JUDGMENT 1. By way of aforesaid writ petition filed under Article 226 of the Constitution of India, the petitioner, who is a resident of District Sawaimadhopur, Rajasthan has challenged the policy of the State Government in the matter of allotment of dealership licence for the petrol pumps, to the members of Scheduled Tribes. 2. The case as set out by the petitioner, briefly stated, is that he is Meena by caste and hence, a member of Scheduled Tribe. The State Government had framed a policy for grant of permission for installation of petrol pumps to the members of SC/ST on priority basis. 3. In pursuance of the aforesaid policy, the petitioner had applied for obtaining necessary sanction and permission of the State Government for grant of dealership licence for installation of petrol pump on his Khatedari land bearing Khasra No. 4283 and 4285 measuring 18 Acres in all, located in Village Bamanwas Patti Khurd, District Sawai Madhopur. The petitioner required at least 1,360 Sq. Yards of land for the purpose of installation of petrol pump. 4. Government of Rajasthan, in exercise of powers conferred by Clause XI(a) of sub section (2) of Section 261 read with Section 90A and 102 of the Rajasthan Land Revenue Act, 1956 (hereinafter referred to as the 'Act of 1956') framed the Rules known as Rajasthan Land Revenue (Allotment, Conversion and Regularisation of Agricultural Land for Construction of Cinemas, Hotels and Establishment of Petrol Pump) Rules, 1978, (for short 'the Rules of 1978') which were published in GSR No. 51 dated 26.10.1978. For the sake of convenience and ready reference, it shall be appropriate to refer to the aforesaid provisions of the Act of 1956, as under: "Sec. 90.A. Use of agriculture land for non agricultural purposes:- 1. No person holding any land for purpose of agriculture, and no transferee of such land or any part thereof shall use the same or any part thereof by the construction of buildings thereon or otherwise, for any other purpose except with the written permission of the State Government obtained in the manner hereinafter laid down and otherwise than in accordance with the terms and conditions of such permission. 2. 2. Any such person desiring to use such land or any part thereof for any purpose other than that of agriculture shall apply for the requisite permission in the prescribed manner and to the prescribed officer or authority and every such application shall contain the prescribed particulars. 3. The State Government shall, after making or causing to be made due inquiry in the prescribed manner, either refuse the permission applied or grant the same subject to the prescribed terms and conditions. 4. 3. The State Government shall, after making or causing to be made due inquiry in the prescribed manner, either refuse the permission applied or grant the same subject to the prescribed terms and conditions. 4. When any such land or part thereof is permitted to be used for any purpose other than that of agriculture, the person to whom such permission is granted shall be liable to pay to the State Government in respect thereof - (a) an urban assessment levied at such rate and in accordance with such manner as may be laid down in rules to be made in this behalf by the State Government; or (b) such amount by way of premium as may be prescribed by the State Government; or (c) both (5) If any such land is so used (a) without the written permission of the State Government being first obtained, or (b) otherwise than in accordance with the terms and conditions of such permission, or (c) after such permission having been refused under section (3), or (d) without making any of the payments referred to in sub-section (4), the person originally holding the land as aforementioned for the purpose of agriculture as well as all subsequent transferees, if any, shall be deemed to be a trespasser or trespassers, as the case may be, and shall be liable to ejectment from such land in accordance with Section 91 as if he or they had occupied or continued to occupy such land without lawful authority and to every such proceeding the provisions of section 212 of the Rajasthan Tenancy Act, 1955 (Rajasthan Act 3 of 1955) shall apply as if such land were in danger of being wasted, damaged or alienated: Provided that the State Government may, in lieu of having such person and the subsequent transferees so ejected from the land in question, allow him or them, as the case may be, to retain such land, use the same for any purpose other than that of agriculture on payment to the State Government in addition to the urban assessment and premium payable under sub-section (4) of such fine by way of penalty as may be prescribed." "Sec. 102A. Lands which may be entrusted with local authorities:- Any Nazul land or land set apart under Section 92 may be placed by the State Government at the disposal of a local authority having jurisdiction and such local authority may take over with the land so placed at its disposal for and on behalf of the State Government or may use the same for the special purpose for which it has been set apart to such extent and subject to such conditions and restrictions as the State Government may from time to time lay down and in such manner as it may from time to time prescribe. "Sec. 261:- Power to make rules-. 