1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 11 TH DAY OF FEBRUARY 2014 PRESENT THE HON'BLE MR.D.H.WAGHELA, CHIEF JUSTICE BETWEEN AND THE HON'BLE MRS.JUSTICE B.V.NAGARATHNA WRIT PETITION NO.2981/2014 (GM-MM-S) SRI B N MANJUNATH S/O LATE NANJEMARIYAPPA AGED 48 YEARS, PROPRIETOR OF SRI KALABYRAWESHWARA SWAMY STONE CRUSHER, SY.NO.96/3 BETTAHALASUR VILLAGE BANGALORE NORTH (ADDITIONAL) TALUK BANGALORE URBAN DISTRICT BANGALORE-562 157... PETITIONER (BY SRI SAJAN POOVAYYA, ADV., FOR M/S.POOVAYYA & CO., ADVS.,) AND 1. STATE OF KARNATAKA DEPARTMENT OF MINES AND GEOLOGY KANIJA BHAVAN, RACE COURSE ROAD BANGALORE-560001 REPRESENTED BY ITS DIRECTOR 2. DEPUTY COMMISSIONER BANGALORE URBAN DISTRICT KEMPEGOWDA ROAD BANGALORE-560009
2 3. DISTRICT STONE CRUSHING AUTHORITY REP BY ITS MEMBER SECRETARY SENIOR GEOLOGIST, MINERALS DIVISION MINES AND GEOLOGY DEPARTMENT 13 TH FLOOR, V V TOWER DR.AMBEDKAR ROAD, BANGALORE-560001... RESPONDENTS (BY SRI NARENDAR.G, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 06.01.2014 ISSUED BY RESPONDENT NO.2 VIDE ANNEXURE-A. THIS WRIT PETITION COMING ON FOR ORDERS THIS DAY, NAGARATHNA.J MADE THE FOLLOWING: ORDER 1. The petitioner, who is the proprietor of a stone crusher unit, has assailed order dated 06.01.2014 issued by the 2 nd respondent -Deputy Commissioner, Bangalore Urban District, Bangalore. 2. It is the case of the petitioner that the stone crusher unit is engaged in the business of crushing of stones and that the necessary licences and permissions have been obtained under the provisions of the Karnataka Regulation of Stone Crushers Act, 2011 (hereinafter called the Act for short) and the Rules made thereunder for the aforesaid purpose. The licence was issued with effect from 09.01.2013 and is stated to be valid upto 31.03.2015.
3 Subsequently, petitioner obtained permissions and consent from the Karnataka State Pollution Control Board and is engaged in the activity of stone crushing. When matter stood thus, the petitioner was surprised to receive order dated 06.01.2014 by which, the licence granted to the petitioner s unit has been cancelled. The cancellation order is assailed in this writ petition. 3. We have heard learned counsel for the petitioner and learned AGA appearing for the respondents and perused the material on record. 4. On behalf of the petitioner, two contentions have been raised. It is firstly contended that the Deputy Commissioner, as the Chairperson of the District Stone Crushers Regulation Committee, had no jurisdiction to issue the impugned order as, pursuant to the amendment made to the Act, which is in force since 23.12.2013, it is the District Stone Crushers Licensing and Regulation Authority, which is empowered to inspect the stone crusher unit and pass orders. Our attention was drawn to Sections 7 and 8 of the Amendment Act (Karnataka Act 64 of 2013), which inter alia has amended Sections 8 and 9 of the original Act. Therefore, the impugned order being one
4 without jurisdiction as it is issued only by the Chairman of the Authority without following the requisite procedure, it was contended that the same may be quashed. It was also contended that prior to the passing of the impugned order, no notice was issued to the petitioner and neither was he heard in the matter which is in violation of the principles of natural justice. 5. Per contra, learned AGA, arguing on behalf of the respondents, has supported the impugned order. 6. The Karnataka Regulation of Stone Crushers Act, 2011 has been in force since 05.01.2012. Section 3 mandates that the person who intends to carry on the business of stone crushing in the State can do so only after obtaining a licence issued under the provisions of the Act. Section 6 deals with conditions for grant of licence. Section 8 of the original Act dealt with establishment of District Stone Crushers Regulation Committee, headed by the Deputy Commissioner of the District as Chairman. Section 9 spoke about inspection and regulation of the licensed stone crusher units. Section 10 deals with cancellation of licence. That Act has been amended with effect from 26.12.2013 by the Karnataka Regulation of Stone Crushing
5 Units (Amendment) Act, 2013. Various Sections of the original Act stand amended, but for the purpose of this case, it is relevant to notice that the original Section 8 has been amended by constitution of the District Stone Crushers Licensing and Regulation Authority with the Deputy Commissioner as the Chairman and having other officers as its members under Section 7 of the Amending Act. Various duties are assigned to that Authority, which are stated in Section 8 of the Amending Act, amending Section 9 of the original Act. The District Stone Crushers Licensing and Regulation Authority is empowered to supervise licensed premises and report any violations to the Chairman, who can then take action in accordance with law. Sections 7 and 8 of the Amending Act read as follows: 7. Amendment to section 8.- For section 8 of the Principal Act, the following shall be substituted, namely:- 8. Establishment of the District Stone Crushers Licensing and Regulation Authority.- (1) On and from the date of commencement of the Karnataka Regulation of Stone Crushers (Amendment) Act, 2013 there shall be established in each of the revenue District, the District Stone Crushers Licensing
