IMPORTANT POINT
The court established that a violation of natural justice renders administrative actions invalid, necessitating a fair hearing and reasoned decisions.

JUDGMENT :

The Court made the following Order:

The Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:

“…..to issue a writ, order or direction more so one in the nature of mandamus declaring the impugned Memo No.4917/M.II(1)/2012-5, dt.21-02-2013 of the 1st Respondent passed in the statutory Revision Application dt.26-03-2012 challenging the demand notice No.2560/TP/2008 dt.07-02- 2008 of the 4th Respondent as illegal, arbitrary, violative of the well settled principles of natural justice apart from being violative of the provisions of the Mines and Minerals (Development & Regulation) Act, 1957 and the Rules made thereunder and Article 14 of the Constitution of India and consequently set aside the same…….”

2. Brief facts of the case are that the petitioner is a company incorporated under the Companies Act, 1956, doing the business of laying of roads more particularly for the National Highway Authority of India. The petitioner company awarded the project of completion of four-lane Road between Kurnool to Kadapah (NH-18) by way of contract by the NHAI authorities. To complete the project, the petitioner company required Gravel, as such it has applied for issuance of temporary permits to the office of 4th respondent, after duly obtaining No Objection Certificate from the office of Tahsildar, Khajipeta Mandal, vide reference No.A.303/10, dated 13.11.2010 for doing quarrying operations in an extent of 1205.62 Acres in Survey No.569 of Pullur Village, Khajipet Mandal, Kadapa district. The petitioner company obtained 13,500Cbm quantity temporary permits after duly paying challans. Thereafter, the petitioner company vide Challan dated 13.04.2011 paid an amount of Rs.2,64,000/- into the Government Treasury for issue of temporary permits to the tune of 12,000 Cbm. But the 4th respondent refused to issue temporary permits in favour of the petitioner company for lifting of the Mineral in an extent of 12,000 Cbm of Gravel. While things stood thus, the office of the 4th respondent issued Notice No.2560/TP/2008, dated 13.01.2012 stating that the 4th respondent have done joint inspections along with other officials on 09.11.2011 and 31.12.2011 and found that the petitioner company has excavated 25,875 Cbm of Gravel by measuring the pits in Survey No.569 of Pullur Village, Khajipeta Mandal, YSR Kadapa district. The 4th respondent further stated in the notice that the petitioner has obtained permits by paying the advance amount of Rs.2,97,000/- and obtained permits to the tune of 13,500 Cbm only and there is a shortfall of 12,375 Cbm after measuring the pits. Immediately, the petitioner company vide letter dated 24.02.2012 informed the 4th respondent that they have no knowledge with regard to the alleged inspections and further denied that they have not excavated any quantity of mineral illegally. Thereafter, the 4th respondent issued demand notice dated 07.02.2012 for payment of Rs.29,94,750/- towards normal Seigniorage fee plus ten times penalty. Challenging the same, the petitioner filed Statutory Appeal/Revision Application dated 26.03.2012 to the office of the 1st respondent under Rule 35/35-A of A.P.Minor Mineral Concession Rules, 1966. The 1st respondent after hearing the case, disposed the said Revision Application directing the petitioner to pay the Normal Seigniorage Fee along with three times penalty raised in demand Notice No.2560/TP/2008, dated 07.02.2012 of the 4th respondent (if not paid earlier) within thirty days, as the grounds of revision and the arguments of the petitioner are not satisfactory. Aggrieved by the same, the present writ petition has been filed.

3. The 4th respondent filed counter affidavit denying all the allegations made in the writ petition. It is further stated in the counter affidavit that, on 09.11.2011, the then Assistant Director of Mines and Geology, Kadapa along with the then staff i.e., Assistant Geologist, Royalty Inspector and Surveyor of office of 4th re