IN THE HIGH COURT OF JUDICATURE AT PATNA
A. ABHISHEK REDDY, J.
CWJC No. 10686 of 2022
(21.1.2025)
Md. Mumtaz Ahmad @ Syed Mumtaz Ahmad ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Public Distribution System – Cancellation of PDS fair price Shop License – In view of PDS (Control) Order, 2001 read with Rule 7 of notification in G.S.R. No. 1 dated 20.02.2007, mere institution of First Information Report would not constitute a valid ground for cancellation of PDS licence – Impugned letter and order set aside – Supplies to petitioner shall be restored without delay – In case, petitioner is subsequently convicted in criminal case instituted against him, thereafter, authorities are free to take necessary action in accordance with law – Writ Petition allowed. (Paras 5 to 9)
ORDER
Heard learned counsel for the parties.
2. The present Writ Petition has been filled for the following reliefs:—
“(i) To issue Writ of Certiorari or any other appropriate Writ order to set aside the order contained in Memo No. 175 dated 22.07.2021 (Annexure- 4) to the extent whereby Respondent No. 4 has cancelled the PDS fair price Shop License No. 18/16 issued to the Petitioner.
(ii) To issue Writ of Certiorari or any other appropriate Writ order to set aside the cryptic show cause notice contained in Memo No. 158 dated 09.07.2021 (Annexure- 3) issued to the Petitioner by the Respondent No. 4.
(iii) To issue consequential Writ of Mandamus or any other appropriate Writ order direction directing the Respondents particularly Respondent No. 3 to 5 to immediately restore the aforesaid PDS fair price Shop with supplies, issued to the petitioner.”
3. Learned counsel for the petitioner submits that the solitary ground given in the show cause notice dated 09.07.2021 vide Memo No. 58 for cancelling the PDS licence of the petitioner was that an First Information Report (F.I.R.) bearing Paharpur P.S. Case No. 97 of 2020 had been instituted against the petitioner. Similarly, the impugned order has been passed on the sole ground of institution of the aforesaid FIR against the petitioner.
4. Learned counsel for the respondents appears and has been heard.
5. Having heard the parties and on consideration of the materials on record, this Court finds merit in the writ petition. A perusal of the PDS. (Control) Order, 2001 read with Rule 7 of the notification in G.S.R. No. 1 dated 20.02.2007 makes it clear that mere institution of a First Information Report would not constitute a valid ground for cancellation of the PDS licence. This view finds support from the decision of this Court in Umesh Ram vs. The State of Bihar and others, AIR 2014 Patna 113 as well.
6. In view of the above, the impugned letter dated 09.07.2021 (Annexure-3) is hereby quashed and consequently the order dated 22.07.2021 (Annexure-4) is also set aside.
7. Needless to say, supplies to the petitioner shall be restored without delay.
8. It is made clear that, in case, the petitioner is subsequently convicted in the criminal case instituted against him, thereafter, the authorities are free to take necessary action in accordance with law.
9. With the above directions, the Writ Petition stands allowed to the extent indicated.
The mere institution of a First Information Report does not constitute a valid ground for the cancellation of a Public Distribution System license, stressing the need for due process.
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