Case Note & Summary
The petitioner, Tata Projects Limited, a member of a consortium executing the Mumbai Metro Underground Project, filed a writ petition under Article 226 of the Constitution of India. The petitioner challenged the demand of royalty by the respondents on the earth excavated during the construction of the metro project. The petitioner contended that the excavated earth is not a 'minor mineral' as per the Notification dated 3 February 2000 issued under the Mines and Minerals (Development and Regulation) Act, 1957. The petitioner had been depositing the demanded amount under protest and had made representations to the respondents seeking refund. The court, after hearing the parties, held that the law is settled that any demand of royalty must be within the framework of law. The court observed that the excavated earth from the metro project does not fall within the definition of minor minerals as per the notification. Consequently, the court allowed the petition, directing the respondents to consider the petitioner's representations and refund the amount paid under protest within a specified period. The court also made the rule absolute.
Headnote
A) Mines and Minerals - Royalty - Minor Minerals - Excavated earth from underground metro construction is not a 'minor mineral' under the Mines and Minerals (Development and Regulation) Act, 1957 read with Notification dated 3 February 2000 - The court held that the demand of royalty must be within the framework of law and that the excavated earth from the metro project does not fall within the definition of minor minerals as per the notification - The court directed the respondents to consider the petitioner's representations and refund the amount paid under protest (Paras 3-5).
Issue of Consideration
Whether the materials excavated by the Petitioner for the purposes of constructing the Mumbai Metro Underground Project are 'minor minerals' as per Notification dated 3 February 2000, and whether the Petitioner is liable to pay royalty on such excavated earth.
Final Decision
Writ petition allowed. Rule made absolute. Respondents directed to consider petitioner's representations and refund amount paid under protest within a specified period.
Law Points
- Excavated earth from underground metro construction is not a 'minor mineral' under the Mines and Minerals (Development and Regulation) Act
- 1957 read with Notification dated 3 February 2000
- Royalty demand must be within framework of law
- Refund of amount paid under protest is warranted
