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2016 DIGILAW 4130 (ALL)

DIGIANA INDUSTRIES PVT. LTD. v. UNION OF INDIA

2016-12-21

MAHESH CHANDRA TRIPATHI, V.K.SHUKLA

body2016
JUDGMENT By the Court.—M/s. Digiana Industries Pvt. Ltd is before this Court with a request to command respondent Nos. 2, 3, 4, 5, 10 & 12 not to interfere with the valid transportation of minor minerals from the State of M.P. to State of U.P. by the petitioner specially in the backdrop when petitioner is ready to deposit requisite transit fee, levy and taxes and any other fee made applicable by the State of U.P. Petitioner, M/s. Digiana Industries Pvt. Ltd claims that it is a valid lease holder in the large part of the State of Madhya Pradesh including the area neighboring the State of U.P. particularly in District Tikamgarh, District Panna, District Chhattarpur and in some of the area of river Betwa i.e. dividing the boundaries of State of U.P. and State of M.P. in district Tikamgarh and Chhattarpur and in some areas of District Panna Ken River and its tributaries i.e. dividing State of U.P. and State of M.P. 2. Petitioner has proceeded to mention that as per the Mineral Policy of State of M.P. the entire mining operation in respect of minor mineral sand was given to the Madhya Pradesh State Mining Corporation Limited which is an undertaking of the State of Madhya Pradesh. The Madhya Pradesh State Mining Corporation Limited to obtain higher price invited online offer on 14.5.2015 in respect to various area of District Tikamgarh, District Chhattapur and District Panna of State of M.P. Petitioner has also proceeded to mention that in district Tikamgarh, petitioner’s company offered highest bid for the following areas : 1. Village Uprara 2. Village Veerpura 3. Pathari-I, 4. Pathari-IV 5. Mahoba Chak-4 and 6. Madhori. The aforesaid areas are indicated in Group Lidhora Code No. SMC 0071. The letter of intent was issued by the Madhya Pradesh State Mining Corporation Limited on 28.5.2015. On 6.10.2015, even letter of acceptance was issued to the petitioner by the Madhya Pradesh State Mining Corporation Limited. Petitioner has further stated that he has obtained prior Environment Clearance for sand quarry for Khasra No. 1 Village Madhori, Khasra No. 156 Village Mahoba Chak (4), Khasra No. 119 Village Pathari, Khasra No. 119 Village Pathari-2, Khasra No. 759 at Village Veerpura, Khasra No. 01 Village Uprara all situated in Tehsil Lidhora of District Tikamgarh. Petitioner has further stated that he has obtained prior Environment Clearance for sand quarry for Khasra No. 1 Village Madhori, Khasra No. 156 Village Mahoba Chak (4), Khasra No. 119 Village Pathari, Khasra No. 119 Village Pathari-2, Khasra No. 759 at Village Veerpura, Khasra No. 01 Village Uprara all situated in Tehsil Lidhora of District Tikamgarh. Petitioner has further proceeded to mention that apart from the Environmental Clearance by the State Environment Impact Assessment Authority (SEIAA), M.P. (Government of India Ministry of Environment & Forest) constituted under Environment (Protection) Act, 1986, the petitioner also obtained Grant of Consent to operate under Section 25 of the Water (Prevention & Control of Pollution) Act, 1974 under Section 21 of the Air (Prevention of Pollution) Act 1981 on 9.11.2015 from M.P. Pollution Control Board. 3. Petitioner has further proceeded mention that like District Tikamgarh, petitioner company has also obtained auction mining permission on 24.9.2015 of Khasra No. 647/1, 14 Ha in village Nehra Tehsil Gourihar District Chhattarpur, and a letter No. 1389 (D)/Khanij/2015 dated 5.11.2015 to the effect was issued by the Collector (Khanij) District Chhattarpur, M.P. in favour of the petitioner. It has also been mentioned by the petitioner that he has also obtained Grant of Consent to Operate under Section 25 of the Water (Prevention & Control of Pollution) Act, 1974 under Section 21 of the Air (Prevention of Pollution) Act, 1981 on 1.6.2016 from M.P. Pollution Control Board. It has also been mentioned that in District Panna, petitioner’s Company has also obtained auction mining permission in Khasra No. 1 7 Ha in village Beera No. 2, Tehsil Ajaygarh District Panna, a letter No. 314/11/M/3/6/2015 dated 4.2.2015 to this effect was issued by the Collector (Khanij) District Panna M.P. in favour of the petitioner and he has also obtained Environmental Clearance from the State Environment Impact Assessment Authority (SEIAA), M.P. (Government of India, Ministry of Environment & Forest) vide letter No. 9637/SEIAA/15 dated 21.12.2015. It has also been mentioned that petitioner has also obtained Grant of Consent to operate under Section 25 of the Water (Prevention & Control of Pollution) Act, 1974 under Section 21 of the Air (Prevention of Pollution) Act, 1981 on 9.12.2015 from M.P. Pollution Control Board. Petitioner has contended that he has been carrying mining activities strictly in accordance with law. 4. Petitioner has contended that he has been carrying mining activities strictly in accordance with law. 4. Petitioner’s submission is that once petitioner is a valid lease holder and he has obtained all clearance including clearance from each and every department of State of M.P. and he also carries his right for trading in any part of India following the rules and procedures of the State Government then in such a situation and in this background Officers of the State Government of U.P. including police officials and the Mining Department of State of U.P. should cooperate in the business activity of petitioner to carry and transport the mineral from State of M.P. to State of U.P. specially when petitioner is ready to deposit (i) Transit fee imposed by the State of U.P. (ii) Any fee applicable under Transportation Rules 2002 (iii) All types of levy and any entry tax and also local body taxes imposed on vehicles loaded with sand or other minor minerals. (iv) Excise Duty at all, if it is, applicable (v) Any other taxes imposed by the State Government of U.P. At this juncture petitioner is before this Court with a request that in such a situation and in this background this Court should come to the rescue and reprieve of the petitioner by asking the respondents not to interfere with valid transportation of minor minerals from the State of M.P. to State of U.P. by the petitioner subject to fulfillment of requisite transit fee, levy and taxes and any other fee made applicable by the State of U.P. 5. On presentation of present writ petition we proceeded to ask Principal Secretary, Geology and Mining, Civil Secretariat U.P. Lucknow to file his personal affidavit giving therein full details as to in what way and manner inter-state minor minerals are to be transported and as to whether there is any policy that holds the field, for supplying minor mineral in the State of U.P. from outside states. In compliance, Principal Secretary, Geology and Mining, Civil Secretariat U.P. Lucknow filed affidavit and therein mention has been made that petitioner’s company has mining leases in State of Madhya Pradesh and can transport minor minerals from State of Madhya Pradesh to State of U.P. on valid transit pass and other necessary documents and further mention has been made that whenever any vehicle loaded with minor mineral enters upon the State of U.P. from adjoining States the same mandatorily is checked by the official of the mining department. The checking staff only demands transit pass from that State from where the mineral has been loaded and the officer at the point of time of assessing the quantity of the minor mineral on the basis of quantity mentioned in the transit pass issued by the concerned State and if the quantity is matching from the quantity mentioned in the transit pass the officer of the mining department cannot detain the vehicle and if the quantity is more than from the quantity mentioned in the transit pass, the action under the Rules prevailing in the U.P. is taken against the erring incumbent. Mention has also been made that under the Motor Vehicle Act 1988 quantity has already been fixed on the basis of various vehicles and if any transporter violates the provision of the above Act, the action is taken according to the above Rules as well as the Rules framed by the State of U.P. It has also been sought to be contended that at no point of time any vehicle in question has been detained. 