High Court Karnataka High Court

Sri J Bhaskar Naidu vs The State Of Karnataka By Its … on 13 March, 2008

Karnataka High Court
Sri J Bhaskar Naidu vs The State Of Karnataka By Its … on 13 March, 2008
Author: L.Narayana Swamy
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IN THE HIGH'CGURT HF KARNATAKA AT sansauonn
nnmu THIS THE: 13" mar :35' mm-I 2003
BEFORE _
THE HuN*HLE MR.JUSTICE L.NARAxAuA.$kfifiv{  
WRIT pETITIun mu.2193 or 2ofi7":GM5MH;$}T_  =x
BETWEEN    A  :'A  I 'E

3&1 J BHASKAR NAJDU

gin SUBRAMBHEAH HAIDU

Aggu AEQUT 51 vsans

EEEIBING Am ma.362¢1 _ _

$3" 53055, aw.' 2"""'--:*~"--.'V%*.='.':-ma  ;

:E" annex, aanaauonsiaa 7" _ ,;_.
A= ¢""~C' " ;.EETITIfifiER

cEv_3fi: Qfg afixfiafiTE sp#n§;"hnv.:

1 T33 sTA§E7oF_kAnm$maxA ;
BY ITS $ECRETfiRY V._ .
msanrwnsur or flflHEEREE AND xwnuswnxss

fifi3.Efl1LflIMG.
He'WGikLOR.EV_V1'V. 

*.2 'THECEKEQUTIVE ENGINEER
. ",%1LLE.EfiEEHnTRTH ENGiNEEHiNG nxvzszou
"_RfiHfiflRfiEfifiH"
'*aaNGALmnE RURAL HISTRICT

3 "THE 3EcfiETAav
g_ HRXRLU $EEME ERER DEVELOPMENT
"x _BflARfl, caxwnnnnnaa

 '4" THE DEPUTY FINfiNCIAL CONTROLLER

fl'VB.|'.I"| e=2'n'%E  T\E'ni'Ef_fi'EkI1fi'l1|h Eflgfin

Eli 'a u1.|.I-an ll-I-J 1.: V J.:IuU£'I'I.l.:Il.'I J nu

CHITRADUREK
... ESPfi"fiEfiTf3?
i3? SR1 R.KUMAR, HCGP FOR R1,

3RI.5UhHEHh, RUVUCATE Fflfl R.3,
R.2 END R.4 * SERVED.)

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WRIT PETITION I3 FILED UNDER RRTICLES 226
N013 E37 L'I1F THE CONSTITUTION OF INDIA PHAYING TD
QUE'-S1-I THE IMEUGNED LETTER D'!'D.21.11..2D03, ISSFJE33

3*: PiE3Em'~;BE%2T z~;n.3F was :~..nr2t.--m .n.r~m 
1::'1~n.:i.':~*.»:;1.:2»::ur::'.=", rssumo 3? suaseounmw no.4...._ 'vi-um. 

'lII.'l"|.l'

, 1!.' 'h
.l"l-|.'C.I'l'I|""rl.'.a|f 1'1 ' J34' J.'.l\..-.I I. I-I -iv-'ii3H'.'M|I.'|lJ-}J.'iI'I.I Is} I.

1-; T9, Dlfivflm rr: 1:" Rut-mnnn.1n:-v.1m-:3 |'D{§':'}{EElJ-fil_B'j_. «

-mm :5m:u1=:I*rv nmmsm ma: ".rm.=: Ro~rAL'rv--'A._ALR£:A"n~!  "

fififlUCTEB FREE THE PETITIOfiER'S WGRK EILaa,*a:E£cT

THE I&E3PCtt-JDEMT3 NOT TO DEDUCTV~"RD"r'ALT_Y   
E|ILI..:':1- as" THE zwrrrwzonmn mun l!JOT ..TE_i}  
PETITIQNEIE. TO PROIJUCE THE no~:'A:;VW..'1=~A.In'«_11Ec,E1p<rf$.__'*

ET THEIR vsmnons, ETC. _r__ *_

THIS PETITIDN cgnxmm ,ufi*_Fa3. fiEnR;us_ THIS
mm, THE cauwr mural: in-:ru12;~~..a1rcnL;«Louq*;tr»!:;f_:V'"-._

