KIRLOSKAR FERROUS INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners have invoked the jurisdiction of this Court under Article 32 of the Constitution inter-alia seeking to challenge the validity of the Explanation to Rule 38 of the Mineral (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 (for short, the "MCR, 2016") and the Explanation to Rule 45(8)(a) of the Mineral Conservation and Development Rules, 2017 (for short, the "MCDR, 2017") that stipulates the computation of royalty to be levied for the extraction or consumption of mined ores.

(2.) The petitioner no.1 herein is a mining leasehold company inter-alia engaged in the extraction of pig iron and the manufacturing and sale of its byproducts by way of a mining lease for iron ores in the State of Karnatak in terms of the provisions and procedure envisaged under the Mineral (Development and Regulation) Amendment Act, 2015 (for short the "2015 Amendment Act"). The petitioner no.2 herein is one of the shareholders in the petitioner no.1 company. The respondent no. 1 herein is the Union of India through the Secretary, Ministry of Mines, whereas the respondent no. 2 herein is the Indian Bureau of Mines.

(3.) As per Sec. 9 of the Mines and Minerals (Development and Regulation) Act, 1957 (for short, the ("MMDR, Act"), the revenue required to be paid for any mineral removed or consumed from the leasehold area would be in the form of royalty and mandates the mining leaseholder to pay such royalty as may be specified in the Second Schedule in respect of any minerals removed or consumed in the leased area allotted to him. Sec. 9 sub-sec. (3) of the MMDR Act further empowers the Central Government to enhance or reduce the rate of royalty payable by the leaseholders by way of a notification once every 3-years. The aforesaid provision reads as under: -