A Village Panchayat cannot revoke permission granted for a quarry under Section 233 without substantial grounds, as stipulated by the Kerala Panchayat Raj Act.

JUDGMENT :

A.Muhamed Mustaque, J.

In this Appeal, the Village Panchayat challenges the judgment of the learned Single Judge interfering with the resolution passed by the Village Panchayat cancelling a permission granted under Section 233 and 232 of the Kerala Panchayat Raj Act, 1994 (for short 'the Act'). The learned Single Judge found that absolutely no reasons had been mentioned for cancellation of the permission granted by the Village Panchayat Committee under Section 233 of the Act as well as by the Panchayat Secretary under Section 232 of the Act.

2. The Writ Petitioner, who is the respondent herein, proposed to establish a quarry within the Panchayat. He approached the Panchayat seeking permission for construction of factories and installation of machineries under Section 233 of the Act. Section 233 of the Act mandates that no person shall, without the permission of the Village Panchayat and except in accordance with the conditions specified in such permission shall construct or establish any factory, workshop or erect machineries, etc. It delineates a certain procedure for granting permission. It is on being satisfied with procedures referred to therein; permission will have to be granted. In this case, permission was granted to the respondent. Based on this permission, the Secretary also issued D & O licence under Section 232 of the Act. Thereafter, the Panchayat received complaints from local residents and some of the representatives of the local body. Acting on these complaints, the Panchayat Committee through a resolution dated 17.08.2024 decided to cancel the permission granted. This has resulted in a challenge.

3. According to the Panchayat, under Rule 11 of the Kerala Panchayat Raj (Procedure for Panchayat meeting) Rules, 1995 (for short 'the Rules'), the Panchayat is vested with the power to cancel or modify the resolution. Therefore, there is no restriction under the law for the Village Panchayat to revoke permission granted under Section 233 of the Act. The question is whether the Panchayat has the power to cancel a permission granted under Section 233 by invoking Rule 11 of the Rules .

4. As rightly pointed out by the learned counsel for the respondent, Section 233 of the Act delineates its own procedure to arrive at a conclusion similar to any quasi judicial body. Once a decision is taken, it can be cancelled or reviewed only on a finding that there was a material suppression of facts or fraud committed on the Panchayat Authority. Permission is granted by way of an order, based on satisfaction with the reports required to be produced before the Village Panchayat as referred to under Section 233 of the Act. There is no provision under Section 233 of the Act granting the power to review or cancel an order issued under it. Therefore, such power can be exercised only on limited grounds, like fraud or suppression of material facts leading to issuance of the order. Rule 11 has nothing to do with any decision taken or order issued under Section 233 of the Act. Rule 11 is only a procedural Rule governing Panchayat meetings and does not by itself create any substantive right or power to cancel an order or permission granted under Section 233 of the Act. A substantial right is conferred through a definite procedure while exercising a power of quasi judicial nature, and it cannot be interfered with reference to a power given to convene a meeting and modify the earlier decisions taken through a resolution. The Rules only refers to the procedure for meetings and it does not enable a Panchayat to review an order issued or permission granted under Section 233 of the Act. Therefore, the cancellation of permission granted under Section 233 of the Act is without any power.

The Secretar