1. The Board may with the previous sanction of the State Government make rules consistent with the provisions of this Act and of the rules made under sub section (2). (a) regulating the procedure of the Board and its officers in the transaction of its business; (b) prescribing the registers, books and accounts to be kept and maintained under section 14; (c) prescribing the manner of the publication of rent rate proposals under section 155(1); (d) for the guidance of Collectors and Settlement Officers in assessing and fixing rents under this Act; (e) prescribing the manner of the giving of a public notice under section 155(2); (f) prescribing the manner in which assessment parchas shall be made over to tenants and land holders under section 164(3); (g) directing the rights, customs and other matters which the Settlement Officer is to ascertain and record in the Wajib-ul-arz or Dastoor Ganwai and prescribing the manner in which they are to be ascertained. (h) prescribing the manner of notifying the date, time and place fixed for reading out the Wajib-ul-arz or Dastoor Ganwai to the inhabitants of the village concerned. (i) for the guidance of Collectors and Settlement Officers in assessing rents under section 178 for arrears for which short term settlements were sanctioned; (j) regulating under section 179 the assessment of land added by alluvian and the revision of assessment in consequence of fluvial action or diversion of land from an agricultural to a non-agricultural purpose or vice versa. (i) for the guidance of Collectors and Settlement Officers in assessing rents under section 178 for arrears for which short term settlements were sanctioned; (j) regulating under section 179 the assessment of land added by alluvian and the revision of assessment in consequence of fluvial action or diversion of land from an agricultural to a non-agricultural purpose or vice versa. (k) regulating the procedure of Settlement Officers in correcting errors and omissions under section 182; (l) regulating the framing of modified proposals under section 183(2); (m) prescribing the form of the preliminary order for partition under section 191; (n) prescribing the form of the preliminary order for partition under section 198; (o) determining the mode in which the costs of partition are to be apportioned under section 203; (p) prescribing under clause (c) of sub section (2) of section 205, the statements and returns to be submitted and the particulars to be contained therein; (q) regulating the division of complex estates and the distribution of the revenue thereof under section 219; (r) regulating the costs which may be recovered in or in respect of any judicial or settlement proceedings under this Act other than costs recoverable by the State Government in proceedings in petition cases; (s) regulating the procedure to be followed by, any court, officer or other person required or empowered under any provisions of the Act to take any action in any judicial or settlement matter; (t) for carrying out the provisions of this Act in respect of judicial and settlement proceedings, and (u) for the guidance of all courts, officers and other persons in all judicial and settlement proceedings under this Act. (2) The State Government may make rules consistent with the provisions of this Act: (i) to (xi) ..... (xi-A) prescribing the manner in which permission under section 90A for conversion of agricultural land into non agricultural land shall be applied for, the officer or authority to whom such application shall be given, the particulars to be given in such application, the manner in which enquiry is to be made, the terms and conditions on which the permission may be given, the rate and the premium to be charged by the State Government on such conversion, and the fine to be imposed under sub section (5) of section 90A". (xii) to (xiv) ....." 5. (xii) to (xiv) ....." 5. It will be beneficial to quote Rule 7 of the Rajasthan Land Revenue (Conversion of Agricultural into Non-Agricultural Land) Rules, 1961, hereinafter referred to as the 'Rules of 1961', which read as under: 7. "Fine under proviso to sub section (5) of Section 90A. Except as provided in Rule 2A. Where any land held for the purpose of agriculture is used for any non-agriclutural purpose, in any of the circumstances specified in Clause (a), (b), (c) and (d) of sub section (5) of Section 90-A of the Act, the fine referred to in the proviso to the said sub section shall be calculated at the rate of not less than five times the prevalent highest market price of Abadi land in the neighborhood. Provided that in towns or villages that are not municipalities, and the population whereof does not exceed eight thousand, such fine shall not exceed the market price of abadi land in the vicinity, in addition to the premium leviable under rule 5 or rule 6." 6. During the course of hearing, it was contended by Shri Suresh Goyal, learned counsel for the petitioner that in accordance with the aforesaid provisions of the Act of 1956 and in due compliance thereof, the petitioner submitted relevant application along with the requisite formats and documents etc. to the Collector, Sawai Madhopur, for allotment of dealership licence for installation of petrol pump in District Sawai Madhopur. The said Authority, after making a thorough enquiry in the matter, issued a No-Objection Certificate in favour of the petitioner, copy of which has been placed on record and perused during the course of hearing of the petition. It was further contended.by the learned counsel for the petitioner that in pursuance of the aforesaid No Objection Certificate issued by the Collector, Sawai Madhour, the Hindustan Petroleum Corporation Ltd. appointed the petitioner as a Retail Dealer of Petrol at Bamanswas under Scheduled Caste category, vide their communication dated 29.3.1986, copy of which has also been perused during the course of hearing of the petition. 