The petitioner, a partnership firm carrying on business in sale of drugs and cosmetics, instituted this writ petition mounting a challenge to the order passed on 12.04.2013 by the Assistant Director, Sales Licensing and Enforcement Authority, Drugs Control Administration at Nizamabad, canceling the license granted to it earlier, for the violation of the conditions of license indulged in by the petitioner firm.

2. The managing partner of the petitioner firm filed an affidavit in support of this writ petition. It is stated that the petitioner firm was carrying on business in sale of drugs and pharmaceuticals at Bibipet, Domakonda Mandal, Nizamabad District. In paragraph 4 of the said affidavit, it is averred that a show-cause notice in proceedings Rc.No.73/AD/NZB/2013 dated 01.03.2013 was issued requiring the petitioner to submit the explanation through the Drugs Inspector within a period of seven days from the date of receipt of the said notice and that it was proposed in the said show-cause notice to suspend/cancel the license granted to the petitioner for the violation indulged in by the petitioner firm. It is further asserted that a detailed explanation was submitted on 12.03.2013 through the Drugs Inspector, Kamareddy, specifically asserting therein that the petitioner is not aware of any seizure of drugs from the premises bearing H.No.15-13, Bibipet and that the petitioner is not concerned with the alleged drugs seized as the petitioner has no connection with the said premises bearing H.No.15-13, Bibipet. But however, without even examining the said explanation, the Assistant Director, Sales, Licensing and Enforcement Authority of the Drugs Control Administration, Nizamabad passed orders on 12.04.2013 cancelling the drugs license of the petitioner firm which was run in the name of M/s Mallikarjuna Medical and General Stores, D.No.10-72, Bibipet, Domakonda Mandal, Nizamabad. It is alleged in the order of cancellation dated 12.04.2013 that the Drugs Inspector, Nizamabad inspected the medical shop on 23.02.2013 and drew up an Inspection Report and that a show cause notice was issued to the petitioner firm, but the petitioner has not shown any cause by submitting explanation and that the petitioner has stocked for sale, certain drugs labeled as physician samples not to be sold, in an unlicensed go-down at premises bearing D.No.15-13, Bibipet and hence the drugs license of the petitioner firm has been cancelled. It is the case of the petitioner that the cancellation order is passed without assigning any specific or valid reasons and that the cancellation order is vague and ambiguous. In paragraph 5 of the affidavit filed in support of this writ petition, it is specifically asserted by the petitioner as under:

“It is not specifically stated that what are the physician samples found and what are the drugs meant to be sold without having valid drug licenses for the go-down premises.”

It is the further case of the petitioner that the explanation submitted by the petitioner through the Drug Inspector, Kamareddy has not even been looked into or taken into consideration and hence the order of cancellation, passed by the first respondent, of the license of the petitioner is in violation of the principles of natural justice. Hence this writ petition.

3. The Drugs Inspector, Kamareddy, Nizamabad District has filed a detailed counter affidavit in the matter and also enclosed copies of several documents as material papers. It is asserted in the counter affidavit that, the Drugs Inspector, Nizamabad, the fourth respondent conducted a surprise inspection at the go-down of the petitioner firm situate at D.No.15-13, Main Road, Bibipet Village, Domakonda Mandal, Nizamabad District on 23.02.2013 at 5.00 P.M and sealed the lock applied to the main door of the said go-down. Thereafter, the next day i.e on 24.02.2013, in the presence of the Assistant Director, Sales Licensing and Enforcement Authority, Drugs Control Administration, Nizamaba