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2020 DIGILAW 726 (KER)

Beena Raphy v. Muriyad Grama Panchayath

2020-08-24

ANIL K.NARENDRAN

body2020
JUDGMENT : The petitioner, who was running 'Pig Pantry Slaughter Centre' at Muriyad, in the 1st respondent Muriyad Grama Panchayat, on the strength of Ext.P1 integrated consent to operate-renewal, which is valid upto 30.06.2023 and Ext.P2 acknowledgment certificate dated 27.01.2020 issued under the provisions of sub-section (3) of Section 5 of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019, read with Rule 3 of the Kerala Micro Small and Medium Enterprises Facilitation Rules, 2020, has filed this writ petition under Article 226 of the Constitution of India seeking a writ of certiorari to quash Ext.P3 stop memo dated 25.04.2020 issued by the Secretary of the 1st respondent Grama Panchayat, whereby she was directed to close down Pig Pantry Slaughter Centre conducted without obtaining necessary licence under the Kerala Panchayat Raj (Licensing of Pigs and Dogs) Rules, 1998 and the Kerala Panchayat Raj (Licensing of Livestock Farms) Rules, 2012. On receipt of Ext.P3 stop memo, the petitioner submitted Ext.P4 reply producing therewith a copy of Ext.P1 integrated consent to operate and Ext.P2 acknowledgment certificate. The petitioner has also submitted Ext.P6 application dated 27.04.2020, before the 1st respondent Grama Panchayat under the Kerala Panchayat Raj (Licensing of Livestock Farms) Rules, 2012, for conducting pig farm in the property in question. Thereafter, the petitioner moved this writ petition before this Court seeking various reliefs. 2. On 30.04.2020, when this writ petition came up for admission, the learned Government Pleader took notice on behalf of the 2nd respondent District Manager, District Industries Centre, Thrissur. Notice to the 1st respondent Grama Panchayat was ordered by e-mail and through speed post. This Court passed an interim order on 30.04.2020, which reads thus; “Since the petitioner is in possession of Ext.P2 acknowledgment certificate issued under Section 6 of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019, Ext.P3 is stayed for a period of three months.” 3. On 28.07.2020, when this writ petition came up for consideration, the Environmental Engineer, Kerala State Pollution Control Board, Thrissur, was suo motu impleaded as additional 3rd respondent. It was brought to the notice of this Court by the learned counsel for the 1st respondent Grama Panchayat that Ext.P2 acknowledgment certificate has already been cancelled. The learned counsel sought time to file counter affidavit of the 1st respondent. The learned Senior Government Pleader sought time to file statement on behalf of the 2nd respondent. It was brought to the notice of this Court by the learned counsel for the 1st respondent Grama Panchayat that Ext.P2 acknowledgment certificate has already been cancelled. The learned counsel sought time to file counter affidavit of the 1st respondent. The learned Senior Government Pleader sought time to file statement on behalf of the 2nd respondent. The learned counsel for the petitioner sought time to get instructions on the submission made by the learned counsel for the 1st respondent that Ext.P2 acknowledgment certificate has already been cancelled. By the order dated 28.07.2020, this Court extended the interim order granted on 30.04.2020, for a period of two weeks, in case Ext.P2 acknowledgment certificate is still in force. 4. A counter affidavit has been filed by the 1st respondent Grama Panchayat, opposing the reliefs sought for in this writ petition. In the counter affidavit, it is pointed out that Ext.P3 stop memo was issued on 25.04.2020, since the petitioner was conducting 'Pig Pantry Slaughter Centre' in her property without obtaining licence from the Grama Panchayat as per the provisions of the Kerala Panchayat Raj (Licensing of Pigs and Dogs) Rules, 1998 and the Kerala Panchayat Raj (Licensing of Livestock Farms) Rules, 2012. Based on the complaint received from the local residents, the Secretary of the Grama Panchayat conducted inspection in which it was found that the petitioner is conducting slaughtering of pigs in unhygienic manner, without licence. Therefore, she was issued with Ext.P3 stop memo. Along with the counter affidavit, Ext.R1(a) decision taken by the District Single Window Clearance Board, Thrissur, dated 26.06.2020 is placed on record, as per which Ext.P2 acknowledgment certificate dated 27.01.2020 issued to the petitioner stands cancelled, since Pig Pantry Slaughter Centre run by the petitioner falls under 'Red Category'. 