SAURASHTRA CLAY INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition is to the vires of Sec. 9(3) of the Mines and Minerals (Regulation and Development) Act, 1957, inter alia, on the ground that the same is ultra vires Arts. 14, 19(l)(g) of the Constitution and is also beyond the legislative competence of the Parliament.

(2.) Section 9 of the said Act empowers levy of royalty in respect of mining lease at the rate to be specified, from time to time, in the Second Schedule in respect of that mineral. Prior to 1972, proviso to sub-sec. (1) stipulated that the Central Government shall not fix the rate of royalty in respect of any mineral so as to exceed 20% of the sale price of the mineral at the pit's head. By virtue of amendment made in the said Act in the year 1972, the said proviso (a) was deleted. After 1972, Sec. 9 as it now stands, is as follows :

(3.) The petitioner was granted a mining lease vide order dated 8/08/1993 for mining chalk. By notification dated 5/05/1987 the Central Government had increased the royalty charges in respect of chalk from Rs. 5.00 to Rs. 10.00 per M.T. By another notification dated 17/02/1992 the royalty charges were increased to Rs. 25.00 per M.T. The grievance of the petitioner is that this increase is excessive.