Tha getitifiharii afifimit$* fthafi'y he is a

registered ¥FW§a Elassw; vpfintrfictur and he is

carrying "fin_ thé§sbuaine33"*$"' undertaking the

gxgcutidn bf ¢iv£l hvfk§*¢ohtracts for tha State

 n'++_m ".1.;;¥ra:L bgdias and during than

yaar :flflG~u1, tha 2 Vraspandant has antrusted the
'acmfitracfi . mark na*é'y* uavalap"ént af ra*fi

cémm§n#infi} £§§m Eyramangala T.B. tn ittamadu

HV_Kumpanahalii3 via Hagdegera, Bangalore--Hy3ore

 "Fjainin§*~§aad anfl asphalting wnrk' and the

«"g§étitifinar submits that he is net a quarry haldar

. * §nfi§ he is wnly a contractor and he is nat

 R~.;3uppaaed to pay royalty to the Government. Under

the EEC Rules. only the lessee has to pay

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rnyalty and the cnntractcr whn purchases tha

material from the laasa haldar naad not fiéy

rnyalby. The patitinnar submits that this iétfit ".

haw haen covered by the juflgment flf this fitugt ifi'w'

the case of G.V.KUMAR 5 OTHEfiS"*V$t& sfitfiticfi '

KHRNATAKA & OTHERS tw.p% uoa;3ié64--s63i9a4:'fit;"t

31,1a,1ssa; _ha:ain this 'g§t;: hg32'd;Sp:£é§*~df

*rit gatitienm with the fa1le;;ng directibns:

on , -..-

"fiafi where praviding. tn; _materia1
é3uhject9fi=- tQW""-fiayé1iY3'_a"iS thé
raspansibility mf thfi Eontractar and the
Iiie;:s.artn1;e'::t 5';;1;i1:i::v.i':::ie':-:=_ th.rsj'-,cm:nt'::'actor with
spacifiafi harraw grass; far axtractinn af
the requirtfi Unn5trmctinn§ material, the
cnntractfir kill as liabia ta gay ruyalty
chargas fan the material {minar mineral]
fifit£&Ct§d ;::amavautn; aygag, iggespective
cf whéthar_thé cnntréct is an item rate
cantrast er ailumy sum ccntract. Hence
flaductian 'af rayalty charges in such

.ga5as will be legal. Far the purpasa nanfi

. ~-axacuticn df"' mining lease is not
. *, ntlevant, as the liability tn pay royalty
't"asi3e3;x_¢n account of the contractor
._"taxt:a¢ting" matarial item a Gnvarnmant

t 1and;*fnb usa in the work.

'W _ 'it! where under the contract, the
rasppnsihility ta supply the material

.; {minor mineral) is that cf the
*nagartmsnt!am9layar and the cantractgr is
'-Mxaquirad to pravida anyy tha labaur and
fitrvice ft: axacutian sf ny wart
jnvnlving use cf such material, and the
unit rate fififii fiat includa the cast a:
material. there is no liability' on the
tmntractmr to gay any rnyalty. This will

he tha poaition aven if the cnntractor is
raquired to transpart the material from

