High Court of KeralaSingle Judge2023-01-19Disposed of with directions to process the Quar...

W.P.(C) Nos.32433/2022, 34797/2022 and 37986/2022

Case / Petition Number:W.P.(C) Nos.32433/2022; 34797/2022; 37986/2022

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Case Details & Bench

Court: High Court of Kerala
Hon'ble Judges: N. Nagareesh
Judgment Date: 2023-01-19
Court Decision / Holding: The writ petitions are disposed of directing the 2nd respondent to process the applications for Quarrying Lease submitted by the petitioners, treating the Ext.P3 Explosives Licences as issued to the Managing Partners representing the respective Partnership Firms.
Final Disposition: Disposed of with directions to process the Quarrying Lease applications by treating the Explosives Licences as issued to the managing partners representing the respective Partnership Firms.

Parties to the Case

Appellants / Petitioners

J & S Granites Company Muppramon, represented by its Managing Partner Sri. K. Sadanandan
New Mary Matha Metal Crusher Unit, represented by its Managing Partner Sri. K.J. Thomakutty
Brothers Quarry Kathalipacha, represented by its Managing Partner Sri. Nisarudeen

Respondents

State of Kerala represented by its Secretary, Department of Industries, Government Secretariat, Thiruvananthapuram (695001)
Director of Mining and Geology, Directorate of Mining and Geology, Kesavadasapuram, Pattom Palace P.O, Thiruvananthapuram (695004)
Geologist District Office, Department of Mining and Geology (Pathanammthitta/Thiruvananthapuram as applicable in petitions)
Deputy Chief Controller of Explosives, Petroleum and Explosives Safety Organization (PESO), Kendriya Bhavan, Kakkanad, Ernakulam (682037)

Legal Representation & Advocates

Counsels for Petitioners

• Enoch David Simon
• Joel S. Sree Dev
• Rony Jose
• Leo Lukose
• Cim il Cherian Kottalil

Counsels for Respondents

• Smt.Vidya KuriaKose, Government Pleader
• Smt. Deepa Narayanan, Sr. Government Pleader

Case Synopsis & Summary

These three writ petitions challenge the State authorities’ refusal to process mining lease applications when the Explosives Licence was issued in the name of the respective managing partners of partnership firms, rather than in the name of the firms. The petitioners are three partnership concerns: J & S Granites Company (WP 32433/2022), New Mary Matha Metal Crusher Unit (WP 34797/2022), and Brothers Quarry Kathalipacha (WP 37986/2022). In all cases, Letters of Intent were issued in the name of the firm, but Ext.P3 Explosives Licences were issued to the managing partners. The respondents argued that the licences must be in the firm’s name for processing of a quarrying lease; otherwise the applications could not be processed, and the petitions appeared meritless. The petitioners contended that a partnership is not a separate legal entity; licences issued to the managing partner should be treated as licences to the partnership, since the partner represents the firm. The Government Pleader defended the position that the licence must be in the Firm’s name and that a petitioner could have applied in the name of a partner instead. Relying on the principle in George Joseph v. Commissioner of Excise, the court disposes of the petitions by directing processing of the leases treating Ext.P3 licences as issued to the managing partners representing the firms.

Provisions of Law Cited

Explosives Rules

Legal Doctrines & Maxims

Partnership Firm is not a juristic person
A Partnership is an association of persons and is not a separate legal entity from its partners
Whoever is the Managing Partner represents the interest of the firm

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners submit that the Letter of Intent was issued in the name of the Partnership Firm and the Explosives Licence is issued in the personal name of the Managing Partner. Since the LOI is issued to the Firm, the Explosives Licence should be treated as issued to the Partnership, not the individual. A Partnership Firm is not a separate juristic entity; therefore, the licence should be deemed for the Firm and the Mining Lease should be processed accordingly.

Contentions of Respondents

The Government Pleader contends that the Explosives Licence must be issued in the name of the Firm since the LOI was issued to the Firm. The fact that the licence was issued in a partner’s name cannot automatically bind the firm; the petitioners could have applied in the name of the partner but opted for the Firm. Hence the petitions are without merit and the authorities were justified in withholding processing.

