STATE OF RAJASTHAN vs M/S DEV GANGA ENTERPRISES

The Supreme Court addressed whether a contractor under an 'Excess Royalty Collection Contract' is entitled to a 15-day grace period for payment of dues without interest as per Rule 61 of the Rajasthan Minor Mineral Concession Rules, 1986. The Court upheld the High Court's ruling that the contractor is entitled to this grace period, clarifying that interest can only be charged on delayed payments after the grace period. The appeal by the State Government was dismissed, affirming the contractor's rights under the contract and the relevant rules.