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2022 Supreme(AP) 724

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
BATTU DEVANAND, J.
V. Madhu – Petitioner
Versus
The State of Andhra Pradesh – Respondent
Writ Petition No. 10770 of 2022
Decided On : 28-10-2022

Advocates:
Advocate Appeared:
For the Petitioner: Shaik Mohammed Ismail.

Authorities must follow the procedure prescribed for conducting disciplinary proceedings against fair price shop dealers, including providing a personal hearing, supplying the dealer with the reports on which they rely, and considering the dealer's explanation before passing a cancellation order.

Headnote:

FAIR PRICE SHOP - CANCELLATION OF AUTHORIZATION - A.P.S.T.P.D.S. (CONTROL) ORDER, 2018 - SECTION 10(D), 12(1), 12(M), 12(N) - PROCEDURE FOR CONDUCTING DISCIPLINARY PROCEEDINGS AGAINST FAIR PRICE SHOP DEALERS - REQUIREMENT OF PERSONAL HEARING AND OPPORTUNITY TO EXPLAIN - SUPPLY OF REPORTS ON WHICH RELIANCE IS PLACED - CONSIDERATION OF EXPLANATION SUBMITTED BY DEALER - FAILURE TO FOLLOW PROCEDURE RENDERS CANCELLATION ORDER ILLEGAL AND ARBITRARY.

Fact of the Case:

The petitioner, a Fair Price Shop dealer, was suspended and later had his authorization cancelled based on allegations of irregularities in distribution of essential commodities. He challenged the cancellation order, arguing that he was not given a proper opportunity to explain his case and that the authorities failed to follow the procedure prescribed for disciplinary proceedings.

Finding of the Court:

The court found that the authorities had not followed the procedure prescribed for conducting disciplinary proceedings against fair price shop dealers. The petitioner was not given a personal hearing, was not supplied with the reports on which the authorities relied, and his explanation was not properly considered. The court held that the cancellation order was therefore illegal and arbitrary.

Issues: 1. Whether the authorities followed the procedure prescribed for conducting disciplinary proceedings against fair price shop dealers. 2. Whether the petitioner was given a personal hearing and an opportunity to explain his case. 3. Whether the authorities considered the petitioner's explanation before passing the cancellation order.

Ratio Decidendi: The court relied on the judgment of the Supreme Court in B. Manjula vs. District Collector, Civil Supplies, Kurnool and Others, 2015 (4) ALT 572, which held that an enquiry against a fair price shop dealer must follow the basic requirement of an enquiry, including an opportunity of personal hearing, recording of sworn statements, and examination of witnesses. The court held that the authorities had failed to follow this procedure and that the cancellation order was therefore illegal.

Final Decision: The court set aside the cancellation order and directed the authorities to continue the petitioner as Fair Price Shop Dealer as usual.

ORDER :

1. Heard learned counsel for the petitioner and the learned Government Pleader for Civil Supplies and perused the material available on record.

2. The facts of the case are that the petitioner is the Fair Price Shop dealer of the shop bearing No. 1151020 of Vankamarri Village, Sri Avadutha Kasinayana Mandal, YSR Kadapa District. He is running the Fair Price Shop and distributing the essential commodities to the satisfaction of the card holders without any complaint. On 11.07.2019, the respondent No. 3 issued an Order in Ref. No. 1(4)/490/2019, dated 11.07.2019, suspending the authorization of the petitioner on the ground that he has committed irregularities in distribution of essential commodities to the card holders. The said Order was received by the petitioner on 19.07.2019. Aggrieved by the suspension Order dated 11.07.2019, the petitioner approached the High Court by filing W.P. No. 12885 of 2019. By Order dated 18.07.2019, the said Writ Petition was disposed of directing the petitioner to submit his explanation against the impugned Order dated 11.07.2019 by treating the same as show cause notice within a period of two weeks from the date of receipt of a copy of this Order. In such event, the respondent No. 2 shall consider the same and pass appropriate orders in accordance with law within a period of two weeks from the date of receipt of explanation by the petitioner. Till such exercise is undertaken, the respondent authorities shall permit the petitioner to run his Fair Price Shop and allot essential commodities on payment of the stipulated amount as per the rules. Pursuant to the said Order, the authorization of the petitioner was restored by the respondent No. 3 on 02.10.2019. Thereafter, the respondent No. 3 passed the Order in Ref. No. 1(4)/490/2019, dated 13.01.2020, cancelling the authorization of the petitioner. Aggrieved by the same, the petitioner preferred an appeal before the Respondent No. 2. The respondent No. 2, without following due procedure, passed the impugned Order by confirming the Order of the Respondent No. 3. Aggrieved by the same, the present Writ Petition is filed.

3. Learned counsel for the petitioner contends that all the allegations leveled against the petitioner are false and incorrect and he did not violate any of the rules or provisions. Learned counsel further contends that the report of the Tahsildar i.e. the respondent No. 5 herein, which formed the basis of the charges was not supplied to the petitioner, which is in violative of principles of natural justice and contrary to the Control Order, 2018. He further contends that the charges/allegations are purported to be invented at the instance of the opponent group who are politically inimical towards the petitioner with a view to get the F.P. shop in their favour. The respondent No. 2 passed the impugned Order without taking into consideration the explanation submitted by the petitioner. Learned counsel contends that proper enquiry is required under law before passing the cancellation order, which is not followed by the respondent No. 3 and passed the impugned Order of cancellation in mechanical way and the respondent No. 2 also without considering the grounds raised in the appeal in a casual manner confirmed the Order of the Respondent No. 3.

4. A counter Affidavit has been filed on behalf of the respondents. In the Counter Affidavit filed by the respondent No. 3, it is averred that Sri D.C. Govinda Reddy, MLC, Badvel, has filed a complaint against the petitioner stating that he is committed certain irregularities in distribution of essential commodities and causing inconvenience to the card holders. On receipt of the said complaint, the Mandal Revenue Inspector along with Village Revenue Officer, Venkamarri Village, have inspected the fair price shop of the petitioner on 19.06.2019 and found certain irregularities like distribution of less quantity of essential commodities to the card holders, collecting of higher rates than the pr

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