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2005 Supreme(AP) 1143

Andhra Pradesh High Court
Judges : G.S.SINGHVI, R.SUBHASH REDDY
Ambati Srinivasulu - Appellant
Versus
District Collector, Nellore - Respondent
W.A.No.2420/05
Decided On : 12-13-05
Advocates Appeared :
Mr. V. Sudhakar Reddy

Headnote:A.P. PUBLIC DISTRIBUTION SYSTEM CONTROL ORDER, 2001, Cl.21 (1) (i) - Authorization Conditions, Condition 4(i) (ii) - ESSENTIAL COMMODITIES ACT, Sec.6-A - Joint Collector ordered to drop 6-A case against F.P. Shop dealer by imposing fine of Rs.1,000/- for improper maintenance of F.P. Shop accounts - Meanwhile RDO initiated action for cancellation of authorization and passed order of cancellation on ground that explanation of dealer not convincing - Joint Collector dismissed Appeal observing that maintenance of proper records is obligatory on part of dealer as per conditions of authorization - District Collector dismissed Revision by observing that dealer violated condition No.4(i) (ii) of Authorization - Both Joint Collector and District Collector overlooked fact that dealer not charged with allegation of having failed to maintain records and registers as per requirement of conditions of authorization.

       Order passed by RDO, Joint Collector and District Collector are liable to be nullified not only because same are devoid of reasons and not satisfy test of “speaking order”, but appellate and revisional orders are liable to be quashed on additional ground that both officers upheld order of cancellation of authorization assuming that dealer is guilty of violating Condition 4(i) (ii) though this is not subject matter of charge levelled against him - Single Judge also did not even advert to crucial and core issue raised in writ petition and simply dismissed it observing that appellant found guilty of violation of Condition 4(i) (ii).

       “Speaking Order” - “Natural justice” - Meaning of - Explained - All judicial, quasi-judicial and even administrative authorities who are entrusted with task of deciding lis between parties or passing order which affects rights, interest or status of a person must record reasons in support of their findings and conclusions and such reasons should be communicated to person concerned - Appeal and Revision filed against order of RDO are vitiated due to violation of natural justice in as much as neither of these orders fulfill requirement of “speaking order” - Single Judge committed serious error by upholding orders impugned in writ petition without adverting to core issue raised by petitioner/dealer.

       In this case, allegations of variations in stock and accounts had not been found proved by Joint Collector in proceedings initiated

       u/Sec.6-A of E.C Act - It is difficult to comprehend as to how a contrary finding could be recorded by same Officer while disposing of appeal filed by appellant against order of cancellation of authorization.

       Order of Single Judge, set aside - Orders of RDO, Joint Collector and District Collector are quashed - Authorization of petitioner/dealer, restored - Writ appeal, allowed.

G. S. SINGHVI, CJ, J.

( 1 ) RULES of natural justice are multi faceted and multi dimensional. Different facets of these rules have been applied by the Courts in India to invalidate administrative as well as judicial, quasi-judicial actions and orders. One of the facets of the rules of natural justice is that all judicial, quasi-judicial and even administrative authorities who are entrusted with the task of deciding lis between the parties or passing order which affects the rights, interest or status of a person must record reasons in support of their findings and conclusions and such reasons should be communicated to the person concerned. The requirement of recording reasons by judicial, quasi-judicial and even administrative authorities and communication thereof to the affected persons has been highlighted and reiterated in various judgments of the supreme Court including the often referred decisions in Harinagar Sugar Mills v. Shyam Sundar, AIR 1961 SC 1669, M. P. Industries Limited v. Union of India, AIR 1966 SC 671, Bhagat Raja v. Union of india, AIR 1967 SC 1606, Mahavir Prasad santoshkumar v. State of U. P. , AIR 1970 sc 1302, Travancore Rayons v. UOI, AIR 1971 SC 862, Messrs Ajanta Industries v. Central Board of Direct Taxes, New Delhi, air 1976 SC 437, Messrs Siemens engineering and Manufacturing Company v. Union of India, AIR 1976 SC 1785, s. N. Mukherjee v. Union of India, AIR 1990 SC 1984, Charan Singh v. Healing touch Hospital, 2001 (1) ALD 6 (SC) = (2000) 7 SCC 668, State of Punjab v. Bagh Singh, (2004) 1 SCC 547 = 2004 aild 204 (SC), State of Orissa v. Dhaniram Luhar, (2004) 5 SCC 568 = 2004 AILD 277 (SC), State of Rajasthan v. Sohan Lal, (2004) 5 SCC 573, Cyril lasrado v. Juliana Maria Lasrado, 2005 (1) ALD 29 (SC) = AIR 2005 SC 1367 = 2004 AIR SCW 7204 = (2004) 7 scc 431, Mangalore Ganesh Beedi Works v. CIT, (2005) 5 SCC 75 and Manorama sachan v. Lucknow Development authority, (2005) 9 SCC 425. In S. N. Mukherjee v. Union of India (supra) the constitution Bench of the Supreme Court noticed the legal position obtaining in australia, England, United States of America, referred to a large number of judicial precedents on the subject and laid down the following proposition :". . . Keeping in view the expanding horizon of the principles of natural justice, we are of the opinion, that the requirement to record reason can be regarded as one of the principles of natural justice which govern exercise of power by administrative authorities. The rules of natural justice are not embodied rules. The extent of their application depends upon the particular statutory framework whereunder jurisdiction has been conferred on the administrative authority. With regard to the exercise of a particular power by an administrative authority including exercise of judicial or quasi-judicial functions the Legislature, while conferring the said power, may feel that it would not be in the larger public interest that the reasons for the order passed by the administrative authority be recorded in the order and be communicated to the aggrieved party and it may dispense with such a requirement. It may do so by making an express provision to that effect as those contained in the Administrative procedure Act, 1946 of U. S. A. and the administrative Decisions (Judicial Review) act, 1977 of Australia whereby the orders passed by certain specified authorities are excluded from the ambit of the enactment. Such an exclusion can also arise by necessary implication from the nature of the subject- matter, the scheme and the provisions of the enactment. The public interest underlying such a provision would outweigh the salutary purpose served by the requirement to record the reasons. The said requirement cannot, therefore, be insisted upon in such a case. "

( 2 ) IN State of Punjab v. Bagh Singh (supra) the Supreme Court observed:"reasons introduce clarity in an order. Reasons substitute subjectivity by objectivity. The emphasis on recording reasons is that























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