Karnataka High Court
Sri Udaya Kumar Poojary vs State Of Karnataka on 6 December, 2024
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NC: 2024:KHC:50469-DB
WP No. 1063 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF DECEMBER, 2024
PRESENT
THE HON'BLE MR. N. V. ANJARIA, CHIEF JUSTICE
AND
THE HON'BLE MR. JUSTICE K. V. ARAVIND
WRIT PETITION No. 1063 OF 2024 (GM-MM_S)
BETWEEN:
1. SRI UDAYA KUMAR POOJARY,
S/O RAMA POOJARY,
AGED ABOUT 53 YEARS,
R/AT SRI. DURGA NILAYA,
BELVE VILLAGE AND POST,
HEBRI TALUK, UDUPI DISTRICT-576212.
...PETITIONER
(BY MS. AISHWARYA, ADVOCATE FOR
SRI RAJESWARA P. N., ADVOCATE)
AND:
Digitally signed 1. STATE OF KARNATAKA,
by VALLI DEPARTMENT OF MINES AND GEOLOGY,
MARIMUTHU
No.49, KHANIJA BHAVAN,
Location: High
Court of RACE COURSE ROAD,
Karnataka BENGALURU-560001,
BY ITS DIRECTOR.
2. THE JOINT DIRECTOR,
MINES AND GEOLOGY DEPARTMENT,
SOUTH ZONE, 1ST D CROSS,
I BLOCK, RAMAKRISHNAGAR,
(DATTAGALLI),
MYSURU-570022.
3. SENIOR GEOLOGIST,
MINES AND GEOLOGY DEPARTMENT,
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NC: 2024:KHC:50469-DB
WP No. 1063 of 2024
MINERALS AND GROUND WATER DIVISION,
FIRST FLOOR, 'A' BLOCK,
RAJATADRI, MANIPAL,
UDUPI-576104.
...RESPONDENTS
(BY SMT. NILOUFER AKBAR, AGA)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHING THE NOTICE
BEARING No.DMG/SG(UDUPI)SQL/2023-24/891 DATED 03/06/2023
(ANNEXURE-A) ISSUED BY THE RESPONDENT No.3.
THIS WRIT PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE THE CHIEF JUSTICE MR. JUSTICE
N. V. ANJARIA
and
HON'BLE MR JUSTICE K. V. ARAVIND
ORAL JUDGMENT
(PER: HON'BLE MR. JUSTICE K. V. ARAVIND) The instant writ petition seeking to quash the notice dated 03.06.2023 (Annexure-A) issued by Respondent No.3, which demands a sum of Rs.4,92,087/- towards arrears of royalty for the period 2017-2018 to 2023-2024.
2. The case of the petitioner is that he was granted a mining lease for a term of five years under Mining Lease No.165, dated 08.12.2008, over an area of 80 cents in land bearing Sy.No.77/1P1, situated in Hiliyana village, Brahmavara Taluk, -3- NC: 2024:KHC:50469-DB WP No. 1063 of 2024 Udupi District, to mine Laterite stones. However, the lease was revoked by an order dated 31.03.2011 issued by respondent No.3.
3. The petitioner filed Revision Application No.156 of 2011- 2012 before respondent No.2 challenging the lease cancellation order. A joint measurement was carried out, a mahazar was prepared, and a report was submitted, which detailed the total quantity excavated and the corresponding royalty payable.
4. The revision authority allowed the application and set aside the order cancelling the lease by order dated 07.01.2021. The lease/licence dated 08.06.2023 is granted for a period of 30 years with effect from 08.12.2008.
5. Learned advocate appearing for the petitioner submitted that the revision authority after inspection and examining the dues payable towards royalty has ordered extension of lease for a period of 30 years. The impugned demand notice demanding a sum of Rs.4,92,087/- is without any basis.
5.1 Learned advocate submitted that the impugned notice refers to the demand towards arrears of royalty for the period from 2017- 2018 to 2023-2024 (upto May 2023). It is submitted that the mining -4- NC: 2024:KHC:50469-DB WP No. 1063 of 2024 activity was not in operation for the period under demand due to its cancellation.
5.2 It is further submitted that the demand is raised in the impugned notice without any prior notice or opportunity either to reply or personal hearing. It is submitted that the notice impugned is in violation of the principles of natural justice and not sustainable.
6. Learned Additional Government Advocate Smt. Niloufer Akbar for the respondents while inviting the attention to the statement of objections submitted that the demand is for the period 2008-2009 to 2023-2024. In view of the mining lease is renewed by the revision authority from the date of its original grant, the demand for the interregnum period is justified. It is further submitted that the arrears of royalty, which was due prior to its cancellation, continued and remained unpaid. Hence, the demand has been quantified including the years in which the mining was not in operation.
7. Having considered the submissions of learned counsel for both parties, it is evident that the primary challenge raised by the petitioner against the impugned notice is the alleged violation of the -5- NC: 2024:KHC:50469-DB WP No. 1063 of 2024 principles of natural justice. The impugned order is silent on the opportunity extended to the petitioner to respond. The notice in question imposes a civil liability on the petitioner without providing an opportunity, thus breaching the principles of natural justice. Additionally, the respondent's statement of objections fails to address whether the petitioner was given an opportunity to respond before the demand was made under the impugned notice.
8. In light of the above aspects, the Court's intervention is warranted, but solely on the grounds of the violation of natural justice. The impugned notice of demand is therefore set aside. However, this order will apply only to the extent specified herein. While disposing the writ petition, the following directions are issued,
(i) The impugned notice dated 03.06.2023 is quashed and the same shall be regarded as a show-cause notice. The petitioner is permitted to submit a response within 15 days from the date of this order.
(ii) The petitioner may request any additional information necessary to respond to the impugned notice, and the same shall be provided by the respondent authorities. -6-
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(iii) The respondent authorities are directed to consider the petitioner's reply and adjudicate the matter in accordance with the law, after granting the petitioner a reasonable opportunity to present their case.
(iv) The entire process of adjudication shall be concluded within three months from the date of this order.
(v) The Court does not express any opinion on merits.
Sd/-
(N. V. ANJARIA) CHIEF JUSTICE Sd/-
(K. V. ARAVIND) JUDGE MV List No.: 1 Sl No.: 33