M/S. KHAN SAHEB M. HASSANJI & SONS vs STATE OF MADHYA PRADESH

The Supreme Court upheld the validity of an agreement dated January 11, 1949, which raised the royalty rate for a mining lease from Rs. 5 to Rs. 10 per ton, stating that the Governor acted as the lessor and the revised terms were binding. The Court found that the Mineral Concession Rules, 1949, which came into effect after the agreement, did not apply retroactively, thus the agreement was not void. Furthermore, the Court ruled that the payment made by the appellants was legitimate under the contract, and did not constitute deprivation of property under Article 31(1) of the Constitution.