IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.B. Suresh Kumar, J.
M/s. J & S Granites Company – Petitioner
Versus
The Director of Mining and Geology and Ors. – Respondents
WP(C).No.18777 OF 2020(V)
Decided On : 10-03-2021
No Objection Certificate - Quarrying Lease - Kerala Minor Mineral Concession Rules, 1967 - Ext.P2 No Objection Certificate was issued to the petitioner for extracting granite building stones from a Government land. The court discussed the reasons for declining the certificate sought by the petitioner and quashed the decision, directing the second respondent to issue the certificate upon payment of the outstanding amount and compliance with the conditions stipulated in G.O.(Ms)No.28/2021/RD dated 28.01.2021.
Fact of the Case:
The petitioner obtained Ext.P2 No Objection Certificate for extracting granite building stones from a Government land. The second respondent declined the certificate sought by the petitioner, citing various reasons including the issuance of Ext.P2 under the Kerala Minor Mineral Concessions Rules, 1967, environmental clearance limitations, and arrears of seigniorage.
Finding of the Court:
The court found that the reasons stated for declining the certificate were unsustainable. It quashed the decision and directed the second respondent to issue the certificate upon payment of the outstanding amount and compliance with the specified conditions.
Issues: The issues revolved around the validity of the reasons for declining the certificate, the applicability of new guidelines, and the petitioner's willingness to pay the outstanding amount subject to the outcome of a pending writ petition.
Ratio Decidendi: The court held that the reasons for declining the certificate were unsustainable, and directed the second respondent to issue the certificate upon payment of the outstanding amount and compliance with the specified conditions.
Final Decision: The court quashed the decision to decline the certificate and directed the second respondent to issue the certificate upon payment of the outstanding amount and compliance with the specified conditions.
JUDGMENT :
On an application preferred by the petitioner, the second respondent has issued Ext.P2 No Objection Certificate to the petitioner on 07.01.2014 for extracting granite building stones from a Government land measuring 4.39.80 Hectors in V-Kottayam Village. Ext.P2 No Objection Certificate was issued for a period of ten years from the date on which the petitioner obtains quarrying lease for the said purpose under the Kerala Minor Mineral Concession Rules, 1967 (the Rules). On the basis of Ext.P2 No Objection Certificate, the petitioner applied for grant of quarrying lease. On the said application, the petitioner was issued Ext.P3 letter of intent, directing them to produce the various licences and permissions obtained by them for the purpose of conducting quarrying operations, including a certificate from the second respondent to the effect that Ext.P2 No Objection Certificate still holds good. Pursuant to Ext.P3, the petitioner applied for such a certificate to the second respondent. The request made by the petitioner in this regard has been turned down by the second respondent in terms of Ext.P5 communication. Ext.P5 communication is under challenge in the writ petition.
2. A counter affidavit has been filed by the second respondent reiterating the reasons stated in Ext.P5 communication for declining the certificate sought by the petitioner.
3. Heard the learned counsel for the petitioner as also the learned Government Pleader.
4. The learned counsel for the petitioner contended vehemently that in so far as the petitioner has been issued No Objection Certificate once, it was highly inappropriate on the part of the second respondent in declining the certificate sought for by the petitioner, after the petitioner has acted upon the No Objection Certificate and obtained the various other licences and permissions required for the purpose of conducting the quarry proposed by them, spending sizeable amounts and wasting enormous time and energy. According to the learned counsel, none of the reasons stated in Ext.P5 would justify the decision of the second respondent to decline the certificate sought for by the petitioner.
5. Per contra, the learned Government Pleader pointed out that Ext.P2 No Objection Certificate was issued at a point of time when there was no guidelines for issue of No Objection Certificate, and guidelines have now been framed by the Government for the said purpose, in terms of G.O.(Ms) No.28/2021/RD dated 28.1.2021. According to the learned Government Pleader, as per the said guidelines, No Objection Certificate holders have to pay lease rent and furnish security for obtaining No Objection Certificate. It was also pointed out by the learned Government Pleader that in terms of the said guidelines, only those who offer the maximum amount of lease rent in the e-tendering process contemplated under the guidelines are entitled to No Objection Certificate. The learned Government Pleader has made available a copy of the said guidelines for perusal of the court. According to the learned Government Pleader, in the circumstances, the second respondent cannot be found fault with for having declined the certificate sought by the petitioner. The learned Government Pleader has also pointed out that the petitioner is a defaulter of the seigniorage payable to the Government in respect of another No Objection Certificate and such a person shall not be extended the benefit of discretionary jurisdiction vested in the court under Article 226 of the Constitution for granting reliefs on equitable grounds.
6. In reply to the submissions made by the learned Government Pleader, the learned counsel for the petitioner submitted that new guidelines cannot be applied in respect of the Government land covered by Ext.P2 No Objection Certificate since the said land does not have road access. It was pointed out by the learned counsel that since the Government land covered by Ext.P2 No Objection Certificate is surrounded by the private holdings
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