The cancellation of the lease based on a criminal case recommendation was prejudicial to the petitioner and against the principle of natural justice.

1. The short facts of the case are as follows:

The petitioner submits that on 21.05.2005 he applied for stone and earth soil quarry lease in respect of his patta land measuring an extent of 2.58.5 Hectares comprising in Survey Nos.243/5, 244/1, 244/2, 244/5, 244/9, 244/10, 244/11 of Palayaseevaram Village, Sankarapuram, Kancheepuram Taluk, for a period of five years under Rule 19-A of the Tamilnadu Minor Mineral Concession Rules, 1959. The first respondent received his application and instructed the Revenue Divisional Officer, Kancheepuram and the Assistant Director (M & G), Kancheepuram, to submit their reports. Accordingly, after the field inspection, the authorities have submitted their reports dated 17.10.2007 and 02.05.2008 respectively. After considering his application and the reports submitted by the authorities, the first respondent / District Collector passed an order in Rc.No.785/2007-03 dated 30.05.2008 granting stone and earth quarry lease for a period of five years under Rule 19A of the Rules, 1959 subject to the terms and conditions incorporated therein. Thereafter, quarry lease agreement dated 30.05.2008 was entered into between him and the first respondent as per the format prescribed in Appendix IV of the Rules 19(1) and 22 of the Rules, 1959. Accordingly, he was granted lease for a term of five years between 30.05.2008 to 29.05.2013.

2. The petitioner additionally added that in compliance with the conditions imposed in the lease order, he engaged the services of an explosive licence holder after verifying the licence issued by the Chief Controller of Explosives. Accordingly, he entered into an agreement with one Danakoteeswaran for the purpose of supplying the materials for blasting and for carrying on the blasting operations through his men and agents. However, the said licence holder was not only irregular and acted against the terms and conditions of the agreement. Therefore, he took a decision to discontinue the service. As such, he entered into a new agreement with one Balasundaram on 05.03.2012 for the purpose of blasting operations. On and after 05.03.2012, he never had any transaction with the erstwhile explosive licence holder by name Danakoteeswaran. Hence, he has developed some personal grudge for obvious reasons. The said Danakoteeswaran is the proprietor of one M/s.Parry Chemicals and Company, a dealer for fertilizers and chemicals having a place of business at 158, Kunnavakkam, Kancheepuram District. The said Danakoteeswaran being the dealer and agent for fertilizers and chemicals under quotation placed orders to purchase various chemicals and fertilizers inclusive of Ammonium Nitrate.

3. The petitioner further submits that the said Danakoteeswaran purchased the materials and loaded the fertilizers and chemicals in a lorry bearing Registration No.AP16-TV-5445 at Andhra Pradesh and it was being transported to Tamilnadu under invoice, way bills, trip sheet, etc. While the lorry was on the way to M/s.Parry Chemicals and Company, it was intercepted by the officials nearby his quarry on the way to the godown of M/s.Parry Chemicals and Company and that the officials seized the entire materials loaded in the lorry. Immediately, the lorry driver and the cleaner allegedly ran away from the scene, thereafter, the jurisdiction police i.e. D5 Palur Police Station registered a criminal case in Crime No.225 of 2012 under Section 5 of the Indian Explosives Substance Act. One Krishnan, father of Danakoteeswaran was arrested and he gave a confession statement to the police whereupon his name has been implicated as accused No.4, alleging that the ammonium nitrate found in the lorry was for the purpose of using it in the blasting operation in his quarry. He had no knowledge as to the usage and handling of the explosives in the blasting operation, therefore, as per the terms and conditions in the lease order, he has engaged the service of an explosive licence holder for blasting operation. Neither he had k