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Civil · Reportable judgment

Chandra Bhan Singh vs State of Uttar Pradesh & Others

Court
Supreme Court of India
Date
23 May 2025
Case No.
Civil Appeal No. 12314 of 2024
Bench
Abhay S. Oka, Augustine George Masih
Citation
[2025] 7 S.C.R. 94 : 2025 INSC 763
Acts & Sections
Mines and Minerals (Development and… Uttar Pradesh Minor Minerals (Concession)… District Mineral Foundation Trust Rules…
Supreme Court Reports [2025] 7 S.C.R. 94 : 2025 INSC 763
Issue for consideration
Challenge to the Demand Notices issued to the Appellants demanding 10% of the total bid amount to be deposited with the concerned District Mineral Foundation(s) (DMF).
Headnote

Mines and Minerals (Development and Regulation) Act, 1957 – ss.9B, 14, 15, 15A – Uttar Pradesh Minor Minerals (Concession) Rules, 1963 – rr.21, 23(3), 54, 68 – District Mineral Foundation Trust Rules, 2017 – r.10(2) – Appellant was a successful bidder for mining of minor mineral i.e., sand and was allotted a tender – Demand Notice was issued calling upon the Appellant to deposit 10% amount of the deposited title amount with the DMF – Appellant challenged the Demand Notice before the High Court contending that the amount claimed was contrary to s.9B, 1957 Act – Challenge rejected – Sustainability: Held: s.9B, 1957 Act would not be applicable in the light of s.14 thereof – s.14 makes it clear that ss.5 to 13 of the 1957 Act would not be applicable to the present case as the mineral which is sought to be mined is a minor mineral i.e., sand – Plea of the Appellant based on s.9B(5) is misplaced – State Government has been empowered u/s.15A to determine and fix the amount – The empowerment being there under the Statute conferred on the State to determine the amount and the fixation thereof for minor minerals cannot be faulted with – Demand Notice issued to the Appellant requiring him to deposit 10% of the title amount i.e. the total amount payable for the minor minerals to be extracted was under and in accordance with the statutory Rules i.e., r.10(2), 2017 Rules – Demand Notice and the impugned judgment passed by the High Court is upheld, implying liability of the Appellant towards the DMF Trust. [Paras 17, 18, 20, 21, 24, 26] Mines and Minerals (Development and Regulation) Act, 1957 – Uttar Pradesh Minor Minerals (Concession) Rules, 1963 – rr.68, 21, 23(3), 54 – District Mineral Foundation Trust Rules, 2017 – Appellant was a successful bidder for mining of minor minerals i.e., sand and was allotted a tender – In pursuance to the tender allotted and in consonance with the requirements of the Policy decision dated 22.04.2017, Demand Notice was issued calling upon the Appellant to deposit 10% amount of the deposited title amount with the DMF – Plea of the appellant that the Policy decision itself is not sustainable as the due process for issuance thereof as provided for in r.68, 1963 Rules was not adhered to:

Read the full headnote (1 more paragraph)

Held: There was a reasoned decision at the end of the State for exercising its powers u/s.68, 1963 Rules which fulfills the requirement of the Rule – Further, an Order was also passed by the Lucknow Bench of the High Court in a PIL which had permitted and required the exercise of powers u/r.68, 1963 Rules by the State – This was because of the peculiar situation which was being faced by the State for the total ban on mining activity having been imposed leading to the stopping and delaying of construction and other development works, both in the Government sector as well as the private sector – Exercise of such power when the vital projects were being adversely affected would fall within the purview of r.68 empowering the State to proceed to frame such a Policy – Therefore, no fault in the whole process and procedure adopted by the State. [Para 15]

Keywords: Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957 · Deposit of the amount as per the royalty fixed in Second Schedule of the Mines and Minerals 1957 Act · Rule 68 of the Uttar Pradesh Minor Minerals (Concession) Rules, 1963 · District Mineral Foundation Trust Rules, 2017 · Demand Notice · 10% of total bid amount · District Mineral Foundation(s) (DMF) · Mining of minor minerals · Policy decision dated 22.04.2017

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Augustine George Masih, J. 1. The instant batch of appeals challenge the respective Demand Notices issued by the District Magistrate/District Officer to the Appellants demanding 10% of the total bid amount to be deposited with the concerned District Mineral Foundation(s) (hereinafter, “DMF”). 2. Since the issue involved in all these appeals is common, the facts are being taken from Civil Appeal No.12314 of 2024, which assails the Judgement dated 15.11.2017 passed by the High Court of Allahabad (hereinafter, “Impugned Judgment”) and has been taken as the lead case. 3. The facts, as
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