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2024 Supreme(Pat) 308

IN THE HIGH COURT OF JUDICATURE AT PATNA
K. VINOD CHANDRAN, C.J., HARISH KUMAR, J.
Shiv Shankar Singh @ Shankar Singh S/o Ramvriksh Singh – Appellant
Versus
The State of Bihar – Respondent
Letters Patent Appeal No.167 of 2022 In Civil Writ Jurisdiction Case No.8159 of 2020
Decided on : 03-04-2024

Advocates:
Advocate Appeared:
For the Appellant :Mr. Bhaskar Shankar, Advocate
For the Respondent: Mr. S. Raza Ahmad, AAG-5

IMPORTANT POINT
The court established that adherence to principles of natural justice and a thorough inquiry process are essential in administrative decisions regarding the cancellation of licenses.

Headnote:

NATURAL JUSTICE - CANCELLATION OF LICENSE - The court upheld the cancellation of a fair price shop license, emphasizing the adherence to principles of natural justice and the sufficiency of the inquiry process. The court found that the petitioner was given adequate opportunity to respond to the show cause notice and that the decision was based on substantial evidence of irregularities and corrupt practices, thus affirming the lower court's ruling.

Fact of the Case:

The appellant challenged the cancellation of his license for running a fair price shop, arguing he was denied sufficient time to respond to the show cause notice and was not given a hearing before the cancellation.

Finding of the Court:

The court found that the petitioner had adequate opportunity to respond, as evidenced by a detailed 52-page reply to the show cause notice. The inquiry revealed substantial irregularities, including failure to supply foodgrains and overcharging for kerosene.

Issues: Whether the petitioner was denied natural justice by not being given sufficient time to respond to the show cause notice and whether the cancellation of the license was justified based on the evidence presented.

Ratio Decidendi: Judicial review is not an appeal but a review of the decision-making process. The court confirmed that the licensing authority followed the necessary procedures and principles of natural justice, and the decision was supported by substantial evidence.

Final Decision: The Letters Patent Appeal was dismissed as it lacked merit.

JUDGMENT :

HARISH KUMAR, J.

We have heard learned Advocate for the appellant and the learned Government Advocate representing the State. The order/judgment of this Court dated 07.04.2021 passed by the Learned Single Judge in CWJC 8159 of 2020, whereby the challenge of the writ petitioner against the cancellation of his license for running a fair price shop vide no. 68/2018 under the provision of Bihar Targeted Public Distribution System (Control) Order, 2016 has not found favour, leading to the above appeal against the dismissal of the writ petition.

2. The Learned Advocate representing the writ petitioner-appellant herein while questioning the orders/judgment of the learned Single Judge has submitted that from the record it would be manifest that the writ petitioner has been allowed only three days time to file reply to the show cause notice and thus, he has been denied sufficient opportunity to defend his case. That apart the writ petitioner was also denied his right of hearing before passing the impugned order of cancellation of license, for running a fair price shop and for the said reason, the impugned action of the respondents required interference, but the learned Single Judge failed to consider the same and rejected the contention of the petitioner.

3. It was also argued before us that the respondent authority has failed to show any violation by the writ petitioner of any terms of license or any provision under the control order or the Act which could have attracted the power of cancellation of license.

4. On the other hand, learned Advocate for the State referring to the order/judgment passed by the learned Single Judge has submitted that each of the contention of the petitioner has been explicitly dealt with while dismissing the writ petition.

5. The Government Advocate further drew the attention of this Court to the fact that besides the aforesaid facts there is a delay of three hundred thirty eight days in preferring the present Letters Patent Appeal and no plausible reason except the plea of Covid-19 pandemic has been assigned.

6. Having heard the rival submissions and careful consideration of the order/judgment of the learned Single Judge, this Court finds that on complaints received by the licensing authority, an enquiry was conducted surfacing irregularities and corrupt practices against the petitioner, who was involved in the Public Distribution System of essential foodgrains, while the entire nation was facing the wrath and shock of Covid-19 pandemic.

7. The enquiry report which is the part of the show cause notice reflects that the beneficiaries who were interrogated, disclosed that the petitioner was not supplying the foodgrains and many of them had not received the same for certain period. Some of the beneficiaries also made allegation that the writ petitioner was found to indulge in corrupt practice of charging more amount for supply of kerosene oil and other articles than the fixed amount.

8. The enquiry report led to issuance of show cause notice, asking the writ petitioner to submit his reply within three days, which was duly replied to by the writ petitioner. At no point of time the petitioner prayed for any additional time to file a proper and adequate reply nor does the show cause reply reflects any such prayer.

9. All the more, the learned Single Judge has taken note of the fact that the show cause reply runs into fifty-two pages, containing various enclosures, dealt with point wise charges as contained in show cause notice. The show cause notice and the explanation/reply of the petitioner is produced as Annexure 2 and 3 to the writ petition. In such premise, the writ petitioner-appellant shall not be allowed to take the plea of prejudice caused to him, for reason only of insufficient time to reply or make a defence.

10. The learned Single Judge while negativing the prayer of the writ petitioner, has also found that the impugned order of cancellation of license for running a fair price shop, is based on the

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