Cited Precedents (1)

Case Name	Citation	Treatment	Explanation
George Joseph v. Commissioner of Excise and others	2015 KHC 873	Positive	Cited to support the proposition that a Partnership Firm is not a juristic person and that the managing partner represents the firm.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR.JUSTICE N.NAGARESH** **THURSDAY, THE 19[TH] DAY OF JANUARY 2023/29TH POUSHA, 1944** **WP(C) NO. 32433 OF 2022** **PETITIONER:** **J & S GRANITES COMPANY MUPPRAMON, V-KOTTAYAM P.O., PATHANAMTHITTA - 689565 REPRESENTED BY ITS MANAGING PARTNER, SRI. K. SADANANDAN** **BY ADVS. ENOCH DAVID SIMON JOEL S.SREEDEV RONY JOSE LEO LUKOSE CIMIL CHERIAN KOTTALIL** ## **RESPONDENTS:** - **1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF INDUSTRIES, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM – 695001** - **2 THE DIRECTOR OF MINING AND GEOLOGY DIRECTORATE OF MINING AND GEOLOGY, KESAVADASAPURAM, PATTOM PALACE P.O, THIRUVANANTHAPURAM – 695004** - **3 GEOLOGIST DISTRICT OFFICE, DEPARTMENT OF MINING AND GEOLOGY, PERINGANAD, PATHANAMTHITTA – 691523** ## W.P.(C) No.32433/2022 & connected cases : 2 : - **4 DEPUTY CHIEF CONTROLLER OF EXPLOSIVES PETROLEUM AND EXPLOSIVES SAFETY ORGANIZATION (PESO), KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM – 682037** **BY SMT.VIDYA KURIAKOSE, GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.01.2023, ALONG WITH WP(C).34797/2022, 37986/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C) No.32433/2022 & connected cases : 3 : # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE N.NAGARESH** **THURSDAY, THE 19[TH] DAY OF JANUARY 2023/29TH POUSHA, 1944 WP(C) NO. 34797 OF 2022** ## **PETITIONER:** **NEW MARY MATHA METAL CRUSHER UNIT PULICKAL KAVALA P.O, KOTTAYAM - 686515 REPRESENTED BY ITS MANAGING PARTNER SRI. K.J. THOMAKUTTY** **BY ADVS. ENOCH DAVID SIMON JOEL S.SREEDEV RONY JOSE LEO LUKOSE CIMIL CHERIAN KOTTALIL** ## **RESPONDENTS:** - **1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF INDUSTRIES, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM – 695001** - **2 THE DIRECTOR OF MINING AND GEOLOGY DIRECTORATE OF MINING AND GEOLOGY, KESAVADASAPURAM, PATTOM PALACE P.O, THIRUVANANTHAPURAM – 695004** **3 GEOLOGIST DISTRICT OFFICE, DEPARTMENT OF MINING AND GEOLOGY, KOTTAYAM - 686002** ## W.P.(C) No.32433/2022 & connected cases : 4 : - **4 DEPUTY CHIEF CONTROLLER OF EXPLOSIVES PETROLEUM AND EXPLOSIVES SAFETY ORGANIZATION (PESO), KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM – 682037** **BY SMT.VIDYA KURIAKOSE, GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.01.2023, ALONG WITH WP(C).32433/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C) No.32433/2022 & connected cases : 5 : # **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** **THE HONOURABLE MR.JUSTICE N.NAGARESH** **THURSDAY, THE 19[TH] DAY OF JANUARY 2023/29TH POUSHA, 1944 WP(C) NO. 37986 OF 2022** ## **PETITIONER:** **BROTHERS QUARRY KATHALIPACHA, PAKALKURY P.O PALLICKAL, THIRUVANANTHAPURAM - 695604 REPRESENTED BY ITS MANAGING PARTNER SRI. NISARUDEEN.** **BY ADVS. ENOCH DAVID SIMON JOEL S.SREEDEV RONY JOSE CIMIL CHERIAN KOTTALIL** ## **RESPONDENTS:** - **1 STATE OF KERALA REPRESENTED BY ITS SECRETARY, DEPARTMENT OF INDUSTRIES, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM – 695001** - **2 THE DIRECTOR OF MINING AND GEOLOGY DIRECTORATE OF MINING AND GEOLOGY, KESAVADASAPURAM, PATTOM PALACE P.O, THIRUVANANTHAPURAM – 695004** - **3 GEOLOGIST DISTRICT OFFICE, DEPARTMENT OF MINING AND GEOLOGY, THIRUVANANTHAPURAM – 695004** ## W.P.