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Judgment
By this writ petition under Article 226 of the Constitution of India, the petitioner is praying for quashment of order dated 23.2.2012 (Annexure A/7)
passed by the Collector, Ratlam and order dated 4.1.2017 passed by the Appellate Authority (Director of Geology and Mining), Madhya Pradesh by
which prayer of the petitioner for payment of dead rent at the rate of old rate has been rejected and learned Statutory authorities directed the
petitioner to pay dead rent at the rate of Rs.25,000/- per annum for the period from 2nd year to third year of the quarry lease and at the rate of
Rs.30,000/- per annum for the period from 4th year till the period of lease expires.
Facts of the case are that the petitioner was granted quarry lease for stone for making gitti by Mechanical Crushing (i.e. use of crusher) for a
period of ten years, as per terms and conditions of the lease deed.
In exercise of the powers conferred by Section 15of the Mines and Minerals (Development and Regulation) Act, 1957 the State Government make
M. P. Minor Mineral Rules, 1996 (for short “the Rules of 1996â€). The said Rules came into force on 1.4.1996. As per Rule 30 (1)(b) of Rules of
1996 the lessee shall pay the dead rent or royalty in respect of each mineral whichever is higher in amount but not both. Clause (b) of Rule 30 (1) of
Rules of 1996 reads as under:-
“(b) The lessee shall pay the dead rent or royalty in respect of each mineral whichever is higher in amount but not both. The lessee shall pay
royalty in respect of quantities of mineral intended to be consumed or transported from the leased area, no sooner the amount of dead rent already
paid equals the royalty on mineral consumed on transported by him. The dead rent of royalty shall be deposited in the [Revenue receipt head
prescribed in sub-rule (3) of Rule 10].â€
Rule 29 deals with Rent and Royalty. As per Rule 29 (1) (a) the dead rent (stone for crusher) shall be charged at the rates specified in Schedule-
IV. At Serial No.5 of Schedule â€" IV which deals with rates of dead rent in rupees per hectare and per annum reads as under:-
M. P. Minor Mineral Rules, 1996
           [SCHEDULE-IV
            (See Rule 29)
Rates of Dead Rent in Rupees per Hectare and Annum
Sr. No.  Category of Mineral 1st year 2nd year to    Â
4th year
of the 3rd year
of        of the
 quarrythe quarry     Â
quarry
lease lease     Â
       Â
and   Â
onward
(1)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â (3) Â (4)Â Â Â Â Â Â Â Â
(2) Â Â Â Â Â Â (5)
1...........................................
2........................................
3.......................................
4......................................
5. Stone for crusher Nil 30,000/-    Â
40,000/-
6.............................
7..............................
8.............................
Note.- In case of renewal of quarry lease, the rates of dead rent applicable shall be as per column (5) above]â€
Rule 29 (1) (a), Sub-rule 4 and 5 of the Rules of 1996 reads as under:-
Rent and Royalty.-(1) When a quarry lease is granted or renewed â€
 (a) dead rent shall be changed at the rates specified in
Schedule IV; (b) ... ... ...
(c) ... ... ... (d) ... ... ...
(2) ... ... ...
(3) ... ... ...
(4) Notwithstanding anything contained in any instrument of the lease, the lessee shall pay rent/royalty in respect of any mineral removed and/or
consumed at the rate specified from time to time in Schedule III and IV.
(5) The State Government may, by notification in the Official Gazette amend the Schedules III and IV so as to enhance or reduce the rate at which
rents/royalties shall be payable in respect of any mineral with effect from the date of publication of the notification in the Official Gazette:
Provided that the rate of royalty/dead rent in respect of any mineral [shall not be increased] more than once during any period of three years.
Clause 1 and 2 of Part- V of the quarry lease deed reads as under:-
PART V
Rents and Royalties reserved by this Lease
To pay dead rent or royalty whichever is higher .-The lessee shall pay for every year [XX], dead rent as specified in clause 2 of this Part;
Provided that, where the holder of such quarry lease become liable under Rule 30 of the Rules to pay royalty for any mineral removed or consumed
by him or by his agent, manager, employee, contractor or sub-lessee from the leased area he shall be liable to pay either such royalty or the dead rent
in respect of that area, whichever is higher.
Rate and mode of payment of dead rent.-Subject to the provisions of clause 1 of this part during the subsistence of the lease, the lessee/lessees
shall pay to the State Government annual dead rent for the lands demised and described in Part I of this Schedule at the rate for the time being
specified in the Schedule IV of the Rules in such manner as specified in Rule 30(1), (a).
