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Patna High Court · body

2005 DIGILAW 895 (PAT)

Bihar Brick Manufacturer Association v. State Of Bihar

2005-09-28

BARIN GHOSH

body2005
Judgment 1. This representative action is by the Association of brick kiln owners of the State. In the petition made under Article 226 of the Constitution of India, the Association is contending that the brick kiln owners have paid application fee and royalty (in part or full, less 5%) as they were required to, before removing brick earth and discharged all other obligations on their part, but the respondents, while issuing permit to only one brick kiln owner and failing to issue such permits to other brick kiln owners, are asking the brick kiln owners to pay the balance royalty, price of brick earth, price of sand and interest and while such claims are being put forward, the claims are varying district-wise. While in Muzaffarpur Rs. 6,0007- (Six thousand) is being claimed on account of application fee, Rs. 2,000/- (Two thousand) is being claimed on that account in Saharsa and Munger, and at the same time while in Muzaffarpur on account of sand and bricks Rs. 59,375/- (Fifty nine thousand three hundred seventy five) is being claimed, in the district of Saharsa on account of sand a sum of Rs. 9, 375/- (Nine thousand three hundred seventy five) is being claimed, a sum of Rs. 50,000/- (Fifty thousand) is being claimed on account of royalty and a sum of Rs. 68,750/- (Sixty eight thousand seven hundred fifty) is being claimed on account of price of the minor minerals, but again in the district of Munger on account of consolidated ownership Rs. 70,000/- (Seventy thousand) and on account of sand Rs. 13,125/- (Thirteen thousand one hundred twenty five) are being claimed. All these demands have been raised in terms of the provisions contained in Rule 40 of the Bihar Minor Mineral Concession Rules, 1972 inasmuch as it is claimed that the notified persons unauthorisedly extracted and removed minor minerals. 2. It appears to be the contention of the petitioner that the brick kiln owners applied for grant of permission to extract brick earth upon deposit of application fee as well as royalty as was required, but except one brick kiln owner, out of approximately thirty thousand brick kiln owners, no one was granted such permission and the respondents have proceeded on the basis that all those persons have, therefore, unauthorisedly extracted minor mineral in the form of brick earth and sand and that is unjust. 3. 3. Before I proceed further, I make it clear that no provision of the said Rules is under challenge in this writ. Therefore, I have to see whether the. action complained of is sustainable in terms of the provisions contained in the said Rules. 4. Rule 26 of the said Rules authorises imposition of royalty at the rates specified in Schedule II to the said Rules. The Schedule II, as was altered on 24th march, 2001, prescribes that the rate of royalty for brick earth (equivalent to four hundred standard bricks) shall be Rs. 8/- (Eight) per cubic meter; whereas the said Schedule provides that for ordinary sand used for construction purpose the rate of royalty shall be Rs. 25/- (Twenty five) per cubic meter. 5. Rule 26A of the said Rules is as follows: "26A. Consolidations of royalty on brick earth.Notwithstanding anything contained in these rules, the State Government shall by notification in the Official Gazette determine a consolidate amount of royalty which may be revised once in three years, to be paid by the brick kiln owner/brick earth remover per kiln per annum to the State Government in a manner prescribed therein on a fixed number of bricks for every classified area: Provided that the State Government may for the purposes of determining the consolidated amount of royalty to be so paid classify the places into different categories taking such facts into account which the State Government think proper: Provided further that if the brick earth remover/brick kiln owner fails to make payment of the consolidated amount of royalty in the manner so prescribed, he shall not be allowed to carry on the business and the competent officer or any other officer duly authorised in this behalf by the State Government, shall be competent to stop such business. Explanation,For the purpose of this Rule (i) Business means and includes laying, burning or selling of bricks by brick earth remover/brick kiln owner and such other activities as are associated with manufacturing of bricks. (ii) For the purpose of this rule brick, earth remover means and includes person or persons by whom or on whose behalf the brick earth is removed for manufacturing bricks. (ii) For the purpose of this rule brick, earth remover means and includes person or persons by whom or on whose behalf the brick earth is removed for manufacturing bricks. (iii) For the purpose of this rule brick kiln owner means a person who owns the brick kiln or on whose behalf bricks are manufactured in that kiln and includes manager, agent and lessee of such person." 