JUDGMENT : C.S.DIAS, J. The petitioner had submitted applications for an establishment permit and a trade licence under Sections 233 and 232 of the Kerala Panchayat Raj Act, 1994 (‘Act’, for brevity), to operate a granite quarry. Along with the applications, the petitioner had submitted Ext.P1 letter of intent issued by the Director of Mining and Geology, Ext.P2 environment clearance from the State Environment Impact Assessment Authority, Ext.P3 explosive license from the Deputy Chief Controller of Explosives, Ernakulam and Ext.P4 Consent to Operate from the Kerala Pollution Control Board, as mandated under the Act. Although the applications were submitted on 07.02.2025, no decision has been taken by the 1 st respondent ? Panchayat, within the prescribed 30-day period. Hence, the petitioner is entitled to a deemed establishment permit and trade licence as provided under Section 236 (3) of the Act. However, the 2 nd respondent has now handed over Ext.P5 decision provisionally rejecting the petitioner’s application. Ext.P5 decision is illegal and arbitrary. 2. The respondents have filed a counter affidavit through the 3 rd respondent, inter alia, contending that the petitioner is not entitled to a deemed establishment permit and trade licence. Nonetheless, it is admitted that the petitioner had submitted the applications on 07.02.2025. Immediately on receipt of the applications, the Panchayat received numerous complaints from the inhabitants of the locality against the establishment of the quarry. Ext.R3(a) notice was issued to the petitioner to attend a hearing on 24.02.2025. There is another quarry functioning within 500 metres in the Panchayat. The matter has been referred to the District Collector and the Geologist. But no decision has been taken in the matter. The application for the establishment permit was placed before the Village Panchayat on 18.03.2025, which has decided to reject the application since the proposed quarry is situated within 500 metres of the existing quarry. The Village Panchayat has expressed its objections, as there is insufficient distance between the existing quarry's explosive magazine and the proposed quarry. Moreover, there is an acute water shortage in the locality. Hence, by Ext.P5 decision, the petitioner’s applications for the establishment permit and trade licence have been rejected. There is no illegality in Ext.P5 decision. Hence, the writ petition may be dismissed. 3. The petitioner has filed a reply affidavit refuting the allegations in the counter affidavit filed by the respondents. 4. Hence, by Ext.P5 decision, the petitioner’s applications for the establishment permit and trade licence have been rejected. There is no illegality in Ext.P5 decision. Hence, the writ petition may be dismissed. 3. The petitioner has filed a reply affidavit refuting the allegations in the counter affidavit filed by the respondents. 4. Heard; the learned Counsel for the petitioner and the learned Standing Counsel for the respondents. 5. It is not in dispute that the petitioner had submitted the applications for an establishment permit and trade licence on 07.02.2025, to start a granite quarry within the 1 st respondent-Panchayat. 6. Section 232 of the Act deals with the trade license. As per the said provision, the Secretary of the Panchayat is empowered to decide on such applications. However, under Section 236 (3) of the Act, if a decision is not taken within 30 days from the date of submission of the application, it shall be deemed that the application has been allowed. 7. In the case at hand, the respondents have taken a contention that since there is an existing quarry in the Panchayat, the petitioner’s quarry cannot be permitted. Accordingly, the matter was referred to the District Collector and the Geologist, but no decision was taken in the matter. It is, thereafter, on 18.03.2025, that the Village Panchayat decided to reject the application for the establishment permit and trade licence. 8. It is pertinent to note that, under Section 233 of the Act, the jurisdiction to grant permission to construct a factory and install machinery, which includes a workplace, is vested with the Village Panchayat. It is apposite to refer to Section 233 of the Act, which reads as follows: “233. Permission for the construction of factories and the installation of machinery (1)No person shall, without the permission of the Village Panchayat and except in accordance with the conditions specied in such permission,- (a) construct or establish any factory, workshop or workplace in which it is proposed to employ steam power, water power or other mechanical power or electrical power; or (b) install in any premises any machinery or manufacturing plant driven by any power as aforesaid, not being machinery or manufacturing plant exempted by the provisions of this Act or the rules made thereunder. (2) An application for permission under sub-section (1) shall be submitted to the Village Panchayat addressed to the Secretary or officer authorized by the Secretary in such form and with such details as prescribed. (2A) The Secretary or officer authorized by him shall, issue an acknowledgement to the applicant, on receipt of application along with the supporting documents in the form, as may be prescribed, and shall verify the application and all supporting documents on the spot itself, and if any supporting document is not found attached along with the application, the Secretary or officer authorized by him shall, immediately inform the applicant in writing the list of missing documents and allow the applicant to submit the missing documents as early as possible, but not later than five days from the date of receipt of application. (3) the Secretary or the officer authorised by him shall, as soon as may be, after the receipt of the application enquire and report to the Village Panchayat as to whether the establishment of the factory, workshop or workplace or other installation of machinery or manufacturing plant for which permission is applied for is objectionable by reason of density of population in the neighbourhood and possibility to cause nuisance or pollution and the Village