5. The petitioner has filed a reply affidavit, wherein it is stated that at the time of submitting application under the provisions of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 she was not aware of the categories specified by the Pollution Control Board. As per circular dated 31.08.2006 issued by the Pollution Control Board, slaughter house falls under Red Category. Ext.P1 consent to operate issued by the Pollution Control Board in the year 2018 was under Orange Category. As per circular dated 31.08.2006 issued by the Pollution Control Board, slaughter house falls under Red Category. Ext.P1 consent to operate issued by the Pollution Control Board in the year 2018 was under Orange Category. In view of the objection raised by the 1st respondent in Ext.P3, the petitioner submitted Ext.P7 application before the 2nd respondent on 08.08.2020 in order to conduct a pig farm under the name 'Pig Pantry Pig Farm' and obtained Ext.P8 acknowledgment certificate on 08.08.2020, for raising pigs. 6. On 10.08.2020, when this writ petition came up for consideration, this Court passed the following order; “Along with the counter affidavit filed by the 1st respondent, a copy of Ext.R1(a) proceedings dated 26.06.2020 of the Single Window Clearance Board, Thrissur is placed on record, whereby Ext.P2 acknowledgment certificate dated 27.01.2020 issued under sub-section (3) of Section 5 of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 stands cancelled since the 'Pig Pantry Slaughter Center' run by the petitioner at Building No.449/1 of Muriyad Grama Panchayat falls under Red Category. 2. Section 3 of the aforesaid Act deals with procedure for grant of acknowledgment certificate. As per sub-section (1) of Section 3, every enterprises other than those not included as Red Category by the Kerala State Pollution Control Board seeking acknowledgment certificate under sub-section (3) of Section 5 of the Act shall furnish a duly filed self-certification before the Nodal Agency in Form-1, electronically on the web portal designed for the purpose along with a fee calculated at the rate of 0.01 per cent of the total project cost (excluding the value of the land) for each self-certification submitted by the enterprise. However, in case of special circumstances or due to failure of web portal to accept the self-certification, the enterprise may submit self-certification, in physical form to the Nodal Agency. 3. In view of the provisions under sub-section (1) of Section 3 of the said Act, no application seeking acknowledgment certificate can be made in respect of an enterprise which is included in Red Category by the Kerala State Pollution Control Board. 4. 3. In view of the provisions under sub-section (1) of Section 3 of the said Act, no application seeking acknowledgment certificate can be made in respect of an enterprise which is included in Red Category by the Kerala State Pollution Control Board. 4. The learned Senior Government Pleader, on instructions, would point out that in the online application made by the petitioner seeking acknowledgment certificate, it was wrongly shown that the enterprise falls under Orange Category and that, a hard copy of the online application made by the petitioner and also the self-certification shall be placed on record along with the counter affidavit of the 2nd respondent. 5. The learned counsel for the petitioner seeks time to file reply affidavit to the counter affidavit of the 1st respondent. 6. List on 18.08.2020 for the reply affidavit of the petitioner and also the counter affidavit of the 2nd respondent. 7. It is made clear that, since Ext.P2 acknowledgment certificate has already been cancelled by Ext.R1(a) proceeding dated 26.06.2020 of the Single Window Clearance Board, on the ground that 'Pig Pantry Slaughter Center' run by the petitioner falls under Red Category, the petitioner will not be entitled for the benefit of the interim order of this Court dated 30.04.2020, which was extended for a further period of two weeks by the order dated 28.07.2020, and therefore, she has to close down the enterprise in question. The Secretary of the 1st respondent Grama Panchayat shall ensure the closure of the petitioner's enterprise, if found necessary by seeking police assistance, invoking the provisions under Section 252 of the Kerala Panchayat Raj Act, 1994.” 7. Heard the learned counsel for the petitioner, the learned counsel for the 1st respondent Grama Panchayat, the learned Senior Government Pleader appearing for the 2nd respondent District Manager, District Industries Centre, Thrissur and also the learned Standing Counsel for the additional 3rd respondent Kerala State Pollution Control Board. 