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Ahammed Kunju v. State Of Kerala
Structured Summary of the Legal Opinion
Factual and Procedural Background
The petitioner in the first-captioned matter (the "operator") runs a saw mill and applied for consent to install machinery of 84 HP to operate a peeling and plywood manufacturing unit in addition to the existing saw mill and furniture unit. The Village Panchayat refused permission by a decision dated 17.12.2008. The operator appealed to the Tribunal for Local Self Government Institutions (Tribunal for LSGIs), which allowed that appeal on 20.3.2009, set aside the Panchayat's decision and remitted the matter directing the Panchayat to pass fresh orders in accordance with S. 233 of the Kerala Panchayat Raj Act (K.P.R. Act).
Local residents and the objectors had filed objections to the grant of the licence. After the Tribunal's remit, the Panchayat again refused the installation by resolution dated 15.5.2009. The operator then appealed to the Green Channel Clearance Committee (Green Channel Committee). On 23.6.2009 the Green Channel Committee allowed the appeal, directed the Grama Panchayat to set aside its 15.5.2009 decision and to issue an installation permit within seven days (subject to clearance/NOC from Pollution Control Board, Fire Safety Department and Factories & Boilers Department), and directed that operation be permitted on production of the Forest Department's NOC. The objectors challenged the Green Channel Committee's decision, and the operator sought its enforcement.
Legal Issues Presented
- Whether Rule 12(4) of the Kerala Panchayat Raj (Issue of Licence to Dangerous and Offensive Trades and Factories) Rules, 1996 ("D. & O. Rules") is intra vires the rule-making powers of the Government under the K.P.R. Act (specifically Ss. 232, 233, 234 and 254).
- Whether the availability of a statutory remedy under S. 276 of the K.P.R. Act (appeal to the Tribunal for LSGIs) prevents the Government from prescribing an alternate appellate mechanism such as the Green Channel Committee under R. 12(4).
- Whether the plurality of remedies (statutory appeal under S. 276 and the appellate provision in R. 12(4)) invalidates R. 12(4) or gives rise to forum-shopping/contradiction of jurisdiction.
- Whether the Green Channel Committee is a statutory authority with jurisdiction to entertain and decide appeals under R. 12(4), or whether it is merely a non-statutory executive body without statutory flavour.
Arguments of the Parties
Objectors' Arguments
- R. 12(4) of the D. & O. Rules is ultra vires and unconstitutional because it exceeds the Government's rule-making powers under Ss. 232, 233 and 234 of the K.P.R. Act and conflicts with the statutory remedy provided by S. 276(5) of the K.P.R. Act.
- The provision obliging the Village Panchayat to abide by the decision of the Green Channel Committee creates a contradiction of jurisdictions and enables forum-shopping.
- Practical/ factual contention that the operator lacked necessary NOCs from various departments (notably the Forest Department) and that the area is already clustered with similar industries causing pollution; the local public would be prejudiced by grant of any licence.
- Reliance on precedent and principles: the Green Channel Committee is not a statutory authority (citing Executive Committee of Vaish Degree College, Shamli v. Lakshmi Narain); rule-making power cannot be used to make rules contrary to the parent Act (citing State of Karnataka v. H. Ganesh Kamath); delegated legislation must not violate the parent statute or Constitution (citing Virodhak Sangh v. Mirzapur Moti Kuresh Jamat).
- Relying on the doctrine of election and estoppel by election (citing Abdulrahiman v. Abdulla Haji) to argue that the operator's prior invocation of the Tribunal remedy might preclude recourse to the Green Channel Committee.
Operator's Arguments
- The operator relied on the judgment dated 21.11.2005 in W.P.(C).19407/05 and the Division Bench decision in W.A. No. 528/99 (judgment dated 11.8.2000) affirming Santhi Joseph v. Poyya Grama Panchayat (1999 (1) KLT 695) to assert that the Green Channel Committee is an appellate authority for the purposes of R. 12(4) and has jurisdiction.
- Because a rule (R. 12(4)) provides an appeal to the Green Channel Committee, the operator could legitimately invoke it; invoking an available jurisdictional remedy cannot be faulted.
Government / Advocate General's Position
- The availability of multiple remedies does not, by itself, render a rule providing a particular remedy invalid.
