Karnataka High Court
M/S B.M.P. Group Of Contractors vs The State Of Karnataka on 22 March, 2010
Bench: V.G.Sabhahit, B.Manohar
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DATED THIS THE 22M> DAY OF MARCI<¥;"2£3.IVV{.3.._'__:' "
PRESENT
THE HONBLE3 MR. JUS"i"I(:f'E3 V (3, 'SAi3i;1z§gR.}.fT.':L"' ' _
AND V _
THE HONBLE '
WRIT PETITION =N..Q.9:3:*z'(j' To J
BETWEEN '% ' E' V I
M/S. B.M.P. c;R.Qi--_.:_R (2-F co:R"1'RAc;j?QRS:'
BYITS PRopR1Ej;To_R., '
SR1 UDAYKUMARV-«:--_V_ *
SON OF NlANE'KA;RAO
AGED_.34-Y_EARS"iI::,
OCCUPATION : CLASS! _c0NTRA<:T0R
R/0 MANJUNATH Ki?UPA'v._ ' »
IVI.B.NAGAR EXTENSION'--.7 «
GULBARGA ' _ , " ::>ETm0NER
{Byfiri G.D.%; éI~1A<3ASi~1ET'1*Y__ ____ __._£.R. BIRADAR. ADVS'. )
'
v . , T1~«1'E__STATE" RARNATAKA
_ REPRESENTED BY ITS SECRETARY
_ <DEPAR'I'MENT OF MINES 8: GEOLOGY
_ 2 BUILDING
"BANG}SLORE«1
royalty to the respondents. However, the respvc-ridents
are deducting royalty from the bills of the without authority of law. Hence. this pe'ti_tio.r1ew.pi'ayirig V' not to deduct the royalty from the"bills7,of.;the' »«petit.iOI1e.r in respect of the materials procured froirip private sources for exeeutiohzoi' the civ.i_l Coritract works.
2. in similar in GM.
KUMAR AND a QEKARNATAKA AND OTHERS in 'l\losl.}V 31384-31266 of 1994 disposed of laid down the principles relating to of royalty by the cor1tractors,y'l'he same are e§«:t,ract.ed hereunder:
{a} Where-.pro\r'idivri'g the material [subjected i"oyalty}'j_i:§ the responsibility of the cofz--traetor<--" and the Department.
provides; the contractor with specified borrow" areas. for extraction of the reqmred construction material, the 'co'r1tractor will be liable to pay royalty ._ charges for the material (minor mineral} ""extract.ed from such aieas. irrespect.ive K?' lb] of vi?het.her the contract is a item rate contract or a lump sum contract, Hence deduction of royalty charges in"
For __ Ith'i's..'j ~ __ purpose non--eXecution of mining"-.l__ease._ d is not relevant, as the liabilit_\yI~i~t»apay, i such cases will be legal.
royalty arises on aee'ou.ni of the Contractor extraming i_nat'e1*ial 3fro13i"- 217"
Government land. for use in the Work... 2 Where under p __ responsibility to supplyuthernaterial {minor n1ine.rals]A..i""'is_f 'lat of" the Departmeiitfietnployeyr., ~.___»_and the Contractor is 1*equired;'to_ "pro\?i'de only the labour an.d._se.rvi.ee._ ior'.eXet:utioI1 of any _ .work inyoivii-1g'~~."ruse of such mat?eriai1i;".aI1d. the uniif 'rate; does not inolude"'t'h'e cost 2 of .__r1';.aterial, there is no liabil'ityi;_..on the"=?3on_tra(;§tor to pay any l"i'oya'i'gty. ":?i'l1isw'i-ll behlthe position even if the leon«t1*a<:t'or_required to transport the 'm_at.'efri.al' i71fo'n] outside the work site, 'A '(tiff jinaterial 'sources like quarry lease holders or private quarry owners.
so long as unit rat.e is only for lai3.ou'rVor_ sei'vi~Ce and does not include ,the C'o.s_t.l'of material.
'jWii65I*e~" the contractor uses material that is private ptircjhased in open market, purchased from there is no liability on the contractor to pay any royalty charges.
K2 coiitracty the"
(d) in cases covered by paras (b) and (C) the department cannot any amount. so deduetzed or '(toll the contractor. _ ' Subject. to the _above,«'.eo'Hectieon 2 royalty by the De-pa~:.."tmen't._oi'.urefti11d'''''' "
thereof by the De*pta1't'ment'-.w1ii' be governed by the tergfnsot'. c"o.nt1"act'.' Nothing sta't'e_ci' '*._ai:):ove*._'=s.ha1I be construed asyflav'd.ireetion"'forafefnnd in regard_:to__ any pa1*~tIeni'a,1'«eontzract. The Departfnent or "'authority'~--=Cor1cernec1 sisal?" Ci~-eei_de _ea'ri'.h"._V case. whether royvaIty;»'_ is ''-'.'o._ be ._dedue.ted or if any
---- ~ro.ya*1tty his walreacly de'dwt;(i4t4ed, whether it shotxld t)e'.refn1"1c1_ed.. keeping in View the above 'pr.A1ne1ptes"__and terms of the "Contract." _ 'A -._deCision has been upheld by the Court in the Case of OFFICE or _T':'..It'_I'fi4ta2._y'DERtfiC"t;Q_R.V4' or DEPARTMENT or? MINES AND MOHAMMED t-MJEES in Writ' Appeal "at-m;'s3o"yx$f 2008 disposed of on 251:: September, 2006. W recover or deduct any royaity from the bills of contractor and if so deducted. A Department will be bound to refund it fdf' .