6. In exercise of power conferred by Rule 26A of the said Rules on 6th October, 1994 a Notification was issued. The said Notification is as follows: S.O. 367, dated 6th October, 1994.In exercise of the powers conferred by Rule 26-A of the Bihar Minor Mineral Concession Rules, 1972 and having regard to location, population, state of Civil Construction, state of Industrial Construction, state of urbanization and place of industrial growth in different area of the State, the Governor of Bihar is pleased to amend the previous Notification no. 400/M, dated the 17th August, 1991, re-classifying such different areas in different categories and to determine again the number of bricks(equivalent to brick-earth) and a consolidated amount of royalty to be paid thereon by bricks kiln owner/Brick earth remover per kiln per annum to the State Government for different categories of areas as shown in the table below: SI. No. Categories of areas Areas included in categories shown in column (2) Fixed No. of bricks (equivalent bricks) per kiln situated in area show in column (3) Consolidated amount of royalty payable per kiln per annum on the no. of bricksshown in column (4) 1. 2. 3. 4. RS. 1. I Brick manufactured by mechanised kiln set up. 20 Lakh 75,000.00 2. II Urban areas of Patna,Phulwarisharif, Danapur, Khagaui and Fatwah. 12 Lakh 45,000.00 3. III Urban area of Jamshedpur, Ranchi, Dhanbad, Bokaro, Muzaffarpur, Darbhanga and Bhagalpur. 10 Lakh 37,500.00 4. IV Other urban area 8 Lakh 30,000.00 5. V Rural Area 6 Lakh 22,500.00 6. VI Bangla Bhatta (For Commercial Use). 1 Lakh 2,500.00 7 Subsequent thereto on 24th March, 2001 in exercise of power conferred by Rule 26A of the said Rules, another Notification was issued which is as follows: S.O. 27, dated 24th March, 2001. IV Other urban area 8 Lakh 30,000.00 5. V Rural Area 6 Lakh 22,500.00 6. VI Bangla Bhatta (For Commercial Use). 1 Lakh 2,500.00 7 Subsequent thereto on 24th March, 2001 in exercise of power conferred by Rule 26A of the said Rules, another Notification was issued which is as follows: S.O. 27, dated 24th March, 2001. In exercise of power conferred by Rule 26(A) of the Bihar Minor Mineral Concession Rules, 1972 and having regard to state of civil construction, state of industrial construction, state of situated population, state of urbanisation and place of industrial growth in different areas of the State, the Governor of Bihar is pleased to amend the previous notification S.O. No. 367 dated 6th October, 1994 and reclassify such areas to determine the number of bricks per fixed kiln and Bangla Bhatta and the consolidated amount of royalty to be paid thereon by brick-kiln owner/brick earth remover per kiln per annum to the State Government for different areas as shown in the table below: SI. No. Categories of area Name of districts and areas Capacity Fixed no. for the manufactured bricks per fixed kiln and Bangla Bhatta situated in areas shown in column 3 Royalty Amount of royalty payable per kiln per annum on number of bricks fixed in column 4 (in Rupees) 1. 2. 3. 4. 5. 1. I Urban areas of Patna, Muzaffarpur, Gaya, Darbhanga District. 45 Lakh bricks 90,000/- 2. II Other Urban area 35 Lakh bricks 70,000/- 3. III Rural Area 25 Lakh bricks 50,000/- 4. IV Bangla Bhatta 1 (One)Lakh bricks 3,000/- This order will come into force from 1.4.2004. Note 1.Consolidated royalty shall be paid in two instalments, namely: (i) First instalment50% of the total payable royalty amount before commencement, of kiln and (ii)Second instalment.Rest 50% of the total amount before the month of March. If the payment of total amount of payable royalty is made in one lump sum by a kiln owner then 5% rebate shall be given on the total payable royalty. Note II."Urban Area" means the areas within the local limits of a Municipality or Municipal Corporation or Notified Area Committee and also includes the area falling within 4 Kms. If the payment of total amount of payable royalty is made in one lump sum by a kiln owner then 5% rebate shall be given on the total payable royalty. Note II."Urban Area" means the areas within the local limits of a Municipality or Municipal Corporation or Notified Area Committee and also includes the area falling within 4 Kms. outside the boundary limits of such Municipal Corporation or Municipality or Notified Area Committee, as the case may be; Note III.No royalty shall be payable on bricks/brick earth manufactured in Bangla Bhatta for nocommercial, personal consumption. 8. It is not in dispute that up to 30th June, 2002 it was permissible for brick kiln owners to install moveable kilns, but since 1st July, 2002 brick kiln owners became obliged to have fixed kilns to be entitled to manufacture bricks. 