GORDHAN LAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This writ petition has been filed for directing the respondents to reduce the royalty collection amount in proportion to the reduction in the rate of royalty from Rs. 20/- to Rs. 15/- per metric tonne, to pay interest @ 18% p.a. on the amount of Rs. 9.50 lacs deposited as security and Rs. 2.46 lacs deposited as first monthly instalment from the date of deposit to the date of execution of the royalty collection contract and to award Rs. 30,000/- as compensation.

(2.) The averments made in the writ petition may be summarised thus. The Assistant Mining Engineer, Nimbahera (Chittorgarh) (respondent No. 2) invited tenders for royalty collection contract in respect of lime stone slabs and masonary stone for query-blocks situated in Nimbahera and Bhadesar tehsils for the period ending on March 31, 1992 by his notification dated December 5, 1990 (Annexure 1). This period was extended upto March 31, 1992 by subsequent notification Annexure 2. On March 11, 1991 the petitioner submitted an application (Annexure 3) before the respondent No. 2 requesting him to issue a certificate regarding the present rate of royalty on stone slabs as it was not specified either in the notification or in the tender documents. The same day, the respondent No. 2 issued certificate (Annexure 4) that the royalty rate on the lime stone and patti farsi is Rs. 20/- per metric tonne w.e.f. January 23, 1991 and on the masonary stone Rs. 3/- per metric tonne w.e.f, March 11, 1991. Thereafter, the petitioner gave tender for Rs. 75,75,075/-for two years. It was provisionally accepted by the respondents. He deposited FDR No. 55276B9 dated March 11, 1991 for Rs. 9.50 lacs as security and demand draft No. 37B660 for Rs. 2,46,257/- as the amount of the first instalment. By his letter dated March 16, 1991, the respondent No. 2 notified that the royalty rate of lime stone slabs has been reduced from Rs. 20/- to Rs. 15/-, per metric tonne as notified in the Rajasthan Gazette dated February 29, 1991. The petitioner addressed a letter (Annexure 7) to the respondent No. 2 for proportionately reducing the amount of contract money. He also addressed a letter (Annexure 8) to the Director, Mines and Mineral Department, Udaipur for directing the authorities to permit the petitioner to collect royalty. His tender was finally accpeted by the State Government and sanction dated May 8, 1991 (Annexure 9) was issued. One of its conditions is that the rate of royalty will be as per rates revised from time to time under the Rajasthan Minor Mineral Concession Rules, 1986 (hereinafter called "the Rules'). The respondent No. 2 issued letter dated May 14,1991 (Annexure 10) stating that by Government notification published in Rajasthan Gazette dated February 28, 1991 the rate of royalty of lime stone and patti Farsi has been reduced from Rs. 20/- to Rs. 15/- per metric tonne and it is being realised at the reduced rate with effect from March 16,1991 and directed him to execute agreement. He submitted representation (Annexure 11) on May 13, 1991 for proportionately reducing the amount of the royalty rates. The Assistant Mining Engineer, Nimbahera (respondent No. 2), the Superintending Engineer and the Director, Mines and Geology, Udaipur recommended the case of the petitioner to the Government as was done in the case of Bichora Area Tehsil Begun. Despite these recommendations the petitioner is being required to pay the said amount of Rs. 75,75,075. Rule 32 provides that in case of enhancement in the rate of royalty the Contractor shall be liable to pay an increased amount of contract money in proportion to the enhancement for the remaining period of contract from the date of such enhancement. But significantly it does not provide for the refund of any amount in proportion to the reduction in the rate of royalty for the remaining period of contract from the date of such reduction in the rate of royalty.

(3.) The respondents have filed reply to the show cause notice admitting the aforesaid averments except the date of the commencement of the contract and the recommendation for the reduction of the contract amount. It has been averred in it that the royalty collection contract was to commence from the date of the execution of the agreement and not from April 1, 1991.