IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
GANNAMANENI RAMAKRISHNA PRASAD, J.
Gottipati Geetha - Petitioner
Versus
The State Of Andhra Pradesh – Respondent
Writ Petition No. 19421 Of 2022
Decided On : 13-07-2023
Writ Petition - Fair Price Shop Dealer - Control Order, 2018, Andhra Pradesh State Public Distribution System Control Order, 2001 - The court discussed the provisions of Control Order, 2018 and Andhra Pradesh State Public Distribution System Control Order, 2001. It highlighted the requirement of conducting an enquiry before suspension or cancellation of authorization, the applicability of principles of natural justice to both temporary and permanent dealers, and the right of a temporary dealer to challenge an order affecting their rights. The court emphasized the importance of providing reasons for cancellation and the need to adhere to the Principles of Natural Justice.
Fact of the Case:
The Writ Petitioner, a temporary dealer for a Fair Price Shop, was directed to hand over the shop to another temporary dealer without being provided any reason or opportunity to defend. The court had earlier stayed the handover proceedings, allowing the Writ Petitioner to continue as the dealer.
Finding of the Court:
The court found the action of the Official Respondents to be arbitrary and illegal, setting aside the handover proceedings and directing the respondents to initiate proceedings against the Writ Petitioner in accordance with the Principles of Natural Justice and the law.
Issues: The issues involved the arbitrary handover of the Fair Price Shop without providing reasons or following the Principles of Natural Justice, and the legal rights of temporary dealers under the Control Order, 2018 and Andhra Pradesh State Public Distribution System Control Order, 2001.
Ratio Decidendi: The court emphasized the requirement of conducting an enquiry before suspension or cancellation of authorization, the applicability of principles of natural justice to both temporary and permanent dealers, and the right of a temporary dealer to challenge an order affecting their rights.
Final Decision: The Writ Petition was allowed, and the handover proceedings were set aside. The respondents were directed to initiate proceedings against the Writ Petitioner in accordance with the Principles of Natural Justice and the law.
ORDER :
1. Heard Sri K.Naga Phanindra, Ld. Counsel representing on behalf of Sri K.Rathanga Pani Reddy, Ld. Counsel for the Writ Petitioner, Ms.P.Rachana, Ld. Counsel representing on behalf of Ms.N.Revathi, Ld. Counsel for the Un-Official Respondent and Sri G.Raju, Ld. Assistant Government Pleader for Civil Supplies representing for Official Respondents.
2. The prayer in the Writ Petition is as under:
“It is therefore prayed that this Hon’ble Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus, declaring the illegal action of the respondents 2 to 4 in coercing the petitioner to handover the Shop No.0904006 of Chinthalapalem Village, Jaladanki Mandal, SPSR Nellore District for which petitioner is working as temporary dealer since May, 2018 to the 5th respondent (Temporary dealer) vide handover proceedings dated 02.07.2022 though the authorization of the petitioner is neither suspended nor removed and it is settled law that no temporary dealer can be replaced by another temporary dealer, only by succumbing to political pressures in most illegal and capricious manner and in gross violation of Article 14, 19 & 21 of The Constitution of India and consequently direct the respondents 2 to 4 to continue the petitioner as fair price shop dealer for the above mentioned shop and pass such other order or orders as are deemed fit and proper.”
3. The Writ Petitioner was appointed as a temporary dealer for Fair Price Shop No.0904006 of Chinthalapalem Village, Jaladanki Mandal, SPSR Nellore District since May, 2018. It is the case of the Writ Petitioner that by proceedings dated 02.07.2022 (Ex.P1) styled as Handed Over Proceedings, the Respondent No.4 directed the Writ Petitioner to handover the charge of the Fair Price Shop to the Respondent No.5. A perusal of the said Handed Over Proceedings dated 02.07.2022 shows that on the direction of the Revenue Divisional Officer and the Tahsildar, the Fair Price Shop is forthwith handed over to the Respondent No.5 with effect from July, 2022. It is the submission of the Writ Petitioner that the Official Respondents have not stated any reason for this decision. He also submits that neither Show Cause Notice nor Cancellation Order was furnished to the Writ Petitioner in this process.
4. The Ld. Counsel for the Writ Petitioner submits that this unauthorised action on the part of the Official Respondents is not only arbitrary and illegal but also highhanded. Having been aggrieved by this conduct of the Official Respondents against which the Writ Petitioner has approached this Court by way of this Writ Petition, by Order dated 14.07.2022 this Court had stayed the Handing Over Proceedings dated 02.07.2022 (Ex.P1). On the basis of this Interim Order, presently, the Writ Petitioner is now continuing as Temporary Fair Price Shop Dealer.
5. Ld. Counsel for the Writ Petitioner has cited a decision of this Court in Dama Srikantam vs. State of Andhra Pradesh, Rep.by its Principal Secretary, Consumer Affairs, Food and Civil Supplies Department, Velagapudi, Amaravati and others (2020 (6) ALT 182 (W.P.No.3112 of 2020)), which was decided on 14.02.2020. He has drawn the attention of this Court to paragraph Nos.8 to 10 of the Order. The said paragraphs are usefully reproduced hereunder:
“8. In the light of above facts, the question is whether the 2nd respondent is not bound to issue show-cause notice to the petitioner and conduct enquiry before passing the termination order. In this context, clause 8(4) of Control Order, 2018 reads as follows:
“(4) The appointing authority may, at any time in the public interest or on suo-motu or on receipt of complaint, after making such enquiry as may be deemed necessary and for reasons to be recorded in writing, suspend or cancel the authorization issued or deemed to be issued to him/her under this clause.”
9. A plain reading of the above clause postulates that the appointing authority may suspend or cancel th
AI
The main legal point established is the requirement to adhere to the Principles of Natural Justice and provide reasons for cancellation, irrespective of the dealer's temporary or permanent status.
Point of Law - Order impugned is not in existence and the writ petition has become infructuous as the present cancellation order was passed by issuing show-cause notice and by considering the explana....
Public distribution system – Cancellation of licence - Cancellation of Absence of reasoning as to the mandatory requirement of provision which conferred jurisdiction on the quasi judicial authority o....
Suspension of fair price shop authorization requires adherence to principles of natural justice, including proper enquiry and reasoned decisions.
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