STATE OF RAJASTHAN vs J.K. SYNTHETICS LTD.

The Supreme Court upheld the Rajasthan High Court's decision to restrict interest on arrears of mining royalty to 12% per annum, as opposed to the 24% demanded by the State, citing Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957. The Court reaffirmed the validity of the amendments made to the Second Schedule of the Act regarding royalty rates and clarified that Rule 64-A of the Minerals Concession Rules, 1960 permits the state to charge interest on arrears, but the rate must be reasonable. The appeal was dismissed, affirming the lower court's ruling.