6. Sri S.P. Singh Senior Advocate assisted by Sri Jai Singh Parihar/Sri P.V. Singh, Advocates submitted before us with vehemence that State of U.P. is not at all empowered to restrict transportation of minor mineral from State of M.P. to State of U.P. specially in the background when petitioner is prepared to make payment and comply with the local arrangement made in this regard i.e. (i) Transit fee imposed by the State of U.P. (ii) Any fee applicable under Transportation Rules 2002 (iii) All types of levy and any entry tax and also local body taxes imposed on vehicles loaded with sand or other minor minerals. (iv) Excise Duty at all, if it is, applicable (v) Any other taxes imposed by the State Government of U.P., in view of this, this Court should come to the rescue and reprieve of the petitioner for protecting fundamental right of petitioner to carry on trade and business throughout the Indian Territory. 7. Sri Alok Kumar Singh, learned Standing counsel has supported the stand that has been taken in the counter-affidavit and has submitted that petitioner’s company has mining leases in State of Madhya Pradesh and can transport minor minerals from State of Madhya Pradesh to State of U.P. on valid transit pass and other necessary documents but the fact of the matter is that at no point of time any such exercise of transportation of mineral, inter-state has been undertaken, as such writ petition may be dismissed. 8. In order to appreciate the arguments that has been so advanced we proceed to examine the provision of Mines & Mineral (Development & Regulation) Act, 1957. The Mines and Minerals (Development and Regulation) Act, 1957 is an Act to provide for regulation of mines and development of minerals under the control of Union. Section 2 declares the expediency of Union to control the regulation of mines and development of minerals Section 3(a) defines minerals which includes all minerals except mineral oils. Section 3(e) defines minor minerals. Section 4 refers to the prospecting or mining operations to be undertaken only under a licence or lease. Section 4 (1A) mandates that no person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with that provisions of the Act and Rules framed thereunder. Section 4 A is for termination of prospecting licences or mining leases, sub-section (1) is for premature termination other than minor minerals while sub-section (2) is for minor minerals. Section 5 imposes restrictions on the grant of such licences or leases. Section 6 specifies the maximum area for which a licence and lease may be granted, while Section 7 gives period for the grant and renewal of such prospective licences. Section 8 deals with the periods for mining leases. Sub-sections (1) and (2) of Section 9 refer to the payment of royalty at the rate specified in the Second Schedule whether granted before coming into force of this Act or subsequently. Section 8 deals with the periods for mining leases. Sub-sections (1) and (2) of Section 9 refer to the payment of royalty at the rate specified in the Second Schedule whether granted before coming into force of this Act or subsequently. Sub-section (3), empowers the Central Government to amend the Second Schedule so as to enhance or reduce the rate of royalty payable. Section 9A obliges lessee to pay the dead rent. Section 10 to 12 deal with the procedure for obtaining prospective licence, or mining leases in respect of the land in which minerals vest in the Government. Section 13 empowers the Central Government to make rules in respect of minerals. Section 14 specifically excludes Section 5 to 13 from application of quarrying leases, mining leases or other minerals concessions in respect of minor minerals. Section 15 empowers the State to make rules in respect of minor minerals. Section 16 entrusts power to modify mining leases granted before 25th October, 1949. Section 17 gives special power to the Central Government to undertake prospecting or mining operations in certain lands. Section 18 refers to the mineral development. Licences and mining leases under the Act to be void under Section 19 if made in contravention of the Act, while Section 20 makes the Act and Rules to apply to all renewals. Section 21 imposes penalties. Section 22 refers to the cognizance of offences. Section 23-C empowers the State to make rules for preventing illegal mining, transportation and storage of minerals. Section 26 entrusts both Central and the State to delegate its power under the Act on officer or authority of the Central or State. Sub-section (1) of Section 28 puts an obligation on the Central Government to place its rules and notifications before the Parliament which is subject to its modifications, if any. Similarly, the State is obliged to place its Rules and notifications before each houses of State Legislature under sub-Section (3). Section 29 makes existing rules to continue so long they are not in consistent with the Act and Rules. Section 30 empowers the Central Government to revise any order made by the State or any other authority. Similarly, the State is obliged to place its Rules and notifications before each houses of State Legislature under sub-Section (3). Section 29 makes existing rules to continue so long they are not in consistent with the Act and Rules. Section 30 empowers the Central Government to revise any order made by the State or any other authority. The First Schedule refers to the specified minerals, viz., Hydro carbons/energy minerals Atomic minerals and Metallic and non-metallic minerals with reference to, Section 4(3) 5(1), 7(2) and 8(2) while the Second Schedule refer to the rate of royalty in all States and Union Territories except the States of Assam and West Bengal while the Third Schedule refers to the rate of Dead Rent. Thus, the aforesaid Act expressly lays down the rates of royalty of the minerals through Schedule II read with Section 9. It is significant that Section 14 excludes Section 5 to 13 specifically for minor minerals which includes Section 9. Section 15, entrusts power on the State to lay down Rules in respect of the minor minerals. In the State of U.P., the State Government in exercise of its authority conferred under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 has framed Rules knows as U.P. Minor Mineral (Concession) Rules, 1963. Relevant Rules are quoted below: “Rule 2 defines “Mine Operations” as any operations undertaken for the purposes of winning any minor mineral. “Minor Mineral” means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purpose and any other mineral which the Central Government has declared from time to time or may declare in the Official Gazettee, to be minor mineral under Clause (e) of MMDR Act, 1957. “State” and “State Government” means the State of Uttar Pradesh. Rule 3 clearly proceeds to mandate that but for mining lease and but for mining permit, no person shall undertake any mining operations in any area within the State of any minor mineral. Chapter II deals with grant of Mining Lease. Chapter III deals with payment of Royalty and Deadrent. 21. Rule 3 clearly proceeds to mandate that but for mining lease and but for mining permit, no person shall undertake any mining operations in any area within the State of any minor mineral. Chapter II deals with grant of Mining Lease. Chapter III deals with payment of Royalty and Deadrent. 21. Royalty (1) The holder of a mining lease granted on or after the commencement of these rules shall pay’ royalty in respect of any mineral removed by him from the lease area at the rates for the time being specified in the First Schedule to these Rules, 1(1-a) Notwithstanding anything to the contrary contained in rule 3 royalty should be payable by concerned brick kiln owner or user of ordinary clay on ordinary earth at the rate specified in First Schedule to these rules. (2) The State Government may, by notification in the Gazette, amend the First Schedule so as to include therein or exclude there from or enhance or reduce the rate of royalty in respect of any mineral with effect from such date as may be specified in the notification. Provided that the State Government shall not enhance the rate of royalty in respect of any mineral for more than once during any period of three years and shall not fix the royalty at the rate of more than 20 percent of the pit’s mouth value, (3) Where the royalty is to be charged on the pit’s mouth value of the mineral the State Government may assess such value at the time of the grant of the lease and the rate of royalty will be mentioned in the lease deed. It shall be open to the State Government to reassess not more than once in a year the pit’s mouth value if it considers that an enhancement in necessary. 