The judgment established the binding nature of decisions made by statutory bodies, the need for proper application of mind by authorities, and the protection of fundamental rights under the Constitution.

Headnote:
Green Channel Committee - Establishment of Bone Meal Factory - Kerala Panchayath Raj Act, 1994, Section 232, 233, 234 - The court discussed the statutory provisions of the Kerala Panchayath Raj Act, 1994, and the Kerala Panchayath Raj (Licencing of Dangerous and Offensive Trades and Factories) Rules, 1996. It emphasized the binding nature of decisions made by the Green Channel Committee and highlighted the non-application of mind by the Panchayath and the Government in rejecting the petitioner's application. The judgment emphasized the petitioner's fundamental rights under the Constitution and the need for authorities to act in accordance with the rule of law.
Fact of the Case:

The petitioner, an unemployed under graduate, applied for permission to establish a bone meal factory. Despite obtaining necessary certificates and clearances, the Panchayath rejected the application, leading to a series of legal proceedings.
Finding of the Court:

The court found that the decisions of the Green Channel Committee were binding, and the rejection of the petitioner's application by the Panchayath and the Government lacked proper reasoning and application of mind. It emphasized the petitioner's fundamental rights and directed the Panchayath to issue the license to the petitioner.
Issues: The court considered the statutory authority of the Green Channel Committee and the validity of the decisions made by the Panchayath and the Government in rejecting the petitioner's application.
Ratio Decidendi: The court emphasized the binding nature of decisions made by the Green Channel Committee, the non-application of mind by the Panchayath and the Government, and the petitioner's fundamental rights under the Constitution.
Final Decision: The Original Petitions were allowed, and the Panchayath was directed to issue the license to the petitioner within a specified period.

Judgment :-

P. Shanmugam, J.

The petitioner is an unemployed under graduate who has set up a small scale industrial unit to manufacture bone meal. He applied for a permission before the Panchayath on 22.4.1998 for establishment and installation of the factory. Petitioner has also in furtherance of his establishment applied and obtained the following certificates:

1) Apian approved by the Assistant Executive Engineer, Kerala Water Authority (Ext. P1) stating that the nearest residential building is located more than 192 Mtrs. away from the proposed building.

2) The Electricity Board allocation for 35 HP industrial unit dated 29.11.1997.

3) No objection certificate from the Kerala State Pollution Control Board to set up industry for production of 55 t/month bone meal and bone chips subject to 10 conditions set out thereunder.

However, the Panchayath has decided to reject the application and the said decision was communicated by Ext. P3 dated 2.5.1998. Petitioner preferred an appeal before the Green Channel Committee. The Committee by order dated 19.5.1998 decided to issue clearance to the unit. By Ext. P6 dated 22.6.1998 the General Manager, District Industries requested the Panchayath to issue licence to the unit based on the decision of the Green Channel Committee. By Ext. P8 dated 29.7.1998 the District Medical Officer has also issued a certificate of approval based on the technical report accorded for establishment of the bone meal factory. The District Medical Officer had also certified that the factory had satisfied all the conditions stipulated earlier. Since the Panchayath has not been granting the licence as directed by the Green Channel Committe, the petitioner preferred O.P. No. 15364/98 on 11.8.1998 for a direction to the Panchayath to comply with the orders made in Exts. P4 and P6. Notice was issued on 12.8.1998. Thereafter, it appears that the Panchayat has preferred a revision against the decision of the Green Channel Committee. The Government by order dated 17.8.1998 granted stay of the proceedings of the Green Channel Committee till the disposal of the revision petition. Subsequently the Original Petition was amended to quash Ext. P10 since, according to the petitioner, the stay order was obtained on a holiday after receipt of the notice from this Court. By an interim order dated 25.9.1998 this Court directed the Government to dispose of the revision and accordingly the Government by order dated 24.10.1998 set aside the decision taken by the Green Channel Committee. Petitioner has preferred O.P. No. 21468/98 against the order of the Government.

2. Additional respondents 3 to 12 were impleaded who are said to be the affected parties and residents of the localities as parties in this Original Petition. They have filed counter affidavit opposing the relief sought for in the writ petitions.

3. The following questions arise for consideration in this original petition:

1) Whether the Green Channel Committee is a statutory body and the decisions are binding:

2) Whether the order of the Panchayath as confirmed in revision is sustainable on merits.

4. Section 232 and 233 of the Kerala Panchayath Raj Act, 1994, hereinafter referred to as 'the Act', come under the heading "dangerous and offensive trades and factories". S.232 of the Act states that no place in the Panchayath shall be used for any purpose specified in the rules without a licence. S.233 states that no person shall without permission of the Panchayath construct or establish any factory or install any machinery or manufacturing plant. S.234 of the Act empowers the Government to make rules in respect of the grant and renewal of licences and permissions.

5. The Government has framed the Kerala Panchayath Raj (Licencing of Dangerous and Offensive Trades and Factories) Rules, 1996 under Ss.232, 233, 234 read with S.254 of the Act. These rules were notified. The rules provide for specification of dangerous and offensive trades, the procedure of application and disposal. R.4 p

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