CHANDRA BHAN SINGH versus STATE OF UTTAR PRADESH & OTHERS

Citation: [2025] 7 S.C.R. 94 · Decided: 22-05-2025 · Supreme Court of India · Bench: ABHAY S. OKA

Judgment (excerpt)

[2025] 7 S.C.R. 94 : 2025 INSC 763
Chandra Bhan Singh 
v. 
State of Uttar Pradesh & Others
(Civil Appeal No. 12314 of 2024)
23 May 2025
[Abhay S. Oka and Augustine George Masih,* JJ.]
Issue for Consideration
Challenge to the Demand Notices issued to the Appellants 
demanding 10% of the total bid amount to be deposited with the 
concerned District Mineral Foundation(s) (DMF).
Headnotes†
Mines and Minerals (Development and Regulation) Act, 1957 – 
ss.9B, 14, 15, 15A – Uttar Pradesh Minor Minerals (Concession) 
Rules, 1963 – rr.21, 23(3), 54, 68 – District Mineral Foundation 
Trust Rules, 2017 – r.10(2) – Appellant was a successful bidder 
for mining of minor mineral i.e., sand and was allotted a 
tender – Demand Notice was issued calling upon the Appellant 
to deposit 10% amount of the deposited title amount with the 
DMF – Appellant challenged the Demand Notice before the 
High Court contending that the amount claimed was contrary 
to s.9B, 1957 Act – Challenge rejected – Sustainability:
Held: s.9B, 1957 Act would not be applicable in the light of s.14 
thereof – s.14 makes it clear that ss.5 to 13 of the 1957 Act 
would not be applicable to the present case as the mineral which 
is sought to be mined is a minor mineral i.e., sand – Plea of the 
Appellant based on s.9B(5) is misplaced – State Government has 
been empowered u/s.15A to determine and fix the amount – The 
empowerment being there under the Statute conferred on the 
State to determine the amount and the fixation thereof for minor 
minerals cannot be faulted with – Demand Notice issued to the 
Appellant requiring him to deposit 10% of the title amount i.e. the 
total amount payable for the minor minerals to be extracted was 
under and in accordance with the statutory Rules i.e., r.10(2), 2017 
Rules – Demand Notice and the impugned judgment passed by 
the High Court is upheld, implying liability of the Appellant towards 
the DMF Trust. [Paras 17, 18, 20, 21, 24, 26]
* Author
[2025] 7 S.C.R. 
95
Chandra Bhan Singh v. State of Uttar Pradesh & Others
Mines and Minerals (Development and Regulation) Act, 
1957  – Uttar Pradesh Minor Minerals (Concession) Rules, 
1963 – rr.68, 21, 23(3), 54 – District Mineral Foundation Trust 
Rules, 2017 – Appellant was a successful bidder for mining 
of minor minerals i.e., sand and was allotted a tender – In 
pursuance to the tender allotted and in consonance with the 
requirements of the Policy decision dated 22.04.2017, Demand 
Notice was issued calling upon the Appellant to deposit 10% 
amount of the deposited title amount with the DMF – Plea of 
the appellant that the Policy decision itself is not sustainable 
as the due process for issuance thereof as provided for in 
r.68, 1963 Rules was not adhered to:
Held: There was a reasoned decision at the end of the State 
for exercising its powers u/s.68, 1963 Rules which fulfills the 
requirement of the Rule – Further, an Order was also passed by 
the Lucknow Bench of the High Court in a PIL which had permitted 
and required the exercise of powers u/r.68, 1963 Rules by the 
State – This was because of the peculiar situation which was 
being faced by the State for the total ban on mining activity having 
been imposed leading to the stopping and delaying of construction 
and other development works, both in the Government sector 
as well as the private sector – Exercise of such power when the 
vital projects were being adversely affected would fall within the 
purview of r.68 empowering the State to proceed to frame such a 
Policy – Therefore, no fault in the whole process and procedure 
adopted by the State. [Para 15]
List of Acts
Mines and Minerals (Development and Regulation) Act, 1957; 
Uttar Pradesh Minor Minerals (Concession) Rules, 1963; District 
Mineral Foundation Trust Rules, 2017.
List of Keywords
Section 9B of the Mines and Minerals (Development and Regulation) 
Act, 1957; Deposit of the amount as per the royalty fixed in Second 
Schedule of the Mines and Minerals 1957 Act; Rule 68 of the 
Uttar Pradesh Minor Minerals (Concession) Rules, 1963; District 
Mineral Foundation Trust Rules, 2017; Demand Notice; 10% of 
total bid amount; District Mineral Foundation(s) (DMF); Mining of 
minor minerals; Policy decision dated 22.04.2017.
96
[2025] 7 S.C.R.
Supreme Court Reports
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 12314 of 2024
From the Judgment and Order dated 15.11.2017 of the High Court 
of Judicature at Allahabad in CMWP No. 54052 of 2017
With
C

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