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2005 Supreme(Gau) 847
IN THE HIGH COURT OF GAUHATI (ITANAGAR BENCH)
H.N. Sarma, J.
ERA PDS Nominee Carriage Agency and Ors. - Appellants
Vs.
State of Arunachal Pradesh and Ors. - Respondent
WP (C) Nos. 281 (AP), 297, 367, 368, 384 and 386 of 2005
Decided On: 22.12.2005
For Appellant/Petitioner/Plaintiff: B.C. Das, J. Hussain, M. Linggi, Y.R. Singh, D. Choudhury, A.K. Choudhury, K. Ete, M. Kato and N. Ratan, Advs.
For Respondents/Defendant: C.K. Sharma Baruah, B.L. Singh, A. Apang and T. Pertin, Advs.
The main legal point established in the judgment is that the extension of licenses for periods beyond what was permissible under the relevant laws was illegal. The court also emphasized the need to streamline the Public Distribution System and ensure transparency in the licensing process.
Headnote:
Public Distribution System - Licensing and Renewal - Arunachal Pradesh Public Distribution of Articles Control Order, 1992 - Section 3 of the Essential Commodities Act - [1992, 1955] - The judgment discusses the issuance and renewal of licenses for Public Distribution System (PDS) nominees and carriage contractors in the state of Arunachal Pradesh. The court considered the validity of the licenses, the renewal process, and the authority's decision to cancel the licenses. The judgment also addresses the policy decision of the State Cabinet to appoint fresh contractors through open tenders and cancel irregular contracts. The court found that the licenses were extended for periods beyond what was permissible under the Arunachal Pradesh Public Distribution of Articles Control Order, 1992, and the Essential Commodities Act, 1955. The court upheld the authority's decision to cancel the licenses, citing the need to streamline the Public Distribution System and ensure transparency in the licensing process.
Fact of the Case:
The judgment discusses a batch of writ petitions related to the issuance and renewal of licenses for Public Distribution System (PDS) nominees and carriage contractors in the state of Arunachal Pradesh. The petitioners challenged the authority's decision to cancel their licenses, citing violations of the renewal process and the policy decision of the State Cabinet to appoint fresh contractors through open tenders.
Finding of the Court:
The court found that the licenses were extended for periods beyond what was permissible under the Arunachal Pradesh Public Distribution of Articles Control Order, 1992, and the Essential Commodities Act, 1955. The court upheld the authority's decision to cancel the licenses, citing the need to streamline the Public Distribution System and ensure transparency in the licensing process.
Issues: The main issues addressed in the judgment include the validity of the licenses, the renewal process, the authority's decision to cancel the licenses, and the policy decision of the State Cabinet to appoint fresh contractors through open tenders.
Ratio Decidendi: The court held that the extension of licenses for periods beyond what was permissible under the Arunachal Pradesh Public Distribution of Articles Control Order, 1992, and the Essential Commodities Act, 1955, was illegal. The court also upheld the authority's decision to cancel the licenses, citing the need to streamline the Public Distribution System and ensure transparency in the licensing process.
Final Decision: The court dismissed the batch of writ petitions, finding them devoid of merit, and upheld the authority's decision to cancel the licenses.
H.N. Sarma, J.
1. This batch of writ petitions necessitating analogous decision due to involvement of common question of law almost of similar and identical facts, were heard analogously and is disposed of by a common judgment and order.
Facts in W.P. (C) No. 2005 2 APLJ 384
2. The Petitioner M/s Era PDS Nominee and Carriage Agency is a proprietorial concern represented by its proprietor, the Petitioner No. 2 who was granted a licence on 18.6.1999 vide No. DR/CS/134/99-2000/57 under the provisions of Arunachal Pradesh Public Distribution of Articles order, 1992, appointing as Carriage Contractor/PDS nominee for procurement and distribution of PDS items through the PDS retailers for the Dibang valley district of the State of Arunachal Pradesh. The said licence was renewed from time to time and vide endorsement on the licence dated 15.1.2003 the same was renewed up to 31.3.2006. A deed of agreement dated 31.5.2005 was also executed between the Petitioner and the Deputy Commissioner, Lower Dibang Valley district on 31.5.2005 incorporating the necessary terms and conditions. In view of the aforesaid extension of the licence of the Petitioner and execution of the agreement dated 31.5.2005, appointing the Petitioner as wholesale nominee of PDS articles for the Dibang Valley district, the Petitioner was entitled to be continued the same till 31.3.2006. There is a set of guidelines for appointment of district nominee of PDS items in the State which was issued by the Govt. and forwarded to the concerned Deputy Commissioner by the Secretary (Civil Supplies), Government of Arunachal Pradesh vide letter No. SUP (AQ/IA/95 dated 18.4.1996. As per the said guidelines, a licence should be granted with validity of one year from April to March and it should be renewed before expiry of the validity period of appointment with necessary renewal fees. The Director of Civil Supplies issued a circular No. DCS/MON-90 (A) PP/02 dated 25.11.1994 with the approval of the Govt. to the effect that the PDS wholesale nominees licence are renewed by the district authority without obtaining prior approval of the Govt., which is in violation of the existing Govt. guidelines as in terms of the said guidelines, the licence is to be granted initially for the period of two months and will be renewed with the approval of the Govt. and accordingly, a direction was issued for renewal of such PDS wholesale nominee licence strictly in accordance with the existing guidelines. Again vide letter No. DR/CS-193 (Contract)/2005-06/110-15 dated 26.4.2005, the Petitioner was conveyed with the decision of the Govt., to allow to continue the existing PDS wholesale nominee licences on the existing terms and conditions till finalization of the new guidelines for appointment of PDS wholesale nominees. The Director of Civil Supplies again vide letter No. DCS/PDC-1/R/2002 Pt. dated 26.5.2005 intimated the Deputy Commissioner, Lower Dibang Valley district that the licence in respect of the Petitioner had the validity of which up to 31.3.2005 was extended to 31.3.2006 without any Govt. approval. In the said letter, it is further stated that renewal of the wholesale licence in respect of the Petitioner should be cancelled immediately as it was not done as per the laid down procedure.
3. By another letter No. DR/CS/49/2005- 06/944 dated 16.6.2005, further instruction was issued by the Director of Civil Supplies to the Deputy Commissioner, Lower Dibang Valley district for taking appropriate action against the concerned officer for renewing the licence without proper authority of the Govt. In the said letter, it is also mentioned that Govt. has decided to terminate all the existing nominees appointed without open tenders to both the carriage contracts and transportation and necessary instructions issued by the Secretary (Civil Supplies) to the concerned Deputy Commissioners to that effect. Thereafter a show-cause notice was issued to the Petitioner by the Deputy Commissioner vide No. DR
