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2025 Supreme(Ker) 2812

IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J.
Nizarudheen S/o Abdul Salam Zeena Manzil – Appellant
Versus
State of Kerala – Respondent
WP (C) Nos. 29169, 32716 of 2024
Decided On : 09-09-2025

Advocates Appeared:
For the Appellant : Peeyus A. Kottam
For the Respondents: Kaleeswaram Raj, Chinnu Maria Antony, Aparna Narayan Menon, Amminikutty

Section 191(4) of Kerala Panchayat Raj Act, 1994 is valid as Tribunal hearing under Section 191(2) ensures natural justice before Government suspension. Section 233(3) limits Panchayat to imposing conditions on factory permission, not denial, and Pollution Control Board clearance is binding. (49 words)

Headnote:(A) Kerala Panchayat Raj Act, 1994 - Sections 191, 233 - Section 191(4) empowers Government to suspend Panchayat resolution temporarily to protect human life and health without notice to Panchayat, but Section 191(2) requires Tribunal hearing ensuring opportunity of being heard - Section 233(3) allows Panchayat to grant factory permission subject to conditions but not deny outright; Pollution Control Board clearance is binding - Kerala Investment Promotion and Facilitation (No.2) Act, 2018 constitutional for streamlining approvals. (Paras 25-27, 32-34, 36)

(B) Panchayat's resolution to revoke building permit valid as Secretary's disagreement under Section 182(iii) was recorded and resolution was reviewed by Panchayat Committee. (Para 30)

Facts of the case:
The petitioner obtained building permit for plywood factory construction. Panchayat revoked permit due to environmental concerns (pollution of nearby farm pond used for irrigation). Government issued stay order and referred matter to Local Self Government Tribunal, which held Panchayat's resolution illegal. Respondents challenged Government orders seeking to stop factory construction.

Findings of Court:
Government orders under Section 191(4) valid as Tribunal procedure ensured natural justice. Panchayat's power under Section 233(3) limited to imposing conditions on factory permission, not denial. Pollution Control Board clearance must be considered. Petitioner entitled to construction as per valid permits.

Issues: Whether Section 191(4) of Kerala Panchayat Raj Act, 1994 is unconstitutional for suspending resolution without notice to Panchayat; and whether Section 233 is unconstitutional for not allowing Panchayat to refuse factory permission.

Ratio Decidendi: The Tribunal hearing mechanism under Section 191(2) satisfies natural justice requirements for Section 191(4) suspension. Section 233(3) permits Panchayat to grant permission with conditions, not deny, and Pollution Control Board clearance is a decisive factor.

Result: W.P.

(C) No.32716/2024 dismissed; W.P.

(C) No.29169/2024 allowed with police protection directed to the petitioner.

JUDGMENT :

N. NAGARESH, J.

1. W.P.(C) No.29169/2024 has been filed by the petitioner, who is constructing a plywood factory in his property. The petitioner seeks to command the police to provide adequate police protection to the petitioner, his employees and vehicles coming to the petitioner's factory premises for carrying the construction work as per Ext.P1 Building Permit without any hindrance or obstructions from respondents 4 and 5 and their men.

2. W.P.(C) No.32716/2024 has been filed by the said respondents 4 and 5 seeking the following reliefs:

(i) To strike down Section 191 (4) of the Kerala Panchayat Raj Act, 1994 as unjust, illegal and unconstitutional;

(ii) To declare that Section 191 (4) of the Kerala Panchayat Raj Act, 1994 is not to be invoked for the purpose of constructing of the plywood factory owned by the 4th respondent as mentioned in Ext.P1 in Kareepra Grama Panchayat;

(iii) To issue a writ of certiorari quashing ExtP16 GO a3 unjust, illegal and arbitrary;

Alternatively:-

(iv) To declare that Section 191 (4) of the Kerala Panchayat Raj Act does not empower the Government to pass unreasoned orders, without hearing the affected persons including the Panchayat;

(v) To issue a writ of mandamus directing the respondents to refrain from constructing and operating the plywood factory owned by the 4th respondent as mentioned in Ext.P1 in Kareepra Grama Panchayat;

(vi) To issue such other orders, directions or writs as may be prayed for under the facts and circumstances of the case;

(vii) To dispense with filing of the translation of vernacular documents.

(viii) To issue a writ of certiorari quashing Exts.P18 and P19 as unjust, illegal and arbitrary;

(ix) To strike down Section 2 of the Kerala Investment Promotion and Facilitation (No.2) Act, 2018 (Ext.P20) to the extent it does not contemplate or provide for a refusal by the Panchayat to grant or issue permission for the construction of a factory, workshop or workplace;

(x) To strike down S. 233(3) of the Kerala Panchayat Raj Act as unconstitutional, to the extent to which it does not allow the Panchayat to refuse license for any factory, workshop, workplace etc. and S.233(4) to the extent to which it does not specify for a contingency of refusal of license by the Village Panchayat.

(xi) To strike down clause 8(c) of Ext.P21 to the extent it does not contemplate or provide for a refusal by the Panchayat to grant or issue permission for the construction of a factory, workshop or workplace;

(xii) To strike down Rule 12(3) of the Kerala Panchayat Raj (Issue of Licence to Factories, Trades, Entrepreneurship activities and other services) Rules, 1996 to the extent it does not contemplate or provide for a refusal by the Panchayat to grant or issue permission for the construction of a factory, workshop or workplace.

3. The parties and exhibits are referred to in this judgment as they are described and marked in W.P.(C) No.29169/2024, for clarity. As the eligibility of the petitioner to get police protection would depend upon the challenges made by respondents 4 and 5 in W.P.(C) No.32716/2024, the said writ petition is firstly dealt with.

4. Respondents 4 and 5 state that they are residents of Kareepra Grama Panchayat and are aggrieved by the construction of a plywood factory in the Panchayat by the petitioner. The petitioner proposed to construct the plywood factory in the beginning of 2024 and Ext.P1 Building Permit was issued by the Panchayat. The Ministry of Micro, Small and Medium Enterprises has issued Ext.P2 Udyam registration and the Pollution Control Board has issued Ext.P3 Consent to Establish.

5. The respondents filed a Suit in the Munsiff's Court, Kottarakkara as OS No.305/2024 seeking permanent prohibitory injunction against starting the plywood factory. The Munsiff's Court initially passed Ext.P5 interim injunction order dated 12.07.2024. Ext.P6 report of the Advocate Commissioner appointed in the said OS would show that the petitioner had suppressed existence of a water strea

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