(C) No.32433/2022 & connected cases : 6 : - **4 DEPUTY CHIEF CONTROLLER OF EXPLOSIVES PETROLEUM AND EXPLOSIVES SAFETY ORGANIZATION (PESO), KENDRIYA BHAVAN, KAKKANAD, ERNAKULAM – 682037** **BY SMT. DEEPA NARAYANAN, SR. GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19.01.2023, ALONG WITH WP(C).32433/2022 AND CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** W.P.(C) No.32433/2022 & connected cases : 7 : ## **N. NAGARESH, J.** ````````````````````````````````````````````````````````````` W.P.(C) Nos.32433, 34797 and 37986 of 2022 ````````````````````````````````````````````````````````````` _Dated this the 19[th] day of January, 2023_ ## **J U D G M E N T** ~ ~ ~ ~ ~ ~ ~ ~ ~ When a Partnership Firm has submitted application for Mining Lease, whether the competent authority to process the application can refuse to do so on the ground that the Explosives Licence produced in support of the Quarrying Lease has been issued in the name of one of the Partners of the Firm and not in the name of the Firm. This is the common question arising in these three writ petitions filed by three different Partnership Firms. 2. W.P.(C) No.32433 of 2022 has been filed by a Partnership Firm represented by its Managing Partner Sri.K.Sadanandan. The petitioner-Firm was issued with a Letter of Intent in the name of the Firm for starting a Quarry. W.P.(C) No.32433/2022 & connected cases **==> picture [22 x 10] intentionally omitted <==** The petitioner has obtained all requisite statutory Licences, Permits and Consent so as to make the petitioner eligible for Quarrying Lease. Ext.P3 Explosives Licence under the Explosives Rules has been issued in the name of “Shri. K.Sadanandan”. By Ext.P4 letter, the Director, Mining and Geology has informed the Geologist that as and when an Explosives Licence issued in the name of the Partnership Firm is produced, the application for Mining Lease would be processed. 3. More or less similar are the facts in W.P.(C) Nos.34797 and 37986 of 2022. In W.P.(C) No.34797 of 2022, the petitioner-Firm is represented by its Managing Partner Sri. K.J. Thomaskutty and Ext.P3 Explosives Licence is issued to Sri. K.J.Thomas. In W.P.(C) No.37986 of 2022, Sri. Nisarudeen is the Managing Partner of the Firm and Ext.P3 Explosives Licence has been issued in the name of Sri. S. Nizarudhin. It may be noted here that the respondents have no case that the persons, who have been issued with Explosives Licence, are not Managing Partners W.P.(C) No.32433/2022 & connected cases : 9 : of the respective Partnership Firms. 4. However, the applications for Mining Lease submitted by the petitioner-Firms are not being processed for the reason that Explosive Licences are not issued in the name of the Partnerships but in the name of individuals who are Managing Partners of the respective Firms. In W.P.(C) No.37986 of 2022, certain other deficiencies are also indicated as reason for not issuing Quarrying Lease. 5. The counsel for the petitioners submitted that the Letter of Intent has been issued in the name of Partnership Firm and the Explosives Licence is issued in the name of the Managing Partner of the Firm. The Explosives Licence would indicate that it has been issued on the basis of the Letter of Intent issued in favour of the Partnership. Hence, the respondents cannot contend that the Explosives Licence has been issued to the Managing Partner in his individual capacity. 