Sri R Balaraj S/O. Ramaiah vs State Of Karnataka By Its … on 21 April, 2009

m THE i-lIGi~I COURT or KARNATAKA AT aAuaALos§'E j%%:%'

DATED was me 21" DAY or APRIL. zafiél  '    "

PRESENT   

THE i-lON'BLE mi. 9.1). MNAKARAAI, :;An»:1TEF'TJ.Liis'1'Ic':'E'[f~._ 

THE HGWBLE MRJUSTICVuE"$f}G._VSA3H-AfHIT 



Between:
1. R. Baiaraj 
S/0 Ramaiah
Age 45 years    '   '
No.2§90, j.,$t'!AiI._¥'f13:§n Réeii  .. 
Ra3'aji:1aga.r2"" Stage,  !:5k4)c:k_ _ -

Bangaiore 4: 560 ()1{}'7fj_-» %  

2. MM. Mahesh  " V ' _ A
5/0 Late Mahadevaiah  v_ 
Age 40.yjeat'3., 1902',-.;"" Main Road
  yawn';    ..... 
1.Bangalcre --~# Séo 0,60 '

3. Bic. "shsQ'prékas'rs%'  » V V 
S/o B,H';V%Parameshwarappa

  Age 38--.years,~ ¥$I¢:.249,
E.

J Main"Roaq, Sampige Extension

..  jg vvij-aya nagéar _ 1
* fiangaiore-560 079


 .__ A'ge 39 years. 847,
T _ 1=:#"~"<3* Main Road

 "  Bar:gaiore~»S60 om

"S7" B¥ock, Rajajinagar

 



5. §<.M. Nagesh
Age 38 years
No.35/1, 19"' 'B' Main Road
1" 'K' Block, Kethamaranahalii
Ra}'ajinaga¥  9
Bangaiore-560 O10  

6. K.H. Shivraju
S/o Hanumanthegowda
Age 37, Guttegedhar, Kolialu
Turuvekere Taiuk
Tumkur District

'I'. CH. Narayanaswamy
Age 48 years '- V j
Mo.101, 12"' Main Road   . 
1*' Black, Rajajinagar'   .
Bangalo:'e~56€r 0_1é)_  _. . "

8. K. Jayaram ____   
szo 3'. Kerfivpaiafi ..  _
W5. Ven§:1st:uc%:ire--~560 001 g" 



2. The State of Karnataka
Represented by its Secretary
Department of Commerce and Industries

M.S. Buildings
Bangaiore --- 566 001

3.. The Commissioner
Bangalore Mahanagara Palike
Bangalore

(by Sri Basavaraj Kareddy,"'Gi§"l.for  '

These writ petitions are filw uirde'r'r,itif:io'§es 226 end "22? of the

Constitution of India praying to._d'ir_ec't_ the. re3_'pnn'dents not to deduct

the royaity from the biiis of the ;p'etiticners__Ai'n.fresiz-est of materials
purchased by them for executiormf 'wor'i:;_ from the"*;.~ir'iv"ate sources.

These writ petitioiisotioming =iu;':i';fo'r';irei'i'rné.esAry hearing this day,

the Court delivered ~the.__foi_le3'{ving.;_ " 
('£}_eiii\{ere_ci"b.i/  ' Dinaka ran, (2.3 .)
 _ The«.{r3etitioners'-  vvvtheisze petitions are the registered civii

cori_tra¢t«ors _vAc:~;rn}irivg on civil works of the Government

 Depalirtrfient Bodies. It is contended that for the

vV'v1*i_evurpose of exVesst'ion of civil works, the petitioners are required

 Vbiliiding rriateriais from the private sources. it is

4"i"_'~.:_':fi.fi~h'e';iVVéofitended that the petitioners do not own any quarries

'that they are not iiabie to pay any royalty to the

u."=lrireisipondents. However, the respondents are deducting royalty

 

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T ...-"-;!?tespion£iefitsV  *'



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from the bills of the petitioners without authority of lap-g_,_"4'  V.

