IN THE HIGH COURT OF KARNATAKA AT BANGAL.o'R:'E<E«_iT"'E.TA
DATED THIs THE 9*" DAY o:= JULY 2005* if '
PRESENT
THE HON'BLE MR. P.D. DINAKARAN,
AND' _ '=~
THE HON'BLE MR.I%usTIciETt:V-.Re.-EABHRHIT
WRIT PETITION No;1417l214'-_ot=.jT»' :OuG9f
_.---.-.~--.
8:.
WRIT PETITIONS N0.188v14---'18'822_[§;§Q§ l£GM--MM-S)
Between:
Shivaraj _ ~
S/o Shanthappa, '-- % _ .
Contractor, Age:"'5_Otyears, "
R/o Sharan Nagar, 'Talu'k. Bas-ava kalyan
DE4_st.. Bidet; " .
...PetEtioner
4VGovt:.:jrish S Khashampur, Advocate)
«State of Kavréii-ataka
Represented by its Secretary
' «.D'e-p_artm'ont of Mines and Geology,
1Vt_.S';V.B{11'Idings,
=7---._BVang;1aiore--56O O01. , »»»»»»
. The Executive Engineer
irrigation Department Bhalki
Taluk. Bhaiki Dist. Bidar
. The Executive Engineer
PWD, Bidar.
. The Executive Engineer
PWD, Guibarga.
. The Executive Engineer
Ziiia Panchayat
Bidar.
. The Executive Engineer
Minor Irrigation Division "
Bidar.
. The Executive Eng-inieer it
Zilia Panchayat, ti '
(3u|barga'.r._
. The Executive4'Engineei'..V'
Basavakaiyan 'D.eveiop._mevnt"Authority,
Basavai_'<a"iyan, Dist.V_ Bidar;
.. EVx'ecuat.ive:xEngineer
iMun.iciipa; ecu ncigii'
B3'Sav8kairva'n¢
' i'O.The A'Se.cr61Ei",'.i' A
Ai3MC Yard,a;Basavaka|yan.
i g " :1 Secretary
" TARP/iC Yard, Humnabad
...Respondents
(by Sri Basavaraj Karreddy, GA)
5″” am
I
These writ petitions are filed under Articles 226 and 22,7 of
the Constitution of India praying to direct the respondents notto
deduct royalty from the bills of the petitioner & not to ins’is_t”‘–th’e
petitioner to produce the royalty paid receipts by theiir~–v_en__doj’rs”
and direct the respondents to refund the royalty alre’a=.’ly–as ~
deducted from the bills of the petitioner.
These writ petitions coming up for;.pre»l:imi«nary’1hearingigthis
day, the Court delivered the fo|lowing:—-
(Delivered by ;_P.D.
The petitioner in these’peiti.tions’4″”is’:jaregistered civil
contractor carrying onycivil works. tt:eyE€3_o.v.e_rvnlrnelnt Department
and Local Bodies. the purpose of
execution oiivvyciviiiAvvo-i?l:<–s_,fi"the'«v.,p'eti_ti–oner is required to purchase
building mateirialsli sources. It is further
contendeydfitiiayt thVe"»Vpeti'tioner"does not own any quarries and
E5iial::l:lei_._vto any royalty to the respondents.
Hovveve1ri;__theireslpoliyid-ents are deducting royalty from the bills of
petit'i'onerv'v»'ithout authority of law. Hence, these petitions
Inotxto deduct the royalty from the bills of the petitioner
res.p"ect.=of the materials procured by it from private sources
fo'l*vexecution of the civil contract works.
2. In similar matters, this Court in GM. KUMAR AND
OTHERS v. STATE OF KARNAYAKA AND omens
Petitions No. 31264-31266 of 1994 disposed of on 343′ o;;:ttc},’t5e:-f,’g”s,’ ‘
1994 has iaid down the principies re|atiz*¢»g»..to
royaity by the contractors. The same are:”extracted’lh–eV’reunderj”«.T7~i
(a) Where providing the materiai”(subjected’to,
is the responsibility of t_he’:”»coi’26tractor ” and the
Department pro vides’~ ..the.’VAco:ntr”ac_to.r ‘ with specltied
borrow areas, for extraction the required
construction’ — n_1ater.’aI,’ * contractor ., h be liable
to pay charges hlfor’ “material ( minor
mineral)iiextrattedfhfrom such”areas, irrespective of
vgzhetheri the’:’co:htra”ct,A_is—- a item rate contract or a
lump sum’ cohtra:tf:gV’l?i’énce deduction of royalty
V _charge’s such caseswill be legal. For this purpose
non-executioh___ofmining lease is not relevant, as
theiliability to pay royalty arises on account of the
it extracting material from a Government
h. * lahd,”.’forA’,use in the work.
(b) it Where under the contract the responsibility to
supply the material (minor minerals) is that of the
Department/employer and the contractor is
required to provide only the labour and service for
execution of any work involving use of such
material, and the unit rate does not include the
,,…_AW
(C)
(0′)
cost of material,
contractor to pay any royalty.
position even if the contractor is require.£i..,ffQ.’__’ ‘
transport the material from outside the worl:<."site,VVV' " '
so long as the unit rate is only forlabour'or'sei'vice.. '– _
and does not include the cost o;{."mater.'al."'«_e '7
Where the contractor uses material'-purchased?' in
open marked, that is material ,ourch'as_e:_:l_,
private sources like quarry__lease holders or private
quarry owners, 'the.re fis _n"o,_V_liabillty on the
contractor to pay any r_oy'aity5cl7argies;_* "
In case; égeejoveréill _:',.jDa.rasl.l"_:{b)' "and (C) the
Department i??t3'l'?n0f: A recover or . deduct any royalty
thefbills thecoivtractor and if so deducted,
the "Departrnen.t yviil…' bound to refund any
amountlso daducted.'or collected to the contractor.
Subject to" above, collection of royalty by the
Department or refund thereof by the Department
tewillibegovvetrned by the terms of contract.
in
' direction for refund in regard to any particular
No_thin§;g "stated above shall be construed as a
ccnltract. The Department or authority concerned
H shall decided in each case, whether royalty is to be
deducted or if any royalty is already deducted,
whether it should be refunded, keeping in view the
above principles and terms of the contract."
there is no liability on the
This will be
Index: Yes / N5) "
3. The said decision has been upheid by the Divi-sion
Bench of this Court in the case of OFFICE OF THE
OF DEPARTMENT OF MINES AND GEoLo=*sSY H
MOI-IAIVIMED HAJEE in Writ Appea: No.’-3’3’0-of 2-£506.Efti.sp_eset1i’«.of’~_A V’
on 25″‘ September, 2006.
4. Foilowing the judgment cfjt’iati»s Ceurt Writ ‘V
Appeai No.830 of 2006 disposed Senter’-nber, 2006
these petitions are dEsposed ehftin’ sinifl’a*’r «!__\io order as to
COSIIS .
Sd/–~
Chief Justice
Sd/-1
Judge
i»»”./ U h
4: LHost:4_ / No