8. The Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 was enacted by the State Legislature to provide for exemption from certain approvals and inspections required for the establishment and operation of micro small and medium enterprises in the State and matters connected therewith and incidental thereto. Clause (a) of Section 2 of the Act defines 'acknowledgment certificate' to mean the acknowledgment certificate issued under sub-section (3) of Section 5. Clause (a) of Section 2 of the Act defines 'acknowledgment certificate' to mean the acknowledgment certificate issued under sub-section (3) of Section 5. Clause (c) of Section 2 defines 'approval' to mean licenses, permissions, approvals, clearances, registration, consents, no objection certificate and the like, required under any State law in connection with the establishment or operation of micro small and medium enterprise in the State. 9. Section 5 of the Act deals with filing of self certification. As per sub-section (1) of Section 5, any person who intends to start an enterprise other than those not included as 'Red Category' by the Kerala State Pollution Control Board may, furnish before the Nodal Agency a self certification to start such an enterprise in such form and in such manner, as may be prescribed. As per sub-section (2) of Section 5, if any person has filed any application before the competent authority to obtain all or any of the approvals as defined in clause (c) of Section 2, before the commencement of this Act, such person may also opt to furnish self certification of intend to start an enterprise under sub-section (1). As per sub-section (3) of Section 5, on receipt of a self certification completed in all respects, the Nodal Agency shall, forthwith, issue an acknowledgment certificate, in the prescribed form, to the person who furnished the self certification under sub-section (1). 10. Section 6 of the Act deals with effect of the acknowledgment certificate. As per sub-section (1) of Section 6, an acknowledgment certificate issued under Section 5 shall, for all purposes, have effect as if it is an approval as defined in clause (c) of Section 2, for a period of three years from the date of its issuance and after the expiry of the said period of three years, such enterprise shall have to obtain required approvals as defined in clause (c) of Section 2, within six months from the date of such expiry. As per the proviso to sub-section (1), the acknowledgment certificate shall not entitle a person to use a land contrary to the provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008 and it shall also not entitle a person to use the land in deviation to the land use specified in the master plan notified under the Kerala Town and Country Planning Act, 2016, wherever such plan is in force. As per sub-section (2) of Section 2, during the period of three years specified in sub-section (1), no competent authority shall undertake any inspection for the purpose of, or in connection with, any approval as defined in clause (c) of Section 2. 11. Section 7 of the Act deals with grant of exemption. As per Section 7, where the Government or any authority under it is empowered to exempt any enterprise from any approval or inspection or any provisions relating thereto under any Central Act, the Government or any such authority, as the case may be, shall, subject to the provisions of such Central Act, exercise such powers to grant such exemption to an enterprise established in the State for a period of three years from the date of issue of the acknowledgment certificate under Section 5. 12. Section 8 of the Act deals with offences and penalties. As per sub-section (1) of Section 8, if the Nodal Agency finds that any enterprise, contravened the conditions or undertaking in the self certification given to the Nodal Agency such enterprise shall be punishable with fine for an amount not exceeding rupees five lakh after considering submission, if any, submitted by such enterprise. As per sub-section (2) of Section 8, where an offence under this Act is committed by an enterprise, the enterprise as well as every person in charge of, and responsible to, the enterprise for the conduct of its business at the time of commission of the offence, shall be deemed to be guilty of the offence and liable to be punished under this Section. As per sub-section (3) of Section 8, notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or that commission of the offence is attributable to any neglect on the part of proprietor, managing partner, any director, manager, secretary or any other officer, such proprietor, managing partner, director, manager, or any other officer shall also be deemed to be guilty of that offence and shall be liable to be punished under this Section. As per Explanation to Section 8 of the Act, for the purpose of this Section; 'enterprise' means any body corporate and includes a firm or other association of individuals; and 'director' in relation to a firm, means a partner in the firm. 13. As per Explanation to Section 8 of the