The court reaffirmed that procedural fairness and adherence to guidelines are essential in administrative actions related to subsidy eligibility, mandating a fresh hearing and review process.

JUDGMENT :

SACHIN DATTA, J.

1. The present petitions have a chequered history inasmuch as a total of six writ petitions (including the present petitions) have been filed in respect of the same cause of action. The factual background is set out briefly hereunder.

2. The petitioner is a MSME Undertaking, manufacturing Single Super Phosphate (SSP) Fertilizer in West Bengal, India. The petitioner acquired the requisite license for the sale of the said fertilizer under the Fertilizer Control Order, 1985 (hereinafter referred to as ‘the FCO’). By virtue of an Office Memorandum dated 10.09.2007, the petitioner was inducted into a Concession Scheme dated 01.10.1992, which was subsequently substituted by the Nutrient Based Subsidy Scheme (hereinafter referred to as ‘NBS Scheme’).

3. As a manufacturer, the petitioner sells its products in the open market at the rates prescribed by the Government of India and receive subsidy under the NBS Scheme.

4. The petitioner’s premises were inspected on 20.12.2023 and 21.12.2023, whereupon an inspection report came to be prepared. Based on this report, a show cause notice dated 03.01.2024 came to be issued. However, a copy of the inspection report was not shared with the petitioner. Consequently, the petitioner filed writ petition being W.P.(C) 1586/2024 before this Court. However, even before the said writ petition could be taken up, a copy of the inspection report was shared with the petitioner rendering the said writ petition infructuous.

5. The petitioner filed another writ petition being W.P.(C) 2898/2024 before this Court being aggrieved by the fact that prior to expiry of the time afforded to the petitioner to file a response to the show cause notice, an order came to be passed by the Department of Fertilizers (‘hereinafter referred as ‘the DoF’) on 23.02.2024 removing the petitioner from the NBS Scheme. The aforesaid writ petitions were disposed of vide order dated 28.02.2024. The same reads as under:-

“1. The Petitioner has approached this Court challenging the Order dated 23.02.2024 passed by the Respondents by which the Petitioner’s name has been removed from the Nutrient Based Subsidy Policy.

2. It is stated by the learned Senior Counsel for the Petitioner that the aforesaid Order dated 23.02.2024 has been passed subsequent to issuance of a Show Cause Notice dated 03.01.2024 which is the subject matter of challenge in the W.P.(C) 1586/2024. It is the contention of the learned Senior Counsel for the Petitioner that the Show Cause Notice dated 03.01.2024 gave 15 days’ time to the Petitioner to file a response to the Show Cause Notice. He states that the Show Cause Notice dated 03.01.2024 was received by the Petitioner without a copy of the report which was finally supplied to the Petitioner on 09.01.2024. He states that without the period of filing the response to the Show Cause Notice coming to an end, the Termination Order has been passed by the Respondents.

3. Learned CGSC appearing for the Respondents, on instructions from the Department, states that the Termination Order shall be kept in abeyance till 03.03.2024 and the Petitioner will be given an opportunity to file a response to the Show Cause Notice dated 03.01.2024.

4. Learned Senior Counsel appearing for the Petitioner states that the Petitioner should be given at least 10 days’ time to file a response to the Show Cause Notice.

5. Considering the facts and circumstan