22. Dead Rent The holder of a mining lease shall, during the terms of the lease, pay advance, in instalments for every year of the lease, such amount as dead rent at the rates mentioned in the second schedule to these rules, as may be specified in the lease deed by the State Government, and if the terms of lease permit the working of more\than one mineral in the same area, the said dead rent shall be paid separately for each such minerals. Provided that the lessee shall in respect of each mineral, pay the dead rent or the royalty, whichever is higher in amount and not the both. (3) On the declaration of the area or areas under sub-rule (1) the provisions of chapters II, III and VI of these rules shall not apply to the area or areas in respect of which the declaration has been issued. Such area or areas may be leased out according to the procedure described in this Chapter. (4) The District Officer shall get the area or areas declared under sub-rule (1), evaluated for quality and quantity of mineral for fixing minimum bid or offer by the Director, Geology and Mining, Uttar Pradesh or by an officer authorised by him before the date fixed for auction or tender or auction-cum-tender, as the case may be. Chapter VI deals with conditions of Mining Lease. Chapter VI deals with grant of Mining Permit. Chapter VII deals with contraventions, offences and penalties. 57. Penalty for unauthorised mining: Whoever contravenes the provisions of rule 3 shall on conviction be punishable with imprisonment of either description for a term, which may extend up to six months or with fine which may extend to one thousand rupees, or with both. 58. Consequences of non-payment of royalty rent or other dues: (1) The State Government or any officer authorised by it in this behalf may determine the mining lease after serving a notice on the lessee to pay within thirty days of the receipt of the notice any amount due or dead rent under the lease including the royalty due to the State Government if it was not paid within fifteen days next after the date fixed for such payment. This right shall be in addition to and without prejudice to the right of the State Government to realise such dues from the lessee as arrears of land revenue. (2) Without prejudice to the provisions of these rules, simple interest at the rate of 24 percent per annum may be charged on any rent, royalty, demarcation fee and any other dues under these rules, due to the State Government after the expiry of the period of notice under sub-rule (1). 59. (2) Without prejudice to the provisions of these rules, simple interest at the rate of 24 percent per annum may be charged on any rent, royalty, demarcation fee and any other dues under these rules, due to the State Government after the expiry of the period of notice under sub-rule (1). 59. Consequences of contravention of certain conditions: Any lessee holding a mining lease who commits a breach of any of the conditions provided in rules 44 and 47 (relating to inspection of workings and weighing machines) shall on conviction be punishable with imprisonment of either description for a term which may extend up to six months or with fine which extend to one thousand rupees, or with both. 60. Premature Application : Applications for grant of a [reconnaissance permit, prospecting licence and mining lease] in respect of areas whose availability for grant is required to be notified under rule 59 shall, if— (a) no notification has been issued, under that rule; or (b) where any such notification has been issued, the period specified in the notification has not expired, shall be deemed to be premature and shall not be entertained.] Chapter VIII Deals with Miscellaneous provisions. 66. Power of assessment entry and inspection (1) F or the purpose of assessment of royalty and for ascertaining the position of the working, actual or prospective, of any mine or abandoned mine or for any purposes connected with these rules, the District Officer or the officer of the Directorate of Geology and Mining, Uttar Pradesh, not below the rank of Mines inspectors appointed for such purposes by the Director or any other Officer authorised in his behalf by the State Government by general or special order may- (a) enter and inspect any mine (b) survey and take measurement in any such mine. (c) weigh, measure or take measurement of the stock of mineral laying at any mine. (c) weigh, measure or take measurement of the stock of mineral laying at any mine. (d) examine any document, book, register or record in the possession or power of any person having the control of, or connected with any mine and place marks or identifications thereon and take extracts from or make copies of such documents, book, register or records: (e) summon or order the production of any such document, book, register or record as is referred to in clause (d) (f) summon or examine any person having the control of, or connected with anymine; and (g) call for such information or return as may be considered necessary (2) Every person authorised by the State Government under sub-rule (1) shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code and every person to whom an order or summons is issued by virtue of power conferred by clause (e) or clause (f) of the said sub-rule shall be legally bound to comply with such order or summons, as case may be. 70. Restrictions on transport of the minerals: (1) The holder of a mining lease or permit or a person authorised by him in this behalf may issue a pass in Form MM-11 to every person carrying, a consignment of minor mineral by a vehicle, animal or any other mode of transport. The State Government may, through the District Officer, make arrangements for the supply of printed MM-11 Form books on payment basis. (2) No person shall carry, within the State a minor mineral by a vehicle, animal or any other mode of transport excepting railway, without carrying a pass in Form MM-II issued under sub-rule (I). (3) Every person carrying any minor mineral shall, on demand by any officer authorised under rule 66 or such officer as may be authorised by the State Government in this behalf, show the said pass to such officer and allow him to verify the correctness of the particulars of the pass with reference to the quantity of the minor mineral. (4) The State Government may establish a check post for any area included in any mining lease or permit, and when a check post is so established public notice shall be given of this fact by publication in the Gazette and in such other manner as may be considered suitable by the State Government. (4) The State Government may establish a check post for any area included in any mining lease or permit, and when a check post is so established public notice shall be given of this fact by publication in the Gazette and in such other manner as may be considered suitable by the State Government. (5) No person shall transport a minor mineral for which these rules apply from such area without first presenting the mineral at the check post established for that area for verification of the weight or measurement of the mineral. (6) Any person found to have contravened any provision of this rule shall, on conviction, be punishable with imprisonment of either description for a term, which may extend to six months or with fine which may extend to one thousand rupees or with both.” 9. Apart from the same, Rules have also been framed for curbing illegal mining known as “Uttar Pradesh Mineral (Prevention of Illegal Mining Transportation & Storage) Rules, 2002”. The said Rules in question have been framed in exercise of authority conferred under Section 23(C) of Mines and Minerals (Development and Regulation) Act, 1957 and the said Rules in question are not only strict but specific also wherein Rule 2(b) defines “Authorized Officer”; 2(h)(p) defines “Transit Pass” and Rule 3 clearly provides to make a mention that no person shall transport, carry or cause to be transported, carried any mineral by any means from its raising place to any other place without a valid transit pass issued by the holder of mining lease or mining permit or prospecting license as the case may be. Rules 4 and 5 deals with provision for supply of transit passes and fee, issue of transit passes. Chapter II of the aforementioned Rules deals with transportation of minerals