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2024 Supreme(AP) 684

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
B.S.BHANUMATHI, J
B. Venkata Lakshmi @ Avula Venkatalakshmi – Appellant
Versus
The State Of Andhra Pradesh and Others – Respondent
Writ Petition No.16788 of 2024
Decided on : 23-08-2024

Advocates:
Advocate Appeared:
For the Appellant : K SREEDHAR MURTHY
For the Respondent: GP FOR REVENUE, GP FOR CIVIL SUPPLIES

IMPORTANT POINT
Indefinite suspension of a fair price shop dealer without a concluded inquiry violates natural justice and statutory provisions.

Headnote:

Mandamus - Fair Price Shop Suspension - Control Order 2018 - The court found the suspension order illegal due to lack of proper inquiry and violation of natural justice principles, emphasizing the need for timely disciplinary proceedings.

Fact of the Case:

The petitioner, a fair price shop dealer, was suspended without a specified period or conclusion of inquiry, despite operating without complaints. The authorities failed to conclude the inquiry within the mandated time frame, leading to the petition.

Finding of the Court:

The court determined that the suspension order was illegal as it lacked a proper inquiry and violated principles of natural justice, as the authorities did not follow the required procedures outlined in the Control Order 2018.

Issues: Whether the suspension of the petitioner’s dealership was legal given the lack of a concluded inquiry and adherence to procedural requirements.

Ratio Decidendi: The court held that indefinite suspension without a proper inquiry and failure to comply with the Control Order 2018 is unlawful, reinforcing the necessity of adhering to procedural justice.

Result: The writ petition is allowed, setting aside the suspension order dated 12.11.2019.

ORDER :

The Writ Petition is filed seeking the following prayer:

    “……..to issue an order or orders or a direction or a writ more in the nature of writ of mandamus by declaring the order Ref. No.1(4)/1322/2019 dated 12.11.2019 issued by the 3rd respondent suspending the authorization/ dealership of the petitioner’s FP shop No.1115122, Vivek Nagar, Kothapalli post, Proddutur Mandal, YSR Kadapa District without concluding the enquiry and mentioning the period of suspension is as illegal, arbitrary and violative of principles of natural justice and contrary to the law laid down by this Hon’ble Court and consequently direct the respondents to continue the petitioner as fair price shop dealer for shop No.1115122, Vivek Nagar, Proddutur Mandal, by setting aside the order dated 12.11.2019 and to pass such other order or orders……”

2. Heard learned counsel for the petitioner and the learned Assistant Government Pleader for Civil Supplies appearing for the 1st respondent.

3. The case of the petitioner is briefly as follows:

a. The petitioner was appointed as a fair shop dealer on permanent basis for Shop No. 111512, Vivek Nagar, Proddatur Mandal, by the 4th respondent on 03.02.2009, vide proceedings Ref. No. B/1587/2008, and she operated the shop without any complaints. The petitioner filed an application for the renewal of the license for the period 2019-2021 by paying the requisite fee through challan No. 39247, dated 22.03.2018. On 19.10.2019, the 6th respondent visited the fair shop of the petitioner along with the VRA and VRO and asked the petitioner to sign a blank white paper, stating that it was an acknowledgment of their visit. However, on 21.10.2019, when the petitioner went to the 5th respondent along with a demand draft for the indent for the next month, the 5th respondent refused to accept it stating that the petitioner had to hand over the stocks to the staff of the 5th respondent.

b. It appears that the 5th respondent had forwarded a report to the 3rd respondent on 20.10.2019 by filling the blank signed white paper. The petitioner received orders, vide Ref. No. 1(4)/1322/ 2019, dated 12.11.2019, suspending the dealership of the petitioner until the completion of the disciplinary case, without specifying a period of suspension. Despite lapse of five years since the date of suspension, the authorities have not concluded the enquiry and have continued the distribution of commodities through the VRO against the law.

4. This court had directed the authorities to conclude the enquiry within a reasonable period of 90 days, but they did not follow the dictum of the Court. In a writ petition filed by the petitioner in W.P. No. 12242 of 2021, the High Court directed all the respondents to conclude the disciplinary proceedings within 90 days. However, no action has been taken till date. According to Clause 20(i) of the Control Order 2018, two reports are required for disciplinary action, as observed by the High Court in Writ Petition No. 500 of 2020. In the present case, the suspension order dated 12.11.2019 refers to only one report, making the order contrary to the provisions mentioned above. Moreover, the suspension order cannot be extended for a period beyond 90 days, irrespective of filing the appeal over the suspension order. Under these circumstances, having no alternative and effective remedy, the petitioner has filed this writ petition.

5. On written instructions, vide Reference No. A/308/2024, dated 01.08.2024, of the Tahsildar (FAC), Proddatur Mandal, the learned Assistant Government Pleader submitted that on 19.10.2019, when the Enforcement Deputy Tahsildar of Proddatur, along with the Food Inspector, visited the petitioner’s shop. They found the following variations in the stock:

Sl. No.

Name of the commodity

OB

Receipts for Sep,19

Total

Stocks distributed

CB as per ePos

Physical stock

Variation

1

Rice

4287.730

5946.999

10234.729

4501.705

5733.023

100.000

(-)5633.023

2

Sugar

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