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2013 Supreme(Mad) 3077

High Court of Judicature at Madras
S. MANIKUMAR, J.
Petitioner
Versus
Respondent
M.P.No.1 of 2013 in W.P.No.12454 of 2013
Decided on: 01-09-2013

Judgment

S. Manikumar, J.

1. Poonamallee Circle River Sand Lorry Owner's Association, Tiruvallur Central District, represented by its President, has filed this writ petition for a Mandamus, directing the respondents 1 to 4 to take appropriate action against 5th respondent, Mr. M. Palanisamy and his men from selling river sand by setting up stockyard, without obtaining a dealer licence from the competent authority, as required by Rule 38-A of the Tamil Nadu Minor Mineral Concession Rules, 1959 (hereinafter referred to "the Rules") and also prayed for a direction to the respondents 1 to 4, to enable the members of the Association to purchase river sand, directly from PWD, at quarry pits mouth.

2. The President of the petitioner's Association, on behalf of others, has contended that members of the Association are operating lorries, exclusively for transporting construction materials, like sand, savudu and jelly and supplying the same, to the building contractors and individual public, depending upon their requirements. As far as sand is concerned, since 01.10.2003, quarrying operation is done by Public Works Department, since 01.10.2003, onwards, pursuant to the introduction of Section 38-A of the Tamil Nadu Minor Mineral Concession Rules, 1959. As per the statutory provisions, Public Works Department is quarrying and selling sand, at the pits mouth, by collecting the sale amount and each lorry is permitted to take two units load of sand. According to the petitioner, the sale price includes, value of sand, quarrying cost, loading charges and seiniorage fee.

3. It is the case of the petitioner that the 5th respondent, along with many others, claiming themselves to be the dealers of the sand, set up stockyards, by purchasing the river sand from Public Works Department and selling the same, at a higher rate to lorry owners, like the members of the Association. According to the petitioner's association, at private stockyards, one unit load of sand is being sold at Rs.2,500/- and when it reaches the consumer, it is costly. 4. The petitioner's Association has further submitted that in order to regulate sand trade, State Government have introduced Rule 38-C in G.O.Ms.No.32, Industries (MMC02) Department, dated 10.02.2011, which mandates that the dealers should obtain a licence from the competent authority, for setting up stockyards. When the same was challenged by several dealers in W.P.Nos.14180 of 2011, etc., batch, the Hon'ble Division Bench, by order, dated 19.06.2012, has upheld the validity of the said Rule. However, during the pendency of the writ petitions, the dealers have set up stockyards and were selling sand, on the strength of interim orders. Though some of the dealers have approached the Apex Court, there is no interim stay.

5. The petitioner's Association has further contended that the main object of bringing about an amendment is to avoid illicit quarrying, transportation of sand, and also to avoid sale of sand, at escalated rates. According to the petitioner, they could not purchase sand directly from Public Works Department, at Pits Mouths of the quarry sites and that they are constrained to purchase sand only from the 5th respondent. Hence, the petitioner's Association has made a representation to the District Collectors, Kancheepuram and Tiruvallur, to take action against the 5th respondent, who has been selling sand, at an exorbitant rate, and who has monopolized the trade, by storing sand, at various places, without valid licences. Till the date of filing of the writ petition, no action has been taken on the said representation. Hence, the present writ petition has been filed for the relief, stated supra.

6. The Government have issued G.O.Ms.No.32, Industries (MMC2) Department dated 11.02.2011, introducing Rule 38-C, by which, it has been made mandatory that a dealer in sand has to obtain a licence for setting up of a stockyard. The Rule also mandates that a sale slip, shall be obtained by the stockist from the loc











































































































































































































































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