Royalty – Benefit or privilege – Expression ‘Royalty’ has consistently been construed to be compensation paid for rights and privileges enjoyed by the grantee and normally has its genesis in the agreement entered into between the grantor and the grantee-Controlled release of water made available to INDSIL and CUMI, has always gone a long way in helping them in generation of electricity – For such benefit or privilege conferred upon them, the Agreements arrived at between the parties contemplated payment of charges for such conferral of advantage – Such charges were perfectly justified.
SUPREME COURT OF INDIA DIVISION BENCH M/S. INDSIL HYDRO POWER AND MANGANESE LIMITED — Appellant Vs. STATE OF KERALA AND OTHERS — Respondent ( Before : Uday Umesh Lalit and…

