2011 Supreme(AP) 364
High Court of Andhra Pradesh
JUSTICE NOUSHAD ALI, J.
Chatak Agro (India) Pvt. Ltd.
Versus
Commissioner of Agriculture, Government of Andhra Pradesh & Others
Writ Petition No.11440 of 2011
Decided On : 21-04-2011
For the Petitioner:D.V. Sitha Ram Murthy, Senior Counsel for N. Ashwani Kumar, Advocate.
For the Respondents: Government Pleader for Agriculture.
Headnote:Fertilizer Control Order 1985 - Clause 31 - Cancellation of license---Orders of cancellation passed without giving opportunity of hearing to licensee—Non-submission of explanation does not absolve authority from considering matter on merits --- Matter remanded back for re-consideration.
The petitioner, a private limited company incorporated under the provisions of the Companies Act, 1956 engaged in the manufacture and sale of fertilizers has field this Writ Petition seeking to quash the orders of the 2nd Respondent-Additional Director of Agriculture-IV and Notified Authority, Government of Andhra Pradesh in File No.Fert.II (1) 1185/2009, dated 05-01-2011 confirmed by the appellate authority Commissioner of Agriculture, Government of Andhra Pradesh, respondent No.1 herein in his proceedings No.Fert.II (1) 1185/2009, dated 16-04-2011 and the proceedings of the 2nd Respondent dated 27-12-2010 suspending the certificate of registration of the petitioner.
2. The petitioner company claims to be engaged in the business of manufacture and sale of mixed fertilizer in various states including the State of Andhra Pradesh. It has a valid permission and licence issued by the respective authorities. Insofar as the State of Andhra Pradesh is concerned, the licence was issued by the Additional Director of Agriculture, Commissioner ate of Agriculture and the same is valid up to 21-07-2012. It is stated that the petitioner has obtained due permissions from the 1st Respondent for marketing fertilizer with its brand name “Jai Jawan”. It is stated that on 08-12-2010 some officials of the 2nd Respondent visited the business premises of the petitioner and inspected the records and registers. Based on the same, the 2nd Respondent issued a show cause notice dated 10-12-2010 to the petitioner alleging contravention of certain provisions of Fertilizers Control Order and calling upon the petitioner to submit his explanation as to why the licence should not be suspended/cancelled for contravention of Clauses 4 (a), 5 and 35 of the said Control Order. In the meanwhile it appears that the 3rd Respondent served a stop sale notice dated 27-12-2010 directing the petitioner not to conduct any sale on the ground that no explanation was offered in pursuance of the show cause notice dated 10-12-2010. On 27-12-2010, the 2nd Respondent issued proceedings to the petitioner suspending the licence for 15 days. Thereupon, regular proceedings were initiated by issuing a show cause notice dated 29-12-2010 proposing to cancel the certificate under clause-31 of the Control Order. In pursuance of this show cause notice dated 29-12-2010, the petitioner submitted a letter dated 03-01-2011. By means of the said letter the petitioner alleged that the relevant material has not been received, therefore requested for supply of the relevant information so as to enable it to submit an effective explanation. The 2nd Respondent without acceding to the said request passed orders dated 05-01-2011 and cancelled the authorization. The relevant portion of the order is as follows :
“Through reference 2nd cited, M/s.Chatak Agro (India) Private Limited has submitted their explanation stating that the copies of analysis and declared non-standard reports were not received at their end and expressed inability to furnish explanation in the matter. In this regard, it is to inform that, the explanation submitted is incorrect as the non-standard results were furnished to the dealers concerned from whom fertilizer samples were drawn by the Mandal Agricultural Officer under copy to the firm. Hence, explanation submitted by M/s.Chatak Agro (India) Private Limit is not convincing and satisfactory. Therefore, the Authorization letter of M/s.Chatak Agro (India) Private Limited bearing No.33/2009 valid up to 24-7-2012 which is under suspension for 15 days is hereby cancelled under clause 31 of FCO 1985 from the date of receipt of this order.”
3. Aggrieved by the same, the petitioner preferred an appeal to the 1st Respondent inter alia contending that relevant information required is not furnished and that an opportunity of hearing which is mandatory requirement has not been provided. On a consideration, the 1st Respondent passed orders in Proceedings No.Fert.II (1) 1185/09, dated