Pawan Udapudi Industries Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2026)

Pawan Udapudi Industries Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Petition disposed of without quashing the notice at this stage; respondents bound to the Government Advocate's statement — the impugned demand notice is to be treated as a show cause notice, the petitioner's response (letter dated 15.06.2026) considered, and appropriate orders passed after following the principles of natural justice (affording the petitioner an opportunity of being heard).

Issue for consideration

Whether the demand notice dated 25.05.2026 issued under Rule 44A of the KMMC Rules, 1994 demanding a penalty of Rs. 80,56,090/- is vitiated because it was issued without following the principles of natural justice and without considering the petitioner's reply dated 15.06.2026.

Court's answer

The present petition is disposed of, with the respondents bound down to the statement made on their behalf by the learned Government Advocate, namely that the impugned notice be considered as a show cause notice, the petitioner's response be considered, and an order be passed after affording the petitioner an opportunity of being heard.

Ratio / Principle

The impugned order shall be considered as a show cause notice and appropriate orders would be passed after following the principles of natural justice.

Detailed headnote1 paragraphs

Mines and Minerals — Demand notice under Rule 44A of the Karnataka Mines and Mineral Concession Rules, 1994 dated 25.05.2026 calling upon petitioner to pay Rs. 80,56,090/- as penalty for extracting excess quantity of 1,15,087 metric tons of mineral — Contention that the demand is vitiated, having been issued without following the principles of natural justice and without considering the petitioner's reply dated 15.06.2026 — Government Advocate stated that the impugned notice be considered as a show cause notice and that the petitioner's response would be considered and an order passed after affording an opportunity of being heard — Held, petition disposed of with respondents bound down to the statement made on their behalf; impugned notice to be treated as a show cause notice and appropriate orders passed after following the principles of natural justice (Oral Order per Vibhu Bakhru, Chief Justice, for the Division Bench of the High Court of Karnataka).

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NC: 2026:KHC:31283-DB WP No. 18729 of 2026

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF JUNE, 2026

PRESENT

THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE

AND

THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO. 18729 OF 2026 (GM-MM-S)

BETWEEN:

PAWAN UDAPUDI INDUSTRIES

PROPRIETOR OF PAWAN

METAL SYNDICATE

HAVING ITS UNIT AT SY.91/5, 91/7 AND 91/9

HULIKATTI VILLAGE

TALUKA AND DISTRICT BELAGAVI

…PETITIONER

(BY SRI. GOUTAM BHARADWAJ, ADVOCATE FOR SRI GOUDAR PRASHANTH FAKEERAGOUDA, ADVOCATE)

Digitally signed by VEERENDRA KUMAR K M Location: High Court of Karnataka

AND:

THE STATE OF KARNATAKA

REPRESENTED BY ITS SECRETARY DEPARTMENT OF COMMERCE AND INDUSTRY KHANIJA BHAVANA

RACE COURSE ROAD

BENGALURU - 560 001

THE DIRECTOR/ SENIOR GEOLOGIST DEPARTMENT OF MINES AND GEOLOGY KHANIJA BHAVANA RACE COURSE ROAD BENGALURU - 560 001

2 - NC: 2026:KHC:31283-DB WP No. 18729 of 2026

HC-KAR

THE DEPUTY DIRECTOR DEPARTMENT OF MINES AND GEOLOGY DISTRICT: BELAGAVI BAUXITE ROAD, KUMARASWAMY LAYOUT BELAGAVI

KARNATAKA STATE REMOTE SENSING APPLICATIONS CENTRE, (KSRSAC) DEPARTMENT OF PERSONNEL AND ADMINISTRATIVE REFORMS (E-GOVERNANCE) OFFICE AT DOORA SAMVEDI BHAVANA MAJOR SADEEP UNNIKRISHNAN ROAD DODDABETTHALLI BENGALURU - 560 097 REPRESENTED BY ITS DIRECTOR

…RESPONDENTS

(BY SRI K.S. HARISH, GOVERNMENT ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED DEMAND NOTICE ISSUED BY THE RESPONDENT No.3 DATED 25.05.2026 PRODUCED VIDE ANNEXURE-A & ETC.

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

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MRS. JUSTICE K.S. HEMALEKHA

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HC-KAR

ORAL ORDER

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

The petitioner has filed the present petition impugning a notice dated 25.05.2026 issued under Rule 44A of the Karnataka Mines and Mineral Concession Rules, 1994 [ KMMC Rules ], calling upon the petitioner to pay a sum of `80,56,090/- as penalty for extracting excess quantity of 1,15,087 metric tons of mineral.

The petitioner is also called upon to visit the concerned office (Office of the Deputy Director, Department of Mines and Geology) within a period of 7 days along with appropriate documents regarding the penalty amount and for settlement of the matter. However, the petitioner has also been called upon to pay the stipulated penalty within a period of 6 months from the date of service of the notice. The notice also sets out that the petitioner is also permitted to pay the penalty in four equal installments with one installment due every 45 days.

One of the contentions advanced by the petitioner is that the said demand is vitiated as it has been issued without following the principles of natural justice and despite the petitioner responding by

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HC-KAR

letter dated 15.06.2026 to the demand notice, the same has not been considered.

The learned Government Advocate fairly states that the present petition be disposed of by directing that the impugned notice be considered as a show cause notice. He states that the petitioner's response would be considered and an order would be passed after affording the petitioner an opportunity of being heard.

In view of the above, the present petition is disposed of, directing the respondents are bound down to the statement made on their behalf. The impugned order shall be considered as a show cause notice and appropriate orders would be passed after following the principles of natural justice.

Sd/(VIBHU BAKHRU) CHIEF JUSTICE

Sd/(K.S. HEMALEKHA) JUDGE

KMV/List No.: 2 Sl No.: 13