IN THE HIGH COURT OF CALCUTTA
Rajasekhar Mantha, J.
Nirmal And Navin Private Limited And Others - Appellant
Versus
State Of West Bengal And Others - Respondent
WPO No. 1133 of 2022
Decided On : 22-03-2022
License Violation - Cold Storage - The court dismissed the writ petition challenging the order of the Director of Agricultural Marketing, West Bengal, and directed the cancellation of bail for the petitioners. The court also ordered the immediate cessation of cold storage operations and relocation of stored goods to a licensed facility. The petitioners were held liable for running the cold storage without a license and were ordered to pay costs to the respondent.
Fact of the Case:
The petitioners were running a cold storage without a license since 2008, and despite a pending prosecution, they continued to operate the facility.
Finding of the Court:
The court found the petitioners' conduct to be dishonest and in gross violation of the provisions of the West Bengal Cold Storage (Licensing & Regulation) Act, 1966. The court dismissed the writ petition, directed the cancellation of bail, and ordered the immediate cessation of cold storage operations.
Issues: Violation of cold storage licensing regulations, pending prosecution, and petitioners' audacity in seeking mandamus from a writ Court.
Ratio Decidendi: The court's decision was influenced by the petitioners' continuous operation of the cold storage without a license, despite repeated requests for renewal and a pending prosecution. The court found the petitioners' conduct to be criminal in nature and ordered the immediate cessation of operations.
Final Decision: The writ petition was dismissed, and the petitioners were ordered to pay costs to the respondent. The court directed the cancellation of bail for the petitioners and the relocation of stored goods to a licensed cold storage facility.
JUDGMENT
1. The Court :- The writ petitioners challenge an order dated 28th January, 2022 passed by the Director of Agricultural Marketing, West Bengal acting under the provisions of the West Bengal Cold Storage(Licensing & Regulation) Act, 1966.
2. Admittedly, the petitioners were running the cold storage without a license since the year 2008. The petitioner nos. 2 and 3 are stated to have purchased the cold storage and are in control and management since the year 2013. It appears from the records that repeated requests to the petitioners to renew their cold storage license from the authorities have fallen into deaf ears. Finally, prosecution was launched on the complaint of the Director of Agricultural Marketing, and an FIR was registered being no. 381/2018 dated 20th July, 2018 by the Arambag Police Station.
3. The petitioner Nos. 2 and 3 have been enlarged on bail and claim that as a condition of such bail, they have applied for renewal of their license. The Cold Storage has however been running uninterruptedly all the while.
4. This Court is shocked and surprised to note as to how the petitioners are at all operating the cold storage since the year 2008, and especially after 2013 since they took over management, notwithstanding the prosecution after registration of the FIR. It is utterly dishonest on the part of the petitioners to contend that they, by reason of the license renewal application and by reason of the insurance and electricity payments, are entitled to operate the cold storage. The conduct of the petitioners apart from being in gross violation of the provisions of the aforementioned 1966 Act, are ex facie criminal in nature.
5. The respondent Director, Agricultural Marketing, is hereby directed to apply for cancellation of the bail of the writ petitioners.
6. It is expected that immediate and urgent steps would be taken to stop operation of the cold storage after making due arrangements for the relocation of the stored goods in a separate licensed cold storage. The Arambag Police Station shall render all necessary assistance to the respondent no.4 for executing this order.
7. The petitioners shall be liable for running the cold storage without a license, both to the authorities as well as any third parties from the year 2013.
8. This Court is also shocked at the audacity of the writ petitioners to seek mandamus from a writ Court, after admittedly running a cold storage without any license and despite a pending prosecution against them.
9. In that view of the matter, the writ petition shall stand dismissed with costs assessed at Rs.5,00,000/- payable by the writ petitioners to the respondent no.4.
10. In default of payment of the costs the respondent No.4 shall be entitled to apply before the authorities under the Bengal Public Demand Recovery Act, 1913.
Operating a cold storage without a valid license constitutes a gross violation of the licensing and regulation act, leading to the dismissal of the plea for renewal of the license.
The failure of the authority to respond to renewal applications and the lack of conclusive evidence influenced the court's decision not to quash the proceeding.
A valid license is necessary for operating a business; expired licenses do not confer rights to continue operations.
The main legal point established is the requirement of compliance with time limits for analysis report and recommendation for prosecution, and the need for a separate license for a milk chilling cent....
Criminal proceedings cannot be initiated without valid grounds that exist at the time of issuing the directive.
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