9. Reading of the above sections, schedule and notifications will demonstrate that anyone can manufacture bricks up to a limit of four hundred bricks for any purpose and would be required to pay royalty at the rate of Rs. 8/ (Eight) per cubic meter of brick earth used for such manufacture; up to 31st March, 2001 a brick kiln owner having a mechanised kiln was entitled to manufacture twenty lacs of bricks per annum for which he was required to pay consolidated royalty of Rs. 75,000/- (Seventy five thousand); up to 30th June, 2002 a brick kiln owner not having a mechanize kiln or a fixed kiln could manufacture twelve lac bricks per annum in urban areas of Patna, Phulwarisharif, Danapur, Khagaul and Fatwah and ten lac bricks per annum in the urban areas of Muzaffarpur, Darbhanga and Bhagalpur and in other urban areas eight lac bricks per annum and in rural areas six lac bricks per annum and were obliged to pay consolidated royalty of Rs. 45,000/- (Forty five thousand), Rs. 37,500/- (Thirty seven thousand five hundred) Rs.30,000/- (Thirty thousand) and Rs. 22,500/- (Twenty two thousand five hundred) respectively; whereas a brick kiln owner having fixed kiln became entitled to manufacture with effect from 1st April, 2001 forty five lac bricks per annum in urban areas of Patna, Muzaffarpur, Gaya and Darbhanga districts and thirty five lacs per annum in other urban areas and twenty five lacs per annum in rural areas and became obliged to pay consolidated royalty of Rs.90,000/- (Ninety thousand), Rs. 70,000/- (Seventy thousand) and Rs. 70,000/- (Seventy thousand) and Rs. 50,000/- (Fifty thousand) respectively. At the same time a brick manufacturer using Bangla Bhatta became entitled to manufacture one lac bricks per annum with effect from 1st April, 2001 for commercial purpose and became obliged to pay royalty at the rate of Rs. 3,000/- (Three thousand) and if Bangla Bhatta is used for personal consumption, though the person concerned can manufacture one lac bricks per annum, but shall not be obliged to pay any royalty. 10. In terms of the Notification dated 24th March, 2001 it became obligatory for brick manufacturers having fixed kilns as well as Bangla Bhattas set up for commercial use to pay fifty per cent of the total amount of royalty before commencement of the kiln or the Bangla Bhatta and the remaining fifty per cent before the month of March following. A five per cent rebate is granted if the total amount of royalty is paid in one lump sum. Therefore, the fixed number of bricks to be manufactured per kiln or Bangla Bhatta, as well as the fixed amount of royalty payable for manufacture of such fixed bricks, have been laid down. 11. Rule 4 of the said Rules provides that no person shall undertake any mining operation in any area except under and in accordance with the terms and conditions of a quarry permit or, as the case may be, a mining lease granted under the said Rules. Therefore, even though the limit for manufacture of bricks perkiln or Bangla Bhatta and royalties payable thereon have been fixed and although with effect from 1st April, 2001 no royalty is payable for bricks, manufactured in Bangla Bhatta for personal consumption, but still then permit to extract brick earth is required to be obtained. In order to obtain a permit, one is required to apply for the same. 12. These have been provided in Rules 27, 28 and 28A of the said Rules which are as follows: "27. Grant of quarrying permits in areas other than those in reserved or protected forest. In order to obtain a permit, one is required to apply for the same. 12. These have been provided in Rules 27, 28 and 28A of the said Rules which are as follows: "27. Grant of quarrying permits in areas other than those in reserved or protected forest. (1) On an application made to him, the Competent Officer may grant a quarrying permit in Form "E" to any person to extract and remove from any specified land within the limits of his jurisdiction any mineral not exceeding three thousand cubic meters in quantity under any one permit, on prepayment of royalty at the rates specified in Schedule II. Before granting such permit, the Competent Officer shall satisfy himself that the requirement of the permit is genuine and that it does not obviate the necessity of obtaining a mining lease in the area in respect of which the permit for extraction of the mineral has been applied for. (2) The Competent Officer may refuse the issue of such permits for reasons to be recorded by him in writing." "28. Application for quarrying permit. (1)An application for quarrying permit shall be submitted to the Competent Officer in Form T. (2) Every application for quarrying permit shall be accompanied by a fee of Rs. 2000/- (Two thousand) (but for Bangla Brick kiln the fee for quarrying permit shall remain Rs. 200/- (Two hundred) only. (3) Every application for quarrying permit shall be accompanied by a valid and up to date clearance certificate of payment of mining dues, if any. (4) Every application of a quarrying permit shall, if the lands from which the minor mineral is to be extracted are raiyati lands, be accompanied by a written consent letter from the occupant of such lands to the effect that he has no objection to the extraction of the mineral by the applicants. (5) The application fee and royalty shall not be refunded if the raiyat subsequently refuses permission to the permit holder to work in the raiyati area." "28A. Disposal of application for quarrying permit.An application for the grant of quarrying permit shall be disposed of by the Competent Officer within 30 days from the date of its receipt. (5) The application fee and royalty shall not be refunded if the raiyat subsequently refuses permission to the permit holder to work in the raiyati area." "28A. Disposal of application for quarrying permit.An application for the grant of quarrying permit shall be disposed of by the Competent Officer within 30 days from the date of its receipt. (2) If any application is not disposed of within the period specified in sub-rule (1) it shall be deemed to have been rejected and disposed of after the said period of 30 days but not exceeding 60 days from the date of the receipt of the application." 13. The quarrying permit or the permission to extract brick earth is to be granted in Form "E" to the said Rules. Form "E" directs insertion of permit number, name and address of the permit holder, name of the locality, village, plot number etc. from where extraction has to be made, date of expiry of the permission, name and description of the minor mineral, purpose for which it will be used, number of quantity of materials, rate of royalty and the total amount of it. The conditions appended to Form "E" provide, amongst others, that extraction is not to be made beyond the depth of ten feet from the surface. 14. The application for quarrying permit shall be made in Form ;1;. Form "l" requires, amongst others, written consent of the raiyats if the lands from which minor mineral is to be extracted are the raiyati lands as well as mineral which the applicant intends to extract and the quantity of minor mineral to be extracted. .___._ 15. Therefore, the requirement is to submit an application for quarrying permit to the Competent Officer in Form ,l, which shall be accompanied by a fee of rupees two thousand and, amongst others, a written consent letter from the occupant of the raiyati land to the effect that he has no objection for extraction of the mineral by the applicant. Upon receipt of such application, a permit in Form "E" may be granted to the applicant, subject, however, no prepayment of royalty at the rate specified in Schedule-ll and subject to a limit of three thousand cubic meters of the minor mineral; or grant of permit may be refused for reasons to be recorded by the Competent Officer in writing. 16. 16. Rule 28A was inserted on 5th January, 1976 with effect from 1 st January, 1975. Despite best efforts made by the learned counsel appearing on behalf of the State, the amending statute inserting Rule 28A could not be produced. Whereas Rule 28 prescribed how the application should be made: Rule 27 directed how the same should be disposed of. Rule 27 authorized grant of permit to extract three thousand cubic meters of minor mineral under one permit upon pre-payment of royalty specified in Schedule-ll. Rule 26A was inserted in the said Rules on 26th March, 1987. In terms thereof brick kiln owners became obliged to pay consolidated amount of royalty as determined by Notifications issued by the State Government. The consolidated amount of royalty so to be determined by the State Government by Notification will not form part of Schedule ll to the said Rules. The grant of permit in Form "E" is in relation to those minerals which are specified in Schedule II and that can only be granted upon prepayment of royalty at the rates specified in the said Schedule. In terms of the Notification dated 24th March, 2001 the consolidated royalty is not required to be prepaid. The Notification itself grants two instalments. Then again, consolidated royalty is payable per annum on a fixed number of bricks to be manufactured during the year and- the number of bricks to be manufactured varies from place to place. It is no bodies case that three thousand cubic meter will cover the highest number of bricks as may be permitted to manufacture. The permit granted to the sole brick kiln owner, though in Form E, does not mention the quantity of brick earth permitted to be extracted, but records number of bricks permitted to be manufactured. While Rule 26A was inserted no amendment was effected to Rule 27. Strictly speaking Rule 27 therefore has no application insofar as matters dealt with by Rule 26A of the said Rules. 17. However, there may not be any difficulty in applying Rule 28A of the said Rules to the matter dealt with by Rule 26A of the said Rules. 18. Be that as it may, whereas Rule 28 directed how an application for quarry permit should be made and Rule 27 directed how such application should be disposed of, it did not direct within what time the same should be disposed of. 18. Be that as it may, whereas Rule 28 directed how an application for quarry permit should be made and Rule 27 directed how such application should be disposed of, it did not direct within what time the same should be disposed of. Rule 28A, thus, was inserted. It provided that such an application should be disposed of within 30 days from the date of receipt thereof and if such an application is not disposed of within 30 days it shall be deemed to have been rejected and disposed of after 30 days but not exceeding 60 days from the date of receipt of the application. If an application under Rule 28 can be filed in respect of the matter dealt with by Rule 26A such an application can also be dealt with by Rule 28A. In what manner the permission would be granted, however, has not been prescribed but by reason of Rule 28A such an application is to be dealt with within 30 days from the date of receipt thereof and if the same is not disposed of favourably within 30 days from the date of receipt thereof, the same shall be deemed to have been rejected. Then what really the Rule intended to mean by saying that after the application is not disposed of within 30 days from the date of receipt of the application it shall be deemed to have been rejected and disposed of after the said period of 30 days but not exceeding 60 days from the date of receipt of the application? After the application is deemed to have been rejected, why the Rule wanted the same to be disposed of by another 30 days time? 19. After the application for grant of quarry permit is deemed to have been rejected, what would remain of that application to be disposed of and for that a 30 days period has been fixed? In order to understand the same one is required to take note of the other provisions contained in the said Rules. Rule 9 of the said Rules requires an application for mining lease to be submitted in Form A and such application shall be accompanied by a fee of Rs. 2,000/- (Two thousand). In order to understand the same one is required to take note of the other provisions contained in the said Rules. Rule 9 of the said Rules requires an application for mining lease to be submitted in Form A and such application shall be accompanied by a fee of Rs. 2,000/- (Two thousand). Rule 22 of the said Rules provides that for renewal of mining lease an application should be made in Form No. AA and such application shall also accompany a fee of Rs. 2,000/- (Two thousand). In terms of Rule 20 of the said Rules an application for grant as weii an application for renewal of mining lease may be refused. Rule 19 of the said Rules provides where an application for grant or renewal of mining lease is refused, the fee paid by the applicant shall be refunded. 20. If an application for grant of quarry permit is refused which is required to be submitted alongwith a fee of Rs. 2,000/- (Two thousand) and at least 50% of the total royalty amount, there is no clear cut provision in the said Rules for refund thereof in case of refusal or deemed refusal to grant permit, although sub-Rule 5 of Rule 28 of the said Rules gives an indication that in other cases, not dealt with therein, such refund may be available. I think that is the reason and, accordingly, despite deemed rejection of the application, the application is required to be disposed of. In other words, if the application for quarry permit, as submitted by a brick kiln owner, is refused or deemed to have been refused, in terms of Rule 28A of the said Rules, the application money as well as royalty deposit by the applicant brick kiln owner should be refunded to him within the period by which his application is required to be disposed of, even after rejection of his application and that was the reason to incorporate the provision of disposal of the application despite its rejection. Thus, when an application for grant of quarry permit is submitted and the same is not disposed of within 30 days from the date of receipt thereof the application should be deemed to have been rejected and, thereafter, within 30 days the application fee as well as the royalty deposited must be refunded to the applicant and thereby his application shall stand disposed of. 21. 21. As noticed above, none of the applications of the brick kiln owners of the State, except one, was disposed of within 30 days from the date of receipt of the application and at the same time neither the application fee, nor the royalty paid by them, while making the application, was returned to any of them within the period of 60 days from the date of receipt of the application or at all. The words "not exceeding 60 days from the date of receipt of the application" are quite significant. It is a mandate of Rule 28A of the said Rules that if an application for grant of quarry permit is deemed to have been rejected, within 60 days from the date of receipt of the application, the application fee as well as royalty, deposited while making the application, should be refunded to the applicant. 22. What will happen if the applications are not so disposed of, has not been provided in the said Rules. The first requirement of Rule 28A is that within 30 days from the date of receipt of an application for grant of quarry permit the same should be disposed of. It then directs that if the application is not disposed of within 30 days from the date of its receipt, the application shall be deemed to have been rejected. It then provides that such an application shall be disposed of after 30 days but not exceeding 60 days from the date of the receipt of the application. Therefore, despite deemed rejection, the application should be disposed of within a period of 60 days from the date of receipt of the application. But what will happen if it is not so disposed of, has not been provided. 23. The preamble to the Mines & Minerals (Development & Regulation) Act, 1957 provides that the said Act is an enactment to provide for the development and regulation of mines and minerals under the control of the Union of India. Section 15 of the said Act authorizes the State Government to make rules for regulating the grant of quarry lease, mining lease, or other mineral concession in respect of minor minerals and for the purposes connected therewith. Section 15 of the said Act authorizes the State Government to make rules for regulating the grant of quarry lease, mining lease, or other mineral concession in respect of minor minerals and for the purposes connected therewith. Minor minerals are, thus, though minerals under the control of Union of India, but by the Act made by the Union the State has been authorized to make Rules for regulating the grant of quarry leases, mining leases and other mineral concessions in respect of minor minerals and for the purposes connected therewith. It is because, in major minerals the entire Nation is interested, whereas in minor minerals only the local people are interested and, accordingly, the State Government has been authorised to regulate and develop minor minerals. Local activists interested in carving out their livelihood and for providing employment to the local people by using local minor minerals have set up units for user of minor minerals, as that of brick kiln owners of the State, and have applied for grant of quarry permit but those have neither been disposed of within 30 days from the date of receipt thereof, nor have been disposed of within 60 days from the date of receipt thereof, except in the case of one and, accordingly, what has been held out to them by the State administration is the question, which has not been dealt with by the said Rules. I think the message was clear that your applications have been accepted. In other words, when the applications had not been disposed of within 60 days from the date of receipt of the application by refunding the application fee and the amount of royalty deposited with the application, it was held out, in the circumstances, that the applicants can extract brick earth for the purpose of manufacture of bricks to the extent royalty paid has been accepted and kept. In this connection, it must be noticed that the requirement to pay 50% of the total royalty amount is payable before the commencement of the kiln, i.e., before the kiln is activated. When such royalty is accepted and not returned even within 60 days of the application, can it be contended that the State Government did not permit the applicant to commence the kiln. When such royalty is accepted and not returned even within 60 days of the application, can it be contended that the State Government did not permit the applicant to commence the kiln. Once the kiln is commenced, the second instalment of the remaining 50% of the total amount of royalty is payable before the month of March following. Furthermore, when the full amount of royalty has been accepted with a 5% rebate when the same had been deposited in lump sum and such royalty had not been returned within two months from the date of the application, can it be contended that no permission was granted to commence the kiln. I do not think so. If anything contrary is thought of, the same would tantamount to stoppage of the brick manufacturing business of the applicant, despite his doing whatever was required to be done by him in terms of the said Rules and if he has carried on such business after such compliance, to expose him to penal provisions contained in Rule 40 of the said Rules, merely for refusal on the part of the officers of the State to discharge their duties contained in the said Rules. In the facts of this case, the same would black paint the whole brick manufacturing industry of the State or would bring to an end brick manufacturing activity altogether in the State. Neither of them is conceivable in a society ruled by law. 24. In the circumstances, whichever member of the petitioner Association submitted an application with the application fee and 50% of the royalty or full royalty less 5% rebate and his application had not been disposed of within 60 days from the date of receipt thereof by refunding to him the application fee as well as royalty, it shall be deemed that the State held out to them that they are authorized to manufacture bricks per kiln during that year to the extent of the amount of royalty they had deposited and any contention contrary thereto is rejected. 25. If, however, no application was submitted, nor any application fee was deposited and at the same time no amount of royalty had also been paid, but brick earth had been removed and bricks had been manufactured, then of course such brick kiln owner is liable to be dealt with under Rule 40 of the said Rules. 26. 25. If, however, no application was submitted, nor any application fee was deposited and at the same time no amount of royalty had also been paid, but brick earth had been removed and bricks had been manufactured, then of course such brick kiln owner is liable to be dealt with under Rule 40 of the said Rules. 26. The question is, in such cases is it open to the State to recover price of the mineral from such brick kiln owners? Rule 40 of the said Rules provides for penalty of unauthorized extraction and removal of minor minerals. Sub-rule (1) thereof provides for prosecution for imprisonment and for recovery of fine; sub-rule (2) grants power to seize minor minerals; sub-rule (3) authorizes release of seized minor minerals; subrule (4) authorizes arrest of such person; sub-rule (5) provides production of arrested person before the appropriate Magistrate; sub-rule (6) provides for release of arrested person on execution of bond; sub-rule (7) provides for extending the punishment to the extent mentioned in the said Rules to any driver of any carrier carrying such minor minerals; and sub-rule (8) provides as follows: "40(8). Whoever removes minor mineral without valid lease/permit or on whose behalf such removal is made otherwise than in accordance with these Rules he be an agent, Manager, contractor or a sub-lessee, shall be presumed to be a party to the illegal removal of the minor mineral and shall be liable to pay the price thereof and the Government may also recover from such person rent, royalty or taxes as the case may be, for the period during which the land was occupied by such person without any lawful authority without prejudice to other action being taken against him under these Rules or any other law for the time being in force." 27. It was urged on behalf of the petitioner that royalty itself is the price of the minor mineral and, accordingly, a power to claim price as well as royalty is a penal provision. 28. Section 14 of the Act provides that the provisions contained in Sections 5 to 13, both inclusive, shall not apply to quarry lease, mining leases or other mineral concessions in respect of minor minerals. That itself makes it clear that all other sections contained in the Act will apply to minor minerals. 28. Section 14 of the Act provides that the provisions contained in Sections 5 to 13, both inclusive, shall not apply to quarry lease, mining leases or other mineral concessions in respect of minor minerals. That itself makes it clear that all other sections contained in the Act will apply to minor minerals. In relation to minor minerals State is the delegate of the Union and such delegation has been made by the Act itself by permitting the State to make Rules in relation thereto. Section 21 of the Act deals with penalties. Sub-section (2) of Section 21 of the Act provides that any Rules made under the provisions of the Act may provide that any contravention thereof shall be punishable with imprisonment as well as fine. Sub-section (5) thereof provides that whenever any person raises, without any lawful authority, any mineral from any iand the State Government may recover from such person the mineral so raised or where such mineral has already been disposed of, the price thereof and may also recover from such person rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority. The Act, therefore, has already authorized the State, where unauthorisedly extracted minor mineral has already been disposed of, the price thereof to be recovered in addition to rent, royalty or tax, as the case may be. In Karnataka Rare Earth & Anr. vs. Senior Geologist, Deptt. of Mines & Geology and Anr.; 2004(2) S.C.C. 783 it was contended before the Hon ble Supreme Court that recovery of such price is imposition of penalty. The Supreme Court clarified that the same is not penalty, but is compensation. By virtue of sub-section (5) of Section 21 of the Act, the State has already become entitled to realise price of the minor mineral extracted unauthorisedly, which has been disposed of. Therefore, there cannot be any dispute that when brick earth has been converted into bricks and the same have been sold, if such brick earth has been extracted unauthorisedly, the State Government is entitled to recover the price of such brick earth from the, unauthorized extractor. 