Act, for the purpose of this Section; 'enterprise' means any body corporate and includes a firm or other association of individuals; and 'director' in relation to a firm, means a partner in the firm. 13. Section 10 of the Act deals with overriding effect of this Act on other laws. As per sub-section (1) of Section 10, the provisions of this Act shall have overriding effect, notwithstanding anything inconsistent therewith contained in any other law, for the time being in force. As per sub-section (2) of Section 10, in particular and without prejudice to the generality of the foregoing provisions of this Act, such provisions shall have effect notwithstanding anything inconsistent therewith contained in the following enactments and the provisions of these enactments shall be read as amended in conformity with the provisions of this Act, namely:- 1. The Kerala Panchayat Raj Act, 1994 (13 of 1994) 2. The Kerala Municipality Act, 1994 (20 of 1994) 3. The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960) 4. The Kerala Lift and Escalators Act, 2013 (18 of 2013) 5. Travancore -Cochin Public Health Act, 1955 (XVI of 1955) 6. Madras Public Health Act, 1939 (3 of 1939) 14. In exercise of the powers under Section 14 of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019, the Government made the Kerala Micro Small and Medium Enterprises Facilitation Rules, 2020, which came into force on 06.01.2020. Rule 3 of the said Rules deals with procedure for grant of acknowledgment certificate. As per sub-rule (1) of Rule 3, every enterprises other than those not included as Red Category by the Kerala State Pollution Control Board seeking acknowledgment certificate under sub-section (3) of Section 5 of the Act shall furnish a duly filled self certification before the Nodal Agency in Form-I, electronically on the web portal designed for the purpose along with a fee calculated at the rate of 0.01 per cent of the total project cost (excluding the value of the land) for each self certification submitted by the enterprise. However, in case of special circumstances or due to failure of web portal to accept the self certification, the enterprise may submit self certification, in physical form to the Nodal Agency. However, in case of special circumstances or due to failure of web portal to accept the self certification, the enterprise may submit self certification, in physical form to the Nodal Agency. As per sub-rule (2) of Rule 3, the fees shall be remitted to the designated bank account of the Nodal Agency through online or internet banking or National Electronic Fund Transfer (NEFT) or credit card/debit card. As per sub-rule (3) of Rule 3, on the receipt of self certification, completed in all respects, the acknowledgment certificate shall be issued instantly by the electronic web portal in Form-II, stating the date of receipt of self certification and the period of validity of acknowledgment certificate. As per sub-rule (4) of Rule 3, the self certification shall be submitted by, the proprietor, in case of proprietary enterprise; the authorised partner in case of partnership enterprise; the Director or the Principal Officer or any person duly authorised by the Board in the case of a company; and the authorised person in case of other forms of enterprise. 15. Rule 5 of the said Rules deals with effect of acknowledgment certificate. As per Rule 5, the acknowledgment certificate issued under Section 5 of the Act shall have effect as if an approval as defined in clause (c) of section 2 of the Act, for a period of three years in such case as mentioned in the Schedule to the Rules. 16. As already noticed, as per sub-rule (1) of Rule 3 of the Rules, self declaration before the Nodal Agency shall be in Form-I. The form of self certification in Form-I contains a self declaration by the authorised signatory of the enterprise that the information furnished in self certification under these Rules is true and correct to the best of his/their knowledge and belief and no material information has been suppressed/concealed; that he/they have read the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 and the Rules made thereunder and undertake to abide by them. In case of changes in details, the same will be intimated to the Nodal Agency at the earliest; that he/they agree and undertake that he/they shall comply and observe the various Rules and Regulations prescribed under various enactments which are required to be complied with for setting up and operation of the enterprise in the State including but not limited to the Kerala Panchayat Building Rules, 2019 or the Kerala Municipality Building Rules, 2019, as the case may be and National Building Code and any amendment thereof and if a violation is noticed by the Nodal Agency or there is any suppression