Madras High Court
M/S.Bannari Amman Sugars Limited vs The District Collector on 1 December, 2021
W.P.No.20491 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.12.2021
CORAM
THE HONOURABLE MR. JUSTICE M.DHANDAPANI
W.P.No.20491 of 2019
M/s.Bannari Amman Sugars Limited,
represented by its Company Secretary,
C.Palaniswamy
Regd. Office : 1212, Trichy Road,
Coimbatore – 641 018. ... Petitioner
vs.
1. The District Collector,
Dharmapuri District.
2. The Secretary to Government,
Industries Department,
Government of Tamil Nadu,
Secretariat,
Chennai 600 009.
3. The Director of Geology and Mining,
Government of Tamil Nadu,
Guindy, Chennai 600 032. ... Respondents
Writ Petition filed under Article 226 of the Constitution of India
praying for the issuance of a Writ of Certiorarified Mandamus, calling for the
records of the 1st Respondent raising demand vide letter dated 19.06.2019
Na.Ka.No.350/2017 (Minerals) and consequently issue a Mandamus
directing the Respondents to demand for contribution towards DMF only with
effect from 19.05.2017 vide G.O.Ms.No.57 Industries (MMD-1).
Page No.1 of 8
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W.P.No.20491 of 2019
For Petitioner : Mr.Rahul Balaji
For Respondents : Mr.B.Vijay,
Addl. Government Pleader
ORDER
Petitioner has come up with this Writ Petition challenging the demand
raised by the 1st Respondent vide letter in Na.Ka.No.350/2017 (Minerals),
dated 19.06.2019 and for a consequential direction to the Respondents to
demand for contribution towards DMF only with effect from 19.05.2017 vide
G.O.Ms.No.57 Industries (MMD-1).
2. It is stated by the Petitioner that, their Company was granted
quarrying lease under the then Rule 8A of the Tamil Nadu Minor Mineral
Concession Rules, 1959 for quarrying black Granite over an extent of 6.00.00
hectares of land in Survey No.260/(part-2) in Panchapalli Village, Palacode
Taluk, Dharmapuri District, for mining black Granites, originally for a period
of ten years from 28.03.1991 to 27.03.2001 vide G.O.(2D) No.70, Industries
Department, dated 08.03.1991. Thereafter, the said quarrying lease was
renewed for the period from 28.03.2001 to 27.03.2021 vide G.O.(2D) No.39,
Industries (MME.2) Department, dated 21.11.2017.
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W.P.No.20491 of 2019
3. The Central Government, vide Mines and Minerals
(Development and Regulation) Amendment Act, 2015, inserted Section 9B in
the Mines and Minerals (Development and Regulation) Act, 1957 with effect
from 12.01.2015, which empowers the State Government by a Notification, to
establish a Trust as a non-profit body, to be called the 'District Mineral
Foundation'. Thereafter, on 17.09.2015, the Ministry of Mines issued a
Notification vide G.S.R.715(E) inter alia, prescribing the amount of
contribution to be made to District Mineral Foundation with reference to
royalty paid in terms of the second Schedule to the Mines and Minerals
(Development and Regulation) Act, 1957.
4. The Government of Tamil Nadu vide G.O.Ms.No.57, Industries
(MMD-1), dated 19.05.2017, framed Rules viz. Tamil Nadu District Mineral
Foundation Rules, 2017, inter alia for establishment of District Mineral
Foundation, for prescribing the rates in respect of minor minerals.
