High Court Karnataka High Court

Sri.N.Shekar Shetty vs The State Of Karnataka on 12 August, 2009

Karnataka High Court
Sri.N.Shekar Shetty vs The State Of Karnataka on 12 August, 2009
Author: P.D.Dinakaran(Cj) & V.G.Sabhahit
IN THE HIGH courrr or= KARNATAKA AT BANGALORE 
DATED THIS THE 12"' am or: AUGUST, 2009   T

PRESENT

THE HON'!-BLE MR. 9.9. DINAKARAN, c1--11Ei=_3i:s.:Tff1*c:!%:"f:  "

AND
THE HON'BLE MR.3USTIC.E_ v.G.'sABHAHI1'--".i.  "

WRIT PETITION NOS.23563'4«.$:56 of 2005935-d  H
W.P.Nos.23878~88/2009 ('GM---MM-S)"«.,,_AA 

Between:

Sri N.Shei<ar Shetty,   A

Aged about 54 years, V    '

S/o late Heriyanna Shetty,'  _' '  _   
Contractor, residing at"   i  " _  
Kadri, Siddapura Post '&'Vi5!l_i_ag.e,"       .
Kundapura taiuk, Uidupi-Distriti...  '

-. . -- v    ...Petitioner
(By Sri H"-.iayi,3ka:fa*--Shetty, Advocate)
And: . 'V i '
1;V,'vT.h§.gtéteiioflcarfiataka  ttttt H
Rep. 'by. its Seczreta r-,«__

Dépaftmentv:bf_C'0m,merce and Incéustries(Mines),
M.S Buifding,' B'a.n__ga,iore.

 i.'"i"_he Director,-._of 1'-f!i"r'ies and Geofogy,
_  ,Kh,anija Bhavan,
" *  Race ,Coursew!7<oad,

 'Bangaior'ej01.

 Th-e 'AI;'~:-ceiciiitive Engineer,

4", My _i.i.r}upi, Udupi District.

i "Ports and Fisheries Department,
~Dep'a"rtment, Udupi Division,

 



10.

 ,iJdupi Di.§trict.

ii

. The Executive Engineer, V ,
Panchayath Raj Engineering Division, '

. The Executive Engine-_er,v._

. The Executive En'g.i,nise.~:'_;.,

. The Chief Officer,

Town Muncipal Council,
Kundapura Taiuk, Udupi District.

. The Executive Engineer,

PWD Department,
Udupi Division, Udupi District.

Udupi Taluk 8: District.

. The Commissioner,

City Muncipa! Corporation,
Udupi, Uciupi District.

Prime Minister Village Sa-dak 

Scheme, Udupi,:_Ud'upi 'I.T,_a.i'_uk'&,:District." C

Departmen'it'of*'i'v1incir Irrifgé'tio'r':~.,:"'
Udupi taiuir. & i_District;,,.«.,_   
The Deputy 'Forest Offi_cer.,'--  3
Forest Departrrsent,v.  ' 
Kundapura, i<undap,uraw"€'"aiu'i<

'..The 'i':xecutive Officer,

"i"=aiui< Panici:--a_yat'n,.,_ .
Kunda~p__ura"Taiuk, ,Lidupi District.

. The Se'c__reta:'y,  A

Siddapura V'iiiage Pa nchayatth

*-«iifj;-V'~_i<'u.ndapurTeiuk and Udupi District.

'   Secretary,
 __A_mpar"v'iiiage Panchayath
  'Kunciapur Taiuk and Uciupi District.



14. The Secretary,
Ajri Village Panchayath
Kundapur Taluk and Udupi District.

15. The Secretary,
Hosangadi Village Panchayath
Kundapur Taluk and Udupi District. 
16. The Executive Engineer,
Karnataka Varahi Irrigation Project,' _
Siddapura, Kundapura "i"aiui and 227 of the
Constitution of India praying to:'direct;th_e'««F§3,_ to 53,6 not to deduct
royalty from the Petition;e.r'runining ="oiiis*an'd"to._..refunci the royalty
amount already ded.ucted?jfr_o'_m*~rhe ;setitior*.er with interest at the rate
of 12% p.a. from the date of. de'clu.'ctionVAt«ill the date of refund of the
entire amount already d€C:i':J"CteL1 .'b\'IvtVhe" respondents; and etc.

These vviiigt petitions~Vco.rning”u.o’for.preliminary hearing this day,
the Court delivered the fol.lovv.ir1gb;4’*«–._>y ” ‘
t<.iunaMa~r
(DeliveredV'iay«P.D. Dinakaran, C.J.)

_"_l"l*ie._petiti'o.ner"in._t'r;.ese petitions is the registered civil contractor

iirvcarryingiioniiécivi_l.'vv'orits of the Government Department and Local

_j:*B_o'dies. It is contended that for the purpose of execution of civil

{ wo'rl§.s",i.theipetitioner are required to purchase building materials from

V.'ill."v.tVhe–.p.–rivaVte sources. It is further contended that the petitioner do not

'anyiquarries and that they are not iiable to pay any royalty to the

respondents. However, the responoents are deducting royalty from

the bills of the petitioner without authority of law. Hence,

petitions praying not to deduct the royalty from the

petitioner in respect of the materials procured by them 'fromjpirivi/ate–.,'i

sources for execution of the civil contract works'; '

2. In similar matters, this_.C_ourt in “GM. K1_mAR’Al§aij;

omens u. sure or KARNATAKA A’i»1,t5′–ioTH£RsV_inie\i;rit”i:?etVinons
No. 31264-31266 of 1994 disposed own” aft” oc.t9per,4:’99tW@s laid
down the principles relating to ‘ tnei’ royalty by the

contractors. The same areextractedv’l’ie’reLj’n«cl’erV: 3 ~

(a) ‘pi*oiyidi’n_o7’i,the_énzaterial istiibjected to royalty) is
the retsponsibi.’ity.,_ohf»thea.col’itractor and the Department
prol/id_es the contractor”withJ’speci’fied borrow areas, for
extraction ortnve required construction material, the

_§cont.raCtor vnwillfllae liable to pay royalty charges for the
Arna–t’eria’i’,.(minorWrnineral) extracted from such areas,
._irrespecti_ve of whether the contract is a item rate
o.r~a~”lump sum contract. Hence deduction of
“”royalty’ectvarges in such cases will be legal. For this
pulgoose “non–execution of mining lease is not relevant,
as,the liability to pay royalty arises on account of the

it contractor extracting material from a Government land,

for use in the work.

it (bj Where under the contract the responsibility to supply
V’ the material (minor rninerals) is that of the

6

3. The said decision has been upheld by the DEvisE0fi”{~3té”nLéiz_’

of this court in the case of osrrxcrs or= THE

DEPARTMENT OF MINES AND GEOLOG)f»_v. 1$si;”‘1\r:i)f’fiA’r«a3\fs.r:fDvs-v_

HAJEE in Writ Appeal No. 830 of 2000 dis;3c:;.sed;_0fA(.§’n ‘2s€hA.s’ept’e&m__er,:,s_A

2006.

4. Foilowing the judgment 0f”_tvf1’ivs__Cqurt hféndejfeglsi in Writ
Appeal No.83{) of 2005 dispoSed_..V::3f’_ svept§m_per, 2005, these
petitions are disposed of in simitar. N0 o’tdeVr'”a.s”t0 costs.

Justice

Sd/~
JUDGE

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