wherein Rules 6 deals with establishment of check-posts for inspection of minerals. Rules 7 deals with transportation of minerals. Rules 2(b), (h), 3, 4, 5, 6 and 7 of the said Rules are being extracted below: 2. Definition (1) In these Rules, unless the context otherwise requires,— (a) “Act” means the Mines and Mineral (Development and Regulation) Act, 1957 (Act No. 67 of 1957). Rules 7 deals with transportation of minerals. Rules 2(b), (h), 3, 4, 5, 6 and 7 of the said Rules are being extracted below: 2. Definition (1) In these Rules, unless the context otherwise requires,— (a) “Act” means the Mines and Mineral (Development and Regulation) Act, 1957 (Act No. 67 of 1957). (b) “Authorized Officer” means and Officer, authorized by the State Government by notification in the official Gazette to perform functions under these rules and shall be deemed to be public servant within the meaning of Section 21 of Indian Penal Code, 1960 (Act No. 45 of 1860). (h) “District Officer” means the Collector or Deputy Commissioner of the district in which the land is situate. (i) “Transit pass” means the pass issued by the holder of the mining lease or mining permit or prospecting licence or licence for storage of minerals for lawful transportation of any mineral raised in accordance with the provisions of the Act or Rules made thereunder. “6. Establishment of check-posts for inspection of minerals: (1) If the State Government considers it necessary to establish check post, with a view to check the illegal transportation of the minerals raised, it may notify the setting up of a check post at any place or places within the State. (2) The establishment of check post at any place shall be notified in the Gazette. (3) The Officer-in-Charge of the check-post or any Officer authorised by the State Government having sufficient reasons to believe that the carrying mineral (s) is not in accordance with the transit pass, then such office shall take action in accordance with sub-rule (4). (4) (a) The Officer-in-charge of the check-post or officer authorised by the State Government shall have the powre to seize the mineral alongwith the carrier. (b) The Officer-in-Charge of the check-post or any Officer authorised by the State Government shall give a receipt of such mineral and carrier seized by him to the person from whose possession or control, it is seized. (c) The Officer-in-Charge of the check-post or Officer authorised by the State Government may direct the person in-charge of the carrier to carry the mineral to the nearest check-post setup under sub-rule(1) and (2) or nearest police station. 7. (c) The Officer-in-Charge of the check-post or Officer authorised by the State Government may direct the person in-charge of the carrier to carry the mineral to the nearest check-post setup under sub-rule(1) and (2) or nearest police station. 7. Transportation of minerals: (1) All dispatch of minerals by a holder of mining lease, mining permit or prospecting licence by a carrier shall be accompanied with a transit pass, in duplicate. The person in-charge of the carrier shall produce the transit pass at the check post for the purpose, or on demand by any Officer, authorised by the State Government by notification in the official Gazette. (2) All carriers, carrying the mineral shall stop at the check post and proceed after having been cleared by the respective check-post. The In-charge of the check-post shall make necessary endorsement on the first copy of the transit pass and return immediately to the Operator of such carrier and second copy of such transit pass will be kept in records of the check-post.” 10. In the State of M.P., Mineral Policy 2010 has been formulated and framed by the Government of Madhya Pradesh to ensure proper exploitation of mineral resources for optimum and sustainable development of the State and under the aforementioned policy in question now a computer based online tracking of all type of applications of mineral concession has been introduced to make the process transparent and accountable and steps have been taken to control illegal mining and transportation. 11. In exercise of its authority conferred under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957 State of M.P. has framed Rules knows as M.P. Minor Mineral Rules, 1996 and same contains provision for grant of quarry lease and other leases. Similarly in exercise of authority conferred under Section 23(C) of Minor and Mineral (Regulation and Development) Act, 1957 Rules have been framed known as M.P. (Prevention of illegal Mining an Transportation Rules 2006 and the said Rules in question are extendable to the State of M.P. and therein transit pass has been defined under Rule 2(p) as pass issued by the officer authorized under the provision of these rules or under the Madhya Pradesh Minor Mineral Rules 1996 for lawful transportation of any mineral/minerals and or its products from the lease area or from one place to another by a carrier. Rule 3 deals with prohibition that no person shall transport or cause to be transported any Mineral/minerals or and its products by any carrier from the place of raising or from one place to another without having a valid Transit Pass issued under these rules. Said Rule 3 is being looked into. 3. Prohibition (1) No person shall transport or cause to be transported any Mineral/minerals or and its products by any carrier from the place of raising or from one place to another without having a valid Transit Pass issued under these rules. Provided that no such Transit Pass shall be required in case of any mineral/minerals or its products are being transported directly from the lease area by means of a mechanical devise viz railway wagon or aerial ropeway or conveyor belt. (2) No person shall store or cause to be stored for commercial purposes or trad any mineral/minerals or its products outside the mine quarry area without holding a vaild License granted by the Licensing Authority under these rules.” 12. Chapter-II deals with Transportation of minerals and its Products. Relevant Rules are as follows: TRANSPORTATION OF MINERALS AND ITS PRODUCTS (1)The holder of a quarry lease, quarry permit and trade quarry. Shall obtain transit Pass Book from concerning officer and issue a Transit Pass to accompany every carrier for every trip carrying mineral or its product from the lease/quarry area in the manner as prescribed in the Madhya Pradesh Minor Rules, 1996. (2)(i) The holder of a reconnaissance permit, prospecting licence, mining lease for transportation of a mineral or its products from the permit/licence/lease area, as the case may be, shall make an application in Form-1 to the Officer Incharge of the Mining Section of concerned District Collectorate. The cost of the Transit Pass Book and the royalty due of the mineral to be transported shall be deposited in the same manner, as prescribed in Clause (a) of sub-rule (3) of Rule 7 and the original treasury challan shall be attached with the Form-1; (ii) The transit Passes for mineral concession holders shall be prepared in duplicate in Form-2 and serial number to be machine printed. Each transit pass shall clearly contain date, time and quantity of mineral both in figures and words alongwith name and dated signature of the authorized person issuing the pass. Each transit pass shall clearly contain date, time and quantity of mineral both in figures and words alongwith name and dated signature of the authorized person issuing the pass. (iii) before issue of the transit pass book, the transit passes shall be stamped with official seal on the reverse and the first and last page of the first copy of the transit pass book shall be signed with date on reverse by Officer Incharge of Mining Section of the concerned District Collectorate certifying the total number of transit passes in the book: (iv) the duplicate copy of the Transit Pass shall be issued by the permit/licence/lease holder, as the case may be and accompany every carrier for every trip carrying the mineral or its products from the permit/licence/lease area, as the case may be. The copy shall be made by the carbon process and the original copy of the Transit Pass shall be retained in the Transit Pass Book; (v) after the first issue of Transit Pass Book, the subsequent issue shall be made on submission of used Transit Pass Book; (vi) on receipt of the used Transit Pass Book, the Officer Incharge of the mining section of concerned district Collectorate shall get its original