Gram Panchayats want motorable roads but not hot mix plants in their area

Sections 5,  6 and 10 of the Kerala Micro, Small and Medium Enterprises Act 2019 – Effect of Acknowledgement Certificate granted under Section 5 of KMSME Act and deemed grant of Gram Panchayat licence to instal of Hot Mix Plant – All Panchayats want motorable roads but object to installation of Hot Mix plant in their area – Where from the materials for road works should be imported is the question posed by the Supreme Court. 

Respondent no.1 – George Elias and Associates in first set of three appeals and appellant in fourth appeal – is engaged in road works and purchased Hot Mix Plants for such road works.

Respondent no.1 had obtained Acknowledgement Certificate under Section 5 of the  Kerala Micro Small and Medium Enterprises Facilitation Act, 2019.

Section 6 of the Act provides the effect of acknowledgement certificate to mean approval required under any State Law with establishment of MSME.   Section 10 of the said Act provides for overriding effect on other laws including the Kerala Panchayat Raj Act, 1994.

On 5.2.2020, the respondent no.1 filed an application to Kallorkad Panchayat for licence to install Hot Mix Plant.

On 4.3.2020, the Kerala State Pollution Control Board granted “Consent to Establish” hot mix plant.

On 12.5.2020, the Panchayat rejected the application for licence.   Respondent no.1 filed first writ petition to challenge this order and filed second writ petition for declaration in view of acknowledgement certificate under Section 5 of KMSME Act, the licence under the Kerala Panchayat Raj Act, 1994, was not necessary.

By the common order dated 18.3.2021 the learned Single Judge of High Court of Kerala disposed of the writ petitions permitting the petitioners to file permission application to Gram Panchayat.  The writ appeals against the said order were dismissed. 

HELD – in view of statutory prescription in Sections 5, 6 and 10 of the KMSEME Act, the respondent no.1 is entitled to declaration that licence of Gram Panchayat to instal Hot Mix Plant was not necessary.    However, the Supreme Court had posed question as to where from material for road works, when all Panchayats want motorable roads but do not want manufacturing of road construction materials in their area.  The impugned orders were set-aside, the appeal of respondent no.1 George Alias was allowed and the appeals of the objectors – people of the locality were dismissed.  

Jolly George & Another Vs. George Elias and Associates and Others (Civil Appeal Nos.2764-2766 of 2023 arising out of Special Leave Petition (C) Nos.1333-1335 of 2022)