Telangana High Court
M/S. Venkateshwara Constructions vs The State Of Telangana on 26 September, 2024
THE HONOURABLE SRI JUSTICE C.V. BHASKAR REDDY
WRIT PETITION No.24615 of 2024
ORDER:
This writ petition, under Article 226 of the Constitution of
India, is filed by the petitioner seeking following relief:
"...to issue a writ, order or direction more particularly one in the
nature of writ of MANDAMUS declaring the action of the Assistant
Director, Mines & Geology, Hanumakonda, Respondent No.4 herein
in issuing the demand notice, as arbitrary, illegal, unreasoned,
violative of fundamental rights guaranteed under Constitution of
India and violative of principles of natural justice and consequently
to set aside the impugned Demand Notice No.652/Vg/2024- 24,
dt.19-07-2024, issued by the Respondent No.4 in the interest of
justice.."
2. Considered the submissions of learned counsel for the
respective parties and with their consent this writ petition is
disposed of at the admission stage.
3. It is stated that the petitioner is granted the Quarry lease
for Building Stone & Road Metal over an extent of 3.642 Hectors
in Sy.No.572 of Pattlpaka Village, Shayampet Mandal,
Hanumakonda District for the unexpired portion up to
22.10.2018 by the Respondent No.2 by way of transfer from Sri
Krishna Mohan Reddy vide Proc. No. 1869/QL-1/2007 dated
10.06.2013. The lease deed was executed by the respondent
No.4 vide Proc.No.2485/Q/2012, dt.15.07.2013 and the work
orders were issued for the period up to 22.10.2018. It is further
stated that the petitioner is also a special class contractor and
was awarded various Government civil works in erstwhile
Warangal District. Further, the Petitioner is having a Stone
Crushing unit which is near to the quarry lease area and the
unit is installed in a patta land. The mineral excavated from the
quarry lease is being utilized by the Writ Petitioner as raw-
material to the Stone Crushing Unit and the finished product is
used for various Government Civil Works. While-so, the
respondent No.4 issued a show cause notice dated 04.01.2024
to the petitioner alleging that during technical staff inspection,
there was one worked pit found within the quarry leased area. It
is the case of the petitioner that while it was procuring
documentary evidence to submit explanation, the respondent
No.4 without waiting for producing documentary evidence by the
petitioner, issued impugned demand notice No.652/Vg/2024-24,
dated 19.07.2024 demanding the petitioner to pay total amount
of Rs.86,89,10,167/-. Hence the writ petition.
4. The learned counsel for the petitioner submitted that the
respondent No.4 is not competent authority to issue the
impugned demand notice dated 19.07.2024, as he is not
conferred with any statutory power to impose penalties. It is
further submitted that the issue of jurisdiction of the Assistant
Director of Mines and Geology (respondent No.4 herein) was
extensively dealt with by the High Court of Andhra Pradesh in
Writ Petition No.8390 of 2018 and batch, vide common order
dated 30.09.2022, wherein after duly considering the judgments
rendered by the Hon'ble Apex Court and other Courts, it was
held that the Assistant Director of Mines or any other authority
of the State does not have the jurisdiction to determine the
culpability of a person alleged to have violated the provisions of
the Mines and Mineral (Development and Regulation) Act, 1957
or the Concession Rules, nor can they levy penalties and only a
court of competent jurisdiction has the authority to adjudicate
on the question of imposing penalties, as outlined in Rule 26 of
the Concession Rules. The learned counsel submitted that
basing on said decision, the petitioner challenged the orders of
respondent No.4 by filing a revision dated 21.08.2024 on the file
of respondent No.1. While the revision is pending for
adjudication, respondent No.4 is now contemplating coercive
action to recover the amounts mentioned in the impugned
demand notice.
5. In view of the above submissions, this Court without going
into the merits of the case, deems it appropriate to direct the
respondent No.1 to dispose of the revision, dated 21.08.2024
filed by the petitioner within a period of four (04) weeks from the
date of receipt of a copy of this order. Pending adjudication of
the said revision, the respondents are directed not to take any
coercive steps against the petitioner in pursuance of the
impugned Demand Notice dated 19.07.2024.
6. Accordingly, this writ petition is disposed of. No order as
to costs.
Miscellaneous Petitions, if any, pending in this writ
petition shall stand closed.
___________________________
C.V. BHASKAR REDDY, J
26.09.2024
scs