- The contention that R. 12(4) is of poor quality or otherwise flawed had been considered and repelled by this Court in Santhi (supra), according to the Advocate General.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Executive Committee of Vaish Degree College, Shamli v. Lakshmi Narain (1976) 2 SCC 58 | Submitted by objectors to support the proposition that the Green Channel Committee does not acquire statutory character merely by executive creation. | The Court recorded that the objectors relied on this authority to argue the non-statutory character of the Green Channel Committee; the Court then analyzed statutory provisions and prior Kerala authorities and did not accept the objection based on that premise. |
| State of Karnataka v. H. Ganesh Kamath (1983) 2 SCC 402 | Principle that the power to make rules does not include power to make rules contrary to the provisions of the enabling Act; limits on delegated legislation. | The Court acknowledged this principle as relied upon by objectors but concluded that the rule-making provisions in Ss. 232, 233, 234 and 254 permitted the making of R. 12(4) and that R. 12(4) was not repugnant to the K.P.R. Act. |
| Virodhak Sangh v. Mirzapur Moti Kuresh Jamat (2008) 5 SCC 33 (reported also as 2008 (2) KLT SN 89) | Support for the proposition that delegated legislation, though statutory, must not violate parent statute or the Constitution. | The Court considered this principle in the analysis of vires of R.12(4) and concluded that R.12(4) did not violate the parent statute; the objectors' reliance on the principle did not carry the challenge. |
| Abdulrahiman v. Abdulla Haji (1991 (1) KLT 702) | Principle of estoppel by election: when a party has two mutually exclusive remedies and elects one, it may be taken to have waived the other. | The Court discussed this point (as relied on by objectors) and concluded that the existence of multiple remedies did not preclude a party from later pursuing an alternate remedy in respect of a later decision; thus the doctrine did not invalidate R.12(4) in the circumstances. |
| Santhi Joseph v. Poyya Grama Panchayat (1999 (1) KLT 695) | Held that the Green Channel Committee is the appellate authority for the purpose of R.12(4) and that R.12(4) contemplates that the Panchayat will implement the Green Channel Committee's decision. | The Court expressly endorsed and followed this decision, stating respectful agreement and recording that the Division Bench in W.A. No. 528/99 affirmed the single judge decision; this formed a central basis for upholding R.12(4). |
| W.A. No. 528/99 (judgment dated 11.8.2000) / W.P.(C).19407/05 (judgment dated 21.11.2005) | Kerala High Court decisions cited by the operator as supporting the validity of R.12(4) and the jurisdiction of the Green Channel Committee. | The Court noted these precedents were relied upon by the operator and observed that the Division Bench affirmed the Santhi decision, which supported the proposition that the Green Channel Committee has jurisdiction under R.12(4). |
Court's Reasoning and Analysis
The Court proceeded by examining the statutory scheme of the K.P.R. Act and the relevant rule-making provisions. It identified the applicable provisions:
- S. 276 (appeals and revisions) which provides an appeal to the Tribunal for LSGIs against orders of the Panchayat (including S. 276(5));
- Ss. 232, 233 and 234, which relate to the grant and renewal of licences and the Government's power to make rules in relation to such licences; and
- S. 254, the general power to make rules, which was invoked by the Government in framing the D. & O. Rules.
The Court identified the central analytical questions (whether the Government's rule-making power includes making a rule like R.12(4); whether S.276 excludes other remedies; and whether plurality of remedies invalidates the rule) and addressed them in sequence:
- Interpretation of Ss. 232, 233, 234 and 254: The Court held that S. 234's power to make rules regulating the grant or renewal of licences includes power to prescribe modalities for considering licence applications. There is no prohibition in S. 234 on creating a multi-tier institutional mechanism that includes an appellate authority; therefore the statutory framework provides "fair room" to make rules prescribing an appellate forum.
- Whether the appellate authority must be constituted under the Act: The Court observed the prescription of an appellate authority can be by reference to an existing authority rather than requiring a new authority constituted under the Act. The Court relied on and expressly agreed with the reasoning in Santhi Joseph v. Poyya Grama Panchayat, which treated the Green Channel Committee as the appellate authority under R.12(4).
- Effect of S. 276 (statutory appeal) on rule-based remedy: The Court noted S. 276 does not statutorily exclude other remedies. Consequently, a rule providing a separate appellate remedy (R.12(4)) is an additional or alternate remedy and is not rendered invalid by the existence of a statutory appeal to the Tribunal. The Court emphasized that a party who seeks a particular relief cannot thereafter take recourse to the alternate remedy against the same decision, but this limitation does not invalidate the rule itself.