copy of the Transit Pass checked in the office with regard to the material entries and after checking and verifying the same shall be returned to the permit/licence/leas holder, as the case may be, after stamping the rubber stamp marked as “CHECKED” and signing the same by an officer not below the rank of Mining Inspector. (3) (i) The holder of a Mineral Dealer Licence for transportation of mineral or its products from the stockyard shall make an application in Form-3 to the Officer Incharge of the Mining Section of the concerned district Collectorate. The cost of the Transit Pass Book shall be deposited in the same manner, as prescribed in Clause (a) of sub-rule (3) of Rule 7 and the original treasury challan shall be attached with the Form-3. (ii) the Transit Pass for mineral dealer licensee shall be prepared in duplicate in Form-4 and serial number to be machine numbered. Each transit pass shall clearly contain date, time and quantity of mineral both in figures and words alongwith name and dated signature of the authorised person issuing the pass. (ii) the Transit Pass for mineral dealer licensee shall be prepared in duplicate in Form-4 and serial number to be machine numbered. Each transit pass shall clearly contain date, time and quantity of mineral both in figures and words alongwith name and dated signature of the authorised person issuing the pass. (iii) before issue of the Transit Pass Book, the Transit Passes shall be stamped with official seal on the reverse and the first and last page of the first copy of the Transit Pass Book shall be signed with date on the reverse by the Officer-in-Charge of the mining section of the concerned district collectorate certifying the total number of Transit Passes contained in the book; (iv) the duplicate copy of the Transit Pass shall be issued by the Licensee to accompany every carrier for every trip carrying the mineral or its product from the stockyard. The copy shall be made by the carbon process and the original copy of the Transit Pass shall be retained in the Transit Pass Book; (v) after the first issue of Transit Pass Book, the subsequent issues shall be made on submission of used Transit Pass Books; (vi) on receipt of the used Transit Pass Book, the Officer-in-Charge of the mining section of concerned district collectorate shall get original copy of the Transit Pass checked in the office with regard to the material entries and after checking and verifying the same shall be returned to the Licensee after stamping the rubber stamp marked as “CHECKED” and signing the same by a person not below the rank of Mining Inspector of Mining Surveyor; Chapter-III deals with establishment of check-post and weighment and inspection of minerals in transit. Same are as follows: Establishment of check posts and weighment and inspection of minerals in transit. (1) If the State Government considers it necessary to do so with a view to check the transportation and storage of minerals without lawful authority, it may direct the setting up of the check posts at any place or places within the State by an order in writing. (1) If the State Government considers it necessary to do so with a view to check the transportation and storage of minerals without lawful authority, it may direct the setting up of the check posts at any place or places within the State by an order in writing. The setting up of a check post shall be notified in the Official Gazette; (2) An authorised person may check any carrier transporting any mineral or its product at any place and the person incharge of the carrier shall furnish to him/her a valid transit pass and other particulars such as bill or receipt or delivery note etc. on demand by the authorised person; (3) At every check post set up under sub-rule(1) or at any place when so required by the authorised person or the Officer-in-Charge of the check post, the person in charge of the carrier shall stop the carrier for examination of the mineral or its product in transit and allow inspection of all records and documents relating to mineral or its product in possession of such person. The person in charge of the carrier shall, if so required by the authorised person or the Officer-in-Charge of the check post, furnish his/her name and address as also that of the owner of the carrier and the name and address of both the consignor and the consignee and the other particulars asked for. After checking the mineral or its products, if the authorised person or the Officer Incharge of the check-post is satisfied that the mineral or its product is being transported under a valid Transit Pass, the authorised person or the Officer-in-Charge of the check post, as the case may be, put his/her signature on the Transit Pass. After checking the mineral or its products, if the authorised person or the Officer Incharge of the check-post is satisfied that the mineral or its product is being transported under a valid Transit Pass, the authorised person or the Officer-in-Charge of the check post, as the case may be, put his/her signature on the Transit Pass. (4) If the authorised person or the Officer-in-Charge of the check post or barrier has reason to believe that the mineral or its product being transported is not covered by the Transit Pass or the Transit Pass is found to be tampered or the transportation is found to be without any Transit Pass, the authorised person or Officer-in-Charge of the check-post shall have power to seize the mineral or its products alongwith the carrier; (5) The authorised person or Officer-in-Charge of the check-post shall give a receipt of such mineral or its product and the carrier seized, to the person, from whose possession or control it is seized; (6) The authorised person or Officer-in-Charge of the check-post may direct the person incharge of the carrier to take the carrier transporting the mineral or its product to the nearest police station or any other place. If the person in-charge of the carrier refuses to take the carrier transporting mineral or its product to the nearest police station or the place asked for, the authorised person or Officer-in-Charge of the barrier may seize the mineral or its products alongwith carrier and take the same in his/her possession. (7) If the authorised person or Officer-in-Charge of the check-post has reasons to believe that the weight recorded in the Transit Pass is not correct, he shall direct the person incharge of the carrier to take the carrier transporting the mineral or its products to the nearest weigh bridge. Chapter-IV deals with grant or renewal of mineral dealer licence. Chapter-V deals with penalty for authorized transportation/storage of minerals and its product.” Chapter IV deal with grant of renewal of mineral dealer license. Chapter V deals with penalty for unauthorized transportation/storage of minerals and its product. 13. Chapter-IV deals with grant or renewal of mineral dealer licence. Chapter-V deals with penalty for authorized transportation/storage of minerals and its product.” Chapter IV deal with grant of renewal of mineral dealer license. Chapter V deals with penalty for unauthorized transportation/storage of minerals and its product. 13. From perusal of the aforesaid provision quoted above would go to show that transportation of minor mineral in respective States is governed by statutory rules, and the area of operation of the aforementioned rules do not travel beyond the territorial limit of the respective States i.e. the State of U.P. and the State of M.P. Documentation that is done nowhere indicates that it permits transportation of minor mineral beyond the boundaries of the respective State. For instance Rule 70 of UPMMC— Rules, 1963 clearly postulates that no person shall carry within the State, a minor mineral by a vehicle, animal or any other mode of transport without carrying a pass in Form MM 11 issued under sub-rule 1. Form MM 11 is supplied for use through the District Officer. In the light of the provisions contained under Rule 70 of UPMMC Rules, 1963, there is complete prohibition of carrying/transporting minor minerals, without carrying a pass in Form MM 11 that has been so issued under Sub-rule (1) of Rule 70 of UPMMC Rules 1963. Here accepted position is that whatever documentation is there in favour of petitioner, same has been under the provisions of M.P. Minor Mineral Concession Rules, 1996 and M.P. (Prevention of Illegal Mining an Transportation) Rules, 2006 and there is no occasion or reason to issue Form MM 11 as has been described/mentioned under sub-rule (1) and (2) of Rule 70 of UPMMC Rules, 1963. 