1
IN THE HIGi-i comm 0; KARNATAKA AT BAm_c:; §;'L§~R5
DATED 'ms THE 29"' DAY or _
PRESENT % _} %nA
THE HC'3N'BLE MR. FAD.
: mD' g .
THE I---:oN'BLE MR'.5f.£V.iS:"i'ET(;E \f2.'t'§;é_VV:S;.%5§8§-2i$H&T
WRIT PETI'TIDN I®'3_;V;.s'(}5.§:S"_E':i;".8;'$539551/éfi£§§i(GM-MM--S)
Bfltweani K 'V
surest"? »V'B asé1taha'ppé' EZ_>é\}a'p;:a,
Occ: Cifiasss -- I'C.o'm':_ractar,
,Rf% :_ T;*!%V;:ch'E1;%.§:;*2*: *
"'3'."a£'":.r.'_i<:' '
Size: : Bi'c%a:"'~.f _ ' PETITION ER
4{B'ySr§. iG;t:';§'ti'haga Shetti, LR. Eiradar, 5.3. Desai --- Adv.
%_fL__"§ezj__L;Pet_:'s} -V _____ .. e
' 'AF'*ii: * "
"1&. "'I'"f&3e'-..~ $_~"tV.»:~iii:Ve of Karnataka,
. :F_{e;;rsésanted by its Secretary,
.. Eiespartmant of Mines 8: Geoicgy,
'i'!i.S. Suiéding,
AX amsamaa --- 55:3 901.
2, The State of Karntaka,
Represented by its Secretary,
Degartment of Commerce 8: Industries,
M5. Bufiding,
BANGALGRE - 869 801.
3. The Executive Engineer,
Panchayath Raj Engineering Division,
BIDAR.
4. The Exectutive Engineer,
PWD Division,
Ports & Inland Water '
Transport Division, %IDAR. A' 5
(By Sri. Basavaraja Karre€i:£:if§»?V_~ Pr!)
These Writ Petitions----arev-f¥i'e.;i unde'rv.Ar.ti't¥es 226 and
22'? of the Const.iti:.tior.i of' i'In_§:*wiva'*~.praying to direct the
respondents not to" 'toe-oi2;t';'.royei.ty_from the biiis of the
petitioner and not to_”insis_t t?ie”~~pet.i_tio«rrer to produce the
reyaity paid’ ._rece’:pts’-t33i_*t3fee_ ikemiors and direct the
responder’its}to ref-and “tne”r.oyait\,I….aIready deducted from
the biiis”oi”..t%ie..ggetitioner. .
ere coming up for preiiminary
hearing on _tiii’s._de.y,”the __Cot:ri: deiivered the foiiowing:~
e 5UD€fiENT
‘(°DeiiVered by ran. Dinakaran, C.J.)
:[“:?iiV¢§:;petitioner in this petition is a registered cm:
“,__’}:ontr’a’ei;or carrying on civii works of the Government
Beoertment and Locai Bodies. It is centended that for the
.1″jpurpose of execution of civii works, the petitioner is
requiree to purchase buiiding rnateriais from the private
sources. It is further contended that the petitioner do not
‘,.\_;
3
own any quarry and that they are not liaiffi锫££::– §:;&y_j__”any
rayaity tn the respondents. However, _E¥’u’ev–r}:-:5pchd~entS’ aV~re~ ~–,V
deducténg reyaity from the biiilis sf iihé=.;:$et§%:-i6né§r.___w§:t_E1ouf”*.. 5
authority of iaw. Hence; t.i%_1_ese w_r§t E?et.it’iv’£:i.[;s _4_Vpragyérig
to deduct the royaity frorVfiv§fneVV_b§ii’S”<:f t'he'petitioner in
Trespect of the ma–§_é:'iai£§_ p;jro:¥cuVre¢;iA'"'~b_y him from prwate
sources fer executie.n.–éfj*the. Ac:%.vi1" ¥:ar§t=%;stt works.