5. The case of the Petitioner is that, they had been granted
quarrying lease for black Granite, which is a minor mineral and in case of
lease relating to minor minerals, the State Government has to prescribe the
amount payable to the District Mineral Foundation (DMF) under sub-Section
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W.P.No.20491 of 2019
(4) of Section 15 read with Section 15A of the Mines and Minerals
(Development and Regulation) Act, 1957. It is stated by the Petitioner that,
for the State of Tamil Nadu, District Mineral Foundation was notified and
established only on 19.05.2017 under G.O.Ms.No.57 and prior to the said
Notification, no rates were prescribed under any law. Hence, according to the
Petitioner, the contribution to District Mineral Fund cannot be demanded with
effect from 17.09.2015 and it can only be demanded from the date, the State
Government prescribed the rates under the Tamil Nadu District Mineral
Foundation Rules, 2017, i.e. with effect from 19.05.2017 and not from
17.09.2015, as notified by the Central Government. Aggrieved by the
impugned demand notice dated 19.06.2019 passed by the 1st Respondent,
whereby, they are asked to pay the contribution to District Mineral
Foundation from 2015, the Petitioner is before this Court by way of the
present Writ Petition.
6. Learned counsel for the Petitioner submitted that, the issue
raised in the present Writ Petition is no longer res integra, as the issue had
already been decided by a Division Bench of this Court in W.P.No.1256 of
2018 batch of cases, vide order dated 16.09.2019. Relevant portion of the
said decision is extracted hereunder:
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W.P.No.20491 of 2019
“50. The learned Advocate General appearing for
the State of Tamil Nadu has fairly accepted that, in view of
the proposition in law laid down by the Hon'ble Supreme
Court in Federation of Indian Mineral Industries and
others vs. Union of India and another reported in (2017)
16 SCC 186, the State Government does not have the
power to collect contribution to District Mineral
Foundation, from an anterior date to the establishment of
fund, by the rules framed on 19.05.2017.
51. In view of the above, all the Writ Petitions are
disposed of in the light of the judgment of the Hon'ble
Supreme Court in Federation of Indian Mineral
Industries and others vs. Union of India and another
reported in (2017) 16 SCC 186. It goes without saying that
the above judgment of the Hon'ble Supreme Court has the
effect of striking down Rules 8 to 11 of the Tamil Nadu
District Mineral Foundation Rules, 2017. In all the cases,
amount demanded has been paid. The Petitioners are
entitled to refund of the excess amount paid. Hence, the
Respondents are directed to refund the excess amount to the
Petitioners, within a period of two months, from the date of
receipt of a copy of this order. ... ”
7. Learned Additional Government Pleader appearing for the
Respondents conceded to the submissions of the learned counsel for the
Petitioner.
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W.P.No.20491 of 2019
8. Heard the learned counsel on either side and perused the material
documents available on record.
9. It is seen that, the issue raised in the present Writ Petition has
already been decided by a Division Bench of this Court in W.P.No.1256 of
2018 batch of cases, vide order dated 16.09.2019. The Hon'ble Supreme
Court in the case of Federation of Indian Mineral Industries (supra) has
clearly held that, the State Government does not have the power to collect
contribution to District Mineral Foundation, from an anterior date to the
establishment of fund, by the Rules framed on 19.05.2017. Following the
ratio laid down in the said decision, this Court quashes the impugned
demand notice dated 19.06.2019 passed by the 1 st Respondent herein.
The 1st Respondent is directed to refund the excess amount, if collected prior
to 19.05.2017, to the Petitioner, within a period of two months from the date
of receipt of a copy of this order. However, the Respondents are entitled to
collect the contribution towards District Mineral Foundation from the
Petitioner, after 19.05.2017.
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W.P.No.20491 of 2019
The Writ Petition is allowed on the above terms. No costs.
Consequently, connected W.M.P.Nos.19774 & 19775 of 2019 are closed.
01.12.2021
Index : Yes/No
Speaking Order : Yes/No
(aeb)
To:
1. The District Collector,
Dharmapuri District.
2. The Secretary to Government,
Industries Department,
Government of Tamil Nadu,
Secretariat, Chennai 600 009.
3. The Director of Geology and Mining,
Government of Tamil Nadu,
Guindy, Chennai 600 032.
https://www.mhc.tn.gov.in/judis
W.P.No.20491 of 2019
M.DHANDAPANI,J.
(aeb)
W.P.No.20491 of 2019
01.12.2021
https://www.mhc.tn.gov.in/judis
