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2024 Supreme(AP) 855

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. Manmadha Rao, J.
M/s.Kishore Granites Pvt. Ltd. – Petitioner
Versus
The State of Andhra Pradesh – Respondent
W.P.Nos.29056 and 28142 of 2021
Decided On : 12-08-2024

Advocates:
Advocate Appeared:
For the Petitioner: P Roy Reddy
For the Respondent: GP For Mines And Geology

Writs under Article 226 can be maintained against predetermination by authorities, regardless of alternative remedies available, invalidating actions based on extraneous influences.

Headnote:(A) Constitution of India - Article 226 - Mines and Minerals (Development and Regulation) Act, 1957 - Andhra Pradesh Mines and Mineral Concession Rules, 1966 - Petitioner sought to quash demand notice regarding leasehold rights over quarrying - Previous notices issued failed due to lack of authority - Authority acted under extraneous influence and predetermined mindset in issuing demand notices - Court set aside demand notice and lease determination proceedings, ruling that they were illegal. (Paras 24, 22)

(B) Writ Jurisdiction - Maintainability of writ petitions against show cause notices - Supreme Court precedent allows for writ petitions when notice is issued with pre-determination - Courts may exercise discretion even when alternative remedies exist if the actions are arbitrary (Paras 12, 10)

(C) Legal Malafide - Exercise of power constrained by external directions or extraneous influences constitutes colourable exercise of power, invalidating the action (Paras 12, 22)

Facts of the case:
The petitioner challenged the demand notice (Rs. 56,32,51,996/- for violations under the mining rules) claiming it was issued with a predetermined mindset. Previous notices had been challenged successfully due to lack of authority and illegal procedure.

Findings of Court:
The demand notice and lease determination were quashed as being illegal due to lack of jurisdiction and a predetermined approach by the authorities.

Issues: Whether the authorities acted within their jurisdiction and whether the demand notice was constitutionally valid given previous rulings.

Ratio Decidendi: The court found that the petitions were maintainable due to the pre-determined nature of the action taken against the petitioner, which was improper under the principles established by prior Supreme Court cases. The exercise of power without proper authority or in absence of jurisdiction leads to invalidity.

Result: Writ Petitions allowed.

Table of Content
1. petitioner seeks relief against demand notices. (Para 1 , 2 , 4 , 5)
2. introduction of the case and relief sought via writ petitions. (Para 3)
3. arguments about predetermined nature of notices. (Para 6 , 9 , 11 , 12 , 13)
4. court discusses the legality of the demand notices. (Para 8 , 21 , 22)
5. court emphasizes principle against predetermined notices. (Para 10 , 14 , 20 , 23)
6. court's judgment to set aside the demand notices. (Para 24 , 25)

ORDER :

K. Manmadha Rao, J.

The Writ Petition No.29056 of 2021 is filed under Article 226 of the Constitution of India, seeking the following relief.

    “…..to issue a Writ, Order or Direction more particularly one in the nature of Certiorari by calling for the 2nd repondents Demand Notice No.873/V&E/2020-6, dt.27.10.2021, in respect of the lease hold rights of the petitioner over an extent of 3.093 Hectares in Sy.No.103/P of Konidena (V), Ballikuruva (M), Prakasam District and quash the same…….”

The Writ Petition No.28142 of 2021 is filed under Article 226 of the Constitution of India, seeking the following relief.

    “…..to issue a Writ, Order or Direction more particularly one in the nature of Certiorari by calling for the 2nd respondents Proceedings No.873/V&E/2020-6, dt.27.10.2021, whereby determination (cancellation) was effected of the petitioner’s Mining Leasehold rights pertaining to excavation of colour granite over an extent of 3.093 Hectares in Sy.No.103/P of Konidena (V), Ballikuruva (M), Prakasam District and quash the same…….”

2. Since the petitioner, facts and issues involved in both the writ petitions are one and the same, this Court find it expedient to decide these matters by a common order.

3. The facts in both the writ petitions are similar and identical, therefore, W.P.No.29056 of 2021 is taken as lead case, and the facts therein are referred to for convenience.

4. Brief facts of the case are that the petitioner was granted quarry lease for a period of 20 years i.e., upto 23.08.2026, for excavation of colour granite over 3.0930 Hectares in Survey No.103/P of Konidena Village, Ballikuruva Mandal, Prakasam district, under the provisions of the Mines and Minerals (Development and Regulation) Act, 1956 and the AP Mines Mineral Concession Rules, 1966. While so, a show-cause notice was issued by the Additional Director of Mines and Geology on 13.02.2020, seeking to cancel the quarry lease that had been granted to the petitioner. The same was challenged before this Court in W.P.No.5006 of 2020 and the same was disposed of on 28.02.2020, setting aside the said show-cause notice, while giving opportunity to the competent authority. Therefore, another show-cause notice vide Procdgs No.873/V&E/2020-6, dated 20.03.2020 was issued by the Director of Mines and Geology-2nd respondent, pursuant to the instructions contained in Government Memo dated 29.01.2020 and also a pre-meditated “Alert Note”, dated 03.01.2020 of the Director General, Vigilance and Enforcement (an authority extraneous to the MMDR Act), 1956 and the statutory rules frameed thereunder). Aggrieved by the same, the petitioner filed W.P.No.8515 of 2020 and the same was allowed on 04.03.2021 along with a batch of writ petitions, including W.P.No.13700 of 2020, wherein the Demand Notice dated 31.07.2020 issued to the petitioner was challenged and the said writ petition was allowed on 04.03.2021. Then, another Demand Notice dated 31.07.2020 was issued by 2nd respondent, inspite of pendency of W.P.No.8515 of 2020 and subsistence of interim order therein, calling upon the petitioner to pay seigniorage fee and penalty. The same was challenged in W.P.No.13700 of 2020 and this Court after hearing both sides, suspended the aforesaid demand notice dated 31.07.2020.

5. Again the 2nd respondent issued proceedings dated 20.08.2020, determing (cancelling) the lease of the petitioner. The same was challenged in W.P.No.15077 of 2020 and the same was allowed by this Court on 27.08.2020, setting aside the lease determination proc

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