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Judgment
(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
The learned Government Advocate accepts notice for the respondents.
The petitioner has filed the present petition impugning the demand notice dated 24.06.2026 [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 `18,44,500/- as penalty for encroachment involving a quantity of 1,054 metric tonnes of minerals.
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.
The learned Government Advocate fairly states that the impugned demand notice may be considered as a show-cause notice and the concerned authority shall pass an order after following the principles of natural justice.
We note that after receipt of the impugned notice, the petitioner has furnished a reply dated 04.07.2026.
Given the circumstances, we direct that the impugned demand notice dated 24.06.2026 be considered as a show-cause notice and respondent No.3 shall consider the petitioner's response to the said notice and pass a final order after affording the petitioner an opportunity of hearing.
The petition is disposed of in the aforesaid terms.
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 44A of the KMMC Rules, is voluntary and at the option of the lease/licence holder.