Case Note & Summary
The petitioner, Rakesh P. Verma, a government civil contractor, was engaged by Respondent No. 3, South East Central Railway, Nagpur, under an agreement dated 31.12.2003 for raising a platform. At the instance of the Railways, the contractor excavated land belonging to the Railways and transported about 1000 to 1200 brass of minor mineral, Murrum. The Collector (Respondent No. 2) issued demand notices dated 21.06.2004 and 15.12.2004 to the petitioner for recovery of royalty of Rs.12,500 at Rs.50 per brass for 250 brass and penalty of Rs.3,80,020 at three times the cost of minerals under Section 48(7) of the Maharashtra Land Revenue Code. The petitioner challenged these notices. The court examined a communication dated 26.04.2004 from the Railways, which clearly indicated that the petitioner was not at fault in excavating or transporting the minerals. The Railways also filed a return stating that the land was railway property and the Collector had no authority to recover royalty or penalty from either the petitioner or the Railways. The court concluded that the petitioner was not responsible for payment of royalty or penalty. If the State believed the Railways were liable, it could issue a show cause notice to the Railways. The writ petition was allowed, quashing the demand notices and holding the petitioner not liable for royalty or penalty.
Headnote
A) Mining Law - Royalty and Penalty - Liability of Contractor - Section 48(7) Maharashtra Land Revenue Code, 1966 - The petitioner, a contractor engaged by the Railways, excavated minor mineral (Murrum) from railway land at the instance of the Railways. The Collector demanded royalty and penalty from the contractor. The court held that since the excavation was done under the instructions of the Railways, the contractor was not at fault and not liable for royalty or penalty. The demand notices were quashed. (Paras 1-4)
Issue of Consideration
Whether a government contractor can be held liable for royalty and penalty for excavation of minor minerals when the excavation was carried out at the instance of the landowner (Railways)
Final Decision
Writ petition allowed. The demand notices dated 21.06.2004 and 02.12.2004 issued to the petitioner by respondent nos. 1 and 2 are quashed and set aside. It is held that the petitioner is not liable to pay royalty or penalty for the excavated minor mineral i.e. Murrum. No order as to costs.
Law Points
- Liability for royalty and penalty under Maharashtra Land Revenue Code
- 1966
- Section 48(7) falls on the entity that excavates or causes excavation
- not on a contractor acting under instructions of the landowner
