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2024 Supreme(AP) 1228

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Venkateswarlu Nimmagadda, J.
Smt. B M Kondamma - Petitioner
Versus
The State of AP and ors. - Respondents
Writ Petition No. 1397 of 2023
Decided On : 12-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: M Siva Kumar.
For the Respondent: GP For Civil Supplies.

IMPORTANT POINT
Suspension of fair price shop authorization requires adherence to principles of natural justice, including proper enquiry and reasoned decisions.

Headnote:

(A) Constitution of India - Article 226 - Writ of Mandamus - Suspension of fair price shop authorization - The petitioner challenged the suspension order citing violations of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 and principles of natural justice. The court found that the authority failed to conduct a proper enquiry and did not provide reasons for the suspension, violating the principles of natural justice. (Paras 10, 12, 16)

(B) Fair Price Shop Authorization - The court emphasized the necessity of a fair hearing and proper enquiry before suspending a fair price shop dealer's authorization, reiterating that such actions must not be taken lightly or without substantial evidence. (Paras 18, 19)

Facts of the case:

The petitioner, a fair price shop dealer, was suspended based on allegations of stock irregularities without a proper enquiry or consideration of his explanation.

Findings of Court:

The court ruled that the suspension order was unsustainable due to lack of proper enquiry and reasoning.

Issues: The main issue was whether the suspension of the fair price shop dealer's authorization was justified without a proper enquiry.

Ratio Decidendi: The court held that the authority must adhere to the principles of natural justice and conduct a proper enquiry before suspending a dealer's authorization.

Result: Writ petition allowed; suspension order set aside.

ORDER :

Venkateswarlu Nimmagadda, J.

The present Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:

    "... to issue a writ order or direction more particularly one in the nature of Writ of Mandamus, declaring the action of the 4th Respondent in suspending the authorization of the petitioner FP ShopNo.1112015, Rachayapeta Village, Gopavaram Mandal, Y.S.R. Kadapa District in Case Ref.No.C/509/2022 dated 30.11.2022, is illegal, arbitrary, violation of Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 and violation of the principles of natural justice and consequently set aside the same and pass such other order or orders ..."

2. The case of the petitioner is that he was appointed as fair price shop dealer in respect of Fair Price Shop No.1112015, Rachayapeta Village, Gopavaram Mandal, Y.S.R. Kadapa District in the year 1993. The authorization of the petitioner has been renewed from time to time and it is still subsisting. The petitioner is continuting as fair price shop dealer for the above said shop and distributing essential commodities to the card holders in the village without any remarks and complaints. While so, the Respondent authorities inspected the petitioner's shop on 28.10.2022 and found some variations in the PDS commodities.

3. The Joint Collector / Respondent No.3 issued show cause notice dated 11.11.2022 framing single charge alleging that the petitioner has committed certain irregularties and seized the stock. The petitioner submitted his explanation on 26.11.2022. However, Respondent No.4 issued impugned proceedings in Ref.No.C/509/2022 dated 30.11.2022 cancelling the authorization of the petitioner without conducting proper enquiry and without considering explanation of the petitioner dated 26.11.2022. Hence the writ petition.

4. Respondent No.4 / RDO, Badvel, YSR Kadapa District filed counter affidavit wherein it is stated that the Enforcement Deputy Tahsildar, Badvel and the Mandal Revenue Inspector, Gopavaram Mandal inspected the subject shop and found certain variations in the stock. Further he submitted report to the Respondent No.3 to take action under section 6 (A) of the Essential Commodities Act, 1955 (for short "the EC Act, 1955"). Later, Show Cause notice dated 11.11.2022 was issued to the petitioner and opportunity of personal hearing was afforded. As the explanation of the petitioner was not satisfactory, the impugned proceedings were issued cancelling the authorization of the petitioner and prayed to dismiss the writ petition.

5. It is contended by the learned counsel for the petitioner that the fair price shop of the petitioner was inspected by Enforecement Deputy Tahsildar, Badvel and the Mandal Revenue Inspector, Gopavaram Mandal, alleging variation in the stock, they seized the stock available in the shop, pursuant to panchanama dated 28.10.2022. Basing on the panchanama submitted by the inspecting officials, 6A proceedings were initiated by the Respondent No.3 and Respondent No.4 also issued show cause notice dated 11.11.2022 to the petitioner by framing a single charge and called for explanation. Charge No.1 is that the petitioner has violated condition 21(c) of Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 (for short "the Control Order, 2018") by diverting the stock of Essential Commodities to black market due to which shortage i.e. (-) 6350 Kgs occurred in the stocks of PDS Rice, when compared the statement of ePoS device with ground stock. Thus the petitioner contravene the provisions of the Control Order, 2018 and submitted detailed explanation, narrating the real ground stock at shop at the time of inspection.

6. In the explanation, the petitioner / dealer denied the charge and submitted that the Government had notified 7585 qunitals and 2230 quintals of backlog rice for the month of October, 2022 for the petitioner Shop No.1112015. Total is 9815 qunitals, but the rice distributed to t

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