STATE OF M.P. vs MAHALAXMI FABRIC MILLS

The Supreme Court examined the constitutionality of Section 9(3) of the Mines and Minerals (Regulation & Development) Act, 1957, determining that it does not confer unguided discretion to the Central Government, thus it is not ultra vires the Constitution. The Court upheld the legality of the Notification dated 1st August 1991, which revised the royalty rates for coal, affirming that the provision allows for necessary adjustments in response to economic conditions. The appeals were dismissed, affirming the High Court's decision.