JAIPUR UDYOG Vs. UNION OF INDIA

JUDGEMENT

(1.) ALL the three petitioner companies in these three separate writ petitions are quarrying lime-stone from the areas leased out to them and therefore all of them have challenged the validity of the notification dated 29th January, 1970, issued by the Union of India whereby item No. 8 in the Second Schedule of the Mines and minerals (Regulation and Development) Act, 1957 (hereinafter called the Act) has been amended. Since common questions of law are raised in all these petitions, I propose to dispose them of by one judgment.

(2.) PETITIONER companies have been holding areas in their respective fields of operation under the mining lease granted to them for quarrying limestone. The contention of the petitioners is that the limestone quarried by each one of them is of inferior grade with less than 45% calcium oxide. Section 9 of the Act lays down that the holder of a mining lease shall pay royalty on the mineral in accordance with the rates for the time being specified in the Second Schedule in respect of that mineral. Sub-section (3) of this section empowers the Central Government to amend the Second Schedule by issuing a notification so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification, but a rider has been put by the statute on this power of the Central Government by adding a proviso thereto which lays down that the Central Government shall not (a) fix the rate of royalty in respect of any mineral so as to exceed twenty per cent of the sale price of the mineral at the pit's head, or (b) enhance the rate of royalty in respect of any mineral more than once during any period of four years.

(3.) WHEN the said Act came into force from 1st of June, 1958, the rate of royalty specified for limestone in the Second Schedule was as follows: 5% of the sale price at the pit's mouth subject to a minimum of 37 paise per tonne.