Any penalty imposed without lawful adjudication and reasoned orders is unconstitutional, violating principles of natural justice and authority under relevant statutes.

ORDER :

VIBHU BAKHRU, CJ.

1. Petitioners have filed the present petition, inter alia praying as under :

"a) Issue a writ or order in the nature of certiorari or any other appropriate writ, order, or direction to quash the imposition of penalty dated 03.01.2025, by the respondent No.3 : Senior Geologist, illegally levying penalty of Rs.87,750/- (Rupees Eighty- seven thousand seven hundred and fifty only) for each vehicle and recovery of Rs.2,63,250/- (Rupees Two lakh sixty-three thousand two hundred and fifty only);

b) Issue a writ or order in the nature of mandamus, directing respondent No.3 to refund an amount of Rs.2,63,250/- (Rupees Two lakh sixty-three thousand two hundred and fifty only), which was coercively recovered by from the petitioners, along with interest from the date of payment to the date of refund;

c) Issue a writ or order in the nature of mandamus directing the respondents to abstain/desist from taking any action against the legally transported minor mineral on production of the documents for having purchased the minerals;

d) Pass such other orders as may be deemed fit and proper in the interest of justice."

2. The petitioners have filed the present petition, essentially, for the reason that they were compelled to pay penalty for release of their vehicles, without any order to the said effect or any adjudication regarding any fault on their part.

3. The petitioners state that the Deputy Director, Department of Mines and Geology, had issued a working permit under Rule 3A(b) of the Karnataka Minor Mineral Concession (Amendment) Rules 2020, in respect of land measuring 2 acres falling in Survey No. 99. The said permit was valid for a period from 18.06.2024 to 17.06.2025 for clearing 23,000 metric tons of "Fullers Earth" (minor mineral).

4. It is stated that petitioner No.1 deals with the minor mineral in question (Fullers Earth) and the same is sourced from various lease holders and persons who have been granted such permissions. It is stated that petitioner No.1 also owns land measuring 3 acres in Survey No.112 situated at Sulepeth Village, Chincholi Taluk, Kalaburagi District and is registered under the name 'M/s. Attar Fullers Earth' with the Department of GST.

5. Similarly, petitioner No.2 is also engaged in the business of processing and selling "Fullers Earth" and had also taken on lease land measuring 3 acres falling in Survey No. 112, Sulepeth Village in Chincholi Taluk. The case of the petitioner No.3 is also similar to the case of the other petitioners. It is stated that during the course of their business, the petitioner No.1 had purchased 105 tons of "Fullers Earth" which was to be transported from the area falling in Survey No. 99 from the permission holder. The mineral dispatch release orders (MDRO) – three in number all dated 02.01.2025 –were issued to petitioner No.1.

6. Petitioner No.2 purchased 105 tonnes of "Fullers Earth" from petitioner No.1 and after processing, sorting, breaking and drying the same, sold the said "Fullers Earth" to petitioner No.3. The vehicles (three in number) carrying the said material were intercepted on 03.01.2025 from the processing area of petitioner No.2.

7. The petitioners state that they had produced all relevant documents regarding transportation of the said mineral. However, respondent No.3 (Senior Geologist), insisted that a penalty of Rs.87,750/- per vehicle be paid and deposited u