ASSOCIATED CEMENT COMPANIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Shri Sohom, learned Counsel for the petitioner, Shri Mehadia, learned Counsel for the respondent No 2, and Shri ahukar, learned Assistant Government Pleader for the respondent No 3

(2.) Shn Sohom, learned Counsel for the petitioner, submitted that the petitioner-Company is questioning legality and propriety of the communication dated 16/18-4-1996 claiming interest at the late of 24% per annum on the ground that the petitioner has defaulted to pay royalty on coal in accordance with Rule 64-A of the Mineral Concession Rules, 1960 It was contended that though validity of the said Rule was also challenged in the present petition, however, during pendency of the petition, the Apex Court declared the said Rule constitutionally valid and, therefore, challenge to validity of the said Rule no more survives

(3.) Learned Counsel Shn Sohom submitted that though respondents under rule 64-A of the Mineral Concession Rules, 1960 are entitled to impose interest at the rate of 24% per annum in respect of delayed payment of royalty, however, that is the upper limit of interest leviable on the delayed payment of royalty and it is not that in all cases, the respondents should impose maximum interest at the rate of 24% per annum on the delayed payment of royalty and in a given case, the respondents can impose interest less than 24% per annum In order to support the contention, leliance was placed on the judgment of the Apex Court in South eastern Coalfields Ltd vs State of M P and others, AIR 2003 SC 4482