Bombay High Court Quashes Penalty Orders for Unauthorized Minor Mineral Extraction Due to Violation of Natural Justice. Show cause notices and final orders under Section 48(7) and (8) of Maharashtra Land Revenue Code, 1966 set aside for non-compliance with principles of natural justice.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioners, M/s. Royale Urbanspace and its partners, owned land bearing Survey No.44/1 at Mouje Borsheti, Taluka Shahapur, District Thane. In 2013, they proposed to develop the land for residential purposes and submitted building plans to the Collector, Thane, who forwarded them to the Town Planning Department for approval. Subsequently, the Tahasildar, Shahapur issued two show cause notices dated 29.01.2021 under Section 48(7) and (8) of the Maharashtra Land Revenue Code, 1966, alleging unauthorized extraction of minor minerals (earth) from the land and demanding royalty and penalty. A hearing notice dated 30.06.2021 was also issued. Thereafter, two final notices dated 23.08.2021 demanded payment of Rs.1,07,12,000 and Rs.5,71,35,104 respectively, and an order dated 21.10.2021 called upon the petitioners to deposit Rs.1,09,18,000. The petitioners challenged these notices and orders in the High Court. The court considered the submissions of the petitioners' counsel, who argued that the show cause notices were never served on the petitioners and no opportunity of hearing was given before passing the final orders, thus violating principles of natural justice. The State's counsel did not dispute these facts. The court held that the impugned notices and order were passed in gross violation of natural justice and quashed them, granting liberty to the respondent to issue fresh notices after giving proper opportunity of hearing. The court did not go into the merits of the case.

Headnote

A) Natural Justice - Show Cause Notice - Service of Notice - Section 48(7) and (8) Maharashtra Land Revenue Code, 1966 - The petitioners challenged show cause notices and final orders demanding royalty and penalty for unauthorized extraction of minor minerals. The court found that the show cause notices were not served on the petitioners and no opportunity of hearing was given before passing the final orders. Held that the impugned orders are in gross violation of principles of natural justice and are quashed and set aside (Paras 4-6).

B) Land Revenue - Minor Minerals - Unauthorized Extraction - Section 48(7) and (8) Maharashtra Land Revenue Code, 1966 - The respondent Tahasildar issued notices alleging unauthorized extraction of earth from the petitioners' land and demanded royalty and penalty. The court noted that the petitioners had obtained necessary permissions for development and the extraction was incidental to construction. However, since the notices were not served and no hearing was given, the orders were set aside without going into merits (Paras 3-6).

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Issue of Consideration

Whether the impugned notices and order passed under Section 48(7) and (8) of the Maharashtra Land Revenue Code, 1966 levying penalty for unauthorized extraction of minor minerals are sustainable in law when the principles of natural justice have been violated.

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Final Decision

The impugned show cause notices dated 29.01.2021, hearing notice dated 30.06.2021, final notices dated 23.08.2021, and order dated 21.10.2021 are quashed and set aside. The respondent is at liberty to issue fresh notices and proceed in accordance with law after giving proper opportunity of hearing to the petitioners.

Law Points

  • Principles of natural justice
  • Section 48(7) and (8) of Maharashtra Land Revenue Code
  • 1966
  • Show cause notice must be served properly
  • Hearing opportunity must be given
  • Penalty for unauthorized extraction of minor minerals
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Case Details

2022 LawText (BOM) (03) 81

Writ Petition No. 197 of 2022

2022-03-01

S. J. Kathawalla, Milind N. Jadhav

Mr. Pradeep J. Thorat for Petitioners, Ms. M.P. Thakur, AGP for Respondents

M/s. Royale Urbanspace, Rajesh Devji Bhadra, Sunil Liladhar Gajra

State of Maharashtra, The Tahasildar, Shahapur

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Nature of Litigation

Writ petition challenging show cause notices and final orders levying penalty for unauthorized extraction of minor minerals.

Remedy Sought

Quashing of show cause notices dated 29.01.2021, hearing notice dated 30.06.2021, final notices dated 23.08.2021, and order dated 21.10.2021 demanding royalty and penalty.

Filing Reason

The petitioners alleged that the impugned notices and order were passed without service of notice and without giving opportunity of hearing, violating principles of natural justice.

Issues

Whether the impugned notices and order under Section 48(7) and (8) of the Maharashtra Land Revenue Code, 1966 are sustainable when principles of natural justice are violated.

Submissions/Arguments

Petitioners argued that show cause notices were not served on them and no opportunity of hearing was given before passing the final order, violating natural justice. Respondent State did not dispute the facts and submitted that the matter may be remanded for fresh consideration.

Ratio Decidendi

Orders passed under Section 48(7) and (8) of the Maharashtra Land Revenue Code, 1966 without serving show cause notices and without giving opportunity of hearing are in gross violation of principles of natural justice and cannot be sustained.

Judgment Excerpts

By the present Writ Petition, the Petitioner has prayed for the following reliefs: ... The Petitioners have challenged two show cause notices, both dated 29.01.2021, hearing notice dated 30.06.2021, two final notices, both dated 23.08.2021 ... and order dated 21.10.2021 ... The Respondent No.2 has issued the impugned notices and passed the impugned order against the Petitioners for extraction of minor minerals unauthorisedly. The Petitioners are owners of land bearing survey No.44/1 ad-measuring 2 hectares situated at Mauje Borsheti, Tal. Shahapur, Dist. Thane. In 2013, Petitioners desired to develop the said property for residential purpose and submitted the proposal and building plans to the Collector - Thane. The impugned notices and order are in gross violation of principles of natural justice and are quashed and set aside.

Procedural History

The petitioners filed Writ Petition No. 197 of 2022 before the Bombay High Court challenging show cause notices dated 29.01.2021, hearing notice dated 30.06.2021, final notices dated 23.08.2021, and order dated 21.10.2021 issued by the Tahasildar, Shahapur under Section 48(7) and (8) of the Maharashtra Land Revenue Code, 1966. The court heard the matter and delivered judgment on 01.03.2022.

Acts & Sections

  • Maharashtra Land Revenue Code, 1966: 48(7), 48(8)
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