MADHUSUDHAN Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In all these Writ Petitions presented by persons who have taken on lease, from the State Government in respect of lands belonging to the Government, for extraction of minor minerals have questioned the legality of the enhancement of annual dead rent payable in respect of the lease at the rate higher than the rate fixed in the lease deeds executed between each of the petitioners and the State Government.

(2.) The facts of the case in brief are as follows: (i) The petitioners entered into agreement with the State Government for extraction of various types of minor minerals in the area specified in the respective lease deeds The different types of minor minerals extraction of which constitutes the subject matter of these Writ Petitions are ; (i) Ornamental stone. (ii) Building Stone. (iii) Lima stone and Kankar. The relevant clauses in the agreement regarding payment of dead rent and royalty reads: "1. To pay dead rent or royalty whichever is greater... The lessee/lessees shall pay for every year except the first year of the lease yearly dead rent as specified in Clause 2 of this part in respect of each mineral: Provided that the lessee/lessees shall be liable to pay the dead rent or royalty in respect of each mineral whichever is higher in amount but not both. 2. Bate and mode of payment of dead rent.- Subject to the provision of Clause 1 of this Part, as from the date of ----------19.... during the subsistence of this lease, the lessee/lessees shall pay to the State Government annual dead rent at the following rates per hectare of the lands described in Part I of the Schedule.

(3.) Rate and mode of payment of royalty.- Subject to the provisions of Clause 1 of this Part, the lessee/lessees shall, during the subsistence of this lease, pay to Government at such times and in such manner as the Government may prescribe royalty in respect of any minor minerals removed by him/them from the leased area at the rates for the time being in force under Schedule I to the Mysore Minor Mineral Rules, 1969.