cancellation of Ext.P2 quarrying permit, the petitioner continued quarrying operation in an adjoining area near the earlier permit hold, without permission. The Village Officer reported that the petitioner had unauthorizedly extracted laterite building stone from an area of 80m x 20m x 5m, causing huge financial loss to the government exchequer, pursuant to which, the demand notice was issued. Pointing out to Rule 58(2) of the Kerala Minor Mineral Concession Rules, 1967, wherein it is stipulated that those who opted for Consolidated Royalty payment System, shall pay the next higher slab of royalty in addition to the amount already paid in case of excavation, over and above the permitted extent of land, the second respondent contended that the amount demanded in Ext.P5 is legally due. It is further pointed out that the penalty clause is applicable only for those permit holders, who have extended their quarrying activity beyond the boundary limit during the tenure of the permit. The second respondent produced Ext.R2(b) report of the Village Officer, wherein it is reported that there were two quarries and the unauthorized quarry has no continuity with the earlier permit hold area. Hence, according to the second respondent, the petitioner is bound to pay royalty as well as fine since