Sub-section (1) of Section 15 of Mines and Minerals (Development and Regulation) Act, 1957 empowers Government to make Rules for fixing rate
of dead rent/royalty in respect minor minerals and for purposes concerned therewith. Power to make rules conferred on the State includes power to
charge dead rent and royalty. As per terms and conditions of the lease deed and Rule 29 of the Rules of 1996, the petitioner/quarry lease holders are
bound to pay enhance rate of dead rent because they themselves agreed for this and executed a lease deed on 18.8.2008. 8. As per statutory
provision, it is open to a State Government to enhance the rate of dead rent at any time once during the period of three years from the coming into
force of the Rules and after each period of three years at any time during each succeeding period of three years. The dead rent is a fixed return to the
lessor, royalty is a return which varies with the quantity of minerals extracted or removed. The dead rent can be described at the minimum
guaranteed amount of royalty payable to the lessor but calculated on the basis of the area leased.
The power to make rules for regulating the grant of quarry leases would, therefore, include the power to fix the consideration payable by the lessee
to the lessor in the shape of dead rent and royalty. If this were not so, it would lead to the absurd result when the Government grants a quarry lease, it
is granted gratis to a person who wants to extract minerals and profit from them.
The learned Adjudicating Authority considering the relevant provisions of the Rules of 1996 and terms and conditions of the lease deed came to
the conclusion that petitioner is liable to pay enhanced rate of dead rent with effect from 5th March, 2010.
Paras 2 and 3 of order dated 23.2.2012 passed by the Collector, Ratlam reads as under:-
 ¼2½ e-iz- xkS.k [kfut fu;e 1996 ds fu;e 29 ¼1½ ¼d½ ds
rgr vuqlwph pkj esa fofufnZ""V njksa ds vuqlkj vfuok;Z HkkVd izHkkfjr fd;k tk;sxk rFkk mifu;e ¼4½ ds rgr fdlh iV~Vk fyf[kr esa varfoZ""V fdlh
ckr ds gksrs gq, Hkh iV~Vsnkj vuqlwph rhu vkSj pkj esa le;≤ ij foufnZ""V njksa ls HkVd@LokfeRo dk Hkqxrku djuk gksrk gS RkFkk mifu;e
¼5½ ds rgr jkT; ljdkj 'kkldh; jkti= ds vf/klwpuk }kjk vuqlwph rhu ,oa pkj dks la'kksf/kr dj ldsxk tksfd 'kkldh; jkti= esa vf/klpw uk ds izdkf'kr gksus
ds fnukad ls ns; HkkVd@LokfeRo dh nj esa o`f) dh tk lds ;k mls ?kVk;k tk ldsxkA iz'uxr Hkwfe ds mR[kfuiV~Vk foys[k Hkkx&ikap dh 'krZ&2 ds
rgr vuqlwfp&pkj eas rRle; foufnZ""V njksa ls MsM jsUV dk Hkqxrku jkT; ljdkj dks djuk gksrk gSA
 ¼3½ [kfut lk/ku foHkkx Hkksiky dh vf/klpw uk dzekad
19&71@200@ckjg@1 Hkksiky fnukad 3 ekpZ 2010 }kjk e-iz- xkS.k [kfut fu;e 1996 dh vuqlwph&rhu rFkk pkj ds LFkku ij la'kksf/kr vuqlwph rhu
rFkk pkj dh vf/klwpuk tkjh dh xbZ ftldk izdk'ku 'kkldh; jkti= Hkkx&4 ¼x½ esa fnukad 5 ekpZ 2010 esa gksdj vf/klwpuk ds jkti= esa izdkf'kr
fnukad ls izfr gSDVj izfro""kZ Hkw&HkkVd dh njs izHkko'khy dh xbZ gSA vuqlwph&pkj ¼fu;e 29½ ds rgr dkye uEcj ¼3½ esa
mR[kfuiV~Vs ds izFke o""kZ fujad dkye uEcj ¼4½ f}rh; o""kZ ls r`rh; o""kZ ds fy;s 25]000@& izfr gsDVj rFkk fVIi.kh esa mR[kuu iV~Vks ds
uohuhdj.k dh n'kk esa ykxw MsMjsV dh nj dkye ¼5½ ds vuqlkj gksxh vFkkZr mR[kuhiV~Vs ds uohuhdj.k dh n'kk esa izFke o""kZ ls gh MsMjsUV
dh njsa dkye uEcj ¼5½ vuqlkj izHkko'khy dh xbZ gSA vr% la'kksf/kr MsM jsUV dh njs leLr orZeku esa izpfyr mR[kfuiV~Vks ij jkti= esa
izdk'ku fnukad 5 ekpZ 2010 ls izHkko'khy dh xbZ gSA Jh lquhy tSu dks Lohd`r mDr mR[kfuiV~Vs ij Hkh MsMjsUV dh la'kksf/kr njs izHkko'khy
gksus ls mls fu;ekuqlkj MsMjsUV dh l'a kksf/kr crFkk djus rFkk vU; vfu;ferrk fd;s tkus gsrq lwpuk i= fnukad 2&9&2011 dks tkjh fd;k x;kA vr% Jh lquhy tSu ds }kjk bl laca/k esa tks tokc izLrqr fd;k
x;k oks ekU; f;s tkus ;ksX; ugh gS rFkk MsMjsUV jkf'k dh xbZ x.kuk fu;ekuqlkj gksdj olwyh ;ksX; gSA**
The Appellate Authority confirmed the aforesaid order and dismissed the appeal.
