GEM GRANITES Vs. STATE OF KERALA

JUDGEMENT

(1.) The question that is posed for consideration in this batch of cases is whether State Government has got power to demand dead rent as per Rule 29(1)(d) of the Kerala Minor Mineral Concession Rules, 1967 for the period during which minor lease was kept idle. Learned single judge found no infirmity in the demand and dismissed the original petitions. Aggrieved by the same these appeals have been preferred.

(2.) For disposal of these cases we will refer to the facts in O.P.No.630 of 1999 against which W.A.No.148 of 2003 was filed. Petitioner is a partnership concern carrying on business of quarrying and exporting granite. By proceedings dated 14.05.1996 first respondent granted quarrying lease for extraction of granite dimension stone of M/s. Indus Granites over an extent of 6.7608 hectares in survey numbers 122/1 and 122/2 of Vandanmedu village in Udumbanchola taluk in Idukki district for a period of three years. Lease deed was executed in favour of M/s. Indus Granites on 29.05.1996. Indus Granites could not carry on quarrying operation in the above-mentioned land due to financial constraints. Consequently they had sold the above mentioned property for valuable consideration to the petitioner and requested the third respondent to transfer the quarrying lease in favour of the petitioner. The Director of Mining and Geology by proceedings dated 9.5.1997 transferred the lease granted to M/s. Indus Granites over the above extent of land in favour of the petitioner as per Rule 34 of the aforesaid Rules.

(3.) Petitioner however could not carry on the quarrying operation in the above mentioned land during the period from 29.05.1997 to 28.05.1998. Consequently demand notice dated 25.06.1998 was issued by the third respondent directing the petitioner to remit an amount of Rs.45,648/towards dead rent for the above mentioned period. Demand was made under Rule 29(1)(d) of the Rules. Petitioner is aggrieved by the said demand and has preferred the original petition seeking a declaration that Rule 29(1)(d) of the Kerala Minor Mineral Concession Rules, 1967 is ultra vires the Mines and Minerals (Development and Regulation) Act, 1957 and is violative of Article 14 of the Constitution of India in so far as it is made applicable to patta land. Petitioner has also sought a declaration that clause 22 of the lease deed dated 29.05.1996 is illegal and without the authority of law and also for a writ of certiorari to quash the demand notice dated 25.6.1998.