IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C).No. 16563 of 2004(V)
1. A.KARUNAN, S/O. KELAN,
... Petitioner
Vs
1. STATE OF KERALA,
... Respondent
2. THE DIRECTOR OF MINING & GEOLOGY,
3. THE SENIOR GEOLOGIST,
For Petitioner :SRI.T.G.RAJENDRAN
For Respondent :GOVERNMENT PLEADER
The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
Dated :24/06/2009
O R D E R
C.N.RAMACHANDRAN NAIR, J.
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W.P.(C) No.16563 of 2004
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Dated this the 24th day of June, 2009.
JUDGMENT
Heard counsel for the petitioner and Government Pleader for the
respondents. Admittedly petitioner took on lease mining rights for mining
seashells from two sides in the sea shore. Mining right was granted on
condition of payment of royalty or dead rent in terms of the Kerala Minor
Mineral Concession Rules. Licence fee is paid and there is no dispute on
this. According to the petitioner, petitioner was paying royalty in
accordance with the Schedule and therefore, demand of dead rent is not
tenable. However, Government Pleader submitted that the provision in the
Minor Mineral Concession Rules is to collect dead rent, if royalty is less
than dead rent. In view of the provision contained in the said Rules based
on which mining lease is granted, petitioner is liable to pay dead rent in
excess of the royalty paid. There is no dispute with regard to the amount
involved. I do not find any substance in the contention of the petitioner
that dead rent which is higher than royalty is not payable by him. However,
since the matter is pending for long and the 12 year lease itself is over in
2003, petitioner is given facility to clear the liability with 50% accrued
2
interest provided balance amounts are paid in two instalments, first of which
will be paid on or before 10th August and the balance on or before 10th
September, 2009. If rate of interest is not prescribed, rate to be recovered
from petitioner should be 12% p.a. and since 50% is waived by this court,
petitioner need to pay only 6% p.a. for the whole period of default.
However, if payment due under both agreements is not made as above,
entire arrears can be recovered, that is, with full rate of interest or at 12%
per annum..
W.P. is disposed of as above.
C.N.RAMACHANDRAN NAIR
Judge
pms