- Doctrine of election / estoppel by election: The Court addressed the objectors' election argument (that invoking the Tribunal might preclude recourse to Green Channel). The Court held that the operator, having challenged an earlier Panchayat decision before the Tribunal, remained within rights to move the Green Channel Committee against a later decision issued by the Panchayat after the Tribunal's remit. The Act or Rules do not confine remedy invocation to a single instance for the subject matter once for all.
- Application of precedents: The Court discussed the precedents relied upon by both sides, specifically endorsing Santhi Joseph (and its affirmation by the Division Bench) as authoritative on the point that R.12(4) contemplates the Green Channel Committee as an appellate authority whose decision the Panchayat must implement. Other precedents concerning limits on delegated legislation were acknowledged, but the Court found no inconsistency between R.12(4) and the parent statute.
On the facts, although the Court noted that the Green Channel Committee's direction essentially contradicted the Tribunal's earlier decision remitting the matter (paragraph 5 of the opinion records that fact), the Court concluded that the legal position supported the validity of R.12(4) and the authority of the Green Channel Committee in this context.
Holding and Implications
The Court's dispositive rulings are as follows:
- Challenge to the vires of R.12(4) fails. The Court held that Rule 12(4) of the D. & O. Rules is intra vires the rule-making powers of the Government under the K.P.R. Act (Ss. 232, 233, 234 and 254) and is not invalidated by the availability of the statutory remedy under S.276.
- Decision of the Green Channel Committee upheld and enforceable. The operator is entitled to the benefit of the decision of the Green Channel Committee in terms of R.12(4) and the directions in that Committee's decision; the Panchayat is liable to implement that decision.
- Specific orders issued by the Court:
- W.P.(C).21409/09 is dismissed.
- W.P.(C).20718/09 is allowed to the extent of directing the 4th respondent to give effect to the decision of the Green Channel Committee in relation to the operator (as per that Committee's directions).
- No costs were awarded.
Implications: The direct effect on the parties is that the Green Channel Committee's decision stands and the Panchayat must implement it subject to the conditions (production of specified NOCs) mentioned in the Committee's direction. The Court did not indicate that it was laying down a new broad precedent beyond applying and endorsing earlier Kerala authorities (notably Santhi Joseph) on the validity and operation of R.12(4).
JUDGMENT
1. The petitioner in the first among the captioned matters is referred to as the ‘operator’ and the petitioners in the latter, the ‘objectors’.
2. The operator, who, even according to the objectors, has a saw mill, later applied for consent to install machinery with motor capacity of 84 HP to run a pealing and plywood manufacturing unit in addition to the existing saw mill and furniture unit. The Panchayat refused it as per decision dated 17.12.2008 The operator appealed against that decision to the Tribunal for Local Self Government Institutions. That was allowed on 20.3.2009, setting aside the decision of the Panchayat and directing the Panchayat to pass fresh proper orders, as per law, by strictly following the procedure prescribed by S. 233 of the Kerala Panchayat Raj Act, hereinafter referred to as the ‘KPR Act’, for short. The objectors and other local residents had, by that time, placed objections to the grant of licence. The said objections were carried to the different authorities. Ultimately, the Panchayat again decided to refuse permit for the additional installation by resolution dated 15.5.2009 The operator moved the Green Channel Clearance Committee. The said appeal was allowed directing the Grama Panchayat to set aside its decision dated 15.5.2009 and to issue installation permit to the operator within 7 days since the clearance/NOC of the Pollution Control Board, Fire Safety Department and Factories and Boilers Department have already been produced. The Panchayat was further directed to grant permission for operation as and when NOC from the Forest Department is produced. This decision was issued by the Green Channel Clearance Committee on 23.6.2009 The objectors challenge that decision and the operator seeks its enforcement.
3. The objectors further challenge the vires of R. 12(4) of the Kerala Panchayat Raj (Issue of Licence to Dangerous and Offensive Trades and Factories) Rules, 1996, hereinafter, the ‘D. & O. Rules’, for short, which provides an appeal to the Green Channel Counter against the decision of the Village Panchayat. In its terms, R. 12(4) as it now stands, obliges the Village Panchayat to abide by the decision of the Green Chanel Clearance Committee by stating that the Village Panchayat is liable to implement the decision of the Green Channel Committee on the appeal. The contention of the objectors regarding the vires of that sub-rule is that it is made in excess of the rule making powers of the Government, as are contained in Ss. 232,233 and 234 of the K.P.R Act and that the said provision contradicts the availability of the specific statutory remedy provided by the preliminary legislation, viz., the K.P.R Act, in S. 276(5) thereof. It is accordingly contended that R. 12(4) does not lie as a subordinate rule that could be enforced or resorted to on the face of the statutory remedies available by the preliminary legislation under S. 276. It is thus pointed out that there will be clear contradiction of jurisdictions, paving way to even forum shopping, if the said sub-rule is permitted to stand. It is thus pointed out that R. 12(4) is unconstitutional and ultra vires the K.P.R Act.