The Division Bench in the case of Kavelu Udyog Sangh versus State of M.P. reported in 1997 (1) M.P.W.N. 33 has held that power to make
rules conferred on the State under Section 15 (1) of Mines and Minerals (Development and Regulation) Act, 1957 include power to charge dead
rent and royalty. The rules so framed may be amended and dead rent and royalty can also be enhanced. Relevant part of the order deals with the
subject regarding enhancement of dead rent, which reads as under:-
 “ The main contention of the petitioners is that section 15 of the Act does not authorise the State Govt. to charge any dead rent at all and
there is no question of enhancing dead-rent from Rs.65/- to Rs.2,000/- per hectare. Respondents' submission is that the State is competent to enact
the provision for charging dead-rent as well as to increase the same.
It is not necessary for us to deal with the question raised in view of the decision of their Lordships, in D.K. Trivedi & Sons v. State of Gujarat (AIR
1986 SC 1323) wherein the similar question came up for consideration from Gujarat, and after considering the scope of section 15, as it stood, their
Lordships have concluded that under the unamended provision the State is competent to levy dead rent and royalty. It was also observed that the
State can also increase the rate of dead rent. Their Lordships summarised the whole conclusions in para â€" 76 inter alia
“(3) The Power to make rules conferred by S. 15(1) includes the power to make rules charging dead rent and royalty,
(4) The power to make rules under S. 15(1) includes the power to amend the rules so made, including the power to amend the rules so as to enhance
the rates of royalty and dead rent.
(5) A State Government is entitled to amend the rules under S. 15 (1) enhancing the rates of royalty and dead rent even as regards leasesÂ
subsisting at the date of such amendment.â€
In view of the decision in D.K. Trivedi & Sons'Â case (supra), the increase in the rate of dead rent by the State Government by Notification No.F-
19-116-86-XII-2 dated 12th September, 1986 is valid and we do not find any merit in the case.â€
Prior to amendment the rate of dead rent wasRs.25,000/- to Rs.30,000/-. After amendment dated 6.9.2014 the Schedule -IV regarding rates of
dead rent was amended from Rs.30,000/- to Rs.40,000/-. The said amendment was published in the Government Gazette. The lessee are liable to pay
enhance rate of dead rent with effect from 5.3.2010. The mining department of Collectorate, Ratlam issued a notice on 2.9.2011 to pay the dead rent.
This notice was challenged by the petitioner by filing detailed reply. Learned Authority rejected the contention of the petitioner and directed to pay
dead rent as per provisions of Rule 29 and 30 of the Rules of 1996.
This order was challenged by filing a writ petition bearing W.P. No.27622 of 2012. In view of the statutory remedy available under the Rules of
1996, the learned Writ Court disposed of the writ petition on 11.4.2012 with liberty to assail the order by filing an appeal before the Appellate
Authority.
Law regarding the enhancement of rate of dead rent is well settled by the Apex Court as well as by this Court. As per the Rules of 1996 all the
quarry lease holders are liable to pay enhance rate of dead rent from the date of issuance of notification dated 5.3.2010. Section 15 of M.P. Mines
and Minerals (Development and Regulation) Act, 1957 gives power to the State Government to enhance the rate of dead rent as well as rate of
royalty. Clause (g) of Sub-section (1) and (1A) of Section 15 of Mines and Minerals (Development and Regulation) Act, 1957 reads as under:-
Power of State Governments to make rules in respect of minor minerals. -(1) The State Government may, by notification in the Official Gazette,
make rules for regulating the grant of [quarry leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes
connected therewith.
1(A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters,
namely :-
(g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be
payable;
In view of the specific provisions contained in the Rules of 1996 and Part-V of lease deed, the petitioner is liable to pay the dead rent on the basis
of the rate prescribed for the time being under the Rules. There is no infirmity in the passing of the impugned order.  Â
On due consideration of the aforesaid and the law laid down by the Division Bench of Principal Seat in the case of Kavelu Udyog Sangh versus
State of M.P. (supra), I am of the view that the learned adjudicating authority as well as the appellate authority have no committed any legal error
in dismissing the appeal and directing the petitioner to pay the dead rent as per Rule 29 and 30 of the Rules of 1996 and amendment made in
Schedule- IV which was framed under Rule 29 of Rules of 1996.
The petition has no merit and is, accordingly, dismissed. No costs.