IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
VENKATESWARLU NIMMAGADDA, J.
K. Vijayashanthi – Petitioner
Versus
The State of Andhra Pradesh and Others – Respondents
Writ Petition No. 4718 of 2024
Decided On : 26-02-2024
(A) Article 226 of the Constitution of India - Writ petition seeking to declare the order cancelling authorization of a fair price shop dealer as illegal and arbitrary - The court emphasized the necessity of adhering to principles of natural justice and conducting a proper enquiry before passing adverse orders against a dealer. (Paras 1, 7, 10, 11)
(B) Quasi Judicial Authority - The authority must provide an opportunity of hearing and record reasons for its decisions, failing which the order is unsustainable. (Paras 5, 9)
Facts of the case:
The petitioner, a fair price shop dealer, challenged the cancellation of her authorization without following due procedure or providing an opportunity for a hearing.
Findings of Court:
The court found that the impugned order was passed without observing principles of natural justice and remanded the matter for fresh enquiry.
Issues: The main issues were the legality of the cancellation order and adherence to natural justice principles.
Ratio Decidendi: The court ruled that a proper enquiry must be conducted, ensuring the dealer's right to a fair hearing and the recording of reasons for decisions.
Result: Writ petition disposed of; order set aside and remanded for fresh enquiry.
ORDER :
1. This writ petition is filed under Article 226 of the Constitution of the India seeking the following relief:
2. Heard learned counsel for the petitioner and learned Government Pleader for Civil Supplies appearing for the respondents. Perused the material available on record.
3. Learned counsel for the petitioner submits that the petitioner herein is a permanent fair price shop dealer appointed in respect of the shop No. 0202001, Bibbidi Village, Gummadilakshmipuram Mandal, Parvathipuram Manyam District and had obtained authorization issued under Clause 8 of Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018. The said authorization is valid upto 31.03.2020 and thereafter the petitioner paid renewal chalans from time to time for renewal of her authorization.
4. While things stood thus, the Sarpach of the village made a compliant before the 3rd respondent alleging that the petitioner has not issued PMGKY free rice to 502 card holders for the month of December, 2022 and not issued PDS rice to the cardholders for the month of May and June, 2023. Basing on the said complaint the 3rd respondent herein issued a show cause notice dated 03.11.2023 calling for explanation regarding the alleged allegations. In response to the same, the petitioner herein submitted her explanation on 11.12.2023 stating the subject PDS rice was delivered to the MDU operator for distribution. Without considering the said explanation, the 3rd respondent issued directly issued impugned order dated 22.01.2024 cancelling the authorization of the petitioner herein.
5. Learned counsel for the petitioner further submits that the said impugned order was passed without application of mind. He further submits that no reasons were assigned while passing the order of cancellation being a quasi judicial authority, which is also contrary to the ratio laid down by this Court.
6. Learned Government Pleader for Civil Supplies fairly conceded that, impugned proceedings appears to have been passed, without providing any opportunity of hearing to the petitioner and sought to remand the matter for fresh adjudication, in view of non-observation of principles of natural justice.
7. Having regard to the submissions made by the learned counsel for the petitioner and learned Government Pleader for Civil Supplies and on perusal of the material placed on record, it appears that the impugned proceedings are issued by the respondents without observing the principles of natural justice and without following due procedure as contemplated under law. It is a settled principle of law that a quasi judicial authority should adhere to the principle of affording reasonable opportunity to the parties before passing any orders. The said principle is enunciated by this Court as extracted under.
8. This Court in B. Manjula vs. District Collector, Civil Supplies, Kurnool and Others, 2015 (4) ALT 572 observed as extracted hereunder:
B. Manjula vs. District Collector, Civil Supplies, Kurnool and Others
A quasi-judicial authority must adhere to principles of natural justice, providing a fair hearing and recording reasons before passing adverse orders.
The cancellation of a fair price shop dealer's authorization must adhere to natural justice and inquiry procedures, ensuring a fair hearing and proper assessment of justifications.
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