IN THE HIGH COURT OF CALCUTTA
Moushumi Bhattacharya, J.
Bipatarini Agency And Another - Appellant
Versus
State Of West Bengal And Others - Respondent
W.P.A 17930 of 2021
Decided On : 06-09-2022
M.R. Distributorship - Challenge to License Issued - West Bengal Public Distribution System (Maintenance & Control) Order, 2013 - Summary of Acts and Sections: The court discussed the West Bengal Public Distribution System (Maintenance & Control) Order, 2013 and the Division Bench judgment of 9.10.2020 in FMA 913 of 2020 (Kultali Food Marketing Pvt. Ltd. vs. State of West Bengal) which influenced the decision.
Fact of the Case:
The dispute involved the rejection of the petitioners' application for M.R. Distributorship and the subsequent award of the distributorship to the respondent no. 8. The court found lack of transparency and accountability in the decision-making process by the State authorities.
Finding of the Court:
The court found substance in the grievance of the writ petitioners and allowed the petition, cancelling the license awarded to the respondent no. 8 and directing the State respondents to consider the applications of the petitioners and any other eligible applicant afresh.
Issues: The rejection of the petitioners' application, lack of transparency in the decision-making process, and the award of distributorship to the respondent no. 8 were the key issues.
Ratio Decidendi: The court's decision was influenced by the lack of transparency and accountability in the decision-making process by the State authorities, and the failure to provide reasons for rejecting the petitioners' application.
Final Decision: The court allowed the petition, cancelling the license awarded to the respondent no. 8 and directing the State respondents to consider the applications of the petitioners and any other eligible applicant afresh.
JUDGMENT
Moushumi Bhattacharya, J. - The dispute in the present writ petition relates to the creation of a M.R. Distributorship in Purba Bardhaman district of West Bengal where the petitioner no.1 and the respondent no. 8 are the rival applicants. The petitioners seek a mandamus on the State respondents to cancel the license issued to the respondent no. 8 for such Distributorship. By the impugned documents dated 9.11.2021 and 11.11.2021, the respondent no. 8 (Sonai Food Marketing) was authorised to act as Distributor under the West Bengal Public Distribution System (Maintenance & Control) Order, 2013 and the Director, Department of Food & Supplies was asked to accord online approval in favour of the respondent no. 8.
2. A brief outline of the proceedings filed by the petitioner no. 1 and the respondent no. 8 in relation to allocation of the M.R Distributorship is necessary before alluding to the contentions of the parties.
3. A vacancy Notification for the appointment of M.R. Distributor at Surekalna in the district of Purba Bardhaman was published on 23.7.2018. This was superseded by another Notification dated 9.1.2019. Both the publications were issued by the office of the District Controller, Food & Supplies, Purba Bardhaman. The concerned State respondents received nine applications including from the petitioner no. 1 and the respondent no. 8. However, the vacancy Notification was cancelled on 7.8.2019 by an order of the Department of Food and Supplies. This cancellation was challenged by the respondent no. 8 in WPO 360 of 2020 which was allowed by a learned Single Judge by a judgment dated 18.12.2020. The Court set aside the order dated 7.8.2019 by which the second vacancy Notification was cancelled and directed the respondent authorities to process the application of the respondent no. 8 for engagement as M.R. Distributor in accordance with law. The learned Judge relied on a Division Bench judgment of 9.10.2020 in FMA 913 of 2020 (Kultali Food Marketing Pvt. Ltd. vs. State of West Bengal) in coming to the conclusion that the order of 7.8.2019 pertaining to cancellation of engagement of M.R. Distributor was not proper.
4. The concerned respondents considered the application received for M.R. Distributorship pursuant the judgment dated 18.12.2020, but found the applications of the petitioner no. 1 and the respondent no. 8 to be ineligible. Aggrieved by the decision, the petitioners filed a writ petition being WPA No. 5843 of 2021 praying for appointment of the petitioner. The said writ petition was taken up for hearing by a learned Judge and by an order dated 3.3.2021, the Court gave directions for affidavits and clarified that in the event the State respondents engaged any distributor with reference to the subject matter of the writ petition, the said act will not create any equity in favour of the engaged distributor.
5. The respondent no. 8 filed WPA No. 4928 of 2021 challenging the rejection of its application. The said writ petition was finally dismissed by a judgment and order dated 30.4.2021. The aforesaid judgment was challenged by the respondent no. 8 and the appeal was allowed by the Division Bench by its judgment dated 26.8.2021 whereby the order of the Single Bench was set aside and the State respondents were directed to process the application of the respondent no. 8 for M.R. Distributorship in accordance with law. The State respondents considered the application of the respondent no. 8 in terms of the order of the Division Bench (according to the State respondents) and issued the M.R. Distributorship to the respondent no. 8 on 9.9.2021.
6. The issue of license to the respondent no. 8 is the subject matter of challenge in the present writ petition.
7. The basis of the petitioners' grievance is two-fold. First, the selection of the respondent no. 8 as M.R. Distributor for the particular block in Purba Bardhaman and second, the rejection of the petitioners' application for the said distributorship. Learned Counsel appe
A.P. SRTC vs. G. Srinivas Reddy; (2006) 3 SCC 674
Bahadursinh Lakhubhai Gohil vs. Jagdishbhai M. Kamalia; (2004) 2 SCC 65
The main legal point established in the judgment is the interpretation of eligibility criteria for M.R. Distributorship, including the term 'group of individuals as an entity' and the inapplicability....
The main legal point established in the judgment is that the rejection of an application for distributorship should be based on valid and sustainable grounds in accordance with the legal framework, a....
The rejection of applications for distributorship based on criteria not included in the statutory framework is ultra vires and violates principles of natural justice.
The court established that the conditions added in the new vacancy notice were ultra vires and violated the principles of natural justice.
Misuse of statutory power by the respondent authorities and the vitiation of the order dated April 8, 2015 by fraud.
The court emphasized the need for proper reasoning and consideration of facts in administrative decisions, and highlighted the importance of interpreting and applying relevant provisions of the Contr....
The refund of application money does not create estoppel, and applicants have a right to be considered for distributorship. Cancellation of vacancies without citing cogent grounds is unjustified.
The main legal point established in the judgment is the requirement for the Licensing Authority to provide reasoned decisions, consider specific pleas and evidence, and adhere to principles of natura....
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