Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Starting or operating a scrap unit—dealing with metal scraps, waste recycling, or junkyard activities—can be a lucrative business, but it comes with regulatory hurdles. One common question among entrepreneurs is: D&O license is mandatory or not for conducting a scrap unit? D&O stands for Dangerous and Offensive trades, a license issued by local bodies like panchayats or municipalities in India, particularly under state laws like the Kerala Panchayat Raj Act.
This blog post dives into the legal landscape, analyzing available precedents, relevant statutes, and case laws. While no single document provides a blanket yes or no, we'll explore why such a license is often required, potential exceptions, and steps for compliance. Note: This is general information based on legal documents and not specific legal advice. Consult a lawyer for your situation.
A D&O license regulates trades that could pose risks to public health, safety, or the environment, such as scrap processing, which involves cutting, melting, or storing potentially hazardous materials. In Kerala and similar states, Section 233 of the Kerala Panchayat Raj Act, 1994, mandates licensing for such activities.
Scrap units often fall under this category due to:- Fire hazards from welding or cutting metals.- Pollution from dust, oils, or chemical leaching.- Encroachment or improper waste disposal, as seen in complaints about illegal operations. MOHD MUSLEHUDDIN VS - 2024 Supreme(Online)(NGT) 2705
Without proper licensing, units risk shutdowns, fines, or prohibition orders, as highlighted in environmental cases. UNITED BASE METALS SDN BHD vs KETUA PENGARAH KUALITI ALAM SEKELILING & ANOR
Reviewing key legal documents reveals no precedent directly traceable to scrap units specifically. For instance, one primary document focuses solely on approvals for a temporary casting yard in a Coastal Regulation Zone (CRZ) under the Environment (Protection) Act, 1986. It permits activities like reinforcement fabrication but makes no mention of junkyards, scrap metal, waste handling, or related permits. Zoru Darayus Bhathena VS Maharashtra State Road Development Corpn. Through Its Managing Director, Mumbai - 2019 0 Supreme(Bom) 711
The case addresses CRZ-II violations, stating: Regulation of building activity in CRZ-II, which permits building activities only on the landward side of the existing road or landward side of the existing authorised structures, is blatantly violated. Zoru Darayus Bhathena VS Maharashtra State Road Development Corpn. Through Its Managing Director, Mumbai - 2019 0 Supreme(Bom) 711 This does not extend to scrap facilities, which involve distinct risks like hazardous waste.
However, indirect references suggest D&O is typically mandatory:- In a Kerala Panchayat case, a petitioner was entitled to a deemed D&O license under Section 236(3) because no order was communicated after application. Admittedly, no order is communicated to the petitioner as provided under Section 236(3) of the Act - Accordingly, the petitioner is entitled for deemed D&O license under the Act. Aiswarya Granites VS Elamadu Grama Panchayat - 2022 Supreme(Ker) 981- For stone crushers (analogous to scrap processing), Rule 18(v) prohibits licenses if sites are within 500 meters of highways. Safa Stone Crusher VS Secretary, Mukkom Municipality - 2020 Supreme(Ker) 359
Several judgments provide context on licensing for waste-handling or industrial units:
Under the Environmental Quality Act, operating prescribed activities like non-ferrous metal recycling without prior approval leads to prohibition orders. The court upheld: The Prohibition Order was upheld as the applicant failed to comply with the EQA, specifically regarding the requirement for an Environmental Impact Assessment report. UNITED BASE METALS SDN BHD vs KETUA PENGARAH KUALITI ALAM SEKELILING & ANOR
This mirrors scrap units, often classified as prescribed activities needing site-specific approvals.
Multiple Kerala cases link D&O to mining-related trades:- A quarry unit's D&O application was rejected for being within 125 meters of a public road, violating Kerala Municipality Rules, 2011. Despite other clearances (e.g., environmental from SEIAA), the rejection was quashed on procedural grounds. Safa Stone Crusher VS Secretary, Mukkom Municipality - 2020 Supreme(Ker) 359- For an M-Sand unit, D&O was pursued after building permits, but rules mandate access roads of at least 7 meters. Secretary of the Panchayat have no authority to issue building permit based on provision of law that which is not considered by the Chief Town Planning Officer. Joice Joseph VS Ayarkunnam Grama Panchayath Panchayath Office, Ayarkunnam P. O. - 2018 Supreme(Ker) 152- A crusher unit held a valid D&O license alongside quarry operations. K. P. JOY, S/O. LATE K. P. POULO VS GOVERNMENT OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF TAXES, GOVERNMENT SECRETARIAT - 2017 Supreme(Ker) 130
These indicate scrap units, involving similar processing, require D&O alongside pollution board consents and mining approvals if applicable.