Panchayat, after having considered the application and the reports of the Secretary and of such other authorities as specified in sub-section (4) may, as expeditiously as possible, within thirty days, grant the permission either absolutely or subject to such conditions as it thinks t to impose. (4) Before granting permission under sub-section (3), the Secretary, shall obtain and consider. (a) a report of the Inspector of Factories appointed under the Factories Act, 1948 (Central Act 63 of 1948) or of an officer of the Industries Department not below the rank of an Industries Extension Officer having jurisdiction over the area regarding the adequacy of ventilation, light etc. (a) a report of the Inspector of Factories appointed under the Factories Act, 1948 (Central Act 63 of 1948) or of an officer of the Industries Department not below the rank of an Industries Extension Officer having jurisdiction over the area regarding the adequacy of ventilation, light etc. and sufficiency of the height and size of the rooms and doors and the suitability of exists to be used in case of fire in the plan of factories, workshop, workplace or premises if they came within the purview of the Factories Act, 1948 (Central Act 63 of 1948) and such other matters as may be prescribed : (b) a report of the District Medical Officer in case the applicant is a hospital, clinic, para-medical institution, clinical laboratories or other healthcare institution, regarding the possibility of nuisance or pollution if the connected load of the machinery proposed to be installed exceeds 25 HP or if the nature of the machinery and installation are such that it may cause nuisance or pollution; and (c) a. report of the Divisional Fire Officer or any other officer authorised by him regarding the adequacy of fire prevention and fire fighting measures planned if the proposed industry involves the use of high tension power or inflammable or explosive materials: Provided that, no report under clause (b) shall be called for in respect of any industry if the applicant produces a declaration recommended by an officer of the Industries Department authorised in this behalf or by the Kerala State Pollution Control Board to the effect that such industry would not cause pollution. (5) The grant of permission under this section,-- (a) Shall be subject to the conditions to be observed in respect of the replacement of machinery the levy of fees and to such restrictions and conditions as may be prescribed; (b) Shall not be deemed as exempted from observing the provisions contained in section 235 (F) and 235 (H) or 235 (P) and 235 (Q) (6) If any order, on an application for permission under this section is not communicated to the applicant within thirty days from the date of receipt of application by the Secretary, the application shall be deemed to have been allowed for the period required in the application subject to the Act, rules and bye laws and all conditions which would have been imposed and if any violation is noticed later, the Secretary shall have the power to cancel the licence after giving a show cause notice to the applicant stating the reason for such cancellation and after examining the submission if any, made within the time specified in the said notice and on such cancellation the Secretary may impose a penalty on the applicant for an amount not exceeding rupees five lakhs.” 9. A reading of sub-section (3) of Section 233 of the Act, substantiates that, on the receipt of an application for permission to construct a factory or install machinery, the Secretary has to enquire into the application and then report the matter to the Village Panchayat. The Village Panchayat, after considering the objections due to the density of population in the neighbourhood and the possibility of causing nuisance or pollution, has to grant permission either absolutely or subject to such conditions. Therefore, the Act does not confer the power on the Village Panchayat to reject an application for permission to construct a factory or install machinery. This is apparent from the deletion of the word ‘refusing’ from sub-section (3) of Section 233 , by way of Act 14 of 2018 w.e.f. 20.10.2017. Thus, with effect from20.10.2017, the Village Panchayat is obliged to allow the application either absolutely or subject to conditions as laid down under Clauses (a) to (c) and the proviso to sub- section (4) to Section 233 , i.e., to get reports from the Inspector of Factories, District Medical Officer, the Divisional Fire Officer and the Kerala State Pollution Control Board. 10. 10. In the case at hand, the petitioner has already produced Exts.P1 to P4 documents as envisaged under the provisions mentioned above. Hence, the respondents' contention that permission for the construction of a factory and the installation of machinery cannot be granted due to objections raised by the local people is untenable. All that the Village Panchayat is obliged to do is impose necessary restrictions/conditions on the permission under the provisions mentioned above. But, as the Village Panchayat has already passed Ext.P5 decision without adhering to Section 233 of the Act, and that too after the stipulated time period of 30 days as mandated under Section 236 (3) of the KP Act and further the Secretary has also not decided on the application for trade license within 30 days, I am of the convinced that the petitioner is entitled to a deemed establishment permit and trade licence to operate the quarry. 11. In light of the discussions above, I allow this writ petition by declaring that the petitioner is entitled to a deemed establishment permit and trade licence. Consequently, I direct the 3 rd respondent to issue the paper establishment permit and trade licence to the petitioner within two weeks from the date of production of a copy of this judgment. Nonetheless, it is clarified that the issuance of the deemed establishment permit and trade licence will not confer any right on the petitioner to operate the quarry in violation of the stipulations in Exts.P1 to P4 statutory permissions granted by the statutory authorities. The writ petition is ordered accordingly.