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mutsiafia the work site, so long as the
wait xata is avail}! far lebaur er service 
and dcaas mat include. the coat  
mat%:ria.'..  
(cf: arhara tlma rmntractor ]._',5R;E. 
ma a' _
 material purchased from privatfa. "
aourcaas, like quarry leaajga haldars.:'gcir. A
gvrivate quarry owners,  them  is no ' V
J.iahili.t:§; cm the -::»:mtr.ar:t:3:::-AA1:;.% 'p,ai_.r. 'any
rngraltzyr charg-as, «V   M, «. ''
(d; In caaazas aamrarad by" [:_:ar:;3'* [Vb] 2
and '56}, three DegJartmen--tvL"m_annoVt._;:er;Vo1rg:"~,:5;r" 'V
deduct any r«:rya.1t:y fron1'~J:he_ k:iJ.'1.sa r::.f tam
«::c:?1!'§t.t'£€.'tfl£." and ii.' Mn-_'=--.de»dur.ted;.~V... .?;i'1e
De.-partment wi1lA_k:-3: ¥:=¥:u1jciL"..:;r:f'~--L'efunci any
am-..;:.n*.: as dean  2-s:}'fal1-a'::tj?.._ ta 'aha
vmntractanr, ' V  1 " 
tail :'5ué::jectr't't:» -- i';':Le" .a'am*e'., .V irbllacti on
car rc:yal.<t3=a._VE;n3-' thaz. .[3:a1ZfiaE'tnir£mt Vf'-znr refund
t}'1£.!.|:'~.'3I-:Jf_V'b'_~,;4'*" .1:,i'.1'E2 Depa:.t:':.ment"' will be
gavarnéfl ray "-1:15";-.._:_a i:e;mr1E,__c:i;f 'c:cm'.:ract,
rtfvir'-.N::gfr.hir£g«-.'E1~t.ated above shall he
»:onsVt;ruj;e%ti aéizfia 'dix-act'i'«3n"' fm: refund in
.u'-a=.gar:3_  arty -particular contract. The
Inegca.-fa_£_**t:msgs:nt's:J'z_ »§-?«;;z.'i:.Vl:_;::«';:i't.y cancerneri shall
ti-aci:*§a" in' as-zzis. c'asia«.,"" whether 1:'-zrryalty is
to ft,~é.._:i¢::c.*u*.:t».=-;r3£"w.a'.1:r.*. if 5.5"' r<:}'alt.."§,* ia
.:a~.1.raady" ;:ie<i1.mta*-xi, whether it should he
,4}:efu=.-".-dad,'"»._.};aa',;ai.ng in View the ahaa'-Ha
v,firinm1p;es afifi terms 0f the cwntract."

I-'§»aL_r1r:'¢;'."e;',"'T.ti=..r;3 '1;5i:%§i'ti-oner has sezvught far e3 direction

ta  th.§é'Véraépfiéi1_r§Tiént$ ta refund the security dapasit

'mud 1':1*se.flK:_ 1§a*_y*aJ.t*;.r already deducted fram the

tfr.f."i.1. purfihaafid ifi KT'-'F-'FE-fl market,_-*that--f"---- V



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m. haarned Counsel far the respondents

aubmits that the patitiunar has ta make aut V3

cage bafura the rafipnndanta as ta whether n3 is § %

gmntxactwr or a quarry halder fer the pui§oae dfT a

claiming axemgtian from payment if rfiyaififg Tia

cuntantion mf the petitioner is that a ¢afitpaptéb 

wha is nnt a quarry haldaE i5.naf ;iapia'fid~§ay

royalty. Under the EHMC Ru1§a,'u9n1§'*thgV_iaasa

is aufipesed ta gay rfl$a£ty;=Th%'éfifi§m%nt ralied

3. ,Th3_ yetiti¢na:a has ,nérrated all these
thinga in =hi3 *éeQra$¢Q£atimn addressed to the
Exacmtivw 'Enginé%:}."Ei;la Pariahad Engineering

Eamsnafiaram TalLk, Eangalere .ural

  '__ W. _._'n - ' . hh _ A
V_n1strict .m;d%fl Annaxure C ana ha has Guufilfiiu

aékflfiwifidfimgntfw" for having submitted the

repramentatién.

A"é, in viww af the sama, thia writ petition

,is7 diégosed or digesting the zaggondgnts ta

~u¢¢n$id&r the reprasentatian qf the getitiener and

y

.

Taas aggrcgrla

judgmanf c’ this fiaurt rafarred to above within 3

-5-

parimd 0f 3 mnnths frum the date sf receipt of a

cap?” mf this ordar. After the fiispasal of ~§ha

ragraflentatian, if raspandant Na.2 camas_tfi~£h§ “V

cmnclufiimn that the getitioner is »§’f=§?fiT a

Cmntractur and that he iw exemfited.::om4§aym§nt H

at rmyalty, than the royalty ai:é%dy fluduct@fi,

fram tha patitionarrg ‘.fiil;s ‘ga’ :_£fifida§_

Llkéwlfiéf the uithhelding Qf,Sa¢urityfifi9pesit in
z\.4’I.’s\1~L_I-1..-IHI4-~i Aw 1.1”: ‘9’-‘B 1.-o.a-.2′-2-v\’!3.’§-V01′-r n..”i .1 511 an bun
!:…’n..I.u.I.iI=t’-. In–I-»b-I-!.l -.I.I….I1 t.u’u .L-,’;\.l}9-fiJ..:’!_}- ;jvL.I. fl.J.-.4.’ £:I..l-9|-ul IJIII
refunfied. “”