Karnataka High Court
P K Shivaram vs The State Of Karnataka on 4 June, 2009
Author: V.G.Sabhahit
Bench: V.G.Sabhahit
1
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 4"' DAY or JUNE 2009
PRESENT
THE I-lON'Bi.E MR. P.D. DINAKARAN,CHIE'F'§i)_S1'i:CE, f
AND
THE HoN'BLE MR.JUSTi_C§.-'2V.(§;-.SABHA:HIj'E.._, .3
wan PETITION NO. 5337or2,ooks gc;s.e;»aM.5;
Between: A A A 'O
P.i<. Shivaram, '
S/o.late Kalegowda, 1
Age: 48 years, ., 3
Oct: Class I Contract'o.r,'"''-.._ , ",
R/at.No. 'Shobha NI!'a--y:a,f 9 & F€Bloc'k,
15' Main, Uda'ya'rarvi"RoacEi, "Ra'ma*!<rishh'a'* Naga r,
MYSORE--22;; E ;
V V _ ...Petitioner
(By SA'r'i'Pas.hpakantha, Advocate)
Anti ' A"
The State of'.ViV'{arriataka, by its Director,
A Department 'o-f«~Mines & Geology,
Kanija Bhavan, Race course Road,
A " 'OABAMGALORE -- 01.
Secretary, State of Karnataka,
':,M_.»S--~.t Buiiding, BANGALORE ~ 01. W
"Commerce & Industries Department,
3 I 'E
3 .5 .
M, ,,,, ,.
3. Secretary, State of Karnataka,
Pubiic Works Department,
Vikasa Soudha,
BANGALORE.
4. Execitove Engineer,
Z.P.E.{).,
MANDYA DISTRICT,
'5. Managing Director, V
Cauvery Niravari Nigama Ltd.,(Aii'«.division), V
Coffe Board Building,
BANGALORE.
6. Managing Director, _ ._
Karnataka Niravari Nigama i.td.,(;~'-iii' -;iiivi,siioAn»)v,'
Coffee Board Buiiding, BANGA.LoRE, R
7. Executive Engineer,i"_. f'
Minor Irrigation D.i"vis'i'o3ii.:, ,
8. Executive Engiinee'r,...,_vf . .
Minor Irrigation 'D_ivi~sfion, '
MANDYA. .
V g g iiiii H ...Respondents
I Kareddy, GA for R1 and R2)
Thi"s».wr.i__t '1.)-etition is filed under Articies 226 and 227 of the
_"r~.C_oris.titutior:.. of; India" praying to direct the respondents not to
"d'e'd.a_;ct..a;nY amo-unt as royaity from the biiis of the petitioner in
1 frespect of'-the works carried out by him for the government and
"ioca! bodies and to refund the royaity amount aiready deducted
ijrr_;_:m the biiis of the petitioners.
3 is?
LWMJWM, .... .. ..
1994 has laid down the principles relating to the payment of
royalty by the contractors. The same are extracted hereunder:
(a) Where providing the material (subjected
royalty) is the responsibility of the contractor~'§"~,.
and the Department provides the con4'ti--*actor7f' A
with specified borrow areasymfor extra'ctibn'"o'f
the required constructic-In _m'a;te«ria1!,_ '
contractor will be liable to pay ro_yalty"charges'
for the material (minoimineraI)'"extracted"'from
such areas, i'rrespective.,: the
contract is a item"rate_"con'tract»:or.a 'sum
contract. Hence hdeductidni' of charges
in such cases m{ili"b'e'; purpose
nonV?eXe¢utI;diiVV'0fiii'ii?"f?§."Vléase is not relevant,
as the iiabi'iit;<:%to_4pay"royalty arises on account
of A the * contra'cto--r::"'e.>ttracting material from a
;~ 'Governmentland, for use in the work.
the contract the responsibility to
_ material (minor minerals) is that of
the.l5e_partment/employer and the contractor is
required to provide only the labour and service
_. forexecution of any work involving use of such
it material, and the unit rate does not include the
cost of material, there is no liability on the
'L'?""f>;
(C)
(Cl)
contractor to pay any royalty. This will be the
position even if the contractor is required to
transport the material from outside the Work
site, so long as the unit rate is only for labouu.*.._iV_V
or service and does not include the costéboif'
material.
Where the contractor uses material '-4purchased"*:7' I
in open marked, that is n?ateria"l purchased
from private sources lil<e.._quarly V'iease'v:he{i'ders
or private quarry ownehrispthere Vi's..n'o~Viiability
on the contractor to pay'aiiy'royalty charges.
In cases covered by (c) the
Department _car.fnot ' _fi:ecove'r.._ or ~ deduct any
r'oya'ity.:ifrom:?t'iie of'th'e' contractor and if so
deducted, pepaitmenr will be bound to
refundmany'-anvourltusoi deducted or collected to
, the contracitor.
to thewabove, collection of royalty by
ifiepajttment or refund thereof by the
."""Depa'rt_nient will be governed by the terms of
" contract.
Nothing stated above shall be construed as a
h direction for refund in regard to any particular
contract. The Department or authority
" 7'°"e\
'tfi
(5
'2 " .v\.le1é' Ye§ No
concerned shall decided in each case, whether
royalty is to be deducted or if any royalty is
already deducted, whether it should be___
refunded, keeping in view the above principles._j2_V_
and terms of the contract. " h' 4'
3. The said decision has been uphe|d_.by,.A4_:the:'A-E§iviAsio:r1
Bench of this Court in the case of
OF DEPARTMENT OF muss_%A~ooAoeo:_oesl'tv.;
MOHAMMED muss in Writ Appeaihhhtxisotg 330 moss disposed of
on 25"' September, 2006. V4 H 1' H H
4. Fouowing the judg.men.t ofAthis'.'C.oV;i:rt;rendered in Writ
Appeal :\io.83otioiéoooéiissposeto or'on*2s'" September, 2006 this
writ petition i"s«a'iso order as to costs.
i 33/,
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