High Court Karnataka High Court

Srinivasa Enterprises vs The State Of Karnataka on 8 July, 2009

Karnataka High Court
Srinivasa Enterprises vs The State Of Karnataka on 8 July, 2009
Author: P.D.Dinakaran(Cj) & V.G.Sabhahit
IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 8"! DAY OF JULY 2009

PRESENT

THE I-ION'BLE MR. P.D. DINAKARAN, CHIEF  

AND

THE I-ION'BLE IV£R.JUSTICE V.Gv.4S.A:B--HAHIT.".tA  " ' E' .

wnrr PETITION NO. 19o39-19o~nf,-T2099 (GM&ndM§é3" S

BETWEEN:

1.

Srinivasa Enterprifiéé _
Prop. Rarnbabu__N~ 1 ” ” ‘ ”

S/0. Venkatarajpt, 5
Aged about %}2_.ye’arAs”,’ ‘¥:;,__ _
PWD Classivl C0nt1.’ae?:_tor,1”;V ‘ _
R/0 No.151–,._ 10th Cross’,-_» e ‘ _
BEL Colony,’Vic1yarany’anura,.._ . _
Bangalore. ~ . ..Petitior1er
(By Sr; ‘N’agaraja”N, Naidu; Advocates.)

_ 1. T2ie1..S’ta_te’

Represented Vb_’ff’itSV ‘Secretary,

E”**Departzn’ent of Commerce and

Industries. I\”.’.!A.S I Building,

. Bangalore “–_5’to oo1.

T ” . V E Sheshadri Road, Bangalore.

Q TIEieSupe’rintendent Engineer,
Department of K.H.S.D.R.P

-{Karnataka Heaith System Development
.. _a;ud ‘Reforms Project),

15* Floor, PHI Buiiding,

purpose non-execution of mining lease is

not relevant, as the liability to pay royalty

arises on account of the contracto_r;”””

extracting material from a Governmeritgg L”

land, for use in the work. ~

(b) Where under the contract the

to supply the material m’inerels)’t..is

that of the Department/employer anchthe

contractor is required to-only the

labour and service fork’pe2?e::utionf.of,any
work involving use “ol’:’suchA”-material,’ and

the unit ” rate” does riot” include.’ the cost of

materialp there on the
contractorVto_,royalty. This will be
the__position’ “ifthe contractor is
requiredfto_jtransport the material from
outside .vvo_rk site, so long as the unit
only for labour or service and does

the cost of material.

(cl””4Wh€’te the contractor uses material
purchased in open marked, that is

it ‘*~.__material purchased from private sources
like quarry lease holders or private quarry
owners, there is no liability on the

contractor to pay any royalty charges.

‘ in the case of OFFICE OF THE bxmacmn or

fiaIéARTM£N”r or MINES AND GEOLOGY v. M. M01-IAMMED

(d) In cases covered by paras (b) and (c) the
Department cannot recover or deduct any
royalty from the bills of the contractor and;”””‘ D
if so deducted, the Department D
bound to refund any amount: so.deducte’d”t.–VI.t

or collected to the contractor.’-._

(e) Subject to the above, colIe_ct’:on ofhroyaltyhby
the Department or refund’-therjeof .5-fine
Department will .b”e~..gove’rn’ed~-‘by»»’th_e terms

of contract.

(f) Nothing stated ‘above shah’ as a
direction _{.refun_d’ ._in regard to any

The Department or
authority decide in each
case;..yyheth’e_r’aroyalty is to be deducted or

_; ‘if any royaltyhis afready deducted, whether
“‘v–.{‘it5.–.”s.ho’uld be ‘refunded, keeping in view the
ya’b.o’ve principles and terms of the

‘The_seVVi’d decision has been upheid by the Division Bench

‘ ” Yes / Nor 03

it . ‘ . _» 4: ~–‘.:xVv’-ob’ ‘Yes/No

HAJEE in Writ Appea! No. 830 of 2006 disposed of onp.–25″‘

September, 2006.

4. Foiiowing the judgment of this fCoi0’rt’:e’n_de:ed”
Appeal l\£o.830 of 2006 disposed of on :42′.t_5″‘*L”–V_.SepteVr;raAt’3:er,’*

these writ petitions are aiso disposed”–voTf.’~i. No order’

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