South Eastern Coalfields Ltd. vs State Of M.P. And Ors.

The Supreme Court upheld the constitutionality of Section 9(3) of the Mines and Minerals (Regulation and Development) Act, 1957, which empowers the Central Government to alter royalty rates for minerals, including coal. The Court reversed the Madhya Pradesh High Court's decision that quashed the notification enhancing the coal royalty from Rs. 6.50 to Rs. 120 per ton, ruling that the notification was not arbitrary or lacking in bona fides. Consequently, the writ petitions challenging the enhanced royalty were dismissed, affirming the government's authority to set royalty rates.