6. The counsel for the petitioners further urged that a Partnership Firm is not a separate juristic entity. Partnership W.P.(C) No.32433/2022 & connected cases **==> picture [28 x 10] intentionally omitted <==** Firm is only a collection of individuals. Therefore, an Explosives Licence issued in the personal name of the Managing Partner should be treated as one issued to the Partnership. 7. The Government Pleader submitted that the petitioners have obtained all the licences in the name of Partnership Firm whereas the Explosives Licence is issued in the name of individuals. As the petitioners have applied for Quarrying Lease in the name of Partnership Firm, the Explosives Licence should also be in the name of the Firm. Nothing prevented the petitioners from applying for Quarrying Lease in the name of any of its Partners, in which case the Explosives Licence issued in such name could have been accepted. The writ petitions are therefore without any merit, urged the Government Pleader. 8. Heard the learned counsel for the petitioners and the learned Government Pleader representing the respondents. ## W.P.(C) No.32433/2022 & connected cases **==> picture [28 x 10] intentionally omitted <==** 9. In W.P.(C) No.32433 of 2022, Ext.P1 Letter of Intent is seen issued to Sri.K.Sadanandan, Managing Partner, J&S Granites Company. Obviously, the Letter of Intent is issued to Sri. K.Sadanandan representing the Firm. Ext.P3 Explosives Licence is seen issued to Shri. K. Sadanandan, Mupramon, Vallikode, Kottayam. Ext.P3 Acknowledgement of Licence application issued by the Deputy Chief Controller of Explosives specifically refers to Ext.P1 Letter of Intent issued to the Partnership Firm. It would show that the Explosives Licence has been issued to the Managing Partner representing the Partnership Firm. 10. Ext.P1(a) Letter of Intent in W.P.(C) No.34797 of 2022 has been issued to M/s. New Mary Matha Metal Crusher Unit represented by its Managing Partner Shri. K.J.Thomas. Ext.P3 Explosives Licence also refers to Ext.P1 Letter of Intent. Ext.P3 also gives the survey numbers of property as given in Ext.P1 Letter of Intent. Therefore, it is evident that the Explosives Licence has been granted to Shri. K.J.Thomas, who is the Managing Partner of the Firm to W.P.(C) No.32433/2022 & connected cases : 12 : which the Letter of Intent is issued. 11. In W.P.(C) No.37986 of 2022, Ext.P1 Letter of Intent is seen issued to M/s. Brothers Quarry represented by Managing Partner Shri. Nisarudeen. In this case also, Ext.P3 Explosives Licence Acknowledgement issued by the Deputy Chief Controller of Explosives to Shri. S.Nizarudhin refers to Ext.P1 Letter of Intent and also refers to the same survey numbers of property indicated in the Letter of Intent. Ext.P3 therefore only can be treated as issued to Shri. Nisarudeen as Managing Partner of M/s.Brothers Quarry. 12. This Court in the judgment in _**George Joseph v. Commissioner of Excise and others**_ [2015 KHC 873] has held that a Partnership Firm is not a juristic person. A Partnership is an association of persons and is only a compendious reference to all those persons put together. A Partnership Firm is not a legal entity different and distinct from its Partners. Whoever is the Managing Partner represents the interest of the rest. W.P.