SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1982 Supreme(Pat) 145

PATNA HIGH COURT
P.S.Sahay and Satya Brata Sanyal JJ.
Govind Saran And Sons
Versus
State Of Bihar
Civil Writ Jurisdiction Case No. 1028 of 1977 ;
Decided On : NOVEMBER 23, 1982

Headnote:Constitution of India, Art. 226, Natural Justice, Fertilizer Control Order 1957, Cl. 17 & 18(c) - Irregularities in maintenance of accounts - Suspension of registration certificates pending disposal of Criminal Cases - No such power conferred in the statute or the contract - Interim order of suspension does not fall under Cl. 17(1) and is without jurisdiction - Appeal under Cl. 18(c) does not lie - Person aggrieved must be given an opportunity of hearing before an order of suspension is passed to meet the demand of natural justice. (Relied on A.I.R. 1970 S.C. 1494, A.I.R. 1959 SC 1342, C.W.J.C. 27/74 Dated 9.1.74. C.W.J.C. 1110/75 Dt. 21.4.1976. C.W.J.C. 771/75 Dt. 3.6.76)

       (Paras 8, 9, 10)

       Constitution of India Art. 226 - Alternative remedy - Suspension of Licence pending Criminal Trial - Statute providing appeal against suspension - Order of suspension is illegal & void and in breach of principles of natural justice - Objection raised after the admission of the writ application - Objection over ruled and order quashed-Alternative remedy not a bar in all cases. (Paras 10)

       

Judgment

Satya Brata Sanyal, J.

1. These two writ petitions C.W.J.C. No. 1028 of 1977 and C.W.J.C. No. 1014 of 1977 have been taken up together as the points involved in these writ petitions are common. This judgment, therefore, will govern both the cases.

2. In C.W.J.C. No. 1028 of 1977 the petitioner assails Annexure and 2 and in C.W.J.C. No, 1014 of 1977 the prayer is for quashing Annexure 1 and 8. These Annexure relate to an order of suspension of the petitioners registration certificate bearing No. 40/76-77 (in C.W.J.C. No. 1028 of 1977) and registration certificate No. 4-F/72-73 (in C.W.J.C. No. 1014 of 1977) issued under Clause 7 of the Fertilizer Control Order, 1957 (hereinafter to be referred to as the Order) a central order issued under Sec.3 of the Essential Commodities Act, 1955 (hereinafter to be referred to as the Act).

3. The only relevant fact common to both the cases, is that there has been an inspection of the shops pertaining to the said two registration certificates, by the inspecting authorities and certain irregularities were detected in the maintenance of the Accounts. Thereafter, criminal cases under Section 7 of the Act have been instituted against the dealers, which are pending disposal before the Criminal Courts. In view of the pendency of the said criminal cases, the authorities suspended the registration certificates and further directed that the two firms/dealers be not allotted any fertilizer by the wholesale dealers.

4. Mr. Rameshwar Prasad No. II, learned Counsel appearing for the petitioners in both the cases, drew my attention to Clauses 6, 7 and 17 of the Order, which read as follows: 6. Applications for registration: Every person desiring to obtain a certificate of registration for selling fertilizer under this Order shall make an application in duplicate to the Registering Authority in Form A together with the fee for the registration and a certificate from the manufacturer whom he represent or intends to represent or from the State Government or a Commodity Board indicating the source from which the fertilizer will be obtained. Provided that a certificate of registration shall not be granted to a person who--

(a) has been convicted for any offence under the Essential Commodities Act, 1955 (10 of 1955) or any order made there under within three years preceding the date of application;

(b) fails to enclose with the application a certificate from the manufacturer, the State Government, or a Commodity Board "as required under Clause 6.

... ... ... ...

7. Grant and refusal of registration: The Registering authority shall grant a certificate of registration in Form B within thirty days of the receipt of the application to any person who applies for it under Clause 6.

Provided that where a certificate of registration granted under this order is suspended or cancelled under Clause 17, the Registering authority shall not grant a new certificate of registration during the period of such suspension or for a period of one year from the date of such cancellation.

... ... ... ...

17. Power to cancel registration certificate.-- A registering authority may, after giving the holder of a certificate of registration, an opportunity of being heard, cancel or suspend the certificate of registration on any of the following grounds, namely: (a) that the certificate of registration had been obtained by misrepresentation to a material particular; and

(b) that any of the provision of the Order or any condition of the certificate of registration has been contravened.

Relying on the said provisions, he submits: (a) Under the aforesaid clause registration certificate could be cancelled or suspended for reasons enumerated in Clause 17. Pendency of a criminal case is not one of the conditions attracting cancellation or suspension of the certificate;

(b) The law envisages cancellation or suspension of the registration certificate by way of punishment only and that too, after following the principles of natural justice. I
























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top