THE QUARRY OWNERS ASSOCIATION ETC. versus THE STATE OF BIHAR AND ORS.

Citation: [2000] SUPP. 2 S.C.R. 211 · Decided: 08-08-2000 · Supreme Court of India · Bench: AJAY PRAKASH MISRA · Disposal: Dismissed
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Judgment (excerpt)

THE QUARRY OWNERS ASSOCIATION ETC. 
V. 
THE STATE OF BIHAR AND ORS. 
AUGUST 8, 2000 
[A.P. MISRA AND N. SANTOSH HEGDE, JJ.] 
Mines and Minerals (Regulation and Development) Act, I957 : 
Sections I 5(1 ), I 5(1-A) and I 3(1 ), (2)-Rate of royalty over minor 
minerals increased beyond maximum percentage prescribed in Schedule 11. 
Item 54-High Court upheld impugned notifications of State Government-On 
appeal held, State Government has power to make rules in respect of minor 
minerals-Introduction of Section I 5( I-A) illustrates the general power of the 
State Government to make rules-Ample guidelines are available in various 
provisions of the Act, Preamble and Statement of Objects and Reasons-
Fixution of royalty is an inherent part of mineral development and State has 
to consider various factors including the fact that it is parting with its own 
wealth-Impugned notification valid as State Government acted within ambit 
of delegated power and there were sufficient guidelines and checks-Bihar 
Minor Minerals Concession Rules, I972. 
Sections I5(2) and (3)-Approval of Rules and Notifications made by 
State Government-As even existing rates of royalty or dead rent need approval 
of Parliament, it serves as a guiding.factor-Proviso to Section I 5( 3) brings in 
an additional check on enhancement-Imposition of royalty not arbitrary or 
excessive and increase in royalty is very reasonable inspite of the power 
granted to the State Government. 
Schedule Il, Item 54-Rate of royalty to be within 12% of the sale price 
at the pits mouth-Language would only mean residual major minerals not 
specified in Item Nos. I-53-Neither the residuary nor the left over major 
minerals could be equated to minor minerals-Maximum prescribed percent-
age would not apply to minor minerals, but only acts as a guideline. 
Sections 4 to 12-General restrictions over Rule making power-Guid-
ance provided to State Government while acting as a delegatee under Section 
15-Section 9 specifically refers to royalty and along with Schedule Il is a good 
source of guidance. 
211 
A 
B 
c 
D 
E 
F 
G 
H 
212 
SUPREME COURT REPORTS 
[2000] SUPP. 2 S.C.R. 
A 
Section 28(/ ), (2) and (3 )-Laying n.f rules and not(fication.1· before the 
B 
c 
Houses n_f the legislature-Provisions regarding State Government differently 
worded for a purpose as it is better placed to deal with minor minerals used 
locally-Mere placement or laying n.f the rules and notifications would be 
sufficient check on power n.f State Government-Placement of rules camwt be 
said to be n.f no consequence and the same is obligatory Impugned notifications 
are valid as they are within the ambit of delegation which is not excessive as 
there are enough guidelines and checks including laying them down before the 
houses n.f the Legislature-Second notification which has not been placed 
before the houses of the legislature should be done at the earliest, Howeve1; its 
non-placement would not affect its validity as the requirement is only directoiy. 
Administrative Law-Delegated Legislation-State Government comes 
into scrutiny of concerned Legislature by mere laying of any notification or 
rule-House plays a positive role when it is entrusted with power 10 annul, 
modify or approve any rule or else acts as a vital and forceful check. 
D 
Constitution of India-VII Schedule-Entry 54, List-I and Entry 23, List 
II-Regulation of Mines and Minerals does not fall within Concurrent Li:.·t-
ConfT.ict is resolved as Entry 23, List II provides that Union may have full or 
partial control over regulation of mines and minerals-Parliament has power 
to withdraw this control partially or fully if it so desires-A notification con-
E 
cerning an item absent in the concurrent list may also be laid before the State 
legislature-Mines and Minerals (Regulation and Development) Act, 1957-
Section 28( 3 ). 
F 
G 
H 
Taxation-Royalty on minerals-Tax on this royalty is distinct.from other 
forms of taxes on income, wealth, sale or production of goods etc. and it 
includes the price.for the consideration of parting with the right and privileges 
of an owner-A strict interpretation would be harsh considering the guidelines 
prescribed to a delegatee who also owns the minerals-Mines and Minerals 
(Regulation and Development) Act, 1957. 
Interpretation of statutes-Heydon 's rule-The words "Regulation of 
Mines and Minerals development" connotes a different meaning when used in 
different context-Words are not static but d
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