- 1 - HC-KAR CNR: KAHC010639192026 NC: 2026:KHC:52986-DB WP No. 29144 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT PETITION NO. 29144 OF 2026 (GM-MM-S) BETWEEN: 1. SRI SWAMY S.N. S/O. NAGARAJU. T AGED ABOUT 27 YEARS R/O. KUDUMANGALORE VILLAGE SOMAWARPETE TALUK KODAGU - 571 232 …PETITIONER (BY SRI H.S. PRASHANTH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF MINES AND GEOLOGY VIKASA SOUDHA REPRESENTED BY ITS CHIEF SECRETARY BENGALURU - 560 001 2. THE SENIOR GEOLOGIST DEPARTMENT OF MINES AND GEOLOGY KODAGU DISTRICT MADIKERI - 571 201 …RESPONDENTS (BY SRI K.S. HARISH, GOVERNMENT ADVOCATE) Digitally signed by VEERENDRA KUMAR K M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010639192026 NC: 2026:KHC:52986-DB WP No. 29144 of 2026 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI TO SET ASIDE THE IMPUGNED NOTICE OF DEMAND DATED 30/06/2026 VIDE GaBhuE/HiBhuV(Ko)/OTS- Notice/2026-27/530 AS PER ANNEXURE-A, ISSUED BY THE 2ND RESPONDENT & 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 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 a notice dated 30.06.2026 issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [KMMC Rules], calling upon the petitioner to pay the total sum of `2,53,01,080/- as penalty for extracting excess and encroachment quantity totaling to 293067 metric tons of mineral. The said demand is premised on the allegation that the petitioner has extracted and transported - 3 - HC-KAR CNR: KAHC010639192026 NC: 2026:KHC:52986-DB WP No. 29144 of 2026 building stone in a licensed quarry area without payment of the requisite royalty. 3. The petitioner has been called upon to pay the stipulated penalty within a period of 6 months from the date of service of the notice. The notice also sets out that the petitioner is also permitted to pay the penalty in four equal installments with one installment due every 45 days. 4. 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. 5. The learned Government Advocate fairly states that the present petition be disposed of by directing that the impugned notice 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 pass a final order after affording the petitioner an opportunity to be heard. 6. In view of the aforesaid statement, no orders are required to be passed in this petition, except that the respondents would be - 4 - HC-KAR CNR: KAHC010639192026 NC: 2026:KHC:52986-DB WP No. 29144 of 2026 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. 7. 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. 8. The petition is disposed of in the aforesaid terms. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (K.S. HEMALEKHA) JUDGE KMV List No.: 2 Sl No.: 10