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2021 Supreme(AP) 390

ANDHRA PRADESH HIGH COURT AT AMARAVATHI
M. Ganga Rao, J.
Valireddy Sathyavathi - Appellant
Versus
State of Andhra Pradesh - Respondent
Writ Petition No. 25447 of 2020
Decided On : 23-07-2021

A suspension order under Clause 8(4) of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 must be passed in accordance with the principles of natural justice and the provisions of the Control Order, including providing the affected party with an opportunity of hearing and recording valid reasons for the suspension.

Headnote:

FAIR PRICE SHOP AUTHORIZATION SUSPENSION - ANDHRA PRADESH STATE TARGETED PUBLIC DISTRIBUTION SYSTEM (CONTROL) ORDER, 2018 - CLAUSE 8(4) - SUSPENSION OF AUTHORIZATION - REASONS - OPPORTUNITY OF HEARING - ARBITRARY EXERCISE OF POWER - JUDICIAL REVIEW.

Fact of the Case:

Petitioner, a fair price shop dealer, challenged the suspension of her authorization by the District Collector (Civil Supplies) without any enquiry, opportunity of hearing, or reasons recorded in writing, as required under Clause 8(4) of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018.

Finding of the Court:

The court found that the impugned order was passed without any enquiry, opportunity of hearing, or valid reasons recorded for keeping the petitioner's authorization under suspension, and that it was an arbitrary exercise of power.

Issues: 1. Whether the District Collector (Civil Supplies) had the authority to suspend the petitioner's authorization under Clause 8(4) of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018? 2. Whether the suspension order was passed in accordance with the principles of natural justice and the provisions of the Control Order?

Ratio Decidendi: The court held that the District Collector (Civil Supplies) had the authority to suspend the petitioner's authorization under Clause 8(4) of the Control Order, but that the suspension order was passed in violation of the principles of natural justice and the provisions of the Control Order, as it was passed without any enquiry, opportunity of hearing, or valid reasons recorded in writing.

Final Decision: The court allowed the writ petition and set aside the impugned order suspending the petitioner's authorization. However, it left it open to the District Collector (Civil Supplies) to initiate disciplinary proceedings against the petitioner in accordance with the provisions of the Control Order and the law laid down by the court in previous cases.

JUDGMENT

This Writ Petition is filed under Article 226 of Constitution of India for the following relief/s:-

    “… to issue a Writ, Order or Direction more particularly one in the nature of Writ of Mandamus declaring the action of the 2nd respondent in temporarily suspending the Authorization of petitioner to Fair Price Shop No.4 of Madhupada Village, Gajapathinagaram Mandal, Vizianagaram District through proceedings in D.C.No.61/2020/G1, dated 16.06.2020 without enquiry and without assigning reasons as illegal, arbitrary and violative of Art 14 and 21 of Constitution of India and opposed to principles of natural justice and against the provisions of Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 and consequently set aside the proceedings of 2nd respondent in D.C.No.61/2020/G1, dated 16.06.2020 and pass such other order or orders …”

2. Heard the learned counsel for the petitioner and learned Assistant Government Pleader for Civil Supplies and learned Assistant Government Pleader for Revenue appearing for the respondents.

3. The case of the petitioner is that she was appointed as a permanent fair price shop dealer of shop No.4 of Madhupala Village vide proceedings in Rc No.261/08/B, dated 18.08.2008 by the 5th respondent. She used to distribute the essential commodities to the card holders by using the electronic devices i.e., “e-pos” and “e-weighing scale” to nearly 693 card holders without any complaint. The Mandal Civil Supplies Officer (MCSO), Gajapathinagaram stated that, the dealer has supplied Bengal gram whole instead of red gram dal during the month of May, 2020 and also collected Rs.10/- from each cardholder and that the dealer is supplying Bengal gram whole with the aid of plastic tin instead of measuring through weighing scale and that the rice is being measured with gunny bag due to which the card holders are getting less quantities. The dealer has also admitted the irregularities in the distribution of stocks. The District Collector (Civil Supplies) passed the impugned suspension order basing on the report of the 6th respondent without calling for any explanation from the petitioner, without giving any opportunity of hearing and without recording any reasons in writing as required under clause 8(4) of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018. Aggrieved by the said order the present Writ Petition came to be filed.

4. The 2nd respondent-District Collector (Civil Supplies), Vizianagaram filed counter affidavit mainly stating that the petitioner is not supplying the essential commodities to the satisfaction of the card holders and that she is not using e-weighing scale while supplying the essential commodities to the card holders and that the card holders made a complaint against the petitioner on 15.05.2020 about improper distribution of stocks under PDS by the petitioner. The 6th respondent conducted enquiry on receipt of such complaint. During the enquiry the cardholders/complainants stated that the petitioner has supplied Bengalgram whole (Chana Dal) to the card holders instead of Redgram dal during the month of May, 2020 in deviation of instructions issued by the officials and also collected Rs.10/- from each cardholder for supply of Bengalgram whole (Chana Dal) with the aid of plastic tin instead of measuring through weighing scale and measuring rice with gunny bag due to which they are getting less quantities. On enquiry by the 6th respondent the petitioner admitted the allegations made in the complaint and also stated that she has supplied Bengalgram whole (chana dal) to the card holders instead of Redgram dal as per their will and admitted that she has also committed irregularities in the distribution of stocks. Therefore, the petitioner has committed irregularities in distribution of essential commodities to the card holders during the Covid-19 lock down period in violation of provisions under Clause 12(f)(h)(i)(j) & (m) and Clause 22(1) of

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