{"id":54779,"date":"2009-06-04T00:00:00","date_gmt":"2009-06-03T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-nirman-engineers-and-vs-the-state-of-karnataka-by-its-on-4-june-2009"},"modified":"2019-04-09T12:19:50","modified_gmt":"2019-04-09T06:49:50","slug":"ms-nirman-engineers-and-vs-the-state-of-karnataka-by-its-on-4-june-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-nirman-engineers-and-vs-the-state-of-karnataka-by-its-on-4-june-2009","title":{"rendered":"M\/S Nirman Engineers And &#8230; vs The State Of Karnataka By Its &#8230; on 4 June, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Karnataka High Court<\/div>\n<div class=\"doc_title\">M\/S Nirman Engineers And &#8230; vs The State Of Karnataka By Its &#8230; on 4 June, 2009<\/div>\n<div class=\"doc_author\">Author: P.D.Dinakaran(Cj) &amp; V.G.Sabhahit<\/div>\n<pre>1\n\nIN THE HIGH COURT OF KARNATAKA AT BANGALORE\nDATED THIS THE 4\"' DAY OF JUNE 2009\n\nPRESENT\n\nTHE HON'BLE MR. 9.0. DINAKARAN, CHIEF Jus'r1_oE\n\nAND\n\nTHE Hcm'sLE MRJUSTICE V.G. sABHAH\u00bb1Tj~..  \n\nBetween :\n\nM\/s. Nirman Engineers &amp; Contractors, V .,\nRepresented by its Managing Partner,  \nB. Kishor Kumar Hegde, ' \nS\/o.iate Kushal Hegde,\n\nAge: 44 years,  \nOcc: Contractor, A  '\nR\/at. No. 973, Ist f|oo_r,.--. _  V     \n45**\"cross, NearE.S.I. Hqspitai,  f  \" \n\n3\"' block, Rajajinaga'r\",\"  \nBangaiore \u00ab~ 560 03.9. -j__  '\n\n_v V ...Petitioner\n  {By Sri\"Na-geraja N Naidu, Advocate)\n\nAnd;' T\n\n  1. The\ufb01tate 'ieagrnataika, by its Director,\n\nDepartment. ~of_f\\{i..ines &amp; Geology,\nKanija Bi*:a\\kan,'Race Course road,\n\n1.  _f3A.NGALo'RE_ \"- 01.\n\n Se(_:i'etary, State of Karnataka,\n\n_C_or'nn'ierCe &amp; Industries Department, W\n. \u00a7:\"\" )E7\ufb02'\u00a5\n\n' 'Tij-.._M.s.;Bundsng, 3  g\n, 1' BANGALORE -~ 01. \n\nwan PETITION mg. 6928 or :&gt;;oo:s,(4,ipre.I.imina'r=yihearinglt  there'\n\nCourt delivered the foilowingw\n\n3 UKD'~G___M__rE hi 1* A\n\n(Delivered by Pp. peinaiimn, \n\nThe    registered civil contractor\ncarrying on civil'worksVV_.oaf1tvh\u00a7*Qoilernment Department and Local\nBodies.  -is contendedhvthat  the purpose of execution of civil\nv}orks,yVtiie{' p.etiti'o.nerxiwswr\u00e9ciuired to purchase building materials\n\nfrorn_then'pri'v.ate%'jsources. It is further contended that the\n\nit,tpetitioner_Vdoe.sinotjlown any quarry and that he is not iiable to\n\n\"--\u00abi.-l'pav\"any royalty to the respondents. However, the respondents\n\nit\"--V.Vare\"'tiyed.uc'ting royalty from the bills of the petitioner without\n\n of law. Hence, this writ petition praying not to deduct\n\n\n\nthe royalty from the bills of the petitioner in respect of the\nmaterials procured by him from private sources for execution of\n\nthe civil contract works.\n\n2. In simiiar matters, this Court in G.V. \n\nomens v. STATE or KARNATAKA AND oT.HgE~--as?.'tiyi:nliygwrit 'A \n\nPetitions No. 31384-31266 of 1994 dispiosecl\u00e9lojflon\n\n1994 has laid down the principles_4reiating\"~to \n\nroyaity by the contractors. The same\"i'i'a:re extra'ct.eAdr hjereunderz\n\n(a) Where providing theiimateria\ufb01l i'sui\u00e9jected_ to royalty)\nis the responslbi'lit_y[o.f the; contractor\" and the\nDepartm.er;=t_V pro vldesi the contrjactorlhpj with speci\ufb01ed\n\n;';,vorro'i_l1i\"'lvf;&gt;,3_-reasyghp extraction of the required\ncc.nstruct'ion'Trnateriai,njtite contractor will be liable\nto pay\" royalty'.:charges for the material (minor\n\nis ' mineral)'-.eXtracted from such areas, irrespective of\n mlfhgether .th'e'contract is a item rate contract or a\n  lun?p'\u00absum_ contract. Hence deduction of royalty\n such cases will be legal. For this purpose\n no.n\u00a5e.