Business vs local residents: Local bodies can't impose illegal conditions, says Kerala HC

KOCHI: Local bodies cannot incorporate conditions not allowed as per rules on licence granted for a business on the basis of unsubstantiated allegations by

local residents

, says the

Kerala high court

.

Justice

Devan Ramachandran

ruled against imposing conditions not allowed as per rules while considering a petition (WP-C No. 25327/2019) filed by Brandstorm Events Management of Kochi through advocate

S Nikhil Sankar

.

Maneed grama panchayat had imposed a condition in the licence granted to the company’s godown within its limits that it should not be operated between 6pm and 6am. Petitioner’s counsel contended that the said condition was imposed on the licence after the local residents forced the company to sign an agreement during a ‘mediation’ by two councilors that the godown won’t be operated during these hours. These are against the procedure and provisions of

Kerala Panchayat Raj

(Issue of Licence to Factories, Trades, Entrepreneurship Activities and Other Services) Rules, the counsel argued while pointing out that a division had held (in

Anilkumar MK

and Others Vs.

Aiswarya Rice Mill

and Others, 2015) that such restrictions are illegal.

The court pointed out that the division bench’s decision was that local body cannot impose any restriction on the basis of opposition by local residents without a report affirming it by the pollution control board.

Further, the court said the course adopted by Maneed panchayat in the specific case does not augur to the statutory systems. If complaints of citizens are dealt with in this manner, there would be no requirement for elaborate provisions in the Kerala Panchayat Raj Act, the court said while stating that the panchayat had clearly abdicated their duties and adopted an extra-statutory mechanism and then tried to legitimize it by imposing condition on trade licence. The panchayat also failed to check whether such a condition was warranted or permissible as per law, the court added while declaring that the petitioner can operate the godown de hors such a condition.

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