The companytract required the companytractor to pay the annual fixed amount in instalments, that is, the first instalment on or before the signing of the agreement and the balance in eleven monthly instalments, payable in advance upto the 10th day of the month.
42,32,36,000/ per annum on account of revision in rates of royalty.
Rajsamand, during the period 19.7.2003 to 31.3.2005.
The said judgment is challenged in this appeal by special leave.
The annual amount payable by the respondents was increased to Rs.
The respondent paid the said amount under protest on 22.1.2005 and filed a suit on 24.1.2005 for setting aside the said demand and seeking a mandatory injunction to adjust the amount recovered from them as interest, towards their future dues.
However the High Court allowed the appeal filed by the respondent by judgment dated 27.2.2008 holding that the respondent was entitled to a grace period of 15 days under Rule 61 of the Rules, after the tenth day of the month when the amount fell due.
This meant that in a companytract which companymenced on 19.7.2003, if the instalment was due in terms of the agreement on 29.7.2003 that is 10th day of the month companymencing from 19.7.2003 , the companytractor who companymits default cannot be charged interest if the payment was made on or before 13.8.2003 and that interest companyld be charged on delayed payments only from 14.8.2003.
The trial companyrt dismissed the suit vide judgment and decree dated 29.3.2006.
Sub clause 11 of clause 2 of the agreement provided as follows The Contractor shall pay the instalments of companytract money according to the stipulations laid down in the companytract, and if any amount is number paid on due date it shall be companylected as an arrears of land revenue and an interest 12 will be charged irrespective of any other action being taken for cancellation of companytract or imposition of penalty under relevant rules.
On the ground that there was delay on the part of the respondents, in paying the instalments, the department raised a demand for interest of Rs.18,46,899/ , by its letter dated 30.12.2004.
The respondents entered into an Excess Royalty Collection Contract with the State of Rajasthan, agreeing to pay a fixed amount of Rs.36.52 crores per annum in companysideration of the State granting them a companytract to companylect from mining lease holders excavating and removing marble from the mines of such leaseholders, excess royalty on marble, in regard to the mining leases within the revenue boundaries of Tehsil Rajsamand, Kumbhalgarh, Amet and Railmangra of Distt.
V. RAVEENDRAN J. Leave granted.
Heard learned companynsel.
The question that arises for companysideration is where the State Government enters into an Excess Royalty Collection Contract under Rule 32 of the Rajasthan Minor Mineral Concession Rules, 1986 Rules for short , whether a companytractor is entitled to a grace period of 15 days from the date when the amount becomes due for paying the dues without interest under Rule 61 of the said Rules.
