1. The petitioner approached this Court, aggrieved by Ext.P3 Order issued by the 3rd respondent/Geologist, calling upon him to pay the penalty amount, as fixed by Annexure R3(a) Government Order, together with interest at the rate of 12% per annum, in respect of the 4 instalments afforded vide Annexure R3(a). The compass of controversy is confined only to the demand for interest, which, according to the petitioner, is neither permissible going by Rule 115, nor as per Rule 114 of the Kerala Minor Mineral Concession Rules, 2015 (for short, 'the K.M.M.C. Rules'), except in respect of the balance amount due, that too, from the date of expiry of 60 days from the date stipulated for payment.

2. Heard Sri.P.B.Krishnan, the learned Senior counsel, duly instructed by Sri.Vishak K. Johnson, on behalf of the petitioner, and Smt.Vidhya A.C, the learned Government Pleader, on behalf of the respondents.

3. Learned Senior Counsel would submit that Rule 115 of the K.M.M.C Rules does not permit levy of any interest. The rule is strictly confined to grant of instalments for the mining dues payable to the Government. Now, coming to Rule 114 of the K.M.M.C. Rules, the interest is leviable only on delayed payments, that too, from the 60th day of expiry of the date fixed by the authority for payment of such sum. Elaborating on facts, it was pointed out that Ext.P1 was the demand issued by the 3rd respondent/Geologist, claiming a sum of ₹1,99,56,686/-, towards excess quarrying. Challenging Ext.P1, the petitioner approached this Court, which culminated in Ext.P2 judgment, which directed the petitioner to approach the Government for instalment facility. Accordingly, the petitioner approached the Government, which resulted in Annexure R3(a) Order dated 19.12.2023. Annexure R3(a) afforded 4 instalments, over and in addition to the payment of the first instalment to the extent of 25% of the amount demanded vide Ext.P1. After adjusting the first instalment of 25% of the amount demanded vide Ext.P1, the rest of the amount has to be paid as 4 equal monthly instalments. It is following Annexure R3(a) that Ext.P3 Order has been issued by the 3rd respondent/Geologist, dated 16.01.2024. There, the principal amount of ₹1,99,56,686/- is referred to, and the 25% amount is calculated at ₹49,89,172/-. Ext.P3 directs the same to be paid on or before 18.01.2024. It is in respect of the rest of the amounts to be paid in 4 equal monthly instalments, that Ext.P3 directed levy of interest at the rate of 12%, to be paid before 18th of every month. Learned Senior Counsel would submit that the first instalment was paid on 16.02.2024, well ahead of the time fixed. The second instalment was paid on 18.03.2024 and the third on 25.04.2024. The balance amount due, according to the learned Senior Counsel, as could be seen from paragraph no.5 of the counter affidavit filed, is Rs.24,87,067/-. That amount was due on 18.05.2024. The 60 days period expired only on 18.07.2024. Thus, according to the learned Senior Counsel, interest can be levied on the said Rs.24,87,067/- from 18.07.2024 upto the date of payment. The purport of Ext.P3, to levy interest on the entire amount of ₹1,99,56,686/-, is illegal, is the submission made.

4. Per contra, the learned Government Pleader would submit that the interest on delayed payments will start running from the expiry of 60 days, from the date fixed on Ext.P1 notice. Ext.P1 notice is dated 14.02.2023. The 15 days period Will expire on 01.03.2023. 60 days period, as stipulated in Rule 114 of the K.M.M.C. Rules, will expire on 01.05.2023. From that date onwards, the petitioner is liable to pay the interest, is the point mooted. All what has been done, vide Annexure R3(a), in exercise of the powers under Rule 115 of the K.M.M.C. Rules, is to afford instalments to the amount, which is otherwise due to the Government from the petitioner, which includes the interest component as well, calculated in terms of Rule 114 of the K.M.M.C. Rules. Therefore, the contention of the petitioner cannot be countenanced in law, is the submission made by the learned Government Pleader.

