STATE OF PUNJAB & ORS. versus M/S OM PRAKASH BRICK KILN OWNER, ETC.

Citation: [2025] 1 S.C.R. 859 · Decided: 21-01-2025 · Supreme Court of India · Bench: ABHAY S. OKA · Disposal: Appeal(s) allowed

Judgment (excerpt)

[2025] 1 S.C.R. 859 : 2025 INSC 88
State of Punjab & Ors. 
v. 
M/s Om Prakash Brick Kiln Owner, Etc.
(Civil Appeal No(s). 10687-10694 of 2013)
21 January 2025
[Abhay S. Oka* and Ujjal Bhuyan, JJ.]
Issue for Consideration
Whether the State is entitled to levy royalty on brick earth 
excavation, irrespective of the issue of ownership of the excavated 
land.
Headnotes†
Power of State Government to levy on royalty on excavation 
of brick earth – Punjab Minor Mineral Concession Rules, 1964:
Held: Under Rules 54A, 54B and 54C of the Punjab Minor Mineral 
Concession Rules, 1964, the State Government is empowered to 
levy royalty on the production and disposal of minor minerals – In 
the present case, brick earth was declared as a minor mineral, 
and thus, the State Government was entitled to levy royalty on 
the same under the Punjab Minor Mineral Concession Rules, 
1964. [Paras 11 and 12]
Issue of ownership of land becomes irrelevant, once the State 
is entitled to levy royalty:
Held: Once it is shown that under the Mineral Rules, the State 
Government was entitled to levy royalty on the activity of mining 
of brick earth, the issue of ownership of the said lands becomes 
irrelevant – The reason is that the owners of the said lands in 
which the excavation is made are not in the exempted category 
specified in Rule 3 of the Mineral Rules. [Para 13]
Ownership of land and brick earth according to Wajib-ul-arz 
of the Village – Section 42 of the Punjab Land Revenue Act, 
1887:
* Author
860
[2025] 1 S.C.R.
Supreme Court Reports
Held: In this case, the Respondents, who were operators of brick 
kilns filed a Suit against the State Government seeking to restrain 
the State Government from assessing, levying or recovering any 
royalty from the Respondents for excavation of earth – The Trial 
Court dismissed the Suit holding that u/s.42(1) of the Punjab 
Land Revenue Act, the quarry land would be vested in the State 
Government, since the Wajib-ul-arz did not specify that the quarries 
belonged to the Land owners – The Appellate Court also held that 
merely because the Wajib-ul-arz did not specifically mention about 
the ownership of the State over brick earth, it would not disentitle 
the State from levying tax on the mining of brick earth – The High 
Court, however, held that the State was not entitled to claim any 
royalty from the quarry operators – The Hon’ble Supreme Court 
held that the Courts below unnecessarily went into the issue 
of ownership of the lands and minerals therein, and that the 
only issue was about the right of the State Government to levy  
royalty. [Para 13]
List of Acts
The Punjab Land Revenue Act, 1887; The Mines and Mineral 
(Regulations and Development) Act, 1957; The Punjab Minor 
Mineral Concession Rules, 1964; Code of Civil Procedure, 1908.
List of Keywords
Right of State Government to levy royalty on brick earth excavation.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 10687-
10694 of 2013
From the Judgment and Order dated 19.09.2007 of the High Court 
of Punjab & Haryana at Chandigarh in RSA No(s). 2376 to 2383 
of 1984
Appearances for Parties
Shadan Farasat, A.A.G., Talha Abdul Rehman, D.A.G., Siddhant 
Sharma, Adv. for the Appellants.
Ravindra Bana, Adv. for the Respondents.
[2025] 1 S.C.R. 
861
State of Punjab & Ors. v. 
M/s Om Prakash Brick Kiln Owner, Etc.
Judgment / Order of the Supreme Court
Judgment
Abhay S. Oka, J.
FACTUAL ASPECT
1.	
The appellants are the original defendants, and the respondents 
are the original plaintiffs. The respondents filed suits against the 
appellants for a permanent injunction restraining them from assessing, 
levying or recovering any amount as royalty from the respondents 
on account of the use of earth by the respondents for making bricks. 
According to the respondents who were operating brick kilns, they 
took different lands (for short, ‘the said lands’) from private owners 
on lease. The respondents used to excavate earth from the said 
lands to manufacture bricks in their brick kilns. The respondents’ 
case was that no part of the land was vested in the Government 
and according to the Wajib-ul-arz, brick earth does not belong to the 
State Government. Reliance was placed on Section 42 of the Punjab 
Land Revenue Act, 1887 (for short, ‘the Land Revenue Act’) and, 
in particular, sub-section (2) thereof. It was further contended that 
under the Mines and Mineral (Regulations and Development) Act, 
1957 (for short, ‘the 1957 Act’) or

Excerpt shown. Read the full judgment & AI analysis in Lexace.