IN THE HIGH COURT AT CALCUTTA
AMRITA SINHA, J.
Benimadhab Chatterjee – Appellant
Versus
State of West Bengal & Ors. – Respondents
WPA 13536 of 2021
Decided on : 29-09-2021
Indian Penal Code, 1860 – Essential Commodities Act, 1955 – Food and Supplies Department – Allegedly smuggled – Criminal Case – Suspension of license – Guilty in criminal proceeding – Held, Petitioner was covered by Essential Commodities Act, he will be punished, if found guilty, in accordance with provisions of said Act – If petitioner is found guilty in criminal proceeding, he will be dealt with appropriately in accordance with criminal law – Punishment in the departmental proceeding is awarded in accordance with Control Order and not in accordance with criminal law – In departmental proceeding authority concerned is to act in accordance with statutory law governing field – Department may impose fine as mentioned in Schedule A of Control Order, 2013 – Licence may be terminated or the volume of business may be reduced – Appellate authority cannot continue to keep a licensee under suspension for an indefinite period – WPA disposed of.
JUDGMENT :
Amrita Sinha, J.
1. The petitioner is a licensed Fair Price Shop owner. He is aggrieved by the order dated 16th July, 2021 passed by the Director of Rationing, West Bengal whereby his license has been placed under suspension till disposal of the pending criminal case.
2. The brief facts of the case are as follows:
3. Rice and wheat grains under the Public Distribution Scheme were seized by the police authority when those were allegedly smuggled from the Fair Price Shop of the petitioner to a private shop on 25th April, 2020. FIR was lodged by the Food and Supplies Department before the Durgapur police station under the provisions of the Indian Penal Code and the Essential Commodities Act, 1955. The petitioner was arrested on the same day and his license was put under suspension. The ration cards of his Fair Price Shop were tagged with the nearest Fair Price Shop.
4. The petitioner was granted bail by the District Court on 11th May, 2020. After being enlarged on bail, the petitioner applied before the Licensing Authority i.e; the Rationing Officer praying for a direction to resume his business. By an order dated 24th June, 2020 the Rationing Officer terminated the license of the petitioner. Being aggrieved by the order of the Rationing Officer he preferred an appeal before the Deputy Director of Rationing. The said appeal was disposed of by an order dated 4th August, 2020 upholding the order passed by the Rationing Officer.
5. Being aggrieved by the said order the petitioner preferred a second appeal before the Director of Rationing. The Director, by an order dated 16th July, 2021, was of the opinion, that the order of termination passed by the Licensing Authority on 24th June, 2020 warrants modification and instead of termination, the license of the appellant was placed under suspension till disposal of the pending criminal case, so that an honourable acquittal may enable the petitioner to seek for revocation of suspension and recalculation of shortfall.
6. The Director directed the Licensing Authority to maintain a suspense account with the stock of rice and wheat stored in the separate room adjacent to the Fair Price Shop and arrange for sending samples of rice and wheat from the stock to the Directorate to find out whether the food grains are fit for distribution. If the stock is found fit for distribution, the Licensing Authority shall arrange for distribution of the same through the Fair Price Shops and the damage stock, if any, to be disposed of as per the Government norms. The Licensing Authority was directed to impose fine upon the petitioner based on the recalculated shortfall and to direct the petitioner to replenish the amount of damage stock, if any, at his own cost. On deposit of the fine and replenishment of damage stock, if any, the Licensing Authority shall revoke the suspension of the license of the petitioner and restore the dealership business as it existed prior to 25th April, 2020.
7. The petitioner is aggrieved by the same.
8. The petitioner relies upon paragraph 24 of the West Bengal Public Distribution System (Maintenance and Control) Order, 2013, hereinafter referred to as the ‘Control Order’. It has been submitted that the order of suspension can be passed only during the pendency of the proceeding. As the appeal preferred by the petitioner has been disposed of finally by the appellate authority, accordingly, there is no scope to continue with the order of suspension. Control Order permits the authority to impose penalty by terminating the license or reduction in the volume of business or imposition of fine according to gravity of the offence.
9. Petitioner submits that the criminal proceeding which is pending before the District Court may take considerable time to be disposed and the petitioner ought not to remain under suspension till conclusion of the criminal proceeding. The petitioner submits that if any shortfall is assessed, he may pay the fine as directed.
10. The petitioner relies upon the ju
Brajendrasingh vs State of Madhya Pradesh; AIR 2012 SC 1552
Md. Yeasin & Ors. vs State of West Bengal & Ors.; 2006 (3) CHN 655
SupremeToday
A suspended license under the Assam Public Distribution of Articles Order must have timely cancellation proceedings initiated within 90 days; otherwise, the suspension becomes invalid.
The main legal point established in the judgment is that the licensee of a fair price shop is required to strictly adhere to the terms and conditions of the license and the provisions of the Control ....
The petitioner lacked locus standi to challenge the suspension of licenses of retail distributors, and the principles of natural justice were upheld in the proceedings.
A suspension of a license under statutory orders must comply with time limitations. If a show-cause notice for cancellation is not issued within the mandated ninety-day period, the suspension order a....
The disciplinary authority must conduct a fair enquiry and consider the dealer's explanation before suspending authorization, in compliance with the relevant provisions of the Control Order, 2018.
The cancellation of a licence based on an order that was not in existence at the time of cancellation is null and void. Violation of principles of natural justice in the cancellation process requires....
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