14. 14. Provision to the similar effect are available both in the State of U.P. as well as in State of M.P. but the issue that is engaging our attention is that neither in U.P. Minor Mineral (Concession) Rules, 1963 nor under U.P. Mineral (Prevention of Illegal Mining Transportation & Storage) Rules 2002 nor in the M.P. Minor Mineral (Concession) Rules, 1996 nor in the provision as contained under Madhya Pradesh Minor Mineral (Prevention of illegal Mining, Transportation and Storage) Rules, 2006 there is any such provision authorizing incumbent to carry out minor mineral outside the State of U.P. or bring minor mineral from outside the State inside the State of U.P. Once there is no such specific provision provided for either in the U.P. Minor Mineral (Concession) Rules 1963 or U.P. Mineral (Prevention of Illegal Mining Transportation & Storage) Rules 2002 or in the M.P. Minor Mineral Rules, 1996 or in the provision as contained under Madhya Pradesh Minor Mineral (Prevention of illegal Mining, Transportation and Storage) Rules 2006 and Section 4(1A) of MMDR Act 1957 is categorical and specific that no person shall transport or store or cause to be transported or stored any mineral otherwise then in accordance with provisions of this Act and the Rules framed thereunder. As of now under the scheme of things provided for the minor mineral of one State cannot be transported to another State. Certainly there is restriction in transportation of minor mineral from one State to another and to permit interstate transportation of minor mineral is in the realm of policy decision that has to be taken by the respective authorities of the both the State Governments i.e. State of U.P. as well as State of M.P. 15. It is true that in the affidavit that has been so filed, mention has been made that petitioner company who had obtained mining leases in State of Madhya Pradesh can transport minor minerals from State of Madhya Pradesh to State of U.P. on valid transit pass and other necessary documents being produced but once transit pass itself is limited in its operation within the State from where it has been issued then based on the same can it enter the State of U.P. from adjoining State of M.P ? The answer would be “No” in the light of discussion made above. The answer would be “No” in the light of discussion made above. In our opinion unless and until there are valid documents that authorizes the company in question to transport minor mineral from State of M.P. to State of U.P. no such transportation can take place as there is no policy decision available in the State of U.P permitting such transportation of minor minerals from State of M.P. to State of U.P.. 16. In view of this as far as we are concerned, looking into the scheme of things provided for, as ultimately decision has to be taken by the State Government, we proceed to pass order asking the Principal Secretary, Geology and Mining, Civil Secretariat U.P. Lucknow to deliberate the matter with the Secretary Mining of Madhya Pradesh Government/his counterpart as well as Madhya Pradesh State Mining Corporation Limited to resolve such an issue and for having bilateral agreement, if any, and even otherwise, the State is free to take policy decision in this direction as has been mentioned in the affidavit filed before this Court as in reference of minor mineral, its regulation falls under the purview of the State Government who enact their own minor mineral conservation rules to regulate minor mineral activity in the State concerned. Said exercise be undertaken within two months from the date of presentation of certified copy of this Court. 17. A faint mention has also been made that such a restriction has the impact of offending Article 19 (1)(g) as well as Article 301 to 304 of the Constitution of India. Statutory Rules made pursuant to power entrusted by Parliament, though subordinate to parent statute, has to be treated as part of the Statute and as effective as principal statute. Apex Court in the case of State of Tamil Nadu v. Hind Stone, 1981(2) SCC 205 , in reference of provisions of MMDR Act, 1957 and the Rules framed in exercise of authority under Section 15 of MMDR Act has held that in such situation once statutory rules have been holding the field then such a Rule will fall within the scope and ambit of Article 302 and accordingly, there would be no contravention of Article 301 to 304. Relevant extract of the said judgment is as follows: 6. Rivers, Forests, Minerals and such other resources constitute a nation’s natural wealth. Relevant extract of the said judgment is as follows: 6. Rivers, Forests, Minerals and such other resources constitute a nation’s natural wealth. These resources are not to be frittered away and exhausted by any one generation. Every generation owes a duty to all succeeding generations to develop and conserve the natural resources of the nation in the best possible way. It is in the interest of mankind. It is in the interest of the Nation. It is recognised by Parliament. Parliament has declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals. It has enacted the Mines and Minerals (Regulation and Development) Act, 1957. We have already referred to its salient provisions. Section 18, we have noticed, casts a special duty on the Central Government to take necessary steps for the conservation and development of minerals in India. Section 17 authorises the Central Government itself to undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease. Section 4A empowers the State Government on the request of the Central Government, in the case of minerals other than minor minerals, to prematurely terminate existing mining leases and grant fresh leases in favour of a Government Company or Corporation owned or controlled by Government, if it is expedient in the interest of regulation of mines and mineral development to do so. In the case of minor minerals, the State Government is similarly empowered, after consultation with the Central Government. The public interest which induced Parliament to make the declaration contained in Secton 2 of the Mines & Minerals (Regulation and Development) Act, 1957. has naturally to be the paramount consideration in all matters concerning the regulation of mines and the development of minerals. Parliament’s policy is clearly discernible from the provisions of the Act. It is the conservation and the prudent and discriminating exploitation of minerals, with a view to secure maximum benefit to the community. There are clear sign posts to lead and guide the subordinate legislating authority in the matter of the making of rules. Parliament’s policy is clearly discernible from the provisions of the Act. It is the conservation and the prudent and discriminating exploitation of minerals, with a view to secure maximum benefit to the community. There are clear sign posts to lead and guide the subordinate legislating authority in the matter of the making of rules. Viewed in the light shed by the other provisions of the Act, particularly Sections 4A, 17 and 18 it cannot be said that the rule making authority under Section 15 has exceeded its powers in banning leases for quarrying black granite in favour of private parties and in stipulating that the State Government themselves may engage in quarrying black granite or grant leases for quarrying black granite in favour of any corporation wholly owned by the State Government. To view such a rule made by the Subordinate legislating body as a rule made to benefit itself merely because the State Government happens to be the subordinate legislating body, is, but, to take too narrow a view of the functions of that body. The reasons that prompted the State Government to make Rule 8-C were explained at great length in the common counter-affidavit filed on behalf of the State Government before the High Court. We find no good reason for not accepting the statements made in the counter-affidavit. We are satisfied that Rule 8C was made in bona fide exercise of the rule making power of the State Government and not in its misuse to advance its own self-interest. We however guard ourselves against being understood that we have accepted the position that making a rule which is perfectly in order to be considered a misuse of the rule making power, if it advances the interest of a State, which really means the people of the State. 