In Brief
The State of Punjab sought to recover royalty on brick earth extracted by M/S Om Prakash Brick from privately-leased lands. The brick manufacturer sued for an injunction to prevent royalty recovery, arguing the State had no such right. The courts initially disagreed, but the High Court allowed the suit, holding mere declaration of brick earth as a minor mineral did not give the State royalty rights. The Supreme Court reversed, holding that once brick earth is declared a minor mineral under law, the State may levy royalty on its extraction regardless of land ownership. The machinery for assessing and disputing royalty is found in the relevant rules, not civil courts. The appeals were allowed and the suits dismissed.
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