2.; thés Court Er: av. KUMAR
ANin—o%f’i§é1ié::;;Ls:. s?iAié ‘e§..s&ARNATAi(A AND omens
En Writ :i>eiV:E 1v:i’aié’j:’j<_~; f€.(§4'."3:i'3_84-31266 of 1994 disposed of on
31" Qu?ct.c_: £mr, laid dawn the prirzciples reiating to
Erie:__§ayméréi–'c:f___sfiyaEty by the cantractors. Tha same are
‘ ” exizvrattezfi”iéereurgder:
A f§~:_’}_ ‘Where providing the materiai (subjected
royaify) is the responsibifity of the
“<::0nfrac:tcr and the fiepartment provides the
contractar with specified barrow areas, for
extraction of the required ccnstruction
maéeriai, fize contractor will be Iiabfe to pay
royaify charges far the materiai (minor
minerai} exfracfed from such areas,
4
irrespective of whether the contract rise» ”
rare contract or a fume sum contreef. ”
deduction of re;/ai’ty charges in eases V4§”sy”.I’:ii ” ‘V
be iegai. For this pur;:;osei- .’
mining ieese is not reievenflfias trig-.”.i.iievbiEify1~:fa ‘V
pay royaity arises on:eccouréfw.ef tlie, ciitzrifracstor
extracting rr;.eterieie_.,frr§rn; ‘e__ Gotie”rnrifieHr€€ land,
for use in the._»%iori<A._ ;g 1 "
(5) _imf_3ere,”””‘»ufider.f.._fi§e ihentract the
res;§§orz}5it§§iif§»*A ‘”‘su;§p.{y” fi:e=’ material (minor
i:iine}ai§)”‘~is cffizfiéfiz Department/employer
th°e§:.;c9n{‘.rector’ i;*=.:-refcyuired to provide oniy
me V service for execution of any
” émrki ‘:nv’eivi:_i§g__:k:3e of such materiai, and the
a}’eii;:Vi’a£e e*£;2_eS'”;eet inciude the cost: of meteriai,
£jizere”§s…_i3rJ’ iiebiiity on the contractor to pay
veeriy, royeify. This viii! be the positien even if
1 .,_éfi:ej-..eentrac£or is required ta trenspert the
.’_i1ee%eri’ai frem eutside the work site, so fang as
fee ursif f’3Z’€’ is oniy fer iabour or service and
(fees net intrude the cost of materiei.
((2) Where tire contractor uses maireriei
purchased in eperi marked, that is materiai
purchased frern private sources iiice quarry
{ease heiders er private quarry owners, there is
ax.
5
no liafiaiiity on the contracter to pay arity’ ~
charges.
(cf) Ir} cases coveredeby:pa§aS’=(.b)
the Department ca_:;.r.:_of receirer orV»ci*e;fz :cfi’ ah
royaity from the biiis’-verfthe ear-:£”_fact_”c=r Vifxso
deducted, the 1′;3epar:-“i’eVt:.7’°’I’Le=.r2″1′:’–~.. _wi!i’ bev..bm}nd to
refund any er;*2eun£’A–_S0%.;_»Qfe¢F:.;?;*fe*c:’.»»or Cniiected to
the cc:r:tracta1j, V
{e} 5:1′; r!_7:_e:V.Vv’ia’.éic§v”e5*, coilecrtion of
refund thereof by
“”” ‘i:?e§e§;?fmeh:–8/if!’ ‘be’-Qgoverned by the terms
Qfcmifaéf; . e
f’;«’j§;i. . ifetffig {fated abcve she?! be construed
” ‘V as 5*’ A-efffectien far refund in regard to any
” T pézticufaf’ “”” Weontracr. The Department or
cemcerned shaff decided in each case,
‘V ‘ ‘§%fij.§:e&’}ier reyaity is to be deducted or if any
.re§?aity is afreedy deducted, whether if shouiaf
x v .. A1′ be refundeaf, keeping in View the above
prmcipies and terms of the contract. “”
3* The saéfi decision has been epheid by the
i3§VESi€3i’? Semen 0′?” this Ceert in the case of GFFIEE 6!’ THE
Eiifiifiififiiii ii? WE?fiRT§ViE?~iT 9? Mifififi A83
‘ __1n.§aAx;~. TY ‘es__/ No
E}
G5E()i..fiGY v. 93. rvwfimsmfins HAZEE in Writ Ap’p’fa駒;«r§:”a,
83% of 20% cléspssed of en 25″‘ September, 20%.’ ‘
4. Foziowing the ;”udgme:j t i;h§:§*g:o”:;r:f: re:1.§;:éfV;e_év’:’
in Writ Appeai No.830 of:gQ06 ‘~c$iSpose;!. ~”–.9f”tin
September, 2606 “these Writ §étifiun_s afae-a’3_”s<3v':di§%;;0sed of.
No oraer as to costs. ' A
Eustica
Sgjg
Eifigg
. ' ._.VWéi§h§%§os§;.:V'fee. / fsio