1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED 19.12.2011 CORAM THE HONOURABLE MR.JUSTICE T.RAJA W.P(MD)No.12582 of 2011 and M.P(MD)No.1 of 2011 M/s.Indian Garnet Sand Co(P) Limited, represented by its Chairman-cum- Managing Director, Dr.Dhaya Devadas,1A, Prasad Street, Seethapathy Nagar,Velacherry, Chennai - 600 042. ..Petitioner Vs 1. The District Collector, Collectorate,Thiruchirappalli. 2. The Assistant Director of Geology and Mines, Thiruchirappalli. ..Respondents. Prayer: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus directing the respondents to release the vehicle bearing Registration No.TN 74 L 5082 with the processed Garnet Sand. For Petitioner :M/s.T.Chandrasekaran For Respondents :Mr.B.Pugalenthi, Special Govt.Pleader ORDER The Petitioner, M/s.Indian Garnet Sand Co(P) Limited represented by its chairman-cum-Managing Director has come to this Court by invoking writ jurisdiction under Article 226 of the Constitution of India for issuance of a Writ of Mandamus to direct the respondents to release the vehicle bearing Registration No.TN 74 L 5082 with the processed Garnet Sand and to pass other further orders. 2. The learned counsel for the petitioner submits that the petitioner and their sister concern M/s.Southern Enterprises have already obtained 7 Garnet Mining leases in Tiruchirappali District and also established 6 Garnet Sand Processing Units in Thottiyam and Musiri Taluks in Tiruchirappalli District. The Central Government has also given 100% Export Oriented Unit status to those factories. On the basis of the mining lease, the petitioner has established two factories in Appanallur Village, Thottiyam Taluk and one factory unit in Surampatti Village, Musiri Taluk, Thiruchirappalli District. The petitioner has been obtaining transport permit along with bulk permit to transport the garnet bearing raw sand from the mining area to the processing plant. After processing the raw material, the processed garnet sand is transported to Tuticorin or Chennai port for export along with Delivery Note in Form-JJ, under rule 15(3),(18), https://hcservices.ecourts.gov.in/hcservices/ 2 (19),(20) and (21) of the Tamil Nadu Value Added Tax Rules 2007, and delivery chalan. This is a usual practice of the petitioner to export the processed Garnet sand. As usual on 17.10.2011, the petitioner's factory Unit -II, Appanallur Village,loaded 28 Metric Tonnes of processed Garnet Sand in Taurus Lorry bearing Registration No.TN 74 L 5082 and then proceeded to Thoothukudi Port for exporting the same to G.M.A Garnet(Europe) GMBH with the required document vis., purchase order No.9101930, dated 16.3.2011, Invoice No.IGSC/EXP/179/2011-12, dated 15.10.2011 and Delivery Note as as per Rule 15(3),(18), (19), (20) and (21) of the Tamil Nadu Value Added Tax Rules 2007. The second respondent intercepted the vehicle at Kolakkudi Village, at about 3.30 p.m. at the instigation of their business rivals and took the same to the Taluk Office at Musiri and under these circumstances, the petitioner has come to this Court with the present Writ Petition for release of the vehicle bearing Registration No.TN 74 L 5082 with the processed Garnet Sand. It has been submitted further by the learned counsel for the petitioner that the second respondent seized the vehicle without any valid ground or reasons. Usually, the second respondent used to issue bulk transport permits and despatch slip for the transport of raw Garnet sand from the mines site to factories. But the petitioner was not informed about the introduction of any other procedure for the export of processed Garnet Sand from the factory to the Port. However, there is no despatch slip or permit issued for transporting the processed Garnet Sand from the factory to the Port. When the petitioner and their sister concern have exported more than one lakh metric tonnes of processed garnet sand from factory Unit-II to the port, the second respondent all of a sudden cannot seize the vehicle without any valid grounds. 3. On the other hand, the learned Special Government Pleader appearing for the respondents strenuously objecting to the release of the vehicle on the ground that the enquiry has already come to an end by submitting a report, dated 19.09.2011 because of the joint inspection conducted by the Pollution Control Board, Department of Environment, Mines, Public Works Department, Forest, Electricity Board, Agricultural Department officials from 19.08.2011 to 22.08.2011 a consolidated report was filed by the Committee on 5.9.2011 stating that the lessee had violated the lease conditions on large level. On that basis, it was pleaded that a detailed report dated 19.9.2011 is sent and the respondent is going to pass final order. Therefore, the petitioner is not entitled to claim the release of the lorry. The said submissions do not deserve acceptance by this Court, for Rule 10 of Tamil Nadu Prevention of Illegal Mining, Transport and Storage of Minerals and Mineral Dealers Rules, 2011 empowers the District Collector to impose a penalty upto a maximum of Rs.25,000/- as follows: "10(1)any person who contravenes any of the provisions of the rules, sells or stores minerals except https://hcservices.ecourts.gov.in/hcservices/ 3 under and in accordance with the Registration Certificate of Registrar or who transports the minerals not in accordance with transport issued shall be punishable with a penalty upto a maximum of Rs.25,000/- by order of the District Collector concerned." 4. In the present case, prima facie the petitioner alleged to have transported garnet sand without any transit pass. Therefore, the District Collector in accordance with above Rule 10, can impose a penalty upto a maximum of Rs.25,000/- for transporting the minerals without the transit permit. 5. However, the learned counsel for the petitioner submits that the petitioner is prepared to give a bank guarantee for Rs.1 lakh along with payment of Rs.10,000/- towards security, pending disposal of the proceedings, on the file of the District Collector, Tiruchirappalli. 6. Recording the submission, the District Collector, Collectorate, Thiruchirappalli/the first respondent herein is directed to release the vehicle bearing Reg.No.TN 74 L 5082 subject to a payment of Rs.10,000/- as security and on execution of a bank guarantee for a sum of Rs.1 lakh, within a week from the date of receipt of a copy of this order. It is needless to point out that the petitioner is also directed to co-operate for further enquiry that will be undertaken by the respondents. 7. With these observations, the Writ petition is disposed of. Consequently, connected Miscellaneous Petition is closed. No costs. Sd/- Assistant Registrar(AE) /True Copy/ Sub Assistant Registrar To 1. The District Collector, Collectorate, Thiruchirappalli. 2. The Assistant Director of Geology and Mines, Thiruchirappalli. +one cc to Special Government Pleader, Sr.No. 44595 W.P(MD)No.12582 OF 2011 19.12.2011 VSN SMA/03.01.2012/4C/3P https://hcservices.ecourts.gov.in/hcservices/