADVOCATE GENERAL)

-------------------------------------------------------------------------------------------------------

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

3

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