High Court Karnataka High Court

P. Raghupathi S/O Krishnam Raju vs The State Of Karnataka on 19 November, 2009

Karnataka High Court
P. Raghupathi S/O Krishnam Raju vs The State Of Karnataka on 19 November, 2009
Author: P.D.Dinakaran(Cj) & V.G.Sabhahit
nix

IN THE HIGH COURT or KARNATAKA AT BANGALORE .
DMED THIS THE 19m my oz= NOVEMBER, 2009 

PRESENT __ ' I' 'V
THE HON'BLE MR. 9.9. DINAKARAN, CHIEF  1

Am»          

THE HoH'B:..E MR.JUSTI(;£_V.GT'SAEl-TA!~liT"_  " " " K

wgIT PETITIQN§ NQ,§§14g-§3iség'r zgxog  3 

Between: _.      

1. P. Raghupathi,   .

S/0 Krishnam Raju,   '

Aged about 48 yea:"$_..  _   _   
Class I FWD Contra?_c:tor;r    * _  
Residing at No. 3:85}  " H . V   .
15* Floor, Chamber 1-:f_21_.V, é 

Arya Ediga SaTngha'..Bui'Id;§,ng,  "  ' "
Sheshacirip§.3ram,'~ 7'; ' 

Bangalore ~--1._56GO2O'.'   9 

2. S. Srinivas, L T
S/o Y. Sanjeevar"aju,* V _
Aged abe;L£t"3E9 yearsfi " '
,«-avgesiclinget N0. 367,  ..... 
36*" Main""P.oa'd; ?_""H~.«Cross,
Nagendrae B--!Qt:'k.,'x_  .,
Bar*:ga*.<_3s'e;  "  
*  '   ...PetitEoners
.~ .(__By Sri Raghunath. C.M. Advocate)

 

VV    Stafe_«of Kamataka

 __Rep'.z_b'y its Secretary
 .._D"epa::tment of PWD & Minor Irrigaton
_.\iid»hana Soudha, Bangalore.

 



2. The Commissioner,
B.B.M.P. Bangaiore.

3. The Chief Engineer,
KIADB, Nrupathunga Road,
Bangaiore.

4. The Commissioner,
BDA, Kumara Park West,
Bangaiore.   ._

5. The Chief Engineer,
CPWD, Koramangaia,
Bangaiore.
it '"  Q ; Ftesppndents
(By Sri R.G. Ko,_iie A..e./3.,.Afbr..,_R{i*}., it
These writ petition$o~i%fiiedVV_ur'icIer  227 of the
Constitution of India praying toiclirectjthe=respond.en'ts not to deduct

any royaity from the w'ori'<g.t;.iiis of the--vpet'itiorie:--'s._@Iid to adhere to the
notification dt.28.05.;9.94?;fyi_de~vAn_nx:.A i.ssued by the R1/State; and

etc.

These writ,p'e.titionsVcomiVn9..iuip.,fc,r preiiminary hearing this day,
the Court deiivered. the foiiowin'g:.-  '

aa;upGMENT
E"".i:i'(r§ie":«i.yered  P.D. Dinakaran, C.3.)

 these petitions are the registered civil

'V.eoritractorsr-.earryingnen civil works of the Government Department and

" -Loj,cai__VBodies. "Isis contended that for the purpose of execution of civii

 inior-ks,--"_the petitioners are required to purchased buiiding materiais

' fro-mV"the',%private sources. It is further conteryggthat the petitioners

 



do not own any quarries and that they are not liable to pay any royalty

to the respondents. However, the respondents are deducting,royaity

from the bills of the petitioners without authority of law.

petition praying not to deduct the royaity from ._ti*.e”i

petitioners in respect of the materials procured tyh’em~:fr’o_rn–.pryiya’te

sources for execution of the civil contract_works.,

2. In similar matters, this in (~via.’\i’.’u.vV:i(tJM’iiiR AND
OTHERS v. STATE OF xARNAt.Ar:A in \.i\i’Aritvv Petitions
NO. 31264–31266 of 1994′ disposed,:l’_Cf 1994 has iaid
down the principles :_”rei’ati.ng.:t_o royalty by the

contractors. The seine vsh’ere.und*err’:’ V

(a) Where proyidr’ng”‘the’«fiateriai j (subjected to royalty) is
thé–lrespons’.ihiiity:i’thecontractor and the Department
provides the contrayctorlliwith specified borrow areas, for

;’ extraction aof the reqtiired.construction material, the

A “”ico;ntrac_tor wiiiiseiiabie to pay royaity charges for the
materi’aiA.”{minor minerai) extracted from such areas,
VVirre’spe’ctiirev”_1of whether the contract is a item rate
Vcontraijt or}-Va lump sum contract. Hence deduction of
royaityicharges in such cases wiii be iegai. For this
purpose non–execution of mining iease is not reievant,

it aslthe iiabiiity to pay royalty arises on account of the
..’contractor extracting materiai from a Government iand,

.;

for use in the work.

(D)

(C)

(0′)

4

Where under the contract the responsibility to supply

the material (minor minerals) is that

work involving use of such material, and the uriit”rate.V:”
does not include the cost of materialythere lsfno ‘ V
on the contractor to pay any royalty. :7;fijS “will-i’be.__’theV
position even if the contractor is r°equ:ired( to tttrainsporf

the material from outside the -work sitehfso longges the

unit rate is only for iabour”ior.V”service ‘and–._do_es”—-noVt”‘ it

include the cost of material.

Where the contractonuses in_at’er;’al”‘pui-chased in open
market, that is materialpurcrlvased from pfrivatte sources
like quarry. .'<-'ase .holc3lers_, orflprivate quarry': owners, there
is no __liebility5jo:'7 the co_ntractor to pay any royalty

In cases VVco–ize.redVby'«pa'r'as {b} and (c) the Department
cannot'-recovers 'or_de.du'ct_ any royalty from the bills of
the contractor and if.so= deducted, the Department will

; be bound to refund any amount so deducted or collected

V D to the ..contra'ctor.——–« ~ '

for refund in regard to any particular contract.

' ..to"the above, collection of royalty by the
* Department or refund thereof by the Department wiil be

governed by the terms of contract.

Nothing stated above shall be construed as a direction

The

A Department or authority concerned shall decide in each

case, whether royalty is to be deducted or if any royalty

is already deducted, whether it should be refunded,
ff”

of the
Department/employer and the contractor IS required to, *
provide only the labour and service for execution qrany; __ . if

S

keeping in view the above principles and terms of the

contract. ”

3. The said decision has been upheld by the Divis«io.’4rj_A»
of this Court in the case of OFFICE OF THE H

DEPARTMENT or MINES AND GEoLo:3§” A_|’-ll. MoH;mMEo’l”~wp

HAJEE in Writ Appeal No. 830 of 2006 disposed ofloln

2006.

4. Following the judgnfient rendered in Writ
Appeal No.830 of 2006 disposed of ‘Vonl’,”filSi’:” Sevpfehoiber, 2006 these

petitions are also dispovsed, No order as xto’.jg:os.ts’}j’ V

sax.

_ Chiei Iustice

iiiii JUDGE

Index::dY.esvd/ No * h

inn

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