5. Having heard the learned counsel appearing for the respective parties, this Court finds considerable force in the submissions made by the learned Senior counsel for the petitioner. Rule 115 of the K.M.M.C Rules is extracted herebelow:-                                                    “115. Payment of mining dues in installment-Government may allow collection of any rent, royalty, tax, fee, price of mineral or other sum due to the Government under these rules in monthly installments not exceeding maximum six installments.”

                  It is clear from the above extracted rule that the power conferred under Rule 115 is merely for grant of instalments to any rent, royalty, tax, fee, price of mineral or other sum due to the Government. Therefore, as rightly pointed out by the learned Government Pleader, instalments can be granted only in respect of the amount due to the Government, which could possibly include the interest component as well. Rule 114 of the K.M.M.C. Rules is also extracted herebelow:-

                  “114. Interest on delayed payments- The Competent Authority may charge simple interest at the rate of 12% per annum on any rent, royalty, price of mineral or any other sum due to the Government under the Act or these Rules from the sixtieth day of the expiry of date fixed by the Authority for payment of such sum and until payment of such sum is made.”

                  It is noticeable from the above rule that it enables the competent authority to charge simple interest as well, on any rent, royalty, price of mineral or any other sum due to the Government, from the 60th day of expiry of the date fixed by the authority for payment of such sum, until such payment is made. The term employed is “may”, wherefore it is not incumbent, in every case, to charge interest. The matter has been left to the discretion of the competent authority. In other words, it may necessitate a separate Order, demanding interest as well in terms of Rule 114, since interest on a sum due to the Government, demanded like the one in Ext.P1, is not automatic. It is only on the competent authority, choosing to charge interest, that persons like the petitioner becomes duty bound to pay that sum as well. In the instant case, this Court notice that no such demand has been issued, charging interest on the amount due from the petitioner. Ext.P1 is specific with respect to a demand for Rs.1,99,56,686/-. Of course, at that stage, the interest clause cannot be invoked, since it is only upon the failure of the petitioner to pay the amount as demanded, and from the expiry of the 60th day from the date fixed by the authority, that interest can be charged, in terms of Rule 114. However, thereafter, the petitioner challenged Ext.P1 before this Court, and the petitioner having been relegated to approach the Government, have done that also, culminating in Annexure R3(a). At these stages, no such demand is seen raised or considered in Annexure R3(a), dehors the failure on the part of the petitioner to pay the amount claimed vide Ext.P1, even after the expiry of 60 days from the date stipulated in Ext.P1. Annexure R3(a) is specific, that instalment facility has been granted on the amount demanded vide reference number 1 therein, which is Ext.P1. 25% of the same has to be remitted as the first installment, and the rest, in 4 equal instalments. That being so, Ext.P3 claiming interest as well, issued by the 3rd respondent/Geologist, cannot be construed as valid in law.

6. As regards the balance amount due from the petitioner, the statement filed by the 3rd respondent Geologist vide paragraph no.5, would indicate that the same is Rs.24,87,067/-. Learned Senior counsel for the petitioner would fairly concede that the instalment has not been paid from 60 days, within the days stipulated in Ext P3. Therefore, interest can be levied on the said amount invoking powers under rule 114, the 3rd respondent Geologist will therefore stand directed to issue a fresh demand for realisation of Rs.24,87,067/- together with interest, as per law. As agreed to by the petitioner, the amount so demanded will be paid within a period 15 days from the date of receipt of fresh demand. The 3rd respondent/Geologist will issue a fresh demand, within a period of three weeks, from the date of production of a copy of this judgment. The petitioner will produce a copy of this judgment before the 3rd respondent/Geologist, for compliance. Learned Government Pleader can also inform the 3rd respondent/Geologist, about the gist of this judgment.

                  The Writ Petition will stand disposed of, as above.