The court upheld the Secretary's authority to grant building permits under the Kerala Panchayat Raj Act, emphasizing that government intervention and expert assessments are crucial for ensuring compliance with environmental regulations.

JUDGMENT :

Syam Kumar V.M., J.

These Writ Appeals are filed challenging the common judgment dated 09.09.2025 of the learned Single Judge in two Writ Petitions viz., W.P.(C) Nos.29169 and 32716 of 2024. Since they raise common questions for consideration, they are heard and hereby disposed of together vide this Common Judgment.

2. The subject matter of these Writ Appeals is the stalemate that had arisen with respect to the construction and establishment of a plywood manufacturing factory within the limits of the respondent Panchayat in W.P.(C) No.32716 of 2024, on account of the disagreement between the Secretary of the Panchayat and the Panchayat Council, in which the Government had intervened by referring the matter to the decision of the Tribunal for Local Self-Government Institutions.

3. While W.P.(C) No.29169 of 2024 was filed by the owner of the proposed plywood factory seeking police protection to carry on the construction work based on the permission/licenses for construction obtained by him, W.P.(C) No.32716 of 2024 was filed by private individuals, inter alia, seeking to set aside the orders issued by the Tribunal for Local Self-Government Institutions as well as the Government, which would pave way for permission to establish the plywood factory, alleging that the same is a polluting industry having the potential to detrimentally impact the local ecology and environment. Larger prayers to strike down Section 191 (4) of the Kerala Panchayat Raj Act, 1994 (for short '1994 Act') as unconstitutional and to declare that the said Section does not empower the Government to pass orders without hearing the affected persons, including the Panchayat, were also raised before the learned Single Judge in the latter W.P.(C).

4. The learned Single Judge vide the impugned judgment dismissed W.P.(C) No.32716 of 2024 filed challenging the permission to establish the factory, inter alia, holding that as long as there are valid licenses and permits issued to establish the factory, the holder of such permits/permission is entitled to construct and run the same. As a corollary, it was held that W.P.(C) No.29169 of 2024, filed by the owner seeking police protection to commence construction of the factory, is fit to be allowed. Aggrieved by the said common judgment, these appeals are filed. W.A.No.2264 of 2025 is filed by respondents No.4 and 5 in W.P.(C) No.29169 of 2024 and W.A.No.2356 of 2025 is filed by the petitioners in W.P.(C) No.32716 of 2024.

5. Heard Mr.Kaleeswaram Raj, Advocate, for the appellants in W.A.No.2356 of 2025 and Mr.Peeyus A. Kottam, Advocate for the appellants in W.A.No.2264 of 2025 and Mr.V.Tekchand, Senior Government Pleader for the State.

6. It is contended by Mr.Kaleeswaram Raj that the learned Single Judge erred in overlooking the fact that the revocation of the relevant building permit (Exhibit P1) by the Panchayat was based on valid grounds and was supported by cogent reasoning. The plywood factory, it is submitted, is situated in the vicinity of a residential area where nearly 130 families reside and they would be adversely affected by its establishment and functioning. According to the learned counsel, the Panchayat has ample power and authority under Section 233 of the 1994 Act to cancel or revoke a building permit. The decision to revoke Exhibit P1 building permit granted to the 4th respondent, as seen in Exhibits P14 and P15, was based on clear findings that the 4th respondent had suppressed material facts and committed fraud in obtaining the