VIJAI CONSTRUCTION CO BIKANER Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) In this case, the notifications issued by the Government (Mines Department) dated 23-11 -1989, 22-9-1994 and 8-11-1996 are under challenge. All these three notifications provide for collection of royalty from the contractors of the Government departments. The rate of royalty had been varied from time to time and as per the subsequent notifications, it provides for imposition of royalty @ 2%.

(2.) Today when this case was called for hearing, Shri R.L. Jangid, learned Addl. Advocate General, and Shri Vimal Mathur were directed to appear for respondents. They had been served the copies and they filed a copy of the Government order dated 18-11-2000 by which all the aforesaid notifications have been withdrawn. Therefore, the only question remains before this Court about the refund of royalty already collected, as the aforesaid Government order dated 18-11-2000 applies prospectively and does not waive the royalty imposed, the case was heard on merit.

(3.) Royalty is equivalent to Jura regalia Or Jura regia, i.e. royal rights and prerogatives of a sovereign. Royalty means imposition of particular amount on the lessee for the State something out of what the State conveys, i.e. part of reddendum payable in cash or kind for rights and privilege obtained. It means a payment to the owner of mineral for the right of working the same and charging is based on produce. Government may demand payments for the apportionment of minerals, timber or other property belonging to the Government. But while imposing royalty, it must be ensured that the payment is made for the privilege of removing the articles in proportion to the quantity removed and the basis of payment is an agreement. Therefore, in the agreement of grant of lease, the grantor/ lessor reserves something for himself out of which he grants.