POWER CEMENT LIMITED vs PROVINCE OF SINDH through Secretary, Mines and Mineral Development Department, Karachi Rr — 2024 PLD 1 KARACHI-HIGH-COURT-SINDH

Case information

Citation: 2024 PLD 1 KARACHI-HIGH-COURT-SINDH
Court: Sindh High Court
Year: 2024
Reporter: PLD
Parties: POWER CEMENT LIMITED vs PROVINCE OF SINDH through Secretary, Mines and Mineral Development Department, Karachi Rr

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Judgment text as reported

POWER CEMENT LIMITED VS PROVINCE OF SINDH through Secretary, Mines and Mineral Development Department, Karachi Rr. 2(4), 95 & 96---Regulation of Mines and Oil-fields and Mineral Development (Government Control) Act (XXIV of 1948), Ss. 2 & 4---Royalty---Object, purpose and scope---Royalty has been treated in Sindh Mining Concession Rules, 2002, as payment for minerals that are removed or consumed by holder of a mining lease---Holder of mining lease cannot claim that minerals lying beneath the surface of leased land are his own property merely by virtue of mining lease---Basically and fundamentally, minerals are property of the Province, and whilst holder of mining lease wins minerals subject to lease through labour and the enterprise expended in bringing them to surface, he is required to share spoils with the owner of those minerals in shape of royalty---Royalty is a share in such minerals and not a tax in the form of a compulsory exaction or a fee as that term is understood---This is a payment made in consideration of minerals removed or consumed by holder of mining lease, as per mining lease and subject to Sindh Mining and Concession Rules, 2002, promulgated in terms of Regulation of Mines and Oil-fields and Mineral Development (Government Control) Act, 1948.

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