High Court of Karnataka Quashes Rejection of Stone Crusher Licence Renewal Due to Erroneous Licence Period. Application for renewal filed within time when licence period is correctly computed under Section 5 of the Karnataka Regulation of Stone Crushers Act, 2011.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, M/S Apex Crusshers, a partnership firm engaged in stone crushing, was granted a licence under Section 3 of the Karnataka Regulation of Stone Crushers Act, 2011. The licence, annexed as Annexure-A, showed validity up to 31st March 2018. The petitioner filed an application for renewal on 21st March 2018 under Section 4(1) of the Act. However, the Deputy Director issued an endorsement dated 20th November 2018 rejecting the application on the ground that it was not submitted three months prior to the expiry of the licence period, and that there was no provision to consider such a belated application. The petitioner challenged this notice by way of a writ petition under Articles 226 and 227 of the Constitution of India. The petitioner's counsel argued that the licence was erroneously granted only up to 31st March 2018, whereas under Section 5 of the Act, it should have been valid up to 31st March 2019. He contended that if the correct period is considered, the renewal application was within time. He also pointed out that in similar cases, the authorities had extended the licence term. The respondents, represented by the Additional Government Advocate, opposed the petition. The High Court examined Section 5 of the Act, which provides that a licence granted under the Act shall be valid until the 31st day of March of the year following the year in which it is granted, unless otherwise specified. The Court noted that the licence was granted in 2017, so it should have been valid up to 31st March 2019. The authority had erroneously limited it to 31st March 2018. Therefore, the application for renewal filed on 21st March 2018 was within the period of three months before expiry as required under Section 4(1). The Court quashed the impugned notice and directed the authority to consider the renewal application afresh and pass appropriate orders within four weeks. It further directed that if no order is passed within that time, the renewal shall be deemed to have been granted under Section 4(2) of the Act.

Headnote

A) Interpretation of Statutes - Licence Renewal - Computation of Licence Period - Section 5 of the Karnataka Regulation of Stone Crushers Act, 2011 - The Court held that under Section 5, a licence granted under the Act is valid until 31st March of the year following the year of grant, unless otherwise specified. The licence in question was granted in 2017, so it should have been valid up to 31st March 2019. The authority erroneously granted it only up to 31st March 2018. Consequently, the renewal application filed on 21st March 2018 was within the period prescribed under Section 4(1) of the Act, which requires application three months before expiry. The impugned notice rejecting the renewal as time-barred was quashed. (Paras 1-4)

B) Administrative Law - Deemed Renewal - Failure to Consider Application - Section 4(2) of the Karnataka Regulation of Stone Crushers Act, 2011 - The Court directed the authority to consider the renewal application afresh and pass appropriate orders within four weeks. If no order is passed within that time, the renewal shall be deemed to have been granted under Section 4(2) of the Act. (Para 4)

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Issue of Consideration

Whether the application for renewal of a stone crusher licence filed on 21st March 2018 was within time when the licence was erroneously granted only up to 31st March 2018 instead of 31st March 2019 as per Section 5 of the Karnataka Regulation of Stone Crushers Act, 2011.

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Final Decision

The impugned notice dated 20.11.2018 is quashed. The respondents are directed to consider the renewal application afresh and pass appropriate orders within four weeks. If no order is passed within that time, the renewal shall be deemed to have been granted under Section 4(2) of the Act.

Law Points

  • Interpretation of Section 5 of the Karnataka Regulation of Stone Crushers Act
  • 2011
  • Renewal of licence
  • Time limit for renewal application
  • Deemed renewal
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Case Details

2019 LawText (KAR) (08) 29

Writ Petition No.18330 of 2019 (GM-MM-S)

2019-08-22

Abhay S. Oka, Chief Justice, Mohammad Nawaz, Justice

Shiva Kumar K.B. for petitioner, V.G. Bhanuprakash for respondents

M/S Apex Crusshers

The Deputy Commissioner, Chamrajanagar District; The Chairman, Chamarajanagar District Stone Crushers Licensing & Regulation Authority; The Senior Geologist & Member Secretary, Department of Mines & Geology

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Nature of Litigation

Writ petition challenging rejection of renewal application for stone crusher licence.

Remedy Sought

Quashing of notice dated 20.11.2018 rejecting renewal application and direction to consider renewal.

Filing Reason

The petitioner's application for renewal of licence was rejected on the ground that it was not filed three months prior to expiry of licence.

Issues

Whether the application for renewal of licence was within time when the licence period was erroneously limited to 31st March 2018 instead of 31st March 2019 under Section 5 of the Act.

Submissions/Arguments

Petitioner argued that licence should have been valid up to 31st March 2019 under Section 5, so renewal application filed on 21st March 2018 was within time. Respondents contended that application was not filed three months before expiry as per Section 4(1).

Ratio Decidendi

Under Section 5 of the Karnataka Regulation of Stone Crushers Act, 2011, a licence granted under the Act is valid until 31st March of the year following the year of grant. The authority erroneously granted the licence only up to 31st March 2018 instead of 31st March 2019. Therefore, the renewal application filed on 21st March 2018 was within the period prescribed under Section 4(1) of the Act. The rejection of the application as time-barred was unsustainable.

Judgment Excerpts

The petitioner was granted a licence under Section 3 of the Karnataka Regulation of Stone Crushers Act, 2011... A copy of the licence annexed as Annexure-A shows that the licence was valid upto 31st March 2018. An application for renewal of the said licence was filed by the petitioner in accordance with sub-section (1) of Section 4 of the said Act on 21st March 2018. An endorsement dated 20th November 2018 was issued by the Deputy Director holding that the application for renewal has not been submitted three months prior to the expiry of period of the licence. Under Section 5 of the said Act, the licence granted under the Act shall be valid until the 31st day of March of the year following the year in which it is granted, unless otherwise specified. If the licence was granted in the year 2017, it ought to have been valid upto 31st March 2019. The impugned notice is quashed and set aside. The respondents are directed to consider the application for renewal afresh and pass appropriate orders within a period of four weeks from today. If no order is passed within the said period of four weeks, the renewal shall be deemed to have been granted under sub-section (2) of Section 4 of the said Act.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the notice dated 20.11.2018 issued by the Senior Geologist rejecting the renewal application. The petition came up for preliminary hearing before the Chief Justice and Justice Mohammad Nawaz, who disposed it on 22.08.2019.

Acts & Sections

  • Karnataka Regulation of Stone Crushers Act, 2011: 3, 4, 5
  • Constitution of India: 226, 227
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