While not universally mandatory from the reviewed docs, scrap units generally require:1. D&O License from local panchayat/municipality under state acts like Kerala Panchayat Raj Act, Section 233/236.2. Environmental Clearances: Consent from State Pollution Control Board (SPCB); EIA for larger units. UNITED BASE METALS SDN BHD vs KETUA PENGARAH KUALITI ALAM SEKELILING & ANOR3. Zoning Compliance: Distance from roads, residential areas (e.g., 500m from highways for crushers). Safa Stone Crusher VS Secretary, Mukkom Municipality - 2020 Supreme(Ker) 3594. Other Permits: Fire NOC, explosive licenses if melting, GST registration.
Deemed Approval: If no decision within timelines, deemed license may apply. Aiswarya Granites VS Elamadu Grama Panchayat - 2022 Supreme(Ker) 981
Exceptions are rare and site-specific; coastal or hazardous sites need CRZ nods, though irrelevant here. Zoru Darayus Bhathena VS Maharashtra State Road Development Corpn. Through Its Managing Director, Mumbai - 2019 0 Supreme(Bom) 711
A D&O license is typically mandatory for scrap units to ensure safety and environmental compliance, though no direct precedent confirms it universally. Cases on analogous units (quarries, crushers) reinforce this, with procedural safeguards like deemed approvals.
Key Takeaways:- No blanket exemption; apply via local panchayat.- Pair with environmental and zoning clearances.- Illegal ops risk shutdowns and costs.- Always verify site-specific rules.
For tailored advice, reach out to a local legal expert. Stay compliant to build a sustainable scrap business!
References:- Zoru Darayus Bhathena VS Maharashtra State Road Development Corpn. Through Its Managing Director, Mumbai - 2019 0 Supreme(Bom) 711, MOHD MUSLEHUDDIN VS - 2024 Supreme(Online)(NGT) 2705, UNITED BASE METALS SDN BHD vs KETUA PENGARAH KUALITI ALAM SEKELILING & ANOR, Pioneer Scrap Traders and Exporters (M/s) v. Lt. Col. O. G. Eapen - 1963 Supreme(Online)(Bom) 9, M/s. Tyco Electronics Systems India (P) Ltd. vs The Commissioner of Central Excise Bangalore-II Commissionerate - 2024 Supreme(Online)(CESTAT) 340, Aiswarya Granites VS Elamadu Grama Panchayat - 2022 Supreme(Ker) 981, Safa Stone Crusher VS Secretary, Mukkom Municipality - 2020 Supreme(Ker) 359, Joice Joseph VS Ayarkunnam Grama Panchayath Panchayath Office, Ayarkunnam P. O. - 2018 Supreme(Ker) 152, K. P. JOY, S/O. LATE K. P. POULO VS GOVERNMENT OF KERALA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF TAXES, GOVERNMENT SECRETARIAT - 2017 Supreme(Ker) 130
#DOLicense #ScrapUnit #LegalCompliance
The applicant has complained that illegal scrap unit is being operated in residential area of Dev Nagar, Pyarelal road, Karol Bagh, New Delhi. The Project Proponent is also doing iron welding business in the said unit. ... During the inspection it was observed that: Unit was found operational engaged in the activity of scrap shop including segregation, cutting and welding of metal scrap etc. with light engineering work. ... The officials of the DPCC found environmental violations by ....
Officer; (ii) the scrap or waste material or remnants arising in the course of production, manufacture, processing or packaging, if such scrap or waste material or remnants are destroyed within the unit or destroyed outside the unit when it is not possible to destroy the same ... Duty is not charged in case of obsolete/surplus capital goods, consumables, spares, goods manufactured, processed or packaged and scrap, waste, remnants are destroyed within the uni....
In the status report it was mentioned that unit named Jayant Iron Store was found existing which was a kabadi/scrap shop engaged in the activity of storage/segregation/trading of scrap. The said unit was found non-operational during inspection. ... In the status report it has not been mentioned since when the said unit was operating. DPCC has felt contended in merely reporting that on the day of inspection scrap, iron, etc./material was being loaded in a truck and as ....
b) Unit owner/ representative shows the MCD license. c) Scrap (iron, etc.)/ material found being loaded in a truck and as information/ told by Sh. ... In the status report it was mentioned that unit named Jayant Iron Store was found existing which was a kabadi/scrap shop engaged in the activity of storage/segregation/trading of scrap. The said unit was found non-operational during inspection. ... In the status report it has not been mentioned since ....
