SETHI MARBLE STONE INDUSTRIES Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS is a writ application under Article 226 of the Constitution by Sethi Marble and Stone Industries and others in which the validity of The Rajasthan Minor mineral Concession Rules, 1955, (hereinafter called the Rajasthan Rules) made by the Rajasthan State, and the royalty imposed in accordance with certain notification issued thereunder is questioned as ultra vires and void.

(2.) THE petitioners are stone merchants and are also manufacturers of stone ballast and chips and carry on business as such at Chittorgarh. They work certain quarries themselves and also purchase stone from other quarry-owners who have their quarries in Chittorgrah and certain other places within a radius of 10 miles from that place. The petitioners carry stone to their factories and prepare chips and ballast therein and then sell them. Opposite Party No. 2 Chunnilal is a contractor appointed by the State of Rajasthan for collecting royalty by virtue of a contract taken by him at a public auction, the period of the contract being from the 1st April, 1957 to the 31st March, 1958. This contract was given in accordance with the terms and conditions mentioned in the notification published in the Rajasthan Rajpatra dated the 7th March, 1957, at pp. 955-56 thereof. Item No. 5 of this notification provides in effect that a royalty at the rate of Rs. 12/- per 100/ cubic feet will be charged on stone for making chips and ballast at the following places. namely, Manpura, Merda. Hadmala, Phootwad and Chittor, and the area within a radius of 10 miles from Chittor, while a royalty at the rate of one anna per maund will be charged on stone for burning lime. It is common ground that this notification has been issued under the Rajasthan rules which came into force on the 11th June, 1955. The case of the petitioners is that the said Rules are ultra vires and void because the Rajasthan Government has no authority to make these rules, and it is only the Central Government that can make them under the Mines and Minerals (Regulation and Development) Act (No. LIII) of 1948 (hereinafter called the Mines and Minerals Act), and in any case, schedule No. I which prescribes the various rates of royalty under the Mineral concession Rules, 1949 framed by the Central Government (hereinafter referred to as the Central Rules) must be allowed to prevail over the rates of royalty prescribed by this State under the Rajasthan Rules. It is, therefore, contended that the Rajasthan Rules are ultra vires and inoperative, and consequently, the notification issued thereunder must be held to be ineffective, and the royalty charged by the contractor in accordance with the notification issued under the schedule of the Rajasthan Rules be struck down. It is also contended that the fixation of different rates of royalty for the same goods on the basis of different uses to which they may be put is discriminatory within the meaning of Article 14 of the Constitution. Consequently, it is prayed that the contractor should be restrained from charging royalty at the rate of Rs. 12/- per 100 cubic feet on lime stone used for making chips and ballast.

(3.) THIS application has been opposed by the State, and the contractor Chunnilal. Their contentions, briefly put, are that the Rajasthan Rules are intra vires and valid and, therefore, the consequential action taken thereunder is unexceptionable and further that different rates of royalty have been laid down for different types of stone material, and the distinction is based on quality and market value thereof, and, therefore, the rate prescribed for the stone from which chips and ballast are made cannot be rightly held to be violative of Article 14 of the Constitution.