(C) No.32433/2022 & connected cases **==> picture [28 x 10] intentionally omitted <==** 13. In these writ petitions, the Explosives Licences are issued in favour of the respective Managing Partners of the Partnership Firms. The Explosives Licences Acknowledgements refer to the Letters of Intent issued to the Firms. They also refer to the Survey Numbers of properties for which the Letters of Intent have been issued. In the circumstances, the writ petitions are disposed of directing the 2[nd] respondent to process the applications for Quarrying Lease submitted by the petitioners treating Ext.P3 Explosives Licences as issued to the Managing Partners representing the respective Partnership Firms, who are petitioners in these writ petitions. Sd/- **N. NAGARESH, JUDGE** aks/17.01.2023 ## W.P.(C) No.32433/2022 & connected cases : 14 : ## **APPENDIX OF WP(C) 32433/2022** ## **PETITIONER'S EXHIBITS** |**Exhibit P1**|**TRUE COPY OF THE LETTER OF INTENT DTD.**| |---|---| ||**24.06.2019 ISSUED TO THE PETITIONER BY**| ||**THE 2ND RESPONDENT.**| |**Exhibit P1(a)**|**TRUE COPY OF THE LETTER DATED**| ||**26.02.2022 ISSUED BY THE 2ND**| ||**RESPONDENT.**| |**Exhibit P2**|**TRUE COPY OF THE CONSENT VALID TILL**| ||**09.08.2025 ISSUED BY THE POLLUTION**| ||**CONTROL BOARD.**| |**Exhibit P2(a)**|**TRUE COPY OF THE ENVIRONMENTAL**| ||**CLEARANCE CERTIFICATE DTD. 10.08.2015**| ||**ISSUED BY THE SEIAA.**| |**Exhibit P2(b)**|**TRUE COPY OF THE ORDER DTD. 26.07.2022**| ||**ISSUED BY THE SEIAA.**| |**Exhibit P2(c)**|**TRUE COPY OF THE PANCHAYAT LICENSE**| ||**VALID TILL 31.03.2023 ISSUED BY THE**| ||**PRAMADOM GRAMA PANCHAYAT.**| |**Exhibit P3**|**TRUE COPY OF THE EXPLOSIVE LICENSE**| ||**ISSUED TO THE PETITIONER.**| |**Exhibit P4**|**TRUE COPY OF THE LETTER DATED**| ||**11.10.2022 ISSUED BY THE 2ND**| ||**RESPONDENT.**| ## W.P.(C) No.32433/2022 & connected cases : 15 : ## **APPENDIX OF WP(C) 34797/2022** ## **PETITIONER'S EXHIBITS** **Exhibit P1 TRUE COPY OF THE LETTER OF INTENT DTD. 13.08.2019 ISSUED TO THE PETITIONER BY THE 2ND RESPONDENT. Exhibit P1(a) TRUE COPY OF THE LETTER DATED 26.03.2022 ISSUED BY THE 2ND RESPONDENT Exhibit P2 TRUE COPY OF THE CONSENT VALID TILL 30.06.2027 ISSUED BY THE POLLUTION CONTROL BOARD. Exhibit P2(a) TRUE COPY OF THE ENVIRONMENTAL CLEARANCE CERTIFICATE DTD. 19.07.2022 ISSUED BY THE SEIAA. Exhibit P2(b) TRUE COPY OF THE PANCHAYAT LICENSE VALID TILL 31.03.2023 ISSUED BY THE KOOROPPADA GRAMA PANCHAYAT. Exhibit P3 TRUE COPY OF THE EXPLOSIVE LICENSE ISSUED TO THE PETITIONER. RESPONDENT'S EXHIBITS Exhibit R2(a): A true copy of application submitted in Form-B by petitioner dated 05/06/2019 Exhibit R2(b): A true copy of the Letter of intent dated 13-08-2019 issued by 2nd Respondent Exhibit R2(c): A true copy of the Explosive License dated 31/03/2022** ## W.P.(C) No.32433/2022 & connected cases : 16 : ## **APPENDIX OF WP(C) 37986/2022** ## **PETITIONER'S EXHIBITS** |**Exhibit P1**|**TRUE COPY OF THE LETTER OF INTENT**| |---|---| ||**DATED 01.03.2019 ISSUED BY THE**| ||**DIRECTOR OF MINING AND GEOLOGY.**| |**Exhibit P2**|**TRUE COPY OF THE ENVIRONMENTAL**| ||**CLEARANCE NUMBERED AS 10/Q/2022 DTD.**| ||**08.06.2022 ISSUED BY THE SEIAA.**| |**Exhibit P2(a)**|**TRUE COPY OF THE CONSENT TO OPERATE**| ||**VALID TILL 31.05.2026 ISSUED BY THE**| ||**PCB.**| |**Exhibit P2(b)**|**TRUE COPY OF THE TRADE LICENCE VALID**| ||**TILL 31.03.2026 ISSUED BY THE**| ||**PALLICKAL PANCHAYAT.**| |**Exhibit P3**|**TRUE COPY OF THE EXPLOSIVE LICENSE**| ||**DTD. 22.06.2022 VALID TILL 31.03.2026**| ||**ISSUED TO THE PETITIONER.**| |**Exhibit P4**|**TRUE COPY OF THE LETTER DATED**| ||**16.11.2022 ISSUED BY THE 2ND**| ||**RESPONDENT.**|