Case Note & Summary
The Supreme Court addressed a group of seven appeals concerning the declaration of 'ordinary earth' as a minor mineral under the Mines and Minerals (Development and Regulation) Act, 1957. The appellant, a construction company, contested the validity of a notification issued by the Central Government on February 3, 2000, which declared 'ordinary earth' as a minor mineral, and challenged the imposition of royalty by the State of Uttar Pradesh. The court examined the definition of 'minerals' and 'minor minerals' as per the Act, noting that the term 'mineral' has been subject to various judicial interpretations. The court referenced several precedents to establish that the definition of minerals is not fixed and can vary based on context. It concluded that 'ordinary earth' falls within the definition of 'any other mineral' as per Section 3(e) of the Act. The court also upheld the Central Government's authority to declare minerals based on their intended use, finding no arbitrariness in the notification. Furthermore, the court ruled that the demand for royalty could be made against any person dealing in minor minerals, not just those holding mining leases, thereby dismissing the appellants' arguments against the royalty demands. Ultimately, the court dismissed all appeals, affirming the High Court's decision and the validity of the government's actions regarding 'ordinary earth'.
Headnote
A) Mines and Minerals - Definition of Minor Minerals - Judicial Interpretation - Ordinary earth declared as minor mineral - Mines and Minerals (Development and Regulation) Act, 1957, Section 3(e) - The court held that 'ordinary earth' is comprehended within the meaning of 'any other mineral' as defined in the Act, thus validating the Central Government's notification declaring it a minor mineral. (Paras 22-22) B) Powers of Central Government - Exercise of Power to Declare Minor Minerals - Justification of Notification - Mines and Minerals (Development and Regulation) Act, 1957, Section 3(e) - The court found no impediment for the Central Government to include or exclude minerals based on use or purpose, thus upholding the notification regarding 'ordinary earth'. (Paras 23-23) C) Royalty on Minor Minerals - Liability for Payment of Royalty - Uttar Pradesh Minor Minerals (Concession) Rules, 1963 - The court affirmed that any person dealing in minor minerals is required to pay royalty, regardless of holding a mining lease or permit, thus rejecting the appellants' contention. (Paras 25-25)
Issue of Consideration
Whether 'ordinary earth' used for filling or levelling purposes has been validly declared a 'minor mineral' by the Central Government.
Final Decision
The Supreme Court dismissed all appeals, affirming the High Court's decision and the validity of the government's notification declaring 'ordinary earth' as a minor mineral, and upheld the demand for royalty.
Law Points
- Definition of minerals
- judicial interpretation of minerals
- powers of Central Government under Mines and Minerals Act
- royalty on minor minerals
- validity of government notifications