4. On facts, it is contended by the objectors that the operator did not get NOC from various departments and being an industry related to timber, no activity could be had without the clearance of the Forest Department. It is pithily pointed out that there is clustering of such activity in the area in question leading to unbearable pollution and it is therefore, that the local pubic are seriously prejudiced by the grant of any licence.
5. The materials demonstrate that even after the remit by the Tribunal for LSGIs, the Panchayat had issued the decision on reasons found unsustainable by the Tribunal earlier and the action of the Green Channel Clearance Committee by recourse to R. 12(4) of the D. & O. Rules essentially contradict the decision of the Tribunal rendered in the earlier round in exercise of authority under S. 276(5) of the K.P.R Act.
6. Learned senior counsel appearing for the objectors argued that unlike the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999, the Green Channel Counter or the Green Channel Clearance Committee is merely a non-statutory body created by the Government in exercise of its executive power and was in vogue even before K.P.R Act came into force in 1994 and that no Green Channel Committee has been constituted in terms of R. 12(4) of the D & O. Rules after the coming into force of those rules. It is specifically contended with reference to the decision in Executive Committee of Vaish Degree College, Shamli v. Lakshmi Narain (1976) 2 SCC 58) that the Green Channel Clearance Committee does not get a statutory flair and it cannot be treated as a statutory body. Making reference to the State of Karnataka v. H. Ganesh Kamath (1983) 2 SCC 402), it was argued on behalf of the objectors that the power to make a rule does not include the power to make a rule contrary to the provisions of the Act which confers the rule making power and that it is well settled that conferment of rule making power does not enable the rule making authority to make a rule which travels beyond the scope of the enabling Act or which is inconsistent therewith or repugnant thereto. It was further argued that a piece of delegated legislation, though statutory in character, has to observe the limitation that it shall not violate the provisions of the parent statute or of the Constitution. Support in this regard was sought by reference to the decision in Hinsa??? Virodhak Sangh v. Mirzapur Moti Kuresh Jamat (2008 (2) KLT SN 89 (C. No. 103) SC = (2008) 5 SCC 33).
7. It was pointed out during the course of arguments that the situation in hand could be one where there is plurality of remedies and the doctrine of election may apply. Then, the objectors relied on the decision in Abdulrahiman v. Abdulla Haji (1991 (1) KLT 702) to state that the principle of estoppel by election can arise only in cases where two courses of action that may be available, are mutually exclusive and that when two remedies are open to a particular party and he opts for one of them, he should have taken as having waived the other remedy. Recourse made by the operator in the first instance to the Tribunal for LSGIs is pressed into service to sustain this objection.
8. Learned senior counsel appearing for the operator relied on the judgment dated 21.11.2005 of this Court in W.P(C). 19407/05 and the decision of the Division Bench in W.A No. 528/99 (judgment dated 11.8.2000) affirming Santhi Joseph v. Poyya Grama Panchayat (1999 (1) KLT 695) and argued that the Green Channel Committee cannot be said to be an authority without jurisdiction and rule having been made providing an appeal, the operator cannot be accused for having invoked the jurisdiction which was available.
9. Learned Advocate General, having regard to the issues raised, pointed out that the availability of different remedies is, by itself, no ground to assume invalidity of a rule providing a particular remedy and that even the Government's contention regarding the quality of R. 12(4) of the D & O Rules was repelled by this Court in Santhi (supra).
10. S. 276 of the K.P.R Act provides for appeals and revisions. In terms of sub-s. 5 thereof, an appeal shall lie to the Tribunal against, among other things, any order passed or action or decision taken by the Panchayat. Sub-s. (1) provides for an appeal to the Panchayat against decisions of the President or Secretary, except in matters which are excluded from such appellate remedy by that sub-section itself. The net effect of the provisions in S. 276 of the K.P.R Act includes inter alia, indisputably, the remedy before the Tribunal for LSGIs on a question referable to an application for licence under the D. & O. Rules. Therefore, the operator had a clear statutory remedy under the primary legislation in terms of S. 276 of the K.P.R Act. In fact, he had invoked it in the earlier round and the Tribunal had set aside the decision of the Panchayat and remitted the matter for reconsideration.