7. One of the submissions on behalf of the respondents was that monopoly was a distinct legislative subject under entry 21 of List III of the Seventh Schedule to the Constitution and therefore monopoly, even in favour of a State Government can only be created by plenary and not subordinate legislation. Parliament not having chosen to exercise its plenary power it was not open to the subordinate legislating body to create a monopoly by making a rule. Parliament not having chosen to exercise its plenary power it was not open to the subordinate legislating body to create a monopoly by making a rule. Our attention was invited to H.C. Narayanappa and others v. State of Mysore and others(1) where it was held that the expression ‘Commercial and industrial monopolies’ in entry 21 of List III of the Seventh Schedule to the Constitution was not confined to legislation to control of monopolies but was wide enough to include grant or creation of commercial or industrial monopolies in favour of the State Government, also We are unable to agree with Shri Venugopal’s submission. The very decision cited by him furnishes the answer. The validity of a scheme for nationalisation of certain routes made pursuant to the powers conferred by Chapter IVA of the Motor Vehicles Act was under attack in that case. One of the grounds of attack was that “by Chapter IVA of the Motor Vehicles Act, 1939, “Parliament had merely attempted to regulate the procedure for entry by the States into the business of motor transport in the State, and in the absence of legislation expressly undertaken by the State of Mysore in that behalf, that State was incompetent to enter into the arena of motor transport business to the exclusion of private operators;” Sustenance for the submission was sought to be drawn from the language of Article 19(6) (ii) which provides that nothing in Article 19(1) (g) shall ‘prevent the State from making any law relating to’ ‘the carrying on by the State, or by a Corporation owned or controlled by the State, of any trade, business, industry or service, whether to the exclusion, complete or partial, of citizens or otherwise’. The argument was that the State or a Corporation owned or controlled by the State could carry on a trade, business, industry or service to the exclusion, complete or partial, of citizens, only if the State made a law relating to it. The argument was repelled by the Court in these words: “The plea sought to be founded on the phraseology used in Article 19(6) that the State intending to carry on trade or business must itself enact the law authorising it to carry on trade or business is equally devoid of force. The argument was repelled by the Court in these words: “The plea sought to be founded on the phraseology used in Article 19(6) that the State intending to carry on trade or business must itself enact the law authorising it to carry on trade or business is equally devoid of force. The expression ‘the State’ as defined in Article 12 is inclusive of the Government and Parliament of India and the Government and the Legislature of each of the States. Under entry No. 21 of the Concurrent List, the Parliament being competent to legislate for creating commercial or trading monopolies, there is nothing in the Constitution which deprives it of the power to create a commercial or trading monopoly in the constituent States. Article 19(6) is a mere saving provision: its function is not to create a Power but to immunise from attack the exercise of legislative power falling within its ambit. The right of the State to carry on trade or business to the exclusion of others does not arise by virtue of Article 19(6). The right of the State to carry on trade or business is recognised by Article 298; authority to exclude competitors in the field of such trade or business is conferred on the State by entrusting power to enact laws under entry 21 of List III of the Seventh Schedule, and the exercise of that power in the context of fundamental rights is secured from attack by Article 19(6). In any event; the expression ‘law’ as defined in Article 13(3) (a) includes any ordinance, order, bye-law, rule, regulation, notification, custom, etc., and the scheme framed under s.68C may properly be regarded as ‘law’ within the meaning of Article 19(6) made by the State excluding private operators from notified routes or notified areas, and immune from the attack that it infringes the fundamental right guaranteed by Article 19(1) (g)”. 9. Another of the submissions of the learned counsel was that G.O.Ms No. 1312 dated December 2, 1977 involved a major change of policy, which was a legislative function and therefore beyond the competence of a subordinate legislating body. We do not agree with the submission. Whenever there is a switch over from private sector’ to ‘public sector’ it does not necessarily follow that a change of policy requiring express legislative sanction is involved. It depends on the subject and the statute. We do not agree with the submission. Whenever there is a switch over from private sector’ to ‘public sector’ it does not necessarily follow that a change of policy requiring express legislative sanction is involved. It depends on the subject and the statute. For example, if a decision is taken to impose a general and complete ban on private mining of all minor minerals, such a ban may involve the reversal of a major policy and so it may require Legislative sanction. But if a decision is taken to ban private mining of a single minor mineral for the purpose of conserving it, such a ban, if it is otherwise within the bounds of the authority given to the Government by the Statute, cannot be said to involve any change of policy. The policy of the Act remains the same and it is, as we said, the conservation and the prudent and discriminating exploitation of minerals, with a view to secure maximum benefit to the community. Exploitation of minerals by the private and/or the public sector is contemplated. If in the pursuit of the avowed policy of the Act, it is thought exploitation by the public sector is best and wisest in the case of a particular mineral and, in consequence, the authority competent to make the subordinate legislation makes a rule banning private exploitation of such mineral, which was hitherto permitted we are unable to see any change of policy merely because what was previously permitted is no longer permitted. 10. One of the arguments pressed before us was that Section 15 of the Mines and Minerals (Regulation and Development) Act authorised the making of rules for regulating the grant of mining leases and not for prohibiting them as Rule 8-C sought to do, and, therefore, Rule 8-C was ultra vires Act, Section 15. Well known cases on the subject right from Municipal Corporation of the City of Toronto v. Virgo and Attorney General for the Dominion General for the Dominion and the Distillers and Brewers Association of Ontario upto State of Uttar Pradesh and others v. Hindustan Aluminium Corporation Ltd. and others, were brought to our attention. We do not think that ‘Regulation’ has the rigidity of meaning as never to take in Prohibition’. We do not think that ‘Regulation’ has the rigidity of meaning as never to take in Prohibition’. Much depends on the context in which the expression is used in the Statute and the object sought to be achieved by the contemplated regulation. It was observed by Mathew J. in G.K. Krishnan etc. etc. v. The State of Tamil Nadu and another etc., “the word ‘regulation has no fixed connotation. Its meaning differs according to the nature of the thing to which it is applied”. In modern statutes concerned as they are with economic and social activities, ‘regulation’ must, of necessity, receive so wide an interpretation that in certain situations, it must exclude competition to the public sector from the private sector. More so in a welfare State. It was pointed out by the Privy Council in Commonwealth of Australia v. Bank of New South Wales(1)-and we agree with what was stated therein-that the problem whether an enactment was regulatory or something more or whether a restriction was direct or only remote or only incidental involved, not so much legal as political, social or economic consideration and that it could not be laid down in no circumstances could the exclusion of competition so as to create a monopoly, either in a State or Commonwealth agency, to be justified. Each case, it was said, must be judged on its own facts and