IN was HIGH coum' on KARNATAKA
mrrsn THIS THE 3?-pAY o§*".m1j;;s E 1'
Pnrkgmmji " '. ' ' V
THE HOWBLE MR. P».'I),__ DINA1;ARAN, i:m1s;§fV.:ir$1*:§§1a
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THE Hozsfifinm _V.G.SAB!-IAHIT
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Aged abofii. ye"-i§m,_ .
Occ:':__ Raii;s;a_y- :3o;1ii'aC'tz,}iy--.. '
Proprietor of Ca;{i\ft3If§"'F{1i¥gi1lE6I'iflg
3:. Const.rfuc?§on'*Cdm};afif;,
1" Floor, ArkayArts;v_ ' '
N¢ar' Pichzu Stadium,
I3':_I_}L)A;_R_--E_58540};.'v' ---------- ..PE'i'E'TIONER
' LR. Bizfadaz", SS. Qtzsai, Advocate.)
a......__.__...
1 " Thié. Astnzéitc sf Karnataka,
Regresented by its Secretary,
AA ' ._Depart;meni: of Mines 6:; Geoicagr,
ms. Building,
Baugaiore - 560 am.
"[2. Tbs State of Kaxnataka,
Rep. by its Secretary,
Dep. of Commerce 65 Industries,
154.8. Building,
Bangalore --- 3.. .. . ,. ..
W
3. The Chief Engineer/Construction/1,
Chief Administrativa Oflicerj Constxuctian
Censtruction Organisafion, " .1.
Works Branch,
SOUTH CENTRAL RAILWAY,
SECUNDERABAD.
4. The Deputy Chief Engineer] Ct)«11si:tf13.i:tio1fE;'IIi,. _ "
Chief Accounts Ofiicer Compound, . . V
Constxuction 0rgax1isa1:io.'g;"
SOUTH CENTRAL RAILWAY,
SEC3UNDERABAD.__
5. The Financial Adviser 8:, iv .A %
Chief Acccunts (I)fi'icer/VCo{n;St1'uc1:it):ri;~.
SOUTH {:Ez~:TRALéRA:1.WAY, .. _
SECUND-.ER£{B:3D.. 2 . ,
5. Titre.---:. Deputy Advisor 8:.
Chief Acceufits Construction] 1.
Lfikh Bifiavaflg
4§jS'C}UTH CENTRAL RAILWAY,
..'i%_"'3E;QUNDERAB;a:5.'
V 7. " ?'f'§The»Si:i1i9r"Assistant Financiai Adviser]
C0nét;nci;io"n/ 1, Lek}: Bhavan,
. "'soU'I*i~s':_ CENTRAL RAILWAY,
.. SECS Ni') ERABAD. ,.. RESPONDENTS
(By Sri Basavaraj Kamddy, GA.)
~ ‘ffiese writ petitions are filed under Articies 226 and 227 of the
‘”* Consfitution of India praying ta direct the resgendents not to
céeduct any zoyaity from the petétierzers runnmg work bifls, etc.
These writ petitions coming up for this
day, the Court made the foiiowing: – ‘
(Deiivered eaiinakmrs;
The petit£onei:4.._..i:z’i_tioeeeJ. bietitipons is a registered civil
contractor carrying oncviiiils ‘o.fv_ti§;ev,.Gevernment Department
and i_ocai_ that for the purpose of
executiori petitioner is required to purchase
the private sources. It is further
conteiideé thet..tfi’e”pieiitiiiofiier does not own any quarry and that
– hejis. net ii”ab.ie’i:o” pear awny royaity to the respondents. However,
Aggeii’respdeoentsiméké deducting royalty from the bilis of the
‘VV;aetiti.o.ifr3jer”eiitiiiout authority of law. Hence, these writ petitions
ierewyinfg deduct the royaity from the biiis of the petitioner
in respect of the materials preczured by him from private sourcw
fer execution of the civii centreci: werks.
