Messrs POINEER CEMENT LTD. vs SECRETARY, INDUSTRIES AND MINERAL
This petition is directed against the judgment of the Lahore High Court dated 27-4-2000, which dismissed the petitioner-Company's writ petition challenging the vires of rule 50(2) of the Punjab Mining Concession Rules, 1990. The petitioner-Company holds a mining lease for limestone and disputed the increased royalty rate of Rs. 15 per ton fixed in January 1998, along with the directions to pay the differential amount. The core legal question involved the authority of the Government to frame rules and impose penalties regarding mineral development and mining concessions. The Supreme Court held that section 2 and section 3 of the Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948, authorize the Government to frame rules and impose penalties, and further noted that the terms of the lease obligate the petitioner to abide by the applicable rules and pay all required taxes and rates. Finding no illegality in the impugned judgment, the Supreme Court dismissed the petition, thereby affirming the legality of the rule-making power and the consequent obligations of the lessee.
- Does the Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948 authorize the Government to frame rules regarding mining concessions?
- Whether section 3 of the Regulation of Mines and Oilfields and Mineral Development (Government Control) Act, 1948 empowers the making of rules envisaging the imposition of penalties?
- Are lessees bound to pay increased royalty rates and abide by the Punjab Mining Concession Rules pursuant to lease contract terms?
- Section 2, Regulation of Mines and Oilfields and Mineral Development (Government Control) Act 1948
- Section 3, Regulation of Mines and Oilfields and Mineral Development (Government Control) Act 1948
- Rule 50(2), Punjab Mining Concession Rules 1990
ORDER
' KHALIL-UR-REHMAN RAMDAY, J.---This petition is directed against a judgment of the Lahore High Court dated 27-4-2000 passed in Writ Petition No, 7171 of 2000.
2. The petitioner-Company which runs a cement manufacturing plant holds the lease from the Directorate of Industries and Mineral Development, Punjab, for mining limestone. The petitioner- Company was required to pay royalty to the respondent-Government initially at the rate of Rs,1.50 per ton which was increased to Rs,5 per ton in the year 1993 and was further increased to Rs,15 per ton in January, 1998. Having not paid the royalty in terms of the rate fixed in January, 1998, the petitioner was directed to pay the differential amount of money who challenged the said order before the Secretary by way of an appeal which was dismissed on 22-9-1999. The petitioner then approached the Lahore High Court through Writ Petition No,3772 of 2000 which was dismissed on 6-3-2000 as having been withdrawn. The petitioner thereafter filed a fresh petition in the Lahore High Court bearing Writ Petition No,7171 of 2000 questioning the vires of rule 50(2) of the Punjab Mining Concession Rules, 1990 which petition was dismissed through the impugned judgment.
Hence this petition.
3. The Lahore High Court had dismissed the petitioner's above mentioned writ petition after it had found that section 2 of theRegulation of Mines and Oilfields and Mineral Development (Government Control) Act of 1948 did authorize the Government to frame rules and section 3 of the said Act further authorized the making of rules envisaging imposition of penalty. The learned High Court had also noticed that Paras. XIV and XXII of the contract of lease obliged the petitioner-Company to abide by all the provisions of Punjab Mining Concession Rules, 1986 and was obliged to pay all taxes, rates, etc. Which were required to be paid to the Government.
4. We have heard the learned counsel for the petitioner at some length who has not been able to point out any illegality in the impugned judgment of the Lahore High Court. This petition is, therefore, dismissed. .
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