THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Manish Choudhury, J.
Saha Alom Laskar, Fair Price Shop Dealer [Licence No. 2645] C/o The Secretary, M/s Mongalpur-Bowalihawar Cooperative Society Ltd. Cachar, Silchar - Appellant
Vs.
The State of Assam To be Represented by the Commissioner and Secretary To the Government of Assam, Food and Civil Supplies and Consumers Affairs Department, Dispur, Guwahati-6. - Respondent
W.P.(C) No. 7474 of 2022
Decided On : 22-03-2023
Constitution of India, 1949 – Article 226 – Assam Public Distribution of Articles Order, 1982 – Clauses 10, 14, 15, 18, 20, 25, 26 – Essential Commodities Act, 1955 – Exclusion of Writ – Power of High Court to issue certain writs – Petitioner has instituted this writ petition assailing an order passed by respondent whereby Retail License bearing issued to petitioner earlier as a retail licensee to operate a Fair Price Shop has been cancelled – Held, Petitioner does not respond Enquiry Report with such period of respondent shall proceed to decide matter basis materials available – Speaking order to be passed shall also be communicated to petitioner forthwith – Petitioner is aggrieved by such speaking order petitioner is at liberty to avail remedy of appeal available accordance with law – writ petition stands allowed.
JUDGMENT AND ORDER :
The petitioner has instituted this writ petition under Article 226 of the Constitution of India assailing an order dated 10.11.2022 passed by the respondent no. 3 whereby the Retail Licence bearing no. 2645 issued to the petitioner earlier as a retail licensee to operate a Fair Price Shop [FPS] has been cancelled. By the impugned order dated 10.11.2022, the respondent no. 3 as the Licensing Authority, in exercise of the power conferred by Clause 15[2] of the Assam Public Distribution of Articles Order, 1982 [‘the APDA Order, 1982’, for short], has cancelled the aforesaid retail licence issued to the petitioner and the beneficiaries tagged with the Fair Price Shop [FPS] of the petitioner are allowed to continue with another Fair Price Shop [FPS] owned by one Sri Eyam Uddin Mazumder.
2. It is the case of the petitioner that he was issued a retail licence bearing no. 2645 and FPS Code no. 1316001011600 under the APDA Order, 1982 to operate a Fair Price Shop [FPS] under a registered cooperative society viz. M/s Mongalpur Boalihawar Cooperative Society Ltd., Cachar. The petitioner used to operate his Fair Price Shop [FPS] at Village – Dakshin Mohanpur Part-V. Earlier, the licence was in the name of the petitioner’s father since 1964 and after the death of the father, the licence stood transferred to the petitioner and he was operating the Fair Price Shop [FPS] for last 26 years. It is the further case of the petitioner that the respondent no. 5 i.e. the Inspector, Food, Civil Supplies & Consumer Affairs, Silchar, Cachar carried out an inspection in the Fair Price Shop [FPS] of the petitioner on a day when the petitioner was absent in the shop due to personal reason. After carrying out the inspection, the respondent no. 5 had submitted an Enquiry Report recording his findings after verification of the records related to the Fair Price Shop [FPS] of the petitioner during his visit. On the basis of the Enquiry Report dated 04.05.2022 submitted by the respondent no. 5, the respondent no. 3 as the Licensing Authority passed an order dated 07.05.2022 under Clause 15[1] of the APDA Order,1982 whereby he suspended the retail Licence of the petitioner on the purported ground that there were contraventions of the terms and conditions nos. 2[b], 3[a], 7, 8[1], 8[2] & 9 of the retail licence issued under the APDA Order, 1982 as well as the provisions contained in Clauses 10, 14, 18, 20, 25 & 26 of the APDA Order, 1982 r/w Clause 11[3] of the Targeted Public Distribution System [Control] Order, 2015 [‘the TPDS [Control] Order, 2015’, for short] and the National Food Security Act, 2013. Along with the order of suspension, the petitioner was also served show cause notice of even date. As per the show cause notice, when the respondent no. 5 visited the Fair Price Shop [FPS] of the petitioner on 04.05.2022, he found the following anomalies/mismanagement on the part of the petitioner :
2. The petitioner had stored schematic rice unauthorisedly at his residence with mala fide intention of diversion.
3. The petitioner has stored Govt. schematic rice [75 qtls.] in an abandoned place in deteriorated condition without distributing it by depriving poor beneficiaries with an intention of making personal profit.
4. The petitioner has personally not available during investigation and not cooperated with the Inspecting Officer in investigation.
3. By the show cause notice dated 07.05.2022, the petitioner was asked to show cause as to why the retail licence issued in his name under the APDA Order, 1982 should not be cancelled for contraventions of the mentioned clauses contained in the APDA Order, 1982. The petitioner was given 7 [seven] days’ time from the date of receipt of the show cause notice to submit his reply showing cause. On receipt of the show cause notice, the petitioner stated to have submitted his reply to the show c
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Licensing Authority must provide specific reasons in cancellation orders; non-speaking orders violate principles of natural justice and are unsustainable in law.
The main legal point established in the judgment is the requirement for proper enquiry and opportunity of personal hearing as mandated by the Control Order, 2018, and the violation of principles of n....
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 cancellation of a fair-price-shop license is invalid if the authority that conducted the inquiry also decides the merits of the case, violating procedural requirements.
Fair price shop licenses cannot be cancelled without conducting a proper inquiry and adhering to principles of natural justice, including providing a show cause notice and opportunity to respond.
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