S. ANNADURAI Vs. GOVERNMENT OF TAMIL NADU

JUDGEMENT

(1.) The appellant is aggrieved by the order of the Writ Court dismissing his writ petition wherein he had challenged the order of the first respondent imposing a penalty of Rs.4,17,248.00 for transporting colour granites without dispatch slip and valid permit.

(2.) The lorry belonging to the appellant was seized by the authorities for transporting colour granite block. Since the driver was unable to produce the dispatch slip or permit issued under the Tamil Nadu Minor Mineral Concession Rules, 1959, proceedings were launched under 36-A of Tamil Nadu Minor Mineral Concession Rules, 1959 as they stood, and the District Collector, the competent authority imposed the penalty of Rs.4,17,248.00, which is fifteen times higher than the seigniorage fee payable for the mineral that was seized.

(3.) The challenge was particularly on the ground that the petitioner being a transporter only, ought not to have been made liable to pay such a heavy penalty and the District Collector must have exercised the discretion vested in him under Rule 36-A itself. It was also contended the in view of Sec. 21(1) of the Act, which lays down the punishment for offences under Ss. 4 and 4(1-A) of Mines and Minerals (Development and Regulation) Act, 1957, Rule 36-A cannot be invoked to impose a penalty of more than Rs.25,000.00.