(1.) This appeal by certificate under Article 133 (1) (b) and (c) of the Constitution arises from a writ petition filed by the appellant in the High Court in which her motion for a writ of certiorari to quash an order No. K/MM/65 dated November 4, 1965, issued by the Mining Officer, Jabalpur, respondent 6 for and on behalf of Collector, Jabalpur, respondent 1, and a prayer for a writ of mandamus seeking to restrain the State of Madhya Pradesh and its officers and servants from recovering the amount involved in the writ petition, were negatived.
(2.) A brief re'sume' of facts would help in focussing attention on the dispute involved in this appeal. Appellant applied for and obtained a quarry lease for excavating limestone in an area covering 25.32 acres in Jabalpur District, under the relevant Minor Mineral Rules then in force. The lease was executed by the appellant and the State of Madhya Pradesh on June 26, 1961. Madhya Pradesh Minor Mineral Rules, 1961 ('1961 Rules' for short), came into force with effect from August 11, 1961. By virtue of Rule 24 of 1961 Rules the royalty in respect of quarry leases was regulated as set out in the schedule annexed to the Rules. In respect of limestone for which appellant had obtained a lease, the provision in the First Schedule with regard to rate of royalty was, 10% of the sale value at the pit's mouth subject to a minimum of 50 naye paise per ton for limestone, 75 naye paise per ton for unslaked lime and Re. 1 per ton for unslaked lime. As per clause 3 of the indenture of lease royalty at the aforementioned rate was payable half yearly, i. e. on. 15th March and 15th September in each year. Clause 5 made it obligatory for the lessee to keep correct and intelligible books of accounts showing accurately the quantity of mineral extracted, the weight and value of minerals sold and exported together with name of purchasers or consignees and there was a further obligation to submit certain statements to the Deputy Commissioner at Jabalpur on dates prescribed therein. Appellant was served with a memo bearing No. 2/MA/62 dated September 20/21, 1962, assessing the royalty in respect of limestone quarried by the appellant and demanding a sum of Rs. 35,313.58 p. as arrears of royalty. On receipt of this memo appellant made a representation as contemplated by Cl. 15 of the indenture of lease. As this clause spells out an arbitration agreement between the parties it may be reproduced in extenso:
(3.) A return was filed on behalf of the respondent, contending, inter alia, that since the execution of the indenture of lease both by the appellant and the State of Madhya Pradesh, the 1961 Rules have come into force with the result that by virtue of Rule 24 the rates of royalty in respect of even existing leases would be governed by the rates set out in the schedule to the rules. It was also contended that Clause 15 of the lease spells out an arbitration agreement and as the appellant submitted to the arbitration, the decision of respondent 4 is an award and the same cannot be questioned by way of a writ petition. It was further contended that if appellant had any grievance about the award given by respondent 4 it was open to her to take recourse to proceedings, under the Arbitration Act, 1940, and a writ petition under Art. 226 of the Constitution cannot be entertained by the Court and, therefore, the petition is liable to be dismissed.