Sri. Prabhu Ishwarappa Kalyanshetti, Vs State of Karnataka

SRI. PRABHU ISHWARAPPA KALYANSHETTI, S/O ISHWARAPPA ALLAPPA KALYANSHETTI, AGED ABOUT 53 YEARS, PARTNER AT SHRI BALAJI MINERALS, R/O. H.NO.1790, SOMAWAR PETH, GOKAK, BELGAUM - 591307.

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…PETITIONER

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Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka

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(BY MS. DEEKSHA N. AMRUTHESH, ADVOCATE)

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AND:

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STATE OF KARNATAKA, DEPT. OF COMMERCE & INDUSTRIES, VIKASA SOUDHA, DR. AMBEDKAR ROAD, BENGALURU - 560001 REPRESENTED BY ITS SECRETARY.

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THE DIRECTOR, DEPT. OF MINES & GEOLOGY, KHANIJA BHAVAN,

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NC: 2026:KHC:36219-DB WP No. 19725 of 2026

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HC-KAR

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CNR: KAHC010437962026

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RACE COURSE ROAD, BENGALURU - 560001.

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THE DEPUTY DIRECTOR, DEPT. OF MINES & GEOLOGY, BAUXITE ROAD, KUMARSWAMY LAYOUT, BELGAUM - 59001.

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…RESPONDENTS

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

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI, QUASHING THE DEMAND NOTICE DATED 16.05.2026 IN NO.GaBhu:OoNi:BeVi:OTS-NOTICE:2026-27/1052 ISSUED BY THE 3^RD RESPONDENT DEPT. DIRECTOR OF DEPT. MINES & GEOLOGY, BELGAUM, DEMANDING RS.5,80,440/- AS FINE BY INVOKING THE PROVISIONS OF RULE-44-A OF THE KARNATAKA MINOR MINERALS CONCESSION (AMENDMENT) RULES, 2026 AS ONE TIME SETTLEMENT (OTS) WITH PENAL PROVISIONS IN CASE OF NON-COMPLIANCE WITHIN 30 DAYS FROM THE DATE OF RECEIPT OF SAID NOTICE (ANNEXURE-A) AND ETC.

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

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

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HC-KAR

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NC: 2026:KHC:36219-DB WP No. 19725 of 2026

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CNR: KAHC010437962026

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ORAL ORDER

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

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The learned Government Advocate accepts notice for the respondents.

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The petitioner has filed the present petition impugning a notice dated 16.05.2026 issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [ KMMC Rules ], calling upon the petitioner to pay a sum of `5,80,440/- as penalty for extraction of 4,146 metric tons of mineral from the encroached area.

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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.

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HC-KAR

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NC: 2026:KHC:36219-DB WP No. 19725 of 2026

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CNR: KAHC010437962026

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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.

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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 if the petitioner submits his response, the same would be considered and appropriate orders would be passed after affording the petitioner an opportunity of being heard.

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In view of the aforesaid statement, no orders are required to be passed in this petition, except that the respondents would be 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.

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We clarify that all rights and contentions of the parties are reserved including the petitioner's contention that the one time settlement [ OTS ] as contemplated under Rule 44-A of the KMMC Rules, is voluntary and at the option of the lease/licence holder.

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