BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
V. BHARATHIDASAN, J.
M/s. P.M. Granites, Rep by its Managing Partner A. Prabhu, Madurai District
Versus
The State of Tamil Nadu, Rep by its Secretary, Industries Department, Fort St., George, Chennai & Others
Writ Petition (MD) No. 10322 of 2016 & W.M.P. (MD) Nos. 8070 & 8071 of 2016
Decided On : 02-12-2016
Writ of Certiorari - Quarry Lease Cancellation - Tamil Nadu Minor Mineral Concession Rules, 1959 - Rule 36(5)(h) - G.O.(D)No.61 Industries (MMB-2) Department dated 11.04.2016 - [Rule 36(5)(h)] - The court considered the petitioner's challenge to the cancellation of the quarry lease and emphasized the requirement for the first respondent to provide valid reasons for cancelling the lease, as failure to do so indicated non-application of mind and a mechanical acceptance of recommendations. The court cited legal principles emphasizing the need for reasons in administrative decisions and the importance of transparency and fairness in decision-making. The court allowed the writ petition, set aside the impugned order, and remitted the matter to the first respondent for a fresh consideration with a direction to pass a reasoned order within twelve weeks.
Fact of the Case:
The petitioner was granted a quarry lease to quarry granite in their leasehold patta lands. Allegations of illegal quarrying and violations led to the cancellation of the lease by the first respondent without providing valid reasons. The petitioner challenged the order through a writ petition.
Finding of the Court:
The court found that the first respondent failed to consider the objections raised by the petitioner and cancelled the lease without providing valid reasons, indicating non-application of mind. The court emphasized the importance of reasons in administrative decisions and the need for transparency and fairness in decision-making.
Issues: The main issue was the validity of the cancellation of the quarry lease without providing valid reasons and considering the objections raised by the petitioner.
Ratio Decidendi: The court held that the first respondent's failure to provide valid reasons for cancelling the lease indicated non-application of mind and a mechanical acceptance of recommendations, emphasizing the need for transparency and fairness in decision-making.
Final Decision: The writ petition was allowed, the impugned order was set aside, and the matter was remitted to the first respondent with a direction to pass a reasoned order within twelve weeks.
(Petition filed under Article 226 of the Constitution of India praying for issuance of a Writ of Certiorari, to call for the records of the 1st respondent G.O. bearing G.O.(D)No.61 Industries (MMB-2) Department dated 11.04.2016 pertaining to the petitioner's Patta land granite quarry measuring 1.71.5 hectares comprised in S.Nos.39/1B and 49/1B1 situated in V. PUDUKKOTTAI Village Vedasandur Taluk Dindigul District and quash the same.)
Challenging the order passed by the first respondent in G.O. (D)No. 61, Industries (MMB-2) Department, dated 11.04.2016 cancelling the petitioner's lease, the present writ petition has been filed.
2. Heard Mr. K.Ramakrishna Reddy, learned counsel appearing for the petitioner and Mr. B.Pugalendhi, learned Additional Advocate General appearing for the respondents.
3. The case of the petitioner, in brief, is as follows:-
The petitioner was granted with quarry lease to quarry granite in respect of the petitioner's lease hold patta lands measuring 1.71.5 hectares comprised in S.Nos.39/1B and 49/1B1 situated in V. Pudukottai Village, Vedasandur Taluk, Dindigul District vide G.O(3D)No.78, Industries (MMB-2), dated 16.10.2007 for a period of 20 years from 10.12.2007 to 09.10.2027. Pursuant to the order granting lease, the petitioner executed a lease agreement and commenced quarrying operations in the year 2007. While so, in the year 2013, on the basis of the direction issued by the third respondent, the Tahsildar, Vedasandur said to have inspected the petitioner's quarry and filed a report to the third respondent alleging number of violations. Thereafter, the third respondent directed the Revenue Divisional Officer, Palani to inspect the subject quarry and file a report. Based on the said direction, the Revenue Divisional Officer, Palani inspected the subject quarry and filed a report alleging that the petitioner has quarried 17150 cbm of granite from the poramboke lands situated nearby the petitioner's quarry and also removed 11047 cbm of granite from the safety area, in total, the petitioner has quarried 28197 cbm illegally. It is further stated that based on the said report, the third respondent issued a show cause notice to the petitioner on 24.07.2013 for the alleged illegal quarry. It is further stated that during the enquiry, the petitioner submitted his explanation and raised objection but without considering his objection, the third respondent passed an order levying penalty of Rs.1,65,59,200/- by an order dated 27.01.2014. Challenging the above said order, the petitioner filed a statutory appeal before the second respondent and the same is pending. It is further stated that since the third respondent refused to issue transport permits to the petitioner to transport the quarried mineral during the currency of lease, the petitioner filed a writ petition. It is further submitted that in the meantime, after levying the penalty, the third respondent sent recommendation to the second respondent to cancel the petitioner lease alleging number of violations. Thereafter, when the first respondent sent a notice to the petitioner calling upon him to appear for enquiry on 01.02.2016 without issuing any show cause notice and even copies of documents relied upon by the respondents were not furnished to him. Pursuant to the notice, the petitioner appeared before the respondent on 01.02.2016 and submitted a detailed submission and produced documentary evidence to show that the petitioner never indulged in any illegal quarry in the said area as alleged by the second and third respondents. It is further submitted that in a writ petition filed by the petitioner, this Court directed the petitioner to appear before the first respondent on 14.03.2016 and directed the first respondent to dispose of the petitioner's appeal. Subsequently, the first respondent passed the impugned order dated 11.04.2016 cancelling the lease in a mechanical and arbitrary manner without considering the detailed reply filed by the petit
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