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2015 Supreme(SC) 1032

SUPREME COURT OF INDIA
Dipak Misra, R. Banumathi, JJ.
Poonam – Appellant
Versus
State of U.P. & Ors. – Respondents
CIVIL APPEAL NO. 6774 of 2015 (@ SLP(C) NO. 16650 OF 2012)
Decided On : 29-10-2015

IMPORTANT POINTS
Necessary party and proper party.
Non-joinder of necessary party may be fatal to the case.
It is the Principle laid down in a judgment that is binding law under Article 141.
In a challenge against termination, it is not necessary to implead the person appointed in place of the terminated person. The subsequent appointee is not a necessary party.

Headnote:(a) Necessary party – A party without whom no order can be made effectively – A proper party is one in whose absence an effective order can be made but whose presence is necessary for a complete and final decision on the question involved in the proceeding – Necessary party if not impleaded would be entitled to ignore the order – Non-joinder of necessary party may be fatal – Order 1 Rule 9, Code of Civil Procedure, 1908 – A person or an authority to become necessary party must have a legal right or right in law to defend or assail. (Para 14, 16, 17)

       AIR 1963 SC 786; (2012) 7 SCC 610; (1974) 4 SCC 335 – Relied upon

       2015 (3) SCALE 39; AIR 1955 SC 233; AIR 1969 AP 204; ILR (1973) 2 Delhi 392; C.W. No. 650 of 1970 (Delhi); 1992 Supp (2) SCC 251; AIR 1978 Ker 176; AIR 1979 Pat 266; (1983) 3 SCC 601; (2008) 4 SCC 619; (2001) 6 SCC 380; (2003) 4 SCC 557 – Referred

       (b) Constitution of India – Article 141 – Precedent – Ratio – A decision is only an authority for what it actually decides – It is the Principle laid down in a judgment that is binding law under Article 141. (Para 41)

       (1987) 1 SCC 5; (1901) AC 495 – Relied upon

       (c) Necessary party – Natural justice – In a challenge against termination, it is not necessary to implead the person appointed in place of the terminated person – The subsequent appointee is not a necessary party. (Para 42, 43)

       (2003) 4 SCC 557; 1992 Supp (2) SCC 251; (1983) 3 SCC 601 – Relied upon

       (2011) 6 SCC 570; AIR 1978 Ker 176; AIR 1979 Pat 266 – Distinguished

       (d) Necessary party – Fair price shop Licence of original allottee cancelled – Creating a vacancy – Another person allotted the shop and licence to fill the vacancy – Original allottee filing appeal against cancellation – Whether subsequent allottee a necessary party to the appeal – Original allotee would continue to hold shop on becoming successful in appeal – No right created in favour of subsequent allottee – Held, subsequent allottee neither a necessary nor a proper party to the appeal. (Para 48, 49, 50)

       (1984) 4 SCC 251; 1995 Supp (1) SCC 179; (2009) 1 SCC 768; (2010) 10 SCC 408; (2010) 12 SCC 204; (1995) 2 SCC 326; (2011) 2 SCC 54; (1999) 1 SCC 738; (1992) 2 SCC 524; AIR 1958 SC 886 – Relied upon

       (2008) 12 SCC 112; (2008) 1 SCC 391; (1997) 6 SCC 623; 2008 (1) ADJ 718 – Referred

       Facts of the case:

       A fair price shop being shop no. 2 in Gram Sabha Ardauna, Tehsil Sadar, Block Ratanpura, District Mau, was allotted to the 5th respondent. While he was continuing, on various complaints being made against him pertaining to non- distribution of essential commodities, the Deputy District Magistrate, Sadar, District Mau cancelled the allotment of the respondent no.5. After the cancellation the shop was re-allotted to the appellant herein along with the licence granted in favour of the original allottee.

       The appellate authority allowed the appeal of the appellant, restored the allotment and cancelled the allotment of the subsequent allottee.

       The appellant herein who was the subsequent allottee in respect of shop no.2 preferred C.M.W.P. before the High Court which was dismissed on the ground that she had no right to continue the litigation being a subsequent allottee, for she had no independent right.

       `

       Finding of the Court:

       There is no merit in the appeal.

       Result:

       Appeal dismissed.

JUDGMENT

Dipak Misra, J.

1. The appellant invoked the jurisdiction of the High Court of Judicature at Allahbad under Article 226 of the Constitution praying, inter alia, for issue of writ of certiorari for quashment of the order dated 2.3.2012 passed by the respondent no.2, Commissioner, Azamgarh Division, Azamgarh in Appeal No. 85/109/153/334/M of 2008-12 and further seeking a writ of Mandamus against the respondents not to interfere in the peaceful functioning of fair price shop in Gram Sabha Ardauna, Tehsil Sadar, District Mau.

2. The facts that formed the bedrock of the writ petition are that a fair price shop being shop no. 2 was run by the 5th respondent in Gram Sabha Ardauna, Tehsil Sadar, Block Ratanpura, District Mau, which was allotted to him by allotment order dated 11.5.2001 and while he was continuing, on various complaints being made against him pertaining to non- distribution of essential commodities, Sub-Divisional Magistrate, Sadar, District Mau ordered an enquiry and after obtaining the report, suspended his licence and called for an explanation from him vide order dated 30.5.2008. As the factual matrix would depict vide order dated 3.6.2008 the shop of respondent no.5 was attached to another shop being run by one Bhupendra Singh and the respondent no.5 handed over the charge of shop on 19.7.2008. On the said date the final enquiry report was placed before the Deputy District Magistrate, Sadar, District Mau and the report reflected that there was improper distribution of essential commodities in violation of instructions and accordingly the competent authority by its order dated 23.7.2008 cancelled the allotment of the respondent no.5.

3. Being dissatisfied with the order of cancellation, the 5th Respondent preferred an appeal before the Commissioner, Azamgarh assailing the order dated 23.7.2008, along with an application for stay of the cancellation of allotment, but the appellate authority declined to pass any interim protective order. Eventually, the appeal preferred by the appellant was allowed. May it be stated that the appellant herein had got herself impleaded in the appeal on the ground that she had been allotted the shop no.2 after cancellation of the allotment along with the licence granted in favour of the original allottee, the appellant therein.

4. The appellate authority after hearing the appellant and the impleaded party and upon perusal of the file, opined that the entire proceeding against the original allottee was initiated on the basis of the oral statements pertaining to the allegations made by some BPL card holders that the shopkeeper had told them that their cards had been cancelled; and there was no enquiry and investigation by the Deputy District Magistrate from the official documents as regards the cancellation of original ration cards of the BPL card holders; that the allottee was not provided the copy of the investigation report and hence, he was deprived of opportunity to submit his clarification and on the whole, there were serious procedural lapses; and that on a careful scrutiny of number of aspects, it was perceptible that the investigation carried out by the Block Development Officer was absolutely faulty. Being of this view, the appellate authority by order dated 2.3.2012, allowed the appeal of the appellant, restored the allotment and cancelled the allotment of the subsequent allottee.

5. Aggrieved by the aforesaid order, the appellant herein who was the subsequent allottee in respect of shop no.2 preferred C.M.W.P. No. 16390 of 2012 before the High Court which by the impugned order dated 3.4.2012 relied upon an earlier judgment in Sri Pal Yadav v. State of U.P. and others, 2008 (1) ADJ 718 and dismissed the writ petition on the ground that she had no right to continue the litigation being a subsequent allottee, for she had no independent right.

6. Calling in question the legal defensibility of the order passed by the writ court, it is submitted by Mr. Dushyant Parashar, learned c











































































































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