Rest of the 28 units do not have pollution certificates from Delhi Pollution Control Committee due to which Municipal license has not been granted to them. It is stated in the status report that in these 41 units, no kind of burning of waste was found. ... The 42 units operating without grant of any municipal license in non-conforming areas, have been issued closure notice and challans by the NDMC. Out of 42 units, 9 units were found to be involved in trade works related to plastic, like plastic buckets, plastic bags, pl....
Other than for the cavil assertion that the plaintiff had contributed the entire consideration that he received after selling his unit at Angamaly, to start the present Unit, there is no scrap of paper to establish his so called investment. ... The accounts and records of the unit including bank records will reveal that the plaintiff is the co-owner, but the license and registration is shows otherwise, and which one will prevail? ... The case of the plaintiff in a nut shell is that, he was con....
(a) Whether Or Not The Quantitative Test Is A Mandatory Requirement Under Prescribed Activity 14. ... The subsidiary issues are as follows: (a) Whether or not the quantitative test is a mandatory requirement under Prescribed Activity 14. (b) Whether or not the applicant's activities involve the recycling of solid waste? ... not satisfy the requirements under subsection (2C), he shall not approve the report, giving reasons for not approving, and shal....
Hence such type of unit is not coming under the purview of consent administration of the State Pollution Control Board. In view of the above following recommendations are made. 1. ... For handling of these scrap items, he has obtained Trade License certificate from the Jajpur Municipality for installation Kabadi shop and submitted the required documents to the committee. ... The project proponent cum scrap dealer shall abide by the provisions of Trade license Certificate issued U/S 617....
It is not in dispute that there is no free market for melting scrap and there is price control in respect of melting scrap. ... I do not admit that there is scarcity of heavy melting scrap in the country, but it is true that the price of heavy melting scrap being controlled, it is not easily and in sufficient quantity available in the open market." ... confirming receipt of heavy melting scrap is not produced as evidence, export of ....
6) For the RENEWUAL of Health Trade License for Atta Chakki payment of renewal fees to MCD has been made on 03.01.2024. However, as on date renewal of license has not been done. ... The OA No. 85/2023 was entertained on the basis of the letter petition wherein the grievance was raised that a scrap unit at House No. 330, Pocket-8, Sector A5, Narela, Delhi 110040 was illegally operating after encroaching upon the entire foothpath and scrap was spread on the green belt, road, drain ... ,....
Accordingly, respondents 1 and 2 contend that the petitioner is not entitled for D&O license.
A reading of Rule 18 itself would indicate that it deals with scenarios of grant of license to stone crushers. Rule 18(v) stipulates that trade/D&O license shall not be granted to a stone crusher unit, if the site is not situated within a distance of 500 metres from a State Highway or National Highway. The said provision can apply only in the matter of consideration of license for functioning of stone crusher unit and cannot be pressed into service as far as quarrying units are concerned. The counsel for the petitioner has also now raised a contention that the Mukkom-Thamar....
In the writ petition, it is the case of the petitioners that the 6th respondent has taken steps to establish the M-Sand unit without obtaining the necessary permission under Section 233 of the Kerala Panchayat Raj Act, 1994, for establishing the unit in question, and further, that the petitioners had, without obtaining the said permission under Section 233, proceeded to obtain a building permit from the respondent Panchayat, and thereafter a Dangerous and Offensive license [D&O license] for conducting the M-Sand unit. In the writ petition, the building permit as well as the....
The petitioner had been carrying on a quarry and crusher unit, for which D & O license was also obtained from the local authority as is indicated from Exts. Exhibits P1 to P4 are the various proceedings which culminated in the issuance of the D & O license.
However, what is required to be considered is whether the gas supplied by GAIL through pipeline from outside Gujarat is supplied by GAIL through pipeline which is being used by the petitioner herein for its Phase-II Gandhar Project can be said to be a local mineral resource for which any license or permit is required under the Mineral Act or Rules? 6.4 If for any local mineral resource used in the Project and for which license or permit is required under the Mineral Act or Rules for such Project, such a unit shall not be entitled to the Incentive Scheme as per Clause 9(c) of Annexure-B to th....
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