KUVARJEE NAGARDAS AND SONS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner has, by these two petitions challenged the validity of the Gujarat Minor Mineral (Amendment) Rules, 1992, where by Rule 21 has been substituted and enhanced rate of royalty and rates of dead rent have been prescribed. The petitioner in holding two leases, one for minor mineral sandstone and another for minor mineral of quartzitc. The rate of royalty lor sandstone was Rs.7/- per tonne and has been enhanced to Rs. 12/- per tonne and by Schedule II rates of dead rents have been introduced and rate of dead rent for sandstone and quari/.iic is Rs. 8000/- per hectare in respect of quarry leases.

(2.) It is submitted that this enhancement of rate of royalty and rate of dead rent arc unreasonable, irrational and unconstitutional. As far as the rates arc concerned, it is legislative act.

(3.) In the case of D.K. Trivedi & Sons vs. State of Gujarat, reported in A.I.R. 1986, SC, page 1323, the Supreme Court has dealt with earlier Rule 21 when rates of royalty were enhanced and the Supreme Court held that the State Government is entitled to amend the rules enhancing the rates of royalty and dead rent, even as regards lease subsisting at the date of such amendment. The Supreme Court has further observed that