- 1 - HC-KAR CNR: KAHC010479302026 NC: 2026:KHC:39004-DB WP No. 21516 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JULY, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO.21516 OF 2026 (GM-MM_S) BETWEEN: M/S. GMM ENTERPRISES A PARTNERSHIP FORMED VIDE A PARTNERSHIP DEED, REG. OFF. #3368/1, SHAMANUR ROAD, LAKSHMI FLOUR MILL, LAKSHMI FLOUR MILLS PREMISES, DAVANAGERE - 577004. REPRESENTED BY ITS OWNER S.S.GANESH. …PETITIONER (BY SRI. AMRUTHESH N.P., ADVOCATE) AND: 1. STATE OF KARNATAKA, DEPT. OF COMMERCE & INDUSTRIES, VIKASA SOUDHA, DR. AMBEDKAR ROAD, BENGALURU - 560001. REPRESENTED BY ITS SECRETARY. 2. THE DIRECTOR, DEPT. OF MINES & GEOLOGY, KHANIJA BHAVAN, Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010479302026 NC: 2026:KHC:39004-DB WP No. 21516 of 2026 RACE COURSE ROAD, BENGALURU 560001. 3. THE SENIOR GEOLOGIST, DEPT. OF MINES & GEOLOGY, VIDYANAGAR, DAVANGERE - 577005. …RESPONDENTS (BY SRI. K.S. HARISH, GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI, QUASHING OF ANNEXURE-A, THE DEMAND NOTICE DATED 07.05.2026 BEARING NO.GaBhuE:HiBhuDa:OTS-Notice:2026- 27/249 ISSUED BY THE 3RD RESPONDENT SENIOR GEOLOGIST OF DEPT. MINES & GEOLOGY, DAVANAGERE, DEMANDING RS.1,07,71,630/- AS FINE BY INVOKING THE PROVISIONS OF RULE 44-A OF THE KARNATAKA MINOR MINERALS CONCESSION (AMENDMENT) RULES, 2026 AS ONE TIME SETTLEMENT (OTS) WITH PENAL PROVISIONS IN CASE OF NON-COMPLIANCE WITHIN 45 DAYS FROM THE DATE OF RECEIPT OF SAID NOTICE, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MRS. JUSTICE K.S. HEMALEKHA - 3 - HC-KAR CNR: KAHC010479302026 NC: 2026:KHC:39004-DB WP No. 21516 of 2026 ORAL ORDER (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The learned Government Advocate accepts notice for the respondents. 2. The petitioner has filed the present petition impugning the demand notice dated 07.05.2026 [impugned order] issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [KMMC Rules], calling upon the petitioner to pay a sum of `1,07,71,630/-. The said demand is premised on the allegation that the petitioner has extracted and transported building stone in a licensed quarry area without payment of the requisite royalty. 3. One of the contentions advanced by the petitioner is that the said demand is vitiated as it has been issued without following the principles of natural justice. 4. The learned Additional Government Advocate clearly states that the impugned demand notice may be considered as a show cause notice. The petitioner may file a response to the same within a period of two weeks from date and the concerned authority shall - 4 - HC-KAR CNR: KAHC010479302026 NC: 2026:KHC:39004-DB WP No. 21516 of 2026 pass a final order after affording the petitioner an opportunity to be heard. 5. In view of the aforesaid statement, no orders are required to be passed in this petition, except that the respondents would be bound down to the statement, made on their behalf. We clarify that we have not examined the merits of the demand and nothing stated in this order should be construed as such. 6. We clarify that all rights and contentions of the parties are reserved including the petitioner's contention that the one time settlement [OTS] as contemplated under Rule 44-A of the KMMC Rules, is voluntary and at the option of the lease/licence holder. 7. The petition is disposed of in the aforesaid terms. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (K.S. HEMALEKHA) JUDGE MBM List No.: 2 Sl No.: 14