of material facts or the information furnished in the self certification is found to be false, the Nodal Agency has the power to cancel the acknowledgment certificate after affording an opportunity of being heard to the applicant/enterprise by giving 15 days’ notice seeking his explanation, if any, and impose a penalty on the applicant/enterprise; etc. 17. As per sub-rule (3) of Rule 3, the acknowledgment certificate issued instantly by the electronic web portal on receipt of self certification completed in all respects shall be in Form-II, stating the date of receipt of self certification and the period of validity of acknowledgment certificate. It is specified in Form-II that, subject to provisions of the Act and Rules, the acknowledgment certificate shall entitle the enterprise; exemption from approval under the various enactments mentioned in the Act; exemption from inspection for the purpose of, or in connection with, any approval under various enactments mentioned in the Act; and that it can be presented to any Competent Authority or Bank or Financial Institution as and when required who shall treat it as valid approval as defined in sub-section (c) of section 2 of the Act for all the purposes. As specified in Form-II, the acknowledgment certificate is issued, subject to the conditions that the provisions of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 and its applicability shall be limited to Acts mentioned in the said Act and the activities mentioned in the acknowledgment certificate; that the acknowledgment certificate is valid for a period of three years from the date of issue; that after the expiry of acknowledgment certificate, the enterprise shall have to obtain required approvals, for which no further intimation shall be provided; that in case of willful submission of false information in Self Certification or suppression of material fact, or breach or contravention of any of the provisions in the Act and the Rules, the Nodal Agency can revoke/cancel the acknowledgment certificate as per provisions of the Act and the Rules; that the acknowledgment certificate will become void, if the enterprise ceases to exist due to merger or division of enterprise or acquisition or amalgamation of the enterprises or if it ceases to be a micro, small or medium enterprise as defined under the Act. 18. A reading of the provisions under the Kerala Micro Small and Medium Enterprises Act and the Rules made thereunder make it explicitly clear that filing of self certification under Section 5 and obtaining acknowledgment certificate under Section 6 can be made only by persons who intend to start an enterprise other than those not included as 'Red Category' by the Kerala State Pollution Control Board. As provided in Section 6 of the Act, an acknowledgment certificate issued under Section 5 shall, for all purposes, have effect as if it is an approval as defined in clause (c) of Section 2 of the Act, i.e., licenses, permissions, approvals, clearances, registration, consents, no-objection certificate and the like, required under any State law in connection with the establishment or operation of micro, small or medium enterprises in the State, for a period of three years from the date of its issuance and after the expiry of the said period of three years, such enterprise shall have to obtain required approvals as defined in clause (c) of Section 2, within six months from the date of such expiry. As per sub-section (2) of Section 2, during the period of three years, specified in sub-section (1), no competent authority shall undertake any inspection for the purpose of, or in connection with, any approval as defined in clause (c) of Section 2. 19. A reading of the provisions under Section 7 of the Act, which deals with grant of exemption, make it explicitly clear that where the Government or any authority under it is empowered to exempt any enterprise from approval or inspection or any provisions relating thereto under any Central Act, the Government or any such authority, as the case may be, shall, subject to the provisions to the Central Act, exercise such powers to grant such exemption to an enterprise established in the State for a period of three years from the date of issue of the acknowledgment certificate under Section 5. In the absence of any power conferred on the State Government to exempt any enterprise from any approval or inspection or any provisions relating thereto under the Air (Prevention and Control of Pollution) Act, 1981 and Water (Prevention and Control of Pollution) Act, 1974, an acknowledgment certificate granted under Section 6 of the Act will not entitle a micro, small or medium enterprise governed by the provisions under the aforesaid Central Acts to commence its operation without obtaining necessary consent from the State Pollution Control Board. The consent that has to be obtained by a micro, small or medium enterprise under the provisions of the Air (Prevention and Control of Pollution) Act, 1981 and Water (Prevention and Control of Pollution) Act, 1974 from the State Pollution Control Board is not a consent required under any State law, within the purview of 'approval', as defined in clause (c) of Section 2 of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019. 