Case Note & Summary
The judgment concerns two writ petitions challenging the power of the State Government of Maharashtra to collect royalty on minor minerals and to impose penalty for default in payment. The petitioners, M/s. Vijay Constructions and Sham Mangaldas Manwani, contended that under the Mines and Minerals (Development and Regulation) Act, 1957 and the rules framed thereunder, the State has no power to collect royalty. They challenged notices issued by revenue authorities for recovery of royalty and penalty, and sought quashing of those orders and seizure of trucks. The court considered the provisions of the Act and the Maharashtra Minor Mineral Extraction Rules, 1963. The court held that the State Government does have the power to collect royalty on minor minerals and to impose penalty for default. The court dismissed both writ petitions, upholding the validity of the notices and the State's authority.
Headnote
A) Mines and Minerals - Royalty on Minor Minerals - Power of State Government - The State Government has the power to collect royalty in respect of minor minerals under the Mines and Minerals (Development and Regulation) Act, 1957 and the Maharashtra Minor Mineral Extraction Rules, 1963. The court held that the State is entitled to recover royalty and impose penalty for default. (Paras 1-3) B) Mines and Minerals - Penalty for Default in Payment of Royalty - Validity - The State Government can impose penalty on persons who have committed default in making payment of royalty. The notices issued by the respondent for recovery of royalty and penalty amount are valid. (Paras 1-3)
Issue of Consideration
Whether the State Government has the power to collect royalty in respect of minor minerals and to impose penalty on persons who have committed default in making payment of royalty.
Final Decision
Both writ petitions are dismissed. The notices issued by the respondent for recovery of royalty and penalty amount are upheld.
Law Points
- State Government has power to collect royalty on minor minerals
- State Government can impose penalty for default in payment of royalty
- Mines and Minerals (Development and Regulation) Act
- 1957 does not bar State from collecting royalty
- Maharashtra Minor Mineral Extraction Rules
- 1963 valid
