Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1975 (2) TMI 119

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... mpass and may usefully be stated at the outset. The plaintiff was granted a mining lease for mining mica by the erstwhile State of Shahpura for a period of 20 years commencing from the 12th August, 1941. The area of the lease purported to be 1500 sq. miles. In due course the mining area in question came to form part of the State of Rajasthan. The Mines and Minerals (Regulation and Development) Act, 1957-hereinafter called the Act-came into force from 1st June, 1958. Under-section 6(1) of the Act as it stood at the relevant time the area of a mining lease in the case of mica could not be more than 10 sq. miles and its maximum period could not exceed 20 years as provided in Section 8 Section 16 confers power on the appropriate authority to mo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . 2 for a decree of injunction to restrain the defendants from charging dead rent at the rate of ₹ 8/- per acre per annum and for a declaration that they are entitled to charge only at the rate of ₹ 6/- per acre. The suit was decreed by the Trial Court but was dismissed by the First Appellate Court. The dismissal was maintained by the High Court in second appeal. 3. Mr. Y. S. Chitlay, learned Counsel for the appellant, pressed the following five points in support of this appeal: (1) Under the agreement dated 20-11-1959 the lease was to be governed by the Act and the Rules except in regard to dead rent which was fixed at ₹ 6/- per acre. (2) Under Rule 28 of the Rules, the State Government while renewing the lease h .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... them. Rule 27(1)(c) reads as follows : The lease shall pay, for every year, except the first year of the lease, such yearly dead rent within the limits specified in Schedule IV as may be fixed from time to time by the State Government and if the lease permits the working of more than one mineral in the same area, the State Government may charge separate dead rent in respect of each mineral : Provided that the lessee shall be liable to pay the dead rent or royalty in respect of each mineral whichever be higher in amount but not both. There is no element of uncertainty in the Rule either in regard to the grant of fresh lease or in respect of the renewal. The yearly dead rent to be fixed from time to time by the State Government c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... for 20 years without a renewal clause . After providing that dead rent shall be payable at the rate of ₹ 6/- per acre per annum , it was mentioned The following clause shall be deemed to be inserted in the lease deed and shall form part thereof : Except for the modifications made by this order, the lease shall be subject to the Rules made or deemed to have been made under Sections 13 and 18 of the Mines and Minerals (Regulation and Development) Act, 1957 (No. 67 of 1957). 8. It was submitted on behalf of the appellant that when renewal of the lease was granted under Rule 28 of the Rules then the State Government was bound to act upon and incorporate the new clause inserted in the original lease by order dated 20-11-1959. In o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates