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Madhya Pradesh High Court · body

2008 DIGILAW 880 (MP)

Guru Kripa Construction Co. v. State of M. P.

2008-07-16

PRAKASH SHRIVASTAVA

body2008
JUDGMENT 1. This petition is heard and finally disposed of with the consent of counsel for both the parties. 2. Counsel for the petitioner submits that the petitioner Company is doing business of construction of road works and bills submitted by the petitioner are not being cleared by the concerned respondent on the ground that the petitioner is not furnishing 'No Dues Certificate' from the Collector (Mining) in respect of payment of royalty on the minor mineral used by the petitioner in the execution of contract which the petitioner purchases from the suppliers. 3. The aforesaid issue has already been settled by this Court in the judgment reported in the case of M.P. Contractors Sanglz, Indore and others v. State of M.P. and others [1987 lLl 743], Keti Construction Company Limited v. State of M.P. and others [ 2007 (3) MPHT 433 (DB)] and M/s Tomar Construction Company v. State of M.P. [ 2008 (1) MPHT 164 ] and there is consistent view of this Court that the State Government cannot insist upon production of royalty certificate or no dues certificate' for finalising the bills of the Contractor. The State Government can insist upon the proof with regard to payment of royalty and production of no dues certificate showing payment of royalty only in case of such Contractors who have been granted mining lease or quarry lease and who have used the minerals from such quarry or mines as raw material for execution of work granted by the contract agreement. 4. This Court dispossed of the writ petition in the case of Tomar Construction Company (supra) by issuing two directions, therefore, following the same this writ petition is also disposed of by reiterating those two directions and directing that: (i) The State Government shall clear the bills of the petitioner submitted in connection with execution of the contact in question without insisting upon producing no dues certificate from the Collector or any other Authority with regard to payment of royalty for the minerals consumed. However, the State Government can insist upon production of bills with regard to purchase of mineral and in case the bill is not available, an affidavit indicating the manner in which and the place· or source from where the mineral is purchased. This affidavit can be used by the State Government for verification and for taking further action for clearing the bills. This affidavit can be used by the State Government for verification and for taking further action for clearing the bills. (ii) Amount of royalty, if any, recovered from the bills of the petitioner, shall be refunded to the petitioner on the petitioner filing the bill or the affidavit as indicated herein above. In case petitioner is unable to produce the bill or the affidavit as indicated herein above, liberty is granted to the petitioner to represent the matter before the State Government pointing out the inability in producing the bills or the affidavit and it would be for the State Government to consider the representation and take such steps as may be permissible or proper for clearing the bills in the given set of circumstances as may be indicated by the petitioners. 5. The petition is accordingly disposed of with the aforesaid directions, No orders as to costs. Certified copy as per rules.