\u00a7\u00a7ecution of mining lease is not relevant, as\n\nit the liability to pay royalty arises on account of the\ncontractor extracting material from a Government\n\n land, for use in the work. \n' it  MW...\ngm _,,,,.-----~'\n\n\n\n(b)\n\n( C)\n\n(0')\n\n4\n\nWhere under the contract the responsibility to\n\nsupply the material (minor minerals) is that of the'-\n\nDepartment\/employer and the\n\nrequired to provide only the labour and sen.\/ice'   -I~ \nexecution of any work involving useV__of...such\nmaterial, and the unit rate does\"-not  \ncost of material, there is \"no   \n\ncontractor to pay any royalty. H_'l'his willvxbeelvthe  3\n\nposition even if the contractor if. . requireld to\ntransport the material from 'outside the\" work site,\nso long as the un'it4_ra--te  only\"t'o_r.labour or service\n\nand doeslnot include the cost or ma--ter.lai.__\n\nWhere the\"..e:(;ij.ntractor uses. Ama_terialf'purchased in\nopen,  that n'iaterial_ purchased from\nprivate. esoiirces iilfe.  holders or private\n= _:tl:-ere  liability on the\n\nco_nt'ract'or vto:'paye\u00bba4ny__royalty charges.\n\nIn cases. coveredgiby paras (b) and (c) the\n\ng: ' Departmenetllcannot recover or deduct any royalty\n\n fifom 'thee billsvvof' the contractor and if so deducted,\n\n the= Department will be bound to refund any\n\n  ainou_nt~3$o\"'deducted or collected to the contractor.\n\nSubject to the above, collection of royalty by the\n\nDepartment or refund thereof by the Department\n\nV u will be governed by the terms of contract.\n\n \n\ncontractor f \"is.    \n\n\n\n(f) Nothing stated above shall be construed as a\ndirection for refund in regard to any particular\ncontract. The Department or authority concerned\nshall decided in each case, whether royalty is to \ndeducted or if any royalty is already deddcte\ufb01w;\ufb0241'i,,.,ii,\n\nwhether it should be refunded, keeping in    \n\nabove principles and terms of the contrac.tJ'V_'4_: V  '\n\n3. The said decision has beer}: upheld \n\nBench of this Court in the case of\u00bb'O.i_=FICE.V_f)F TI-\u00a7*E:v'l'\n\nor DEPARTMENT OF MINES \\'i'A:r~Iou \u00e9eaigdevvj v. M.\nMOHAIVIMED HAJE!.=. in Wrif:'---liif-pee\u00a7:l my asollcfzooe disposed of\non 25\"' September, 2006.   2 l h V' V\n\n4. FoI'Eow.!.rjig_Vtheyj'ud\"grjj'entlof'ttiVis Court rendered in Writ\nAppeai No.83o sf 2looh6'sI'lspossc.i:\u00a2.t on 25\"' September', 2005 this\n\nwrit petitioynvis also dispo-sed_ off No order as to costs.\n\n .....  \n<\/pre>\n<p>Chief Justice<\/p>\n<p>Sc!\/,\u00a7<br \/>\nIud\u00e9g<\/p>\n<p> No it<br \/>\n. .V:&#8221;&#8217;N\u20acb HOSE: Ye \/NO<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karnataka High Court M\/S Nirman Engineers And &#8230; vs The State Of Karnataka By Its &#8230; on 4 June, 2009 Author: P.D.Dinakaran(Cj) &amp; V.G.Sabhahit 1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 4&#8243;&#8216; DAY OF JUNE 2009 PRESENT THE HON&#8217;BLE MR. 9.0. DINAKARAN, CHIEF Jus&#8217;r1_oE AND THE Hcm&#8217;sLE MRJUSTICE V.G. sABHAH\u00bb1Tj~.. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-54779","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Nirman Engineers And ... vs The State Of Karnataka By Its ... on 4 June, 2009 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/ms-nirman-engineers-and-vs-the-state-of-karnataka-by-its-on-4-june-2009\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M\/S Nirman Engineers And ... vs The State Of Karnataka By Its ... on 4 June, 2009 - Free Judgements of Supreme Court &amp; 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