M/S Azad Saw Mill Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

M/S Azad Saw Mill Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of in terms of the Coordinate Bench order in W.P. No.105140/2024; demand, collection and refund of FDT made subject to the final outcome of W.A.No.743/2021 and connected matters pending before this Court and C.A.Nos.3974-4068/2016 and C.A.Nos.32143271/2018 pending before the Apex Court; the mandamus prayed for was not issued.

Issue for consideration

Whether the respondents can demand, levy or collect Forest Development Fees under amended Section 98-A(1) of the Karnataka Forest Act, 1963 (inserted by Act 23 of 2016) in respect of the sale of timber and other forest products from government depots in Karnataka, and whether a writ of mandamus should issue restraining such demand, levy or collection. +1 more

Ratio / Principle

The writ petition stands disposed of in the aforesaid manner, i.e., in the same terms as the Coordinate Bench disposed of W.P. No.105140/2024 — demand, collection and refund of FDT is subject to the final outcome of W.A.No.743/2021 and connected matters pending before this Court and C.A.Nos.3974-4068/2016 and C.A.Nos.32143271/2018 pending before the Apex Court. No independent adjudication of the validity of the FDT demand under amended S. 98-A(1) was made and no fresh mandamus was issued.

Detailed headnote1 paragraphs

Writ Petition (GM-FOR) under Articles 226 and 227 of the Constitution — four timber traders/saw mills sought a writ of mandamus restraining the State and forest authorities from demanding, levying or collecting Forest Development Fees under amended S. 98-A(1) of the Karnataka Forest Act, 1963 (inserted by Act 23 of 2016) on sales of timber and other forest products from government depots in Karnataka — Held: on the joint submission of counsel, the issue in the lis stands answered by the Coordinate Bench in W.P. No.105140/2024 (disposed 09.09.2024); the writ petition is disposed of in the same terms, viz., demand, collection and refund of FDT is subject to the final outcome of W.A. No.743/2021 and connected matters pending before this Court and C.A. Nos.3974-4068/2016 and C.A. Nos.32143271/2018 pending before the Apex Court — no independent adjudication of the fee's validity; no mandamus issued.

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NC: 2025:KHC-D:1037 WP No. 100326 of 2025

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

DATED THIS THE 21^ST DAY OF JANUARY, 2025

BEFORE

THE HON'BLE MR. JUSTICE M.NAGAPRASANNA

WRIT PETITION NO.100326 OF 2025 (GM-FOR)

BETWEEN:

1. M/S AZAD SAW MILL

REPRESENTED BY ITS PROPRIETOR TOUSIF S/O ASAMATALI GARAG AGE; 44,R/O; PID NO.8/1026,

TIMBER YARD,MANAKILLA DHARWAD, DIST:DHARWAD – 580 001.

2. NOOR KHAN TRADERS

REPRESENTED BY ITS PROPRIETOR

Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka

RAFEEQ S/O CHOTASAB AGE; 44,R/O; NO.G1.8^TH CROSS, GOA GARDEN, D J HALLI, BANGALORE, BANGALORE URBAN,-560045

M/S ELEGANT TRADING COMPANY REPRESENTED BY ITS PROPRIETOR FARHAT D/O NADEEMAKRAM KODIYAL AGE; 27,R/O; NO.12-2-528-196A/2^ND BLOCK SRS MD 36/KARIGUNDI MAIN ROAD AASARE GENERAL STORES, SIRSI DIST:UTTARA KANNADA – 581 402.

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HABIBA TIMBER DEPOT

REPRESENTED BY ITS PROPRIETOR TARIK S/O NAJIR MULLA AGE; 41,R/O; A/P-BAJAR PETH, AJARA, TAL-AJARA, KOLHAPUR, MAHARASHTRA, 416505.

…PETITIONERS

(BY SRI HAREESHA S. NAYAK, ADVOCATE)

AND:

1. THE STATE OF KARNATAKA REPRESENTED BY SECRETARY DEPARTMENT OF FOREST, MULTISTORIED BUILDINGS, BENGALURU-560001

THE PRINCIPAL CHIEF CONSERVATOR OF FORESTS (HEAD OF FOREST FORCE) ARANYA BHAVAN 18TH CROSS, MALLESHWARAM, BANGALORE-560003

THE DEPUTY CONSERVATOR OF FORESTS, HALIYAL DIVISION, DISTRICT,UTTARA KANNADA-581359.

THE DEPUTY CONSERVATOR OF FORESTS, SIRSI, DIVISION,DISTRICT, UTTARA KANNADA-581401.

THE DEPUTY CONSERVATOR OF FORESTS, YELLAPUR, DIVISION, DISTRICT,UTTARA KANNADA-581359.

THE DEPUTY CONSERVATOR OF FORESTS, DHARWAD, DIVISION,

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DISTRICT,DHARWAD-580001.

THE DEPUTY CONSERVATOR OF FORESTS, BELAGAVI, DIVISION, DISTRICT,BELAGAVI-590001

THE DEPUTY CONSERVATOR OF FORESTS, CHIKKAMAGALURU, DIVISION, DISTRICT,BELAGAVI-577101

…RESPONDENTS

(BY SRI SHARAD V. MAGADUM, AGA)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE WRIT OF MANDAMUS RESTRAINING THE RESPONDENTS FROM DEMANDING, LEVY OR COLLECTION THE FOREST DEVELOPMENT FEES UNDER AMENDED SECTION 98-A(1) OF THE KARNATAKA FOREST ACT, 1963 INSERTED BY ACT 23 OF 2016 BY WAY OF AMENDMENT (ANNEXUREC) IN RESPECT OF THE SALE OF THE TIMBER AND OTHER FOREST PRODUCTS FROM ALL THE GOVERNMENT DEPOTS IN FUTURE IN KARNATAKA AND ETC.,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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NC: 2025:KHC-D:1037 WP No. 100326 of 2025

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

Learned counsel appearing for the parties in

unison would submit that, the issue in the lis stands answered by the Coordinate Bench of this Court in W.P. No.105140/2024, disposed of on 9^th September 2024. The Coordinate Bench held as follows:

“5. Having heard the petitioner’s counsel and also the learned AGA, taken note of AnnexuresB, C and D and also the judgment referred by the learned AGA W.P. No.101820/2024 disposed of on 23.04.2024. When the matter is ceased before the Hon’ble Apex Court with regard to refund of amount is concerned and in B. Rudragouda’s case, this Court passed an order to refund the amount which was collected as FDT in respect of timber and other forest produces from respondents. The same has been questioned and a decision is not yet taken by the Apex Court and only interim order has granted only against refund of the amount as observed in paragraph 7 of the judgment in W.P.No.101820/2024 and connected matters. Taking into note of the paragraph 8 of the judgment in the aforesaid writ petition wherein observation is made that the matter is pending before the Writ Appellate Court as well as before the Apex Court, it is needless to mention that respondent authorities would take further action only after the disposal of the said matters by issuing fresh demand or take action for refund insofar as petitioner herein is concerned, wherever FDT is already collected by the respondents, this writ petition is accordingly disposed of holding demand, collection and refund of FDT would be

5 - NC: 2025:KHC-D:1037 WP No. 100326 of 2025

subject to final outcome of W.A.No.743/2021 and connected matters pending before this Court and C.A.Nos.3974-4068/2016 and C.A.Nos.32143271/2018 pending before the Apex Court.”

In that light, the writ petition stands disposed in

the aforesaid manner.

Sd/-

(M.NAGAPRASANNA)

JUDGE

VNP/CT-ASC List No.: 1 Sl No.: 32