Kurian Joseph, J.

The history of the case unfolds the pathetic plight of a young enterprising entrepreneur who has been languishing for half a decade, hoping to get a licence from the Panchayat for setting up an industrial unit. What is the scope-rather limitation of the power vested in a Panchayat/its President in the matter of granting permission and issuing licence to set up and conduct an industry? Once that is clearly understood by all, the petitioner and many other unfortunate entrepreneurs can smoothly get through the initial hurdles in their venture.

2. Under the Kerala Panchayat Raj Act, 1994 and the Rules framed thereunder it is the Panchayat which has to issue a licence for setting up an industrial unit. Certain guidelines are also prescribed in the matter. It is profitable to refer to S.232 and sub-s.(1) of S.233 of the Act which read as follows:

"232. Purpose for which places may not be used without a licence.- (1)The village panchayat may notify that no place in the Panchayat area shall be used for any of the purposes specified in the rules made in this behalf being purposes which in the opinion of Government, are likely to be offensive or dangerous to human life or health or property, without a licence issued by the village panchayat and except i n accordance with the conditions specified in such licence:

Provided that no such notification shall take effect until the expiry of thirty days from the date of its publication.

233. Permission for the construction of factories and the installation of machinery.

(1) No person shall, without the permission of the village panchayat and except in accordance with the conditions specified in such permission,

(a) constructor establish any factory, workshop or workplace in which it is proposed to employ steam power, water power or other mechanical power or electrical power; or

(b) install in any premises any machinery or manufacturing plant driven by any power as aforesaid, not being machinery or manufacturing plant exempted by the rules."

3. The Kerala Panchayat (Licensing of Dangerous and Offensive Trade and Factories) Rules, 1996 issued under Ss.232, 233 and 234 of the Act provides for the further details and procedure in the matter of issuance of licence or permission. R.6 and relevant portion of R.12 regarding the issuance of permission/ licence read as follows:

6. Executive Authority to dispose of application. the Executive Authority may, by an order in writing, and under such restrictions and regulations as he thinks fit, grant or, in the interest of the public, refuse to grant such licence. Where the Executive Authority refuses, to grant a licence the reasons for such refusal shall also be stated in the order.

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"12. Application to be made for construction, establishment or installation of factory workshop or workplace in which steam or other power is to be employed.- (1) Every person intending.

(a) to constructor establish a factory, workshop or workplace in which it'is proposed to employ steam power, water power or other mechanical power or electrical power, or

(b) to install in any premises any machinery or manufacturing plant driven by steam, water or other power as aforesaid, not being machinery or manufacturing plant exempted under R.16, shall, before beginning such construction, establishment or installation make an application in writing to the Panchayat in the presented form for permission to undertake the intended work.

(2) The application shall specify the maximum number of workers proposed to be employed on any day in the factory, workshop, or workplace or premises and shall be accompanied by:

(i) a plan of ?fie factory, workshop, workplace or premises prepared in such manner as may be prescribed by the Director, and

(ii) such particulars as to the power, machinery, plant or premises as the Panchayat may require sn Ibis behalf,

(3) The Panchayat shall, as soon as may be, after the receipt of the application and before the expiry of thirty days in