11. The first question is as to whether the rule making powers of the Government under the K.P.R Act include the power to make a rule in the nature of R. 12(4) of the D. & O. Rules. If yes, does the availability of the remedy under S. 276 stand in the way of the rule making authority providing a different appellate provision? If not, does the plurality of remedies invalidate R. 12(4) of the D. & O. Rules?
12. Sections 232,233 and 234 of the K.P.R Act relate to the rule making power of the Government in respect of grants and renewal of licences and permissions relatable to the permission for construction of factories and the installation of machinery and purposes for which places may not be used without licence. S. 254 which contains the general power of the Government to make rules is specifically invoked by the Government while making the D. & O. Rules. S. 234 specifically relates to the power of the Government to make rules prescribing or regulating grant or renewal of licences under S. 232 and the prohibition and regulation of the grant of permission under S. 233. The power to make a rule prohibiting or regulating grant or renewal of licence includes the power to make rules prescribing the modality of the consideration of the application for grant. That is intricately connected with the regulation of the grant. In doing so, there is no inhibition in S. 234 to the provision for an institutional mechanism of a multi-tier regulatory authority, by providing an original authority and appellate authority. The provisions contained in Sections 232,233,234 and 254 provide fair room to make rules providing for an appeal in relation to matters falling within the purview of those sections and to prescribe the appellate authority.
13. The prescription of an appellate authority need not necessarily be of an authority which is to be constituted under that provision, the prescription may be by reference to an existing authority. It is this approach that was adopted by this Court in Santhi (supra), wherein, it was categorically held that the Green Channel Committee is the appellate authority for the purpose of R. 12(4) of the D. & O. Rules. It was also specifically held by this Court in that case that S. 234 of the K.P.R Act, which empowers the Government to make rules to regulate the grant of licence, includes the power to make provision for an appel late forum relating to the grant of licence. I am in respectful agreement with that view. The said decision of the learned single Judge has been affirmed by the Division Bench in W.A No. 528/99, holding as follows:
“……………The Green Channel Committee cannot be said to be an authority without jurisdiction. R. 12(4) makes it clear that an incumbent aggrieved by the decision of the Panchayat can file an appeal before the Green Channel Committee and further that the Grama Panchayat will be duty bound to implement the decision of the Green Channel Committee. In other words, R. 12(4) provides that the decision of the Green Channel Committee shall be final. The wording in vernacular of R. 4 attributes the meaning that the decision of the Green Channel Committee shall be final. Green Channel Committee did have jurisdiction to entertain and decide an appeal filed by the petitioner……………”
14. It also needs to be stated with emphasis that S. 276 of the Act, which prescribes an appeal or revision, does not statutorily exclude other remedies. There is no statutory inhibition compelling one to get confined to the appeal or revision that is provided under S. 276. Viewed in this angle, the provision for an appeal under R. 12(4) of the D. & O. Rules is only an additional or alternate remedy. Obviously, a party who seeks a particular relief cannot, thereafter, take recourse to the alternate remedy against the same decision. The mere fact that R. 12(4) provides an alternate remedy, does not, in any manner, impair its standing, either on the face of the K.P.R Act or the Constitution. The challenge that the said rule is ultra vires therefore fails. On the aforesaid, it needs to be noted that though the operator challenged the decision of the Panchayat in the carlier round before the Tribunal, he was well within his rights to move the Green Channel Clearance Committee against a later decision issued by the Panchayat after the order of remit by the Tribunal. There is nothing in the Act or the Rules which obliges one to get confined to a remedy in relation to a subject matter once for all.
15. The result of the aforesaid discussion is that the challenge of the objectors as to the vires of R. 12(4) of the D. & O. Rules and their challenge to the decision of the Green Channel Clearance Committee fail and the operator is entitled to enjoy the benefit of the decision of the Green Channel Committee in terms of the mandate of R. 12(4) of the D. & O. Rules and the conditions and directions issued by the Green Channel Committee, as contained in its decision. The Panchayat is liable to implement the decision of the Green Channel Committee.
In the result,
(i) W.P(C).21409/09 is dismissed.
(ii) W.P(C).20718/09 is ordered directing the 4th respondent to give effect to the decision of the Green Channel Committee, issued in relation to the operator in terms of the directions of that Committee.
(iii) No costs.
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