HINDUSTAN COPPER LTD Vs. STATE OF M P

JUDGEMENT

(1.) The petitioner has filed this petition being aggrieved by the notices issued to the petitioner, Annexure P-6, P-7 and P-9, dated 20-1-1997, 14-3-1997 and 14-10-1997 respectively seeking to recover simple interest at the rate of 24 per cent from the petitioner on the arrears of difference of royalty outstanding against them.

(2.) It is submitted by the learned Counsel for the petitioner that the petitioner has obtained a mining leases in Malajkhand, District Balaghat for extracting copper ore which is a major mineral under the provisions of the Mines & Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as "the MMDR Act"). As the rate of royalty was enhanced by the respondent/ authorities, the petitioner challenged the same before this Court and an interim order dated 3-8-1993 was passed staying recovery of enhanced amount of royalty from the petitioner, however, the petition filed by the petitioner, i.e., W.P. No. 3042/1993 ultimately stood dismissed by this Court by order dated 23-3-1995. Pursuant to the dismissal of the petition the respondents issued notice to the petitioner on 24-3-1995 seeking to recover the difference of royalty which was 'duly deposited by the petitioner. However, it is stated that by the impugned notices respondents now seek to recover simple interest on the delayed payment of the enhanced amount of royalty at the rate of 24% simple interest from the petitioner.

(3.) The learned Counsel for the petitioner submits that the respondent/ authorities have no right to recover the said interest as there was an interim order passed by this Court on 3-8-1993 and it was on that count the enhanced amount of royalty was not deposited. It is submitted that in such circumstances the impugned notices deserve to be quashed. It is also submitted that there is no provision in the Mines & Minerals (Development and Regulation) Act, 1957 empowering power to recover interest and therefore the notices are without' jurisdiction.