Summary
The Court distinguished establishment of District Mineral Foundations from enforceability of mining lessees’ contributions. Contributions could not be demanded from 12 January 2015 before rates were prescribed. It fixed different commencement rules for coal-related and other minerals, struck down the 2016 backdating notification and directed adjustment, rather than refund, of premature payments.
Issues
- Whether earlier deemed establishment of DMFs justified contributions from 12 January 2015.
- When liability became payable for the two mineral categories.
- What consequences followed for arrears and premature payments.
Provisions considered
- Section 9B and Section 13(2)(qqa), Mines and Minerals (Development and Regulation) Act, 1957State governments establish DMFs and the Central Government prescribes contribution amounts. The powers did not authorise retrospective monetary exaction before rate specification. (¶¶ 2–4, 23–24)
- Notifications of 17 September and 20 October 2015; amendment of 31 August 2016, Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015Different operative dates governed non-coal and coal-related minerals; the 2016 retroactive substitution was ultra vires. (¶¶ 7–12, 35–44)
Held
- The earlier effective dates of DMF establishment did not invalidate the foundations or prejudice lessees’ vested rights. That did not permit contributions from January 2015: a specified rate is essential, and a statutory maximum alone leaves the quantum uncertain. (¶¶ 14–33, 46(i–iii))
- For minerals other than coal, lignite and sand for stowing, contribution was payable from 17 September 2015, when rates were notified. State delay in establishing a DMF did not postpone this statutory liability. (¶¶ 35–41, 46(iv))
- For coal, lignite and sand for stowing, the original rule expressly required payment from 20 October 2015 or the relevant State’s notification establishing its DMF, whichever was later. The 31 August 2016 attempt to substitute liability from 12 January 2015 was struck down. (¶¶ 42–44, 46(v–vi))
- Outstanding contributions were allowed until 31 December 2017, failing which 15 per cent annual interest would apply from the due date. Amounts mistakenly paid for earlier periods were not refundable but could be adjusted against future contributions without interest. (¶ 48–49)
Result
Transfer petitions allowed and batch disposed of with specified contribution commencement dates; 31 August 2016 notification struck down; arrears deadline and adjustment directions issued.