High CourtsSingle Bench(2018) 02 JH CK 0035

M/s S.N. Thakkar Construction Pvt. Ltd. vs East Central Railways & Ors

Jharkhand High Court · Decided on 4 February 2018

HON’BLE JUDGES
Anubha Rawat Choudhary
CASE NUMBER
3122 of 2016

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Judgment

26 paragraphs · 499 words
1.

Heard the counsel for the parties.

2.

Petitioner was aggrieved with the deduction of royalty from running on-account Bills on account of ""Ordinary earth used for filling or leveling

purposes in construction of embankment, road, railways, building"" by treating it under the head ""Ordinary Clay"" used for manufacturing Raniganj

Tiles and Commercial use on the ground that it is illegal and arbitrary.

3.

Petitioner contended that there is no such Notification bringing the Ordinary Clay within the cover of the aforesaid specification of minor

minerals notified vide Annexure-8 dated 27.12.2010 issued by the Mines and Geology Department, Government of Jharkhand. Matter was

decided against the state by the learned Single Judge in a batch of writ petitions lead by WPC No. 4737/2014 [M/s RAUS-SCL (JV) versus East

Central Railways] vide judgment dated 25.03.2015.

4.

The State being aggrieved, moved in appeal. By judgment dated 28.06.2016 passed in LPA No. 705/2015 (State of Jharkhand & others

versus M/s MRKR- Pallavi Upkar JV & others and other analogous cases), Learned Division Bench of this Court has been pleased to set aside

the judgment of the Learned Single Judge. It has held that the writ petitioners/Respondents therein are liable to make payment of royalty as per

Entry-19 of the same Notification dated 27.12.2010 issued by the State of Jharkhand under Section 15 of the M.M.D.R. Act, 1957.

5.

It is submitted that earlier, Union of India had, by Notification bearing No. G S R 95(E) dated 03.02.2000 declared the ""Ordinary earth used

for filling or leveling purposes in construction of embankments, road, railways, buildings to be a minor minerals"". The State Government by virtue of

the Notification dated 27.12.2010, had in the residuary items at Serial No. 19, included all other minor minerals not specified therein above over

which, royalty at the rate of 10% of the sale price on Ad-valorem basis was to be charged.

6.

Learned counsel for the petitioner submits that the petitioner is ready to abide by the terms of the Agreement and would pay royalty under the

specified item no. 19 of the Notification dated 27.12.2010 at the rate prescribed.

7.

Learned counsel for the Respondent State submits that the writ petition can be disposed of in the light of the judgment rendered in LPA No.

705/2015.

8.

In view of the issue raised by the petitioner having attained finality by the judgment passed in LPA No. 705/2015 in the case of State of

Jharkhand & others (Supra), the writ petition is being disposed of in terms of the aforesaid judgment. If any amount has already been deducted

from the Bills of the petitioner, it would be adjusted as per the applicable rates in terms of the aforesaid judgment. If any further liability of the

petitioner remains, he would be liable to pay the same accordingly. In case of any excess payment has been made by the petitioner, Respondent

State would also be liable to refund the same.

9.

I.A No. 170/2016 is also disposed of.