- 1 - HC-KAR CNR: KAHC010490422026 NC: 2026:KHC:54249-DB WP No. 22086 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH 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. 22086 OF 2026 (GM-MM-S) BETWEEN: 1. SRI M.B. ODEGOWDA S/O. LATE SRI M.T. BASAVANAGOWDA AGED ABOUT 41 YEARS PROPRIETOR M/S NANDHI STONE CRUSHER HOLDER OF MINING LEASE NO.110 R/AT BEVINAHALLI VILLAGE UCHANGIDURGA HARAPANAHALLI TALUK VIJAYANAGARA DISTRICT – 583 125 …PETITIONER (BY SRI BHADRAVADI SIDDESWARA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF COMMERCE AND INDUSTRIES KHANIJA BHAVANA RACE COURSE ROAD BENGALURU - 560 001 2. THE DIRECTOR DEPARTMENT OF MINES AND GEOLOGY KHANIJA BHAVANA Digitally signed by VEERENDRA KUMAR K M Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010490422026 NC: 2026:KHC:54249-DB WP No. 22086 of 2026 RACE COURSE ROAD BENGALURU - 560 001 3. THE SENIOR GEOLOGIST OFFICE OF THE SENIOR GEOLOGIST DEPARTMENT OF MINES AND GEOLOGY VIJAYANAGARA DISTRICT 7TH WARD, SADASHIVANAGAR M.P. PRAKASH NAGAR, HOSAPETE VIJAYANAGARA DISTRICT - 583 201 4. KARNATAKA STATE REMOTE SENSING APPLICATIONS CENTRE (KSRSAC) DEPARTMENT OF PERSONNEL AND ADMINISTRATIVE REFORMS (E-GOVERNANCE) DODDABETTAHALLI MAJOR SANDEEP UNNIKRISHNAN ROAD BENGALURU - 560 097 REPRESENTED BY ITS DIRECTOR …RESPONDENTS (BY SRI K.S. HARISH, GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION, QUASHING THE IMPUGNED DEMAND NOTICE BEARING NO.6/2026-27/504 DATED 05.05.2026 (ANNEXURE-H), ISSUED BY RESPONDENT NO.3 & ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR CNR: KAHC010490422026 NC: 2026:KHC:54249-DB WP No. 22086 of 2026 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 05.05.2026 issued under Rule 44A of the Karnataka Minor Mineral Concession Rules, 1994 [KMMC Rules], calling upon the petitioner to pay the total sum of `7,08,78,220/- as penalty for extracting excess and encroachment quantity totaling to 1009982 metric tons of mineral. 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. The petitioner has been called upon to pay the stipulated penalty within a period of 45 days from the date of service of the notice. - 4 - HC-KAR CNR: KAHC010490422026 NC: 2026:KHC:54249-DB WP No. 22086 of 2026 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 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. - 5 - HC-KAR CNR: KAHC010490422026 NC: 2026:KHC:54249-DB WP No. 22086 of 2026 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.: 1