CHOHTAN CONSTRUCTION CO Vs. COLLECTOR

JUDGEMENT

(1.) RULE. Mr. Nikunt Raval, learned Assistant Government Pleader for respondent Nos. 1 to 4 and Mr. Harin Raval, learned Assistant Solicitor General for respondent No. 5 waive service of rule.

(2.) THESE groups of petitions are filed by three contractors, who were given different contracts by the Executive Engineers, Border Fencing Division I and V, Central Public Works Department, Bhuj-Kutch for carrying out the work of Embankment, Road, Culvert and Fencing on Link Road from Dharamshala to Bidiabet in Gujarat Sector. The petitioners have challenged the recovery of amounts payable to the State Government for the minerals extracted by the contractors for the said works from out of the amounts payable by the Executive Engineers to the petitioners.

(3.) CLAUSE 18 of the contract provided that royalty at the prevalent rates wherever payable, shall have to be paid by the contractor on the boulders, metal, shingle, sand and bajri etc. or any other materials collected by the contractor for the work directly to the revenue authority of the District/state Government concerned. Clause 37 (iii) of the contract provided that, if pursuant to or under any law, notification or order, any royalty becomes payable by the Government of India and does not become payable by the contractor to the State Government, in respect of any material used by the contractor in the works, then it shall be lawful to the Government of India and it will have the right to recover the amount paid in the circumstances as aforesaid from dues of the contractor.