STATE OF ORISSA vs UNION OF INDIA &ANR

The Supreme Court held that the Railway Administration is not liable to pay royalty for minor minerals used in laying down the railway line, as the land was acquired and possession delivered to the railway, thus not conferring ownership rights over the minerals. The Court affirmed the High Court's finding that the minerals excavated are indeed minerals but ruled that the State cannot levy royalty on minerals from acquired land without a formal transfer deed. The judgment clarified the applicability of the Mines and Minerals (Regulation and Development) Act, 1957 and Orissa Minor Mineral Concession Rules, 1990 regarding mineral rights and royalty obligations.