6 and Regulation Authority consisting of the following members, namely:- (a) The Deputy Commissioner of the District - Chairman (b) The Superintendent of Police of the District Member ex-officio (c) The Chief Executive Officer of Zilla Panchayath of the District Member ex-officio (d) The Deputy Conservator of Forest of the concerned jurisdiction Member ex-officio (e) All Assistant Commissioners of the District, Revenue Department Member ex-officio (f) The Environmental Officer, Karnataka State Pollution Control Board Member ex-officio (g) The Deputy Director/Senior Geologist, Department of Mines and Geology Member Secretary (2) The Member Secretary shall receive all the applications for grant of license and place them before the Authority for decision. (3) The procedure for transaction of business of the Authority shall be such as may be prescribed. 8. Amendment of section 9.- For section 9 of the Principal Act, the following shall be substituted, namely.-
7 9. Duties of the Authority.- (1) The Authority shall meet once in a month and meeting shall be called by the member secretary. If for any reason it is necessary, the member secretary may with the approval of the chairman, convene the meeting at any time. One third of the total members shall form the quorum for the meetings. (2) The duties of the Authority shall be.- (i) to cause Joint Inspection of stone crushers and obtain report by the concerned officers of Mines and Geology, Revenue, Forest departments and KSPCB to verify the conditions stipulated for declaring the safer zone; (ii) to declare the safer zone, which are conforming the norms; (iii) to issue Certificate of compliance of safer zone in such form as may be prescribed to the applicants having stone crusher located in declared safer zone; (iv) to issue License in the form as may be prescribed; (v) to supervise licensed premises and report any violations to the chairman; (vi) to suspend/cancel the license for noncompliance of the conditions; (vii) to invite any of the officers of any other departments of Government to assist the
8 Authority on any specific issues like computation of compensation, provide technical advice etc., (viii) to follow the orders and guidelines issued by the Government from time to time; and (ix) to Inspect or authorize an officer to inspect each stone crushers periodically at least once a year. Section 10 of the Original Act reads as under: 10. Cancellation of license,- The license issued under this Act may be cancelled suomoto for the reasons to be recorded in writing by the Lincensing Authority or on considering any complaint or application filed by any person to the effect that the license granted is not in accordance with the provisions of this Act and rules or that the licensee has violated the conditions of license: Provided that no order of cancelling the license shall be made under this section without giving an opportunity of being heard to the licensee or a person aggrieved by such cancellation.
9 7. In the instant case, we find that the impugned order has been passed by the Deputy Commissioner as if he is the Chairman of the District Stone Crushers Regulation Committee, as it existed under the original Act. Thus the power has not been exercised in accordance with Section 8 of the Amending Act which has amended Section 9 of the Original Act. Further, the petitioner has not been given an opportunity of being heard prior to issuance of the cancellation order as stipulated in proviso to Section 10 of the Original Act. Therefore, for these reasons, the impugned order at Annexure-A is quashed. 8. At this stage, it is also relevant to note that by an interim order dated 30.01.2014, this Court had directed the Senior Geologist -respondent No.3 herein to make a fresh inspection and survey of the stone crusher unit of the petitioner and thereafter to submit a Report to this Court. The Report has been filed along with a memo by learned AGA. We have perused the Report of the spot inspection conducted by the Senior Geologist and the Report is dated 04.02.2014. Although the impugned order is quashed, we direct the concerned District Stone Crushers Licensing and Regulation Authority to take into consideration the Report
10 filed by the Senior Geologist and to pass fresh orders, so far as the petitioner s unit is concerned in accordance with law. The petitioner to appear before that Authority on 20.02.2014, along with a copy of the Report and demonstrate that the conditions of licence have been complied with and also any lapses reported in the Report have been removed without insisting on a notice from that Authority. The Authority to take into consideration the case of the petitioner in light of the Report and to pass fresh orders within one week thereafter in accordance with law. Till then, the petitioner shall not operate the stone crusher unit. 9. Thus while quashing impugned order at Annexure-A and with the aforesaid directions and observations, the writ petition is disposed of. Sd/- CHIEF JUSTICE Sd/- JUDGE bkv