Section 25 of MMDR : Section 25: Recovery Of Certain Sums As Arrears Of Land Revenue

Explanation using Example

Imagine a mining company, "RockExtract Co.," which holds a mining lease for extracting iron ore in a particular state. As per the lease agreement and relevant mining regulations, they are required to pay a certain amount of royalty to the state government every quarter based on the volume of ore extracted.

However, RockExtract Co. falls behind on these payments for two consecutive quarters. According to Section 25 of The Mines and Minerals (Development and Regulation) Act, 1957, the unpaid royalty is considered a debt owed to the government. The state government appoints a specified officer to issue a certificate stating the amount due.

Once the certificate is issued, the state government can recover the unpaid royalty in the same manner as they would recover overdue land revenue. This means that the government could potentially take measures such as seizing and auctioning off RockExtract Co.'s assets to recover the debt. Furthermore, the debt owed to the government, including any interest accrued, would take precedence over other claims and would be considered a first charge on the assets of RockExtract Co.