29. Sub-section (5) of Section 21 of the Act provides that in addition to price, the State Government may also recover rent, royalty or tax, as the case may be. 29. Sub-section (5) of Section 21 of the Act provides that in addition to price, the State Government may also recover rent, royalty or tax, as the case may be. The question is by way of compensation, can the royalty be collected twice. In the case of Karnataka Rare Earth (supra) admittedly royalty was paid and in addition thereto minimum price was claimed. However, what was the composition of such price had not been taken note of by the Hon ble Supreme Court. In this connection reference may be had to the penultimate paragraph of the judgment as reported. In Rule 44 of the said Rules, the price of minerals is inclusive of royalty. Can it be said that the compensatory cost can include twice the amount of royalty, which has been held to be tax by the Hon ble Supreme Court in the case of Quarry Owners Association vs. Stats of Bihar; 2000(8) S.C.C. 655 . In such view of the matter, it does not appear to me that by taking recourse to sub-section 5 of section 21 of the Act or by taking recourse to subrule (8) of Rule 40, of the said Rules, the State can recover price inclusive royalty and in addition to that royalty and that has been made clear by providing the word "may" followed by the words "as the case may be" both in sub-section 5 of Section 21 of the Act and in sub-rule 8 of Rule 40 of the said Rules. 30. As stated above, Schedule II to the said Rules did not identify sand as a minor mineral, except when the same is used for construction purpose. There is no dispute, inter se, the parties that some sand is required for manufacturing bricks. It was submitted by the learned counsel for the petitioner that little quantity of sand is required for removing bricks from the molds. It is not the contention of the petitioner that the brick manufacturers purchase sand for using the same in their manufacturing process. It was contended that sand is part of brick earth and while brick earth is extracted a little quantity of sand is also extracted alongwith brick earth and that sand is used for the purpose of manufacturing bricks. It is not the contention of the petitioner that the brick manufacturers purchase sand for using the same in their manufacturing process. It was contended that sand is part of brick earth and while brick earth is extracted a little quantity of sand is also extracted alongwith brick earth and that sand is used for the purpose of manufacturing bricks. It is the contention of the State that in certain areas brick earth may contain sand but in ail areas brick earth may not contain sand. At the same time it was not contented that any of the brick manufacturer has extracted sand from any sand pit. In other words, it is not the contention of the respondent-State that any of the brick kiln owners has extracted sand in addition to brick earth, for it is not the contention of the State that extraction of brick earth has been made from the place where brick earth is available and sand has been extracted from the place where sand is available. It may be the contention of the State that from the place from where brick earth has been removed by the brick kiln owners for the purpose of manufacturing bricks, they also removed sand. In other words, while the petitioner is contending that sand is part of brick earth and extracted as brick earth and not separately as brick earth and sand, the respondents are contending that while extracting brick earth, the brick kiln owners are also extracting sand in addition to brick earth. 31. It must be kept in mind that in terms of Rule 26A of the said Rules a consolidated royalty is payable by the bricks kiln owners on a fixed number of bricks to be manufactured and at the same time Schedule II to the said Rules do not prescribe sand used for the purpose of manufacture of bricks. Royalty can be charged in respect of use of any minor mineral. There is no dispute that while brick earth is minor mineral, sand is also minor mineral. Consolidated means to be joined into one. Here all royalties payable for minor minerals used for manufacture of bricks have been joined together. Therefore, the consolidated amount of royalty, which is payable on a fixed number of bricks, is payable in respect of minor minerals used for manufacture of bricks. Consolidated means to be joined into one. Here all royalties payable for minor minerals used for manufacture of bricks have been joined together. Therefore, the consolidated amount of royalty, which is payable on a fixed number of bricks, is payable in respect of minor minerals used for manufacture of bricks. In such view of the matter, I do not think that it is permissible to claim from brick kiln owners royalty for sand used for manufacture of bricks. 32. With the above clarifications, I dispose of the writ petition with direction upon the State and its concerned officers to withdraw old demands raised against brick kiln owners which are not supported by the above clarifications and to re-examine cases of the individual brick kiln owners on the basis of such clarifications. 33. It is made clear that I have not applied my mind to any other aspect except those dealt with above for no argument was advanced in relation thereto, i.e., claim for interest, claim for charges for not affixing appropriate Sign Board, etc. and, accordingly, it shall be open to individual affected brick kiln owners to ventilate their grievance in relation thereto before the appropriate forums in accordance with law.