Administrative orders impacting property or licensing rights must be supported by cogent reasons and comply with the principles of natural justice by considering all relevant claims and providing an opportunity for a hearing to all affected parties before taking adverse action.

The Court made the following:

ORDER:

This writ petition is filed under Article 226 of the Constitution of India to set aside the proceedings of the respondent No.3 in ref.No.2491/2000/F10, dated 08.11.2024, cancelling the licence of the saw mill, issued arbitrarily, without enquiring into the application dated 02.09.2024 of the petitioner for transfer of the licence in his favour and without approval of State Level Committee, and to direct the respondent No.3 to initiate action to transfer the licence to the petitioner as per Rule 11(1) of the A.P. Wood Based Industries (Establishment and Regulation) Rules, 2018 (in short, “the Rules”).

2. The case of the petitioner, briefly stated, is as follows:

a. Bundi Sekhar (writ petitioner), late Bundi Selvaraj (respondent No.5) and Bundi Srinivas (respondent No.6), who are brothers, together purchased a saw-mill, by name, Shamsher Wood Planning and Saw Mill on 13.04.2006 along with its licence bearing No.41/99 for Rs.17,73,000/-. It was agreed that the licence of the saw mill would be kept in the name of the respondent No.5 and that the petitioner would be given a rent free accommodation for running a depot, by name Vijayasekhar Timbers, in the premises of the saw mill under the consent letter, dated 30.01.2017, of the respondents Nos.5 & 6.

The premises of the saw mill in Nellore was transferred to the name of the three brothers altering from the name of Yerramsetty Venkata Masthan to the names of three brothers by A.P.I.I.C. on 29.12.2010. Three brothers raised a loan of Rs.65,80,282/- from Union Bank of India, Nellore branch on 17.07.2019. As there was no proper repayment of the loan, the bank issued notice for recovery of possession due to non-payment of Rs.13,87,075/-. The amount was paid by the petitioner to preserve the property. Some disputes arose between the brothers and civil suits were filed. The petitioner filed a suit in O.S.No.863 of 2022 on the file of the Court of III Additional Junior Civil Judge, Nellore to prevent the respondents Nos.5 & 6 from evicting the petitioner from the saw mill property. The Court granted temporary injunction. The suit is pending. The respondents Nos.5 & 6 filed O.S.No.138 of 2022 before the Court of VIII Additional District Judge, Nellore, seeking partition of the subject property. The suit is pending.

c. The respondents Nos. 5 & 6, colluding with Sri U.Rama Rao Choudary of Madhusudana Timber & Saw Mill, Wood Complex, Vedayapalem, Nellore, tried to forcibly evict the petitioner during March, 2023 and threatened the workers also. The Circle Inspector of Police, Vedayapalem and the Superintendent of Police, Nellore, were informed of the incident on 24.03.2023 with a request to take action against the perpetrators. The consequent action on the complaint is not within the knowledge of the petitioner. The respondent No.5 filed a representation dated 30.03.2024, to the respondent No.3 seeking cancellation of the licence of the saw mill stating a reason that he is unable to run the saw mill due to ill-health since the year 2021 and further alleging that the petitioner has been forging the signatures of the respondent No.5 and getting the renewals done and running the saw mill. Such allegations of the respondent No.5 are without foundation.

d. In response to the complaint, the Forest Range Officer, Nellore Forest Range / respondent No.4 issued a notice to the respondent No.5 and the petitioner vide Rc. No.39/2001, dated 28.05.2024, for the purpose of conducting enquiry. The petitioner submitted a detailed explanation denying the allegations of forgery and also stating about the pending civil suits and further reque