Law: Punjab Mining Concession Rules, 1986

Section: 52(2)

Punjab Mining Concession Rules, 1986--- ----R. 52(2)---Constitution of Pakistan (1973), Art.199---Constitutional petition---Mining leases---Enhancement of rates of royalty---Imposition of penalty---Petitioner/lessee who was holding five mining leases was paying royalty---Subsequently rates of royalty were amended/enhanced and said enhancement though was notified and published in official Gazette of the Government, but Directorate did not duly inform lessee about the enhanced rates---Notices were issued to petitioner to clear outstanding dues and penalty was imposed on him for his failure to pay royalty on enhanced rates---Petitioner deposited royalty amount immediately, but protested the imposition of penalty and requested for waiver thereof---Request of petitioner was turned down---Validity---Petitioner had not only paid the difference of royalty, but also cleared the amount of penalty inflicted under protest---Penalty was chargeable under R.52(2) of Punjab Mining Concession Rules, 1986 for non-payment of rent and royalty dues---Case of petitioner was not of non-payment as he had been making payment, though at old rates---Contributory conduct of Department also assumed relevance as it had continued accepting payment at the old rates of royalty---Petitioner, in circumstances could not be saddled with element of obstinacy and default and he having acted in good faith and having paid the dues immediately on intimation, was not liable to penalty. Messrs Pioneer Cement Ltd. v. Secretary, Industries and Mineral Development Department, Lahore and others 2004 SCMR 576 ref. JUDGMENT SYED ZAHID HUSSAIN, J.---The petitioner holds five mining leases for coal with effect from 7-12-1995. The rates of royalty were amended/enhanced vide Notification dated 1-9-1996. On examination of accounts of the petitioner it was observed that the royalty was being paid on old rates i.e. prior to 1-9-1996. On 25-5-1999 and 1-6-1999 notices were issued to the petitioner to clear the outstanding dues. The royalty amount was deposited immediately, however, the petitioner protested the imposition of penalty vide letter dated 9-6-1999, and requested for waiver thereof. An appeal was then filed…

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