L VENKATESWARA RAO Vs. SINGARENI COLLIERIES CO LTD

JUDGEMENT

(1.) The petitioners in all these writ petitions are contractors who have undertaken to execute works of civil nature entrusted to them by the Singareni Collieries Company Limited (hereinafter referred to as' the respondent company')- The execution of the work is governed by he terms and conditions incorporated in a written agreement entered into by the respondent company with each one of the contractors. It is stated that till the year 1983 the respondent company was holding lease hold rights for the excavation of minor minerals such as building stone, lime-kankar, sand etc., from specified quarries. The contractors have been using the minor minerals excavated from the quarries in respect of which, lease-hold rights have been granted in favour of the respondent company by the Mines Department under the Andhra Pradesh Minor Mineral Concession Rules, 1966, in the execution of the works entrusted to them. As regards the payment of seigniorage fee on the minor minerals excavated by the contractors, a specific clause in the form of Clause (8) had been incorporated in the agreement entered into by the respondent company with the contractors. Clause.8: For metal, uncoursed rubblestone and coursed rubble stone etc., royalty charges will be recovered at the following rate if the material is quarried from the Company's quarries. However, the recovery will be effected as per the rules of the government from time to time. (a) Metal: Rs.2-19 including cess per Cu.m. (Gross) (b) Rough Stone: Rs.1-25 including cess per Cu.m. (Gross) (c) Sand : Rs.1-25 including cess per Cu.m. (Gross) (d) Murrain: Rs. 0-43 including cess per Cu.m. (Gross)

(2.) However, from the year 1984, the respondent company did not obtain any quarry lease from the Mines Department for the excavation of minor minerals. Consequently, the contractors were asked to obtain minor minerals used in the execution of works, for themselves. As regards the payment of seigniorage fee, the following clause in the form of clause No. 7 had been incorporated in the agreement entered into by the respondent company with each one of the contractors. Clause No.7 "The Singareni Collieries Company Limited do not have any quarry leases for Stone/Metal/Sand etc. It is the contractor's responsibility to get necessary permits direct from the Government and procure the materials of good quality as approved by the Department. The contractors have to produce documentary evidence for having paid the Royalty charges to the Government, as otherwise, the royalty charges will be recovered from the bills and paid to the Governments per the royalty rates prescribed by the Government, from time to time. The current rates are as below: Metal.. @ Rs.2.19 including cess per Cu.m (gross) Stone..@Rs.1.25 including cess per Cu.m (gross) Sand ..@Rs. 1.25 including cess per Cu.m (gross) Murram @Rs. 0.43 including cess per Cu.m (gross) Lime @ Rs. 2.19 including cess per Cu.m(gross) Kankar Bricks ..@Rs.3.75 including cess for l000 Nos. (gross)

(3.) When the petitioners failed to produce documentary evidence of having paid the seigniorage fee to the State Government for the minor minerals used by them in the execution of the work, the respondent company deducted the seigniorage fee payable by them, from the bills. Aggrieved by the action of the respondent company, the contractors have filed these writ petitions. All the petitioners except those in Writ Petition No.3568 of 1992 have sought for an appropriate writ declaring that the respondents