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Issues: (i) Whether the writ petition was premature as it challenged only an inter-departmental communication that had not finally determined the parties' rights or obligations; (ii) Whether the High Court could ignore the show cause notice merely because it had been issued during subsistence of the status quo order; (iii) Whether the show cause notice was without jurisdiction and liable to be quashed.
Issue (i): Whether the writ petition was premature as it challenged only an inter-departmental communication that had not finally determined the parties' rights or obligations.
Analysis: The communication dated 19 September 2006 was only part of an ongoing governmental process concerning assessment of the lease area and the requirement of the respondent's existing plant. It followed earlier instructions to assess the requirement and to consider resumption of excess area, and it did not itself amount to a final decision on resumption or reduction of the lease area. Since no final governmental order had been taken, the challenge was directed against a tentative step in the decision-making process rather than a conclusive determination.
Conclusion: The writ petition was premature and ought not to have been entertained against the communication.
Issue (ii): Whether the High Court could ignore the show cause notice merely because it had been issued during subsistence of the status quo order.
Analysis: A show cause notice did not alter the status quo by itself; it only initiated a hearing on a proposed action. Even if its issue was debatable in the light of the interim order, the High Court could not treat the notice as non est when no substantive challenge to its validity had been laid. The proper course was to require a response to the notice and allow the authority to pass a final order in accordance with law.
Conclusion: The High Court was not justified in ignoring the show cause notice on that ground.
Issue (iii): Whether the show cause notice was without jurisdiction and liable to be quashed.
Analysis: The notice was not shown to be without jurisdiction. The State Government was competent, in an appropriate case, to reconsider or modify earlier recommendations and to assess whether the lease area should be resumed in part. Since the matter had not yet been finally examined by the Government, the merits of the proposed action were left open to be considered by the competent authority after receiving the respondent's reply. A final reasoned order was required before any further challenge.
Conclusion: The show cause notice was not quashable on the ground of lack of jurisdiction.
Final Conclusion: The appeal succeeded, the High Court's order was set aside, and the respondent was directed to respond to the show cause notice so that the Government could decide the matter by a reasoned order before any further proceedings were taken.
Ratio Decidendi: A writ petition is premature when it challenges only a tentative or inter-departmental step that does not finally determine rights, and a show cause notice should ordinarily be allowed to run its course unless it is shown to be without jurisdiction.