Point of Law : Section 28 of Indian Contract Act, 1872 bars agreement that imposes fetters on a party from initiating legal proceedings or enforcing its rights.

JUDGMENT :

The petitioner-Company, is aggrieved by Ext.P20 resolution taken by the 1st respondent-Panchayat. By Ext.P20, the 1st respondent subjected Ext.P21 D&O/Trade Licence issued to the petitioner to four conditions. The respondents have no power under the Kerala Panchayat Raj Act, 1994 to make such conditions. The conditions inserted in Ext.P20 are illegal, arbitrary, and without jurisdiction, contends the petitioner. Ext.P20 is ultra vires the powers of the respondents under the Kerala Panchayat Raj Act, 1994.

2. The petitioner is the Concessionaire for Design, Build, Finance, Operate and Transfer (DBFOT) of Vizhinjam Seaport Project which is a major infrastructure project by Government of Kerala which is developed in Public Private Partnership (PPP) mode. By Ext.P1, taking into consideration the requirement of time bound completion of the Vizhinjam International Seaport and the shortage of rock boulders faced by the petitioner, Government decided that the petitioner shall be given priority in quarrying activities in Government land and the respective District Collectors shall give NOC to those applications for NOCs with respect to Vizhinjam Port.

3. The petitioner was issued with Ext.P2 NOC by the District Collector, Thiruvananthapuram for quarrying a Government land. The petitioner also obtained Ext.P3 Letter of Intent, Ext.P5 approved Mining Plan, Ext.P7 Environmental Clearance, Ext.P8 Consent to Operate and Ext.P9 Explosives Licence. However, when the petitioner submitted Ext.P10 application for D&O/Trade licence from the 1st respondent-Panchayat, the petitioner was informed that by Ext.P20 resolution, the Committee has decided to grant licence to the petitioner for quarrying subject to the following conditions :

1. To form a committee under the leadership of the District Collector and to verify the issues such as (i) environmental impact; (ii) possibility of disaster; (iii) whether the rocks are removed within the permissible quantity etc.;

2. Petitioner to spend the CSR fund within the limits of the Panchayat;

3. Petitioner has to withdraw the Police Protection Order against the President of the Panchayat and to give compensation to those who are affected by the disaster and that;

4. If the said conditions are not complied within a period of three months, the licence will be reviewed.

Pursuantly, the respondents have issued Ext.P21 D&O/Trade licence to the petitioner under Section 232 of the Kerala Panchayat Raj Act. Later, Ext.P22 Quarrying Lease was issued by the Director of Mining and Geology on the basis of the ancillary licences. The conditions incorporated in Ext.P20 are illegal and in violation of the provisions of the statute, urged the petitioner.

4. Standing Counsel entered appearance on behalf of the Panchayat and resisted the writ petition. On behalf of respondents 1 to 3, it is submitted that taking into consideration the interest of the citizens residing in the Grama Panchayat area, the Grama Panchayat Committee convened a meeting on 21.02.2023 and considered the application for permission submitted by the petitioner-Company under Section 233 of the Kerala Panchayat Raj Act, 1994. The Council decided to issue licence to the petitioner on the petitioner submitting all requisite licences and permits.

5. Taking into consideration the larger public interest, the Council decided to constitute a Committee under the Chairmanship of the District Collector to monitor whether the quarrying operations would affect the environment and whether there is any possibility of disaster and also to monitor whether the removal of granite is within the permissible limits. It was also decided that the CSR fund of the petitioner-Company should be spent within the territorial area of the Panchayat. It was further decided that the petitioner should be required to withdraw the protection order obtained by them against the President of the Panchayat. A further stipulation was made that compensation to the affected parties should be throug