7. It was further contended on behalf of the petitioner that he had incurred heavy financial liability for installation of petrol pump as well as for carrying out other development activity over the land in question. 7. It was further contended on behalf of the petitioner that he had incurred heavy financial liability for installation of petrol pump as well as for carrying out other development activity over the land in question. It was next contended that for the purpose of storage and in order to deal in petroleum products, storage licence in accordance with the Petroleum Act, 1934 and Rules of 1976, and requirement of licence under the Explosives Act, for which the Competent Authority is the Explosive Controller, Jaipur, the petitioner applied for dealership license and allotment of a regular site for the same since he fulfilled the requisite criteria as stipulated under the Rules. 8. During the course of hearing, learned counsel for the petitioner placed reliance upon a judgment of the Apex Court in the matter of Scheduled Caste and Weaker Section Welfare Association (Registered) & Anr. v. State of Karnataka, (1991) 2 SCC 604 and judgments of this Court in the matters of Kaluram v. State of Rajasthan and others, 1993 (1) WLC (Raj.) 447 and J agannath etc. etc. v. State of Raj. and Others, 1985 RLR 129 9. I have examined the ratio of the aforesaid decisions rendered by the Apex Court as well as this Court with reference to the contentions advanced for the petitioner. 10. The agricultural land on which the petitioner has installed petrol pump being in his Khatedari, he having applied for conversion of agricultural land into non-agriclutural use and having installed and started petrol pump on 19.2.86 without obtaining prior permission/sanction of the competent authority in regard to change of user of land from agricultural to non-agricultural, having been permitted by the District Collector, Sawaimadhopur, vide his order dated 2.5.90 (Annexure-7) to do so subject to compliance of conditions mentioned therein, I am of the view that petitioner is liable to pay fine/penalty amounting to Rs. 2,38,000/- in accordance with provisions of Rule 7 of Rules of 1961 and Section 90A of the Act of 19,56, quoted above on account of having violated the conditions stipulated under the Rules. I am further of the view that various licences were issued by the Distt. 2,38,000/- in accordance with provisions of Rule 7 of Rules of 1961 and Section 90A of the Act of 19,56, quoted above on account of having violated the conditions stipulated under the Rules. I am further of the view that various licences were issued by the Distt. Collector, Sawai Madhopur to other applicants who were similarly placed like the petitioner and which were also renewed, from time to time while the sanction to the petitioner was withheld since he did not comply with the relevant conditions as conveyed to him by the Distric Collector, Sawai Madhopur in absence of which he could not be permitted to operate the petrol pump as an authorised dealer. Consequently, I am of the view that since the petitioner had committed violation of the provisions of Section 90A(5)(a), (b), (c) and (d) of the Act of 1956 and the Rules of 1978 hence, penalty under Rule 7 of the said Rules of 1%1 has rightly been imposed upon the petitioner. 11. I have also examined the ratio of the decisions cited by the learned counsel for the petitioner, as referred to above, In my view, the same are fully attracted to the facts of present case, on the principle that before an order is passed by an appropriate authority, by either rescinding or changing any terms and conditions in the matter of issuance of dealership licence or any such authorisation which is permissible by virtue of an enactment passed by the legislature it is mandatorily enjoined upon the State Authority to afford reasonable opportunity of hearing to the affected party and before any such order is passed, by which rights of such persons are prejudicially effected, rescinded or violated, he must be given a reasonable opportunity of hearing in compliance with the principles of natural justice which obligates the State authority of affording a pre-decisional opportunity of hearing to such affected party. This is the fundamental rule of our democratic and constitutional set up that every citizen is protected against exercise of arbitrary authority by the State or its officers. What particular rule of natural justice should apply to a given case, must depend upon the extent as permissible in accordance with the requirement of the Rules and the frame work of the legilsation under which the enquiry is held and body of persons appointed for that purpose. What particular rule of natural justice should apply to a given case, must depend upon the extent as permissible in accordance with the requirement of the Rules and the frame work of the legilsation under which the enquiry is held and body of persons appointed for that purpose. It is only thereafter that the extent of liability of the said individual who is alleged to have violated the provisions of an enactment should be determined but not before resort is had to due compliance of the statutory duty imposed upon the State 2. 