2003 SC 4482 , 2004 (5 )ALLMR(SC)123 , 2003 INSC 542 , [2004 (2 )JCR135 (SC )], 2004 (1 )JLJ90 (SC), JT2003 (Suppl2 )SC443 , 2004 (1 )MPJR(SC)1 , 2004 (1 )PLJR144 , 2003 (8 )SCALE600 , (2003 )8 SCC648 , [2003 ]Supp4 SCR651 , ,MANU/SC/0807/2003R.C. Lahoti#Ashok Bhan#2417SC3420Judgment/OrderAIC#AIR#AllMR#INSC#JCR#JLJ#JT (Suppl)#MANU#MPJR#PLJR#SCALE#SCC#SCR(Supp)R.C. Lahoti,Mines and Minerals#Mines and MineralsSUPREME COURT OF INDIA2012-9-24Avoidance of anomaly,Regard to consequences,Guiding Rules,General Principles of Conformity; Presumption of Validity, Unreasonableness,Conformity with the Enabling Statute,Delegated Legislation And Judicial Review,Delegated Legislation,Remedies/Relief - Remedies for Breach of Contract,Specific Contracts - Sale of goods,Specific Contracts - Sale of goods,Application of restitution.,Miscellaneous,Remedies/Relief - Remedies for Breach of Contract,Contractual Obligations and Rights - Price/Escalation Clauses,Stay of Proceedings and of Execution,Appeals From Original Decrees,The First Schedule,Civil Procedure,Interpretation of Statutes70583,70577,70591,25445,20521,17060 -->

MANU/SC/0807/2003

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 5282, 5283-5287, 5288-5301, 5321, 5353, 5355, 5357, 5359, 5362, 5419, 5434, 5436, 5437, 5459, 5460, 5513 and 5532 of 2002

Decided On: 13.10.2003

Appellants: South Eastern Coalfields Ltd. Vs. Respondent: State of M.P. and Ors.

Hon'ble Judges/Coram:
R.C. Lahoti and Ashok Bhan

JUDGMENT

R.C. Lahoti, J.

1. M/s. South Eastern Coalfields Ltd. and M/s. Western Coalfields Ltd. are Government Companies operating various coal mines in the State of Madhya Pradesh, holding mining leases granted to them by the State Government under the provisions of the Mines and Minerals (Regulation and Development) Act, 1957, hereinafter 'the Act', for short. Coal is a major mineral and the said companies, hereinafter collectively called as 'coalfields', have the exclusive right for extraction of coal under the lease deeds held by them.

2. Sub-section (3) of Section 9 of the Act empowers the central Government to enhance or reduce the rate at which royalty shall be payable in respect of any mineral including coal w.e.f. such date as may be specified in the notification published in the official gazette in that behalf. In exercise of the power so conferred, the Union of India enhanced the royalty payable on coal to Rs. 120/- per ton from Rs. 6.50 per ton, which was the rate prevailing till then. So far as the State Government is concerned, it is entitled to collect the royalty including the enhanced royalty from the lessees, i.e. the coalfields, and the coalfields can, in law, pass-on the burden of royalty to the purchasers/consumers of coal by including the amount equivalent to royalty in the price of the coal. Coal is a controlled commodity and governed by the provisions of the Essential Commodities Act, 1956 and the Coal Control order issued thereunder. Inasmuch as the State Government took steps for recovering the royalty on coal at the enhanced rates from the lessees and the lessees in their turn proposed to enhance the rate at which the coal was supplied to the purchasers/consumers, about 60 writ pet........