Royalty collected under Agreement with Government is not unconscionable and distinguishable from Taxes

Last updated: 09 September 2021
Quick Summary
The Supreme Court has ruled that royalty collected by the government for the use of water in private hydel power generation schemes is not unconscionable. The court distinguished this royalty from taxes, stating it represents compensation for the privilege of using controlled water releases. The appellant, who challenged the royalty charges, was found to have sufficient bargaining power and was not unfairly compelled to accept the terms.

Court :
Supreme Court of India

Brief :
In M/s. INDSIL Hydro Power and Manganese Ltd. v. State of Kerala and Ors. [CIVIL APPEAL NOS.9845-9846 OF 2016 dated September 06, 2021], the current appeal has been filed against the judgment and Order dated April 03, 2014 passed by the Kerala High Court allowing Writ Appeal Nos.1345 and 1355 of 2013 preferred by State of Kerala against M/s. INDSIL Hydro Power and Manganese Ltd ("the Appellant").

Citation :
CIVIL APPEAL NOS.9845-9846 OF 2016 dated September 06, 2021

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Bimal Jain
Published in LAW
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