STATE OF RAJASTHAN Vs. DEV GANGA ENTERPRISES

JUDGEMENT

(1.) Leave granted. Heard learned counsel.

(2.) The question that arises for consideration is where the State Government enters into an 'Excess Royalty Collection Contract' under Rule 32 of the Rajasthan Minor Mineral Concession Rules, 1986 ('Rules' for short), whether a contractor is entitled to a grace period of 15 days (from the date when the amount becomes due) for paying the dues without interest under Rule 61 of the said Rules.

(3.) The respondents entered into an 'Excess Royalty Collection Contract' with the State of Rajasthan, agreeing to pay a fixed amount of Rs. 36.52 crores per annum in consideration of the State granting them a contract to collect from mining lease holders excavating and removing marble from the mines of such leaseholders, excess royalty on marble, in regard to the mining leases within the revenue boundaries of Tahsil Rajsamand, Kumbhalgarh, Amet and Railmangra of Distt. Rajsamand, during the period 19.7.2003 to 31.3.2005. The contract required the contractor to pay the annual fixed amount in instalments, that is, the first instalment on or before the signing of the agreement and the balance in eleven monthly instalments, payable in advance upto the 10th day of the month. Sub-clause (11) of clause 2 of the agreement provided as follows :