1993(1) WLC (Raj.) 447 authority, which is a creature of the State and hence, duty bound to give not only personal hearing but also to have due regard to the compliance of the Rules in accordance with principle of 'audi alterem partem'. 12. A perusal of order dated 2.5.90 (Anx.7) shows that necessary sanction in regard to change of user of land was also conveyed by the State Government on 5.4.90 and that the Distt. Collector, Sawai Madhopur (respondent No. 2) had accorded necessary sanction/permission to the petitioner for installation of petrol pump over the aforesaid land subject to compliance of the following conditions: 1. The petitioner will have to surrender/relinquish his Khatedari rights over the said land; 2. Title/ownership rights over the land in question shall remain vested with the State Government but no land revenue shall be payable thereon. 3. Land shall be allotted to the petitioner on lease hold basis and the said lease shall be operative initially for a period of twenty years and shall be renewable for further period of 20 years subject to payment of enhanced lease money at 50% higher than the prevailing rate by way of escalation cost; 4. Lease deed shall be executed between the parties incorporating above terms and conditions on stamp paper and charges for the same shall be borne by the lessee; 5. Since the land in question is situated in rural area, as per Rule 6 and 8 of the Rules of 1978, a sum of Rs. 114/- per month shall be payable by the lessee by way of monthly rent, and future rent at the same rate shall be payable by the lessee from the date of issuance of the order by the Distt. Magistrate, subject to No Objection Certificate to be issued by the Distt. 114/- per month shall be payable by the lessee by way of monthly rent, and future rent at the same rate shall be payable by the lessee from the date of issuance of the order by the Distt. Magistrate, subject to No Objection Certificate to be issued by the Distt. Collector (respondent No.2) and the amount due to the State authorities shall be calculated at the aforesaid rate w.e.f. 19.2.86 till date which shall be payable in advance by the lessee and also the future monthly rent at the same rate and in the even of default in payment within the stipulated time, the amount shall stand recoverable as arrears of land revenue, from the lessee. 6. Since the applicant has installed petrol pump over an area measuring 1360 Sq. Yards of land without obtaining prior permission of the State Government w.e.f. 19.2.86, by converting the land use from agricultural to non-agricultural i.e. for installation of petrol pump and since the aforesaid land use is not permissible without conforming to the requirements of Section 90A of the Act of 1956 and also Rule 7 of the Rules of 1961, the petitioner shall be liable to pay penalty of an amount of Rs. 2,38,000/- for having violated the conditions regard being had to the fact that population of Village Bamanwas exceeds the upper limit of 8000 as provided under the Rules, hence penalty is calculated at the rate of Rs. 35/- per Sq.Yard x 5= 175 x 1360= Rs. 2,38,000/-. 7. The use of agricultural land shall be permissible only for installation of petrol/diesel pump. Change of user shall not be permitted in any other circumstance and in case of its violation, the land and any construction made thereon shall stand vested with the State Government without payment of any compensation to the applicant. 8. In case the land is transferred in violation of the Rules, the possession shall be taken by the State Government and the lessee shall have to remove the constructions made thereon, within a period of three months. 9. Whatever construction is raised over the said land, it shall be made in conformity with the rules of the concerned Village Panchayat; 10. Installation of petrol/diesel pump shall be made at a distance of minimum 15 meters away from the centre of the road. 13. As is apparent from above discussion that on 8th August, 1988, the Distt. 9. Whatever construction is raised over the said land, it shall be made in conformity with the rules of the concerned Village Panchayat; 10. Installation of petrol/diesel pump shall be made at a distance of minimum 15 meters away from the centre of the road. 13. As is apparent from above discussion that on 8th August, 1988, the Distt. Collector, Sawaimadhopur had accorded sanction for installation of petrol and diesel pump in favour of the petitioner over land measuring 1600 Sq. Yards i.e. over the same site in question, subject to the fulfillment of the conditions stipulated therein. From a perusal of the aforesaid conditions, it is further apparent that they are similar to those mentioned in order dated 2.5.90 (Annexure-7) and hence they need not be repeated or reproduced herein. However, both the said orders having been passed by the same authority viz., the Distt. Collector, Sawaimadhopur conform and testify the requisite sanction and permission in favour of the petitioner for change of user of land from agricultural to non agricultural for installation of petrol/diesel pump which was not objected to by the State authorities but the only pre-requisite condition being that the petitioner shall have to conform to the requirements as stipulated by respondent No. 2 hereinabove. It is borne out that even Gram Panchayat of Village Bamanwas, Distt. Sawai Madhopur had also not objected to the conversion and use of land for non-agricultural purposes by the petitioner. 