- 1 - HC-KAR NC: 2025:KHC:21054 WP No. 17067 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 17067 OF 2025 (GM-RES) BETWEEN: 1. K R MANJU S/O RAMAPPA. AGE 54 YEARS. PROPRIETOR. VIJAYA ELECTRICALS. ELECTRICAL CONTRACTOR.R/O.SIR.M.V.LAY-OUT. 8TH BLOCK. BENGALURU. AT. PO.BENGALURU. -560091. …PETITIONER (BY SRI. BASAVARAJAIAH N., ADVOCATE) AND: 1. STATE OF KARNATAKA DEPARTMENT OF ENERGY. REP BY ITS SECRETARY. VIKAS SOUDHA BENGALURU-560001. 2. EXECUTIVE ENGINEER.(ELE) MAJOR WORKS DIVISION.KPTCL. TUMAKURU. AT. PO. (DIST) TUMAKURU.-572102. 3. EXECUTIVE ENGINEER.(ELE) MAJOR WORKS DIVISION.KPTCL HASSAN. AT. PO. DIST. HASSAN.-573201. …RESPONDENTS (BY SRI. MOHAMMED JAFFAR SHAH, ADDITIONAL GOVERNMENT ADVOCATE FOR R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS NOT TO DEDUCT FIVE TIMES OF PENALTY ON Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21054 WP No. 17067 of 2025 THE ROYALTY AMOUNT, FROM THE BILLS OF THE PETITIONER. ANNE-D. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER The present petition has been filed seeking for issuance of writ in the nature of mandamus directing the respondents not to deduct five times of penalty on the royalty amount from the bills of the petitioner. 2. It is the case of the petitioner that the work entrusted is complete, bills have been raised and all the bills have not been cleared despite the respondent having deducted the royalty amount. 3. It is the case of the petitioner that respondents do not have jurisdiction to deduct any amount apart from the royalty amount. Reliance is placed on the order passed in W.P.No.10331/2020 dated 12.11.2020. 4. Perused the order passed in the aforesaid writ petition. Para 6 and 7 of the said order reads as hereunder: - 3 - HC-KAR NC: 2025:KHC:21054 WP No. 17067 of 2025 "6. It is not in dispute that the mineral can be extracted by such lease holders who enter into a lease agreement under the KMMC Rules. Petitioners have purchased different quantities of such mineral for construction and Civil works. The agreement which the PWD Department, as a wing of the Government, has entered with the Contractors stipulates that the Department shall deduct the amount equivalent to royalty payable on the mineral. One Department of the State having entered into contract containing certain covenants binding the parties inter se, it would be incongruous for the other Department of the Government namely Mineral Department to issue such Circulars over-riding the terms agreed between the Government and the private parties. 7. It is argued on behalf of the State that whenever mineral is extracted, the lessee is liable to pay the royalty 6 and collect 'Mineral Dispatch Permit'. If 'Mineral Dispatch Permits' are not produced, State Government will have the power to impose penalty. There is no quarrel with this proposition. But at the same time, it is to be noted that State is equipped with all paraphernalia to check illegal quarrying, if any. The clause to collect the amount equivalent to royalty appears to have been incorporated keeping in view the ground - 4 - HC-KAR NC: 2025:KHC:21054 WP No. 17067 of 2025 reality. In the circumstances, the Contractors who enter into agreements with the State Government Departments cannot be subsequently saddled with penalties under the Minor Mineral Concession Rules because they are not lessees." 5. In light of the same, it is clear that the Government Departments cannot saddle the petitioner with penalties while they are at liberty to deduct royalty amount as agreed. 6. Respondents to consider payment of bills without insisting on five times of penalty on the royalty amount. Such direction is passed in light of assertion of the petitioner that respondents are withholding bills only on the ground that petitioner is not ready to pay five times of penalty on the royalty amount. 7. Accordingly, the petition is disposed off. Sd/- (S SUNIL DUTT YADAV) JUDGE NP