in its own setting of time and circumstances and it might be that in regard to some economic activities and at some stage of social development, prohibition with a view to State monopoly was the only practical and reasonable manner of regulation. The statute with which we are concerned, the Mines and Minerals (Development and Regulation) Act, is aimed, as we have already said more than once, at the conservation and the prudent and discriminating exploitation of minerals. Surely, in the case of a scarce mineral, to permit exploitation by the State or its agency and to prohibit exploitation by private agencies is the most effective method of conservation and prudent exploitation. If you want to conserve for the future, you must prohibit in the present. We have no doubt that the prohibiting of leases in certain cases is part of the regulation contemplated by Section 15 of the Act. 11. If you want to conserve for the future, you must prohibit in the present. We have no doubt that the prohibiting of leases in certain cases is part of the regulation contemplated by Section 15 of the Act. 11. The submission of the learned counsel that the impugned rule contravened Articles 301 and 303 of the Constitution is equally without force. Now, ‘the restrictions freedom from which is guaranteed by Article 301 would be such restrictions as directly and immediately restrict or impede the free flow or movement of trade” (Atiabari Tea Co. Ltd. v. State of Asssam and others).(2) And, “regulatory measures or measures imposing compensatory taxes for the use of trading facilities do not come within the purview of restrictions contemplated by Article 301”. “They are excluded from the purview of the provisions of Part XIII of the Constitution for the simple reason that they do not hamper, trade, commerce or inter-course but rather facilitate them” The Automobile Transport Rajasthan Ltd. v. State of Rajasthan and others(3). The Mines and Minerals (Regulation and Development) Act is, without doubt a regulatory measure, Parliament having enacted it for the express purpose of “the regulation of mines and the development of minerals”. The Act and the rules properly made thereunder are, therefore, outside the purview of Article 301. Even otherwise Article 302 which enables Parliament, by law, to impose such restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India as may be required in the public interest also furnishes an answer to the claim based on the alleged contravention of Article 301. The Mines and Minerals (Regulation and Development) Act is a low enacted by Parliament and declared by Parliament to be expedient in the public interest. Rule 8C has been made by the State Government by notification in the official Gazette, pursuant to the power conferred upon it by Section 15 of the Act. A statutory rule, while ever subordinate to the parent statute, is, otherwise, to be treated as part of the statute and as effective. Rule 8C has been made by the State Government by notification in the official Gazette, pursuant to the power conferred upon it by Section 15 of the Act. A statutory rule, while ever subordinate to the parent statute, is, otherwise, to be treated as part of the statute and as effective. “Rules made under the Statute must be treated for all purposes of construction or obligation exactly as if they were in the Act and are to be of the same effect as if contained in the Act and are to be judicially noticed for all purposes of construction or obligation.. (State of U.P. and others v. Babu Ram Upadhya)(1); (See also Maxwell; Interpretation of Statutes, 11th Edn. pp. 49-50). So, Statutory rules made pursuant to the power entrusted by Parliament are law made by Parliament within the meaning of Article 302 of the Constitution. To hold otherwise would be to ignore the complex demands made upon modern legislation which necessitate the plenary legislating body to discharge its legislative function by laying down broad guidelines and standards, to lead and guide as it were, leaving it to the subordinate legislating body to fill up the details by making necessary rules and to amended the rules from time to time to meet unforeseen and unpredictable situations, an within the framework of the power entrusted to it by the plenary legislating body. State of Mysore v. H. Sanjeeviah(2) was cited to us to show that rules did not become part of the statute. This was case where by reference to Section 77 of the Mysore Forest Act which declared the effect of the rules, it was held that the rules when made did not become part of the Act. That was apparently because of the specific provisions of Section 77 which while declaring that the rules would have the force of law stopped short of declaring that they would become part of the Act. In the absence of any express provision, as now, the ordinary rule as enunciated in Maxwell and State of Uttar Pradesh and others v. Babu Ram Upadhya (supra) would perforce apply. In the absence of any express provision, as now, the ordinary rule as enunciated in Maxwell and State of Uttar Pradesh and others v. Babu Ram Upadhya (supra) would perforce apply. Following the same set of reasoning as has been mentioned above in the judgment of Apex Court in the case of State of Tamil Nadu (supra) and the fact that Article 19 (1)(g) does confer fundamental right to carry on trade business but same is hedged with limitations placed on it by Article 19(6), the fundamental right to carry on trade/business is not absolute right, and it can be regulated and controlled by law which imposes restriction on the said right, and statutory rules made pursuant to power entrusted by Parliament are law made within the meaning of Article 302 of Constitution of India then there is no contravention of the provisions of Article 301 to 304 of the Constitution of India. Constitution Bench of Apex Court in the case of Jindal Stainless Ltd. and another v. State of Haryana, Civil Appeal No. 3453 of 2002 decided on 11th November, 2016 has dealt with Article 301, 302, 303 and 304 and then based on textual interpretation has summarized as under: “72. The sum total of what we have said above regarding Articles 301, 302, 303 & 304 may be summarized as under: Freedom of trade, commerce and intercourse in terms of Article 301 is not absolute but is subject to the Provisions of Part XIII. Article 302 which appears in Part XIII empowers the Parliament to impose restrictions on trade, commerce and intercourse in public interest. The restrictions which Parliament may impose in terms of Article 302 cannot however give any preference to one State over another by virtue of any entry relating to trade and commerce in any of the lists in the Seventh Schedule. The restriction that the Parliament may impose in terms of Article 302 may extend to giving of preference or permitting discrimination between one State over another only if Parliament by law declares that a situation arising out of scarcity of goods warrants such discrimination or preference. Article 304(a) recognizes the availability of the power to impose taxes on goods imported from other States, the legislative power to do so being found in Articles 245 and 246 of the Constitution. Article 304(a) recognizes the availability of the power to impose taxes on goods imported from other States, the legislative power to do so being found in Articles 245 and 246 of the Constitution. Such power to levy taxes is however subject to the condition that similar goods manufactured or produced in the State levying the tax are also subjected to tax and that there is no discrimination on that account between goods so imported and goods so manufactured or produced. The limitation on the power to levy taxes is entirely covered by Clause (a) of Article 304 which exhausts the universe in so far as the State legislature’s power to levy of taxes is concerned. Resultantly a discriminatory tax on the import of goods from other States alone will work as an impediment on free trade, commerce and intercourse within the meaning of Article 301. Reasonable restrictions in public interest referred to in Clause (b) of Article 304 do not comprehend levy of taxes as a restriction especially when taxes are presumed to be both reasonable and in public interest.” Accordingly even this faint/half-hearted argument has to be turned down. Petitioners will have to take a legal route to enter into State of U.P. With the above observations and direction present writ stands disposed of.