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1986 (3) TMI 328 - SC - Indian Laws

Issues Involved:
1. Constitutionality of section 15(1) of the Mines and Minerals (Regulation and Development) Act, 1957.
2. Power of State Governments to make rules under section 15(1) to charge dead rent and royalty.
3. Validity of Rule 21-B of the Gujarat Minor Mineral Rules, 1966.
4. Validity of certain notifications issued by the Government of Gujarat enhancing the rates of royalty and dead rent.

Summary:

Issue 1: Constitutionality of Section 15(1) of the 1957 Act
The Court held that section 15(1) of the Mines and Minerals (Regulation and Development) Act, 1957, is constitutional and valid. The rule-making power conferred upon the State Governments does not amount to excessive delegation of legislative power to the executive. The guidelines for the exercise of this power are found in the object of the Act, the meaning of "regulating," the scope of "purposes connected therewith," illustrative matters in section 13(2), and restrictions in sections 4 to 12.

Issue 2: Power to Charge Dead Rent and Royalty
The Court affirmed that the power to make rules under section 15(1) includes the power to charge dead rent and royalty. This power also includes the ability to amend the rules to enhance the rates of royalty and dead rent. The State Governments can amend the rules to affect even subsisting leases and are not required to give lessees an opportunity to be heard before making such amendments.

Issue 3: Validity of Rule 21-B of the Gujarat Minor Mineral Rules, 1966
Rule 21-B, which specifies the rate of dead rent, was challenged but ultimately upheld. The Court found that the enhancement of dead rent and royalty rates is within the powers conferred by section 15(1). The Court also held that the State Government cannot enhance the rate of dead rent more than once during any period of four years.

Issue 4: Validity of Notifications by the Government of Gujarat
1. 1974 Notification: The Court held that this notification was valid and became operative on December 1, 1974.
2. 1975 Notification: This notification was held invalid to the extent that it enhanced the rates of royalty in respect of certain minor minerals, violating the proviso to section 15(3).
3. 1976 Notification: The enhancement of dead rent rates by this notification was invalid as it was the second enhancement during the same four-year period.
4. 1979 Notification: This notification was valid and constitutional. It did not violate either section 15 or Article 19(1)(g) of the Constitution.
5. 1981 Notification: This notification was also valid and constitutional, and it did not offend Article 19(1)(g) of the Constitution.

Additional Findings:
- The Court overruled the judgments in Smt. Sonbai Pathalji v. State of Gujarat & Anr. and M.V. Subba Rao v. State of Andhra Pradesh & Anr.
- The directions in the Circular dated February 12, 1981, were invalid.
- The rates of royalty and dead rent specified by the 1974 Notification continued to be operative until the 1979 Notification came into force on April 1, 1979.

Conclusion:
The Court allowed the appeals and writ petitions in part, setting aside the invalid notifications and upholding the valid ones. The parties were directed to bear their own costs, and interim orders were vacated. The State of Gujarat was instructed to adjust payments and refunds accordingly.

 

 

 

 

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