the petition praying not to deduct the royaity fror1'i"'-.:':.:he=:.-jV'_i§§iu¥'i's*l 

the petitioners in respect ef the materivaiié 'p'i'olc£ired 

from private sources for execution of the V'<:.i__vi:i*.;ontra;;tworke;<"',,l 

2. In simiiar matters, thisicapim in aufilmiinuo

omens we. sure or mfaa:AT§kA~aAA:sia_.orHeR$ in writ
Petitions Ne. 31264-31266 of 1994 ?j'_i'apVoseti' 315' October,
1994 has laid down "i:%;Te;"pri§f3cipieé  the payment of

royalty by the ceiitre:eto'ra;"'T he'§Sa.ii1e..:ixrezesttracted hereunder:

(a) Vifilzeie p:c5§;;:i;;:_jq'i:::;'aa--:§%izz.ze;wiai (subjected to royalty)
is iilaei  the contractor and the
V.i2eparfmei2t» pizaxéicieathe contractor with specified
 {borrow afeasf, _____ for extraction of the required
 ccaistriiction material, the contractor will be liable
_ _   ;ro§(falty charya for the material (minor
."~'mlne§?'al)VA'a}:tracted from such areas, irrespective of
 w£3e't:':e}* the contract is a item rate contract or a
Iutyap sum contiact. Hence deductioa of royalty
 'T ~._c:l2-arges in such cases will be legal. For this purpose ,
V' "'nor:-e-xecution of mining lease is not Ielevanr, as
the liability ta pay royalty arises on account of the
contractor extracting material from a Govemment
land, for use in the work.

5"
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5 s      



('0)

(6)

5

Where under the contract the responsibility fto
supply the materiai (minor minerals) is that_o_tV:-  -I~ 
Department,/empioyer and the contrac_tor  
required to provide oniy the iahoor-and"_tser_v'ioe. for   ¢
execution of any work invoix/in_gI' T  sgrch 
materiai, and the unit rate o'oe's_'n'et incioo'e.. the  .
cost of material, there no iiahilie/AT  

contractor to pay any ro;r__a_ity,__ wffhis hiwiifyybe the
position even if '  o§ntrec'tar'r,VViis..A requireti to
transport the materiet.'fiore~'Viootsitie the 'work site,
so iong as ti;e__unitrate~  ohiyjforirabotsrior service
and   

Where -the V;t;_ontr2§ctoi": meteriai purchased in
  'V'th:et.Dis métézrai purchased ham
nrivste Viiizei'-:g§a--rry'iease holders or private
q:.r.§rr)r .    is no iiabiiity on the

_ con trét*to_r to. ,oay"an'y"royaIty charges.

C'Ih"<cases  by paras (£2) and (C) the

   cannot recover or deduct any royaity
_  fn:3r?:~v_v.the.:;'hiils of the contractor and if so deducted,
 the~ tiepartment wiii be bound to refund any

ernount m deducted or coiiected to the contractor.

H Subject to the above, coiiection of royaity by the
H Department or refund thereof by the Department

wiii be governed by the terms of contract.
/1

{._,_
2. - '
.

‘ V LA1n::a%:§<':i';m~z"'N9/'

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(0 Nothing stated above shall be construed as a
direction for refund in regard to any particuiarj
contract. The Department or authority cooceroed;

shaii decided in each case, whether royaity is L” ” .

deducted or if any royalty is already dedticted… V’-2

whether it should be refunded, gasping 5:2″ ‘iiieéilvthei ii i

above principles and terms of size co(itr}act,”‘: ‘ ” ‘

3. The said decision has.»’oo__on tibhoid

Bench of this Court in the case of onaixce of ‘Ti§iEv’:DZII1§R,ECT0R
or-‘ DEPARTMENT or i%§;I._”i”}iES’_: g;§’o..c§«..G’£0LosYA u. M.
MORAMMEB 1-MJEE it; writ Apoeoi disposed of

on 25″‘ septgi:§s5er–,i:§2:oos:E§c%”‘

4. F3″‘§3I#§n§ the }’¥..l:%’.IE{_V?,§4l’:’f’i!»?r:ii¥i141VZ.’.<3i"' this Court rendered in Writ
Apoeai M95830. ofvidisgvjosed of on 25"' September, 2006

tiiese:'oofifionsifare"a.iso disposed of. No order as to costs.

Sd/-

Chief Justice

Sd/J;

Judge’

/.

Host: ms’

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