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2021 Supreme(AP) 915

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
ARUP KUMAR GOSWAMI, NINALA JAYASURYA, JJ.
The State of Andhra Pradesh and Ors. – Appellants
Versus
Southern Rocks and Minerals Pvt. Ltd. and Ors. – Respondents
Writ Appeal Nos. 218, 220, 221, 284, 287, 296, 339, 346, 347 and 350 of 2021
Decided On : 04-10-2021

Advocates:
Advocate Appeared:
For the Appellant : P. Sudhakara Reddy, AAG
For the Respondents: T. Sreedhar, P. Roy Reddy, N. Subba Rao and G. Madhusudhan Reddy

Headnote:

Constitution of India, 1950 - Article 226 - Mines and Minerals (Development and Regulation) Act, 1957 - Section 23-B - A.P. Mining and Minerals Concession Rules, 1966 - Rule 20, 34(1), 35 and 35(a) - Despatch permit - Petitioners were granted quarry lease for black galaxy granite in various survey numbers over different extents of land in Prakasam District and petitioners have been carrying on their operations – Learned single Judge held that show-cause notices were based on an Alert Note submitted by Vigilance and Enforcement Department, wherein penalty was also determined - On a reading of Rule 35 and 35-A of Rules of 1966, it was held that show-cause notices are contrary to aforesaid Rules - As show-cause notices were issued as directed by 1st respondent being an appellate or revisional authority and that it is a clear case of exercise of powers on basis of external dictation/direction - Held, show-cause notices have been issued alleging contraventions/violations of Rules of 1966 - Issuance of show-cause notice does not mean that alleged contraventions/violations have been committed by petitioners - Refusal to issue dispatch permits to petitioners is arbitrary and illegal and, as such, no interference is called for with regard to directions issued by learned single Judge in respect of issuance of dispatch permits - Although arguments were advanced by learned Additional Advocate General that writ petitions ought not to have been entertained as only show-cause notices were issued, learned single Judge having entertained writ petitions and having recorded findings on issues raised by petitioners, it will not be necessary at this juncture to go into question whether learned single Judge ought to have exercised discretion to entertain Writ petitions - Writ petitions dismissed.

JUDGMENT :

Arup Kumar Goswami, J.

1. W.A. Nos. 220, 221, 284, 287, 296, 339, 346, 347 & 350 of 2021 are preferred against a common judgment and order dated 02.03.2021 passed in W.P. Nos. 17519, 8515, 8517, 8293, 17511, 8300, 8501, 17468 and 8516 of 2020, respectively, which were disposed of along with some other writ petitions.

2. W.P. No. 8293 of 2020, W.P. No. 8515 of 2020, W.P. No. 17468 of 2020 and W.P. No. 17519 of 2020 are filed by M/s. Kishore Granites Pvt. Ltd. W.P. No. 8517 of 2020 is filed by M/s. Kamepalli Granites and Exports. W.P. No. 8300 of 2020 is filed by Sri Sai Lakshmi Granites. W.P. No. 8501 of 2020 is filed by M/s. Kishore Black Gold Granites Pvt. Ltd. W.P. No. 8516 of 2020 and W.P. No. 17511 of 2020 are filed by Mr. G. Ankamma Chowdary.

3. W.A. No. 218 of 2021 arises out of judgment and order dated 02.03.2021 passed in W.P. No. 10457 of 2020, filed by Southern Rocks and Minerals Pvt. Ltd., represented by its Managing Director P. Rama Rao. The same is not part of the common judgment and order dated 02.03.2021 passed in W.P. No. 17519 of 2020 and batch. The grievance expressed relates to dispatch permits not being issued.

4. The grievance expressed in W.P. Nos. 10457, 17468, 17511 and 17519 of 2020 relates to dispatch permits not being issued.

5. Challenge in W.P. Nos. 8516, 8501, 8300, 8293, 8517 and 8515 of 2020 is to the show-cause notices issued to the petitioners therein. The said show-cause notices are similar though issued on different dates.

6. W.P. No. 13676 of 2020, W.P. No. 13700 of 2020, W.P. No. 13647 of 2020, W.P. No. 13648 of 2020, W.P. No. 13655 of 2020, W.P. No. 13675 of 2020 and W.P. No. 13646 of 2020 were also disposed of by the common judgment and order dated 02.03.2021. Challenge in these writ petitions was to the demand notices issued to the petitioners. No appeals have been preferred against these writ petitions. The learned single Judge had set aside the demand notices dated 31.07.2020 which were impugned in the said writ petitions on the ground that such notices were issued committing breach of interim orders in pending writ petitions.

7. W.P. No. 8803 of 2020 was also disposed of by the judgment and order dated 02.03.2021 in W.P. No. 13676 of 2020 and batch. In W.P. No. 8803 of 2020, it would appear from the cause-title of the judgment that show-cause notice dated 19.03.2020 was under challenge. However, it appears that no appeal has been preferred against the judgment and order dated 02.03.2021 so far as it relates to W.P. No. 8803 of 2020.

8. Mr. P. Sudhakara Reddy, learned Additional Advocate General, submits that he will rely on the materials on record in respect of W.A. No. 221 of 2021 for the sake of convenience. The learned counsel appearing for the writ petitioners also submit that they will refer to the materials on record of W.A. No. 221 of 2021.

9. The petitioners were granted quarry lease for black galaxy granite in various survey numbers over different extents of land in Prakasam District and it is the case of the petitioners that, accordingly, they have been carrying on their operations in accordance with the terms and conditions of lease as well as the provisions of the Mines and Minerals (Development and Regulation) Act, 1957 (for short, "the Act of 1957") and A.P. Mining and Minerals Concession Rules, 1966 (for short, "the Rules of 1966).

10. The genesis of filing of the writ petitions challenging the show-cause notices as indicated above has its roots in earlier show-cause notices issued by the Additional Director of Mines and Geology, which came to be challenged in various writ petitions such as W.P. No. 5068 of 2020 and batch filed by the aggrieved lease-holders.

11. In the aforesaid challenge mounted in W.P. No. 5068 of 2020 and batch, while allowing the writ petitions by the judgment dated 28.02.2020 on the ground that the Additional Director had no statutory power to

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