2.1:’: simiiar matters, this Court in G’.V. KLIHAR AND
OTHERS V. STATE OF KARNATAKA Afifi OTHERS in Writ:
xx 4_:><
Petit¥o¥1s No. 31254-31255 of 1994 dispoeed.«o?:oii:"ej3i"'. October,
1994 has iaid down the principies reiatingftoiefwfwvei of
royaity by the contractors. The :s'a"'me iaflre éieréunderf
(3) Where providing the' jfiateriai
royaity) is the '2"e§ponsioiiitjr"'of.= contractor
and the Department ' provideisv V –the'3 contractor
with "–bo;rr2§W–.'arees, for extraction of
the reqoir§edV material, the
:..con;t:f'.actegr :gyiii'ibe.Aiia'é:!e fray royalty charges
hrateriai .§?'i7ii:_3or mineral) extracted from
""" H " or .. irreepective of whether the
_ rate contract or a lump sum
" cohrtrac:t," fivehce deduction of royaity charges
'V in V_'st}ci2"'::aees wiii be legal. For this purpose
noo-execution of mining iaase is not reievant,
_ the iiabiiity to pay royalty arises on account
the contractor extracting material from a
3 Government land, for use in the work.
) Where under the contract the responsibiiity to
supply the materia! (mioor minerais) is that of
the Department/empioyer and the contractor is
required to provide oniy the labour and service
for execution of any work imroiving usse of such
materiai, and the unit rate does riot inciude the
(C)
cost of material, there is no liability.-.__on the
cootractor to pay any royaity. Tnis_4vwiii..__be_ the
position even if the <:ontractor__i$"*rmoire§_ to
transport the materiai from .ozits:ioe'_"tiée% work'
site, so iong as thevorsit. rate is 4on!y_ for_jiat5oor' ;
or service and does riot.-nin€:}(;de_:"tne:"cost_:of 2
material.
Where the contraoro1’1oses”:nateria2§ purchased
in open ‘i_’m.arked,V_ that . % material purchased
from private ‘sources ooerry lease holders
orgorivate” ‘ouanyA«ow’ners,’ there is no liability
” ‘V on to pay any royalty charges.
* %VIo.VV_’C:aseS*~.z:.fozIered by paras (b) and (C) the
.V Departioent cannot recover or deduct any
royaityfrom the bills of the contractor and if so
,,,,__o’educted, the Department will be bound to
Vrearefund any amount so deducted or collected to
V A the contractor.
0′)
Subject to the above, coilection of royalty by
the Eepartment or refund thereof by the
Department wiii be governed by the terms of
contract.
Nothing stated above shat! be construed as a
direction for refund in regard to any particoier
; N
contract. The {Department __ ;”t’:’r-«Q
concerned shah’ decide in eagfi’-g;§sz§;V. iarhethgr’—._.’
royalty is ta be deducted (yr if a?:’:y foyfaffyé is j
aiready deducted,”-, wf1é.1£fhef._ s:h:’.5u.£di1/_jbe ”
refunded, keepmg in V,f_¢w the, prffnciigaigfeiez.
and terms of theL4L.c Gntract;*«’?_V_ ”
3. The said upvhéidx by the Division
Bench of this Court s;3aV%ti:»@-§.g c«f.: ¢3r:.5’~?EI\€:E or THE orascroa
er-‘ DEPnjI’i”*-fii’£N”I’:’=.. m=7′ :’\a1:mi:s.%%%..’k;&\1~z:;: GEOLOGY v. M.
M0!-EAM: !§VlE§§”gi}§.ii*E»E::’§’%i’j;’5;{rit.:.Aj5’pe’a’i No. 830 of 2006 disposed of
on 25″‘ September,
4. :=o;;ow:ng’%::1fe;u%¢grm:&%%¢%r this Court rendered in Writ
Appieaal 2V_GO$ ‘€£is.;msed of’ on 25*” September, 2006
these?’writ:.b’e§¥§ia;1s% aisa disposed of. No order as ‘re costs.
Sd/-
Chief 311315-C3
Sd/-
Iudge
iimdatx: Yea] No,
Web HG?-E: ‘Yes? P50