MADHUSUDHAN CHOUDHARY Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioners, who are contractors by profession, were engaged in various types of civil, mechanical, structural and electrical works. For execution of such works, they used to supply different minor minerals including sand and gravels.

(2.) It appears, from the pleadings of the parties, that the petitioners entered into different agreements with the respondent authorities to carry out contract works like construction of drainage, concrete, barrel work, earth work, construction of C.D. Works as also supply of materials.

(3.) It appears, respondent No. 1 issued letters to different Corporations owned by the State, with a request that final bills of the contractors can only be paid after production of Clearance Certificate from the concerned District Mining Officers/Assistant Mining Officers to satisfy that royalties were paid with respect to the minerals supplied and used by them in execution of contract works. In compliance of the aforesaid direction, the District Mining Officers of the concerned districts issued lettters to all concerned for necessary compliance. Therefore, when the petitioners failed to furnish Clearance Certificates or produce any material to show that royalty was paid for such minerals, the respondents deducted the amount of royalty and cess from their bills in terms of the agreements.