20. In the instant case, on the strength of Ext.P2 acknowledgment certificate issued under sub-section (3) of Section 5 of the Act, the petitioner was conducting 'Pig Pantry Slaughter Center'. During the course of arguments, the learned Senior Government Pleader has made available for the perusal of this Court a hard copy of the online application submitted by the petitioner on 27.01.2020, in which the major activity of her enterprise is shown as slaughtering of buffalo, goat and pig. In the application, the petitioner has stated that her enterprise falls under 'Orange Category'. In the application, the petitioner has stated that her enterprise falls under 'Orange Category'. Admittedly, the major activity in the petitioner's enterprise, i.e., slaughtering of buffalo, goat and pig falls under 'Red Category'. Ext.P1 integrated consent granted by the Pollution Control Board is under 'Orange Category'. Since the petitioner obtained Ext.P2 acknowledgment certificate suppressing material facts, the same was cancelled vide Ext.R1(a) proceeding dated 26.02.2020 of the District Single Window Clearance Board and she is liable to be proceeded against under Section 8 of the Act, by the Nodal Agency, i.e., the District Single Window Clearance Board, since she had contravened the conditions/ undertaking in the self certification given to the Nodal Agency. Since the major activity in the petitioner's enterprise was slaughtering of buffalo, goat and pig, which falls under 'Red Category', no interference is warranted on Ext.P3 stop memo dated 25.04.2020 issued by the Secretary of the 1st respondent Grama Panchayat, whereby the petitioner was directed to close down 'Pig Pantry Slaughter Center'. 21. The learned counsel for the petitioner would submit that, during the pendency of this writ petition, the petitioner filed Ext.P7 self certification under sub-section (1) of Section 5 of the Act and obtained Ext.P8 acknowledgment certificate under sub-section (1) of Section 6, for conducting 'Pig Pantry Pig Farm' for raising of pigs, which falls under 'Green Category'. The petitioner has also submitted an online application before the 3rd respondent Environmental Engineer for consent to operate, which is pending consideration. 22. The learned Standing Counsel for the State Pollution Control Board, on instructions, would submit that the 3rd respondent Environmental Engineer has already returned that application for consent, noting certain defects, and the petitioner is yet to re-submit that application. Once the application is resubmitted after curing the defects, the 3rd respondent shall conduct a fresh inspection and thereafter, take an appropriate decision on that application, without any delay. 23. The learned counsel for the petitioner would submit that the petitioner requires some more time to re-submit that application for consent, since the office of the 3rd respondent is in containment zone. 24. In the result, the challenge made in this writ petition against Ext.P3 stop memo issued by the Secretary of the 1st respondent Grama Panchayat fails. 23. The learned counsel for the petitioner would submit that the petitioner requires some more time to re-submit that application for consent, since the office of the 3rd respondent is in containment zone. 24. In the result, the challenge made in this writ petition against Ext.P3 stop memo issued by the Secretary of the 1st respondent Grama Panchayat fails. Since the petitioner has already obtained Ext.P8 acknowledgment certificate for her enterprise 'Pig Pantry Pig Farm' for raising pigs, which falls under 'Green Category', and applied for consent before the 3rd respondent Environmental Engineer, this writ petition is disposed of by directing the 3rd respondent to take an appropriate decision on that application for consent, once it is re-submitted after curing defects, after conducting a fresh inspection, with notice to the petitioner and affording her an opportunity of being heard, as expeditiously as possible, at any rate, within a period of one month from the date of re-submission of that application. It is made clear that, without obtaining consent from the State Pollution Control Board, the petitioner shall not conduct 'Pig Pantry Pig Farm' in the building in question, on the strength of Ext.P8 acknowledgment certificate.