NMDC LIMITED FORMERLY KNOWN AS NATIONAL MINERAL DEVELOPMENT CORPORATION LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This writ petition is filed by NMDC Limited ('NMDC' for short), challenging order No.CI 78 MMM 2016 dated 2.11.2018 (Annexure-J) passed by the Secretary to the Government, Department of Commerce & Industries, Government of Karnataka, amended by Corrigendum No.CI 78 MMM 2016 dated 15.11.2018 (Annexure-M), culminating into proceedings No.DMG/MLS/ML-2396/2018- 19/6360 dated 23.11.2018 (Annexure-S) passed by the Director, Department of Mines & Geology, Bengaluru, imposing additional premium.

(2.) The issue involved in this writ petition is, whether State Government, while extending period of lease, can impose a condition to pay premium equivalent to 80% of average sale price of iron ore.

(3.) Briefly stated the facts of the case are, on 03.04.1968, NMDC Limited, a Government Company registered under the provisions of the Companies Act, 1956 was granted iron ore mining lease over 2,000 hectares under M.L.No.2396 for a period of 20 years with effect from 04.11.1968. The lease was extended for a further period of 20 years on 17.09.2002 with effect from 03.11.1988.