14. From the perusal of reply to the show cause notice, it is clear that no objection certificate was issued to the petitioner on 19.2.86 with the condition that the said certificate is only valid subject to title and conversion of land for this purpose, which obviously means and implies conversion of agricultural land to non agricultural use subject to compliance of Rules of 1978 but since the petitioner failed to fulfill the conditions as stipulated in the said communication and installed the petrol pump without fulfilling the aforesaid conditions by not informing the concerned authority, the respondents were not obliged to permit petitioner to use land for installation of petrol/diesel pump as aforesaid. However, the respondents have not disputed this fact that Hindustan Petroleum Corporation Ltd. had appointed the petitioner as its retail dealer but after his appointment, the petitioner had failed to get conversion of the requisite agricultural land to non agricultural and established petrol pump without prior permission of the authorities. 15. I have heard learned counsel for the parties at length and perused the relevant documents on record and the relevant Rules on the subject, as discussed above. It is a matter of common prudence that before permission can be granted to a concerned applicant for installation of petrol pump on agricultural land, the ownership of which though vests with the said applicant, yet, before he can be permitted to convert its use from agricultural to non-agricultural he is duty bound to conform to the requirements of law as laid down by the legislature and the relevant rules on the subject. From a perusal of the correspondence of the relevant documents as referred to above, I am satisfied that though the petitioner had sought permission of the State Government for installation of petrol pump over the land in question but since he had failed to obtain requisite permission and No Objection Certificate from respondents No. 2 by fulfilling the requisite conditions as stipulated therein nor has he successfully established by placing any documentary evidence on record from which it can be ascertained that the petitioner had complied with the requirements of conditions stipulated in Section 90A of the Act of 1956 nor he has fulfilled the requirements of Rule 7 of the Rules of 1%1 and also the Rules of 1978, 1 am consequently of the view that allotment, conversion and regularisation of agricultural land for establishment of petrol pump under the said enactment and the Rules is not permissible to the petitioner. 16. I may further observe that since the land where the petitioner had installed petrol pump, already vests in his Khatedari, the question of charging any price of the land from the lessee based on the sale price of agricultural land in the neighborhood as per sub-rule (9) of Rule 9 of the Rules of 1978, would not arise. However, it is clarified that the petitioner shall have to comply with the requirements of conditions as stipulated in Annexure-7 dated 2.5.90 at first instance. However, it is clarified that the petitioner shall have to comply with the requirements of conditions as stipulated in Annexure-7 dated 2.5.90 at first instance. It is accordingly directed that if the petitioner fulfills the conditions as mentioned in Annexure-7 referred to above, the respondent No. 2 Distt. Collector, Sawai Madhopur shall issue the prescribed format to the petitioner for execution of lease deed by incorporating the necessary conditions in conformity with the Rules, within a period of sixty days from the date of submission of the certified copy of this order and the petitioner shall thereafter execute the lease deed in favour of the State Government within a period of thirty days thereafter. It is clarified that in the event of violation of any of the terms and conditions as mentioned in Annexure-7, the order dated 2.5.90 (Annexure-7) shall stand automatically cancelled without any reference to this Court and no legal right shall accrue in favour of petitioner and he shall not be entitled to claim vindication of any of his legal rights as against the respondents. 17. Consequently, the validity of the order dated 2.5.90 (Annexure-7) passed by the respondents No. 2 is accordingly upheld being in conformity with the Rules. Imposition of penalty amounting to Rs. 2,38,000/- directed to be realised from the petitioner as mentioned in Annexure-6 dated 30.7.93 is also upheld, the same having been imposed in conformity with the requirements of the Act and the Rules and hence not open to challenge. With regard to seizure of 10,000 liters of diesel (vide Annexure-6) it is directed that since the said quantity of diesel was released in favour of the petitioner as stated in order dated 31.1.94 (Annexure-9) by Tehsildar, Bamanwas on his executing a Bank guarantee in the sum of Rs. 50,000/- in favour of the Distt. Collector, Sawaimadhopur, it is directed that the said bank guarantee shall be released forthwith. The petitioner is directed to deposit Rs. 2,38,000/- subject to adjustment of any other amount deposited by him with the respondents, within a period of ninety days from receipt of certified copy of this order. 18. With the above observations, the writ petition is partly allowed. There will be no order as to costs.Petition Partly allowed. *******