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2023 Supreme(Gau) 1383

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
SANJAY KUMAR MEDHI, J.
Ahsim Sinha, S/o Sri Lalit Sinha – Appellant
Versus
The State Of Assam And Ors – Respondent
WP(C) 2414 of 2014
Decided on : 14-12-2023

Advocates:
Advocate Appeared:
For the Appellant : MR.A R SIKDAR
For the Respondents: Shri G. Bokalial

The court's role in judicial review is to ensure the lawfulness of the decision-making process, not the soundness of the decision.

Headnote:

Fair Price Shop License - Cancellation - -

Fact of the Case:

The petitioner challenges the cancellation of their Fair Price Shop license due to discrepancies in lifting commodities and running the shop from their residence.

Finding of the Court:

The court found that the cancellation was lawful and followed due process, and the explanations provided by the petitioner were not acceptable.

Issues: Discrepancies in lifting commodities, running the shop from residence, and non-furnishing of a report.

Ratio Decidendi: The court emphasized that its role is to examine the lawfulness of the decision-making process, not the soundness of the decision, and cited the principles of judicial review in commercial transactions.

Final Decision: The writ petition was dismissed, and the Fair Price Shop license cancellation was upheld.

JUDGMENT :

Heard Shri AR Sikdar, learned counsel for the petitioner. Also heard Shri G. Bokalial, learned State Counsel appearing for the respondents.

2. The challenge in this writ petition is with regard to cancellation of a Fair Price Shop license of the petitioner vide order dated 27.09.2011 and also the order dated 20.11.2013 by which the appeal has been rejected.

3. As per the facts projected, the concerned license was initially in the name of the father of the petitioner and was later transferred to the petitioner. By referring to the grounds / allegations, the learned counsel for the petitioner has submitted that one of the grounds was a discrepancy with regard to issuing a memo for lifting of certain commodities and the date of actually lifting. To be more specific, while the memo was dated 05.02.2011, the actual lifting was on 15.02.2011. The allegation perse has not been denied. However, there is an explanation that since the entry was done during the time of the father of the petitioner, the same happened due to some inadvertence and there was no lack of bonafide.

4. The second allegation is with regard to running the Fair Price Shop from the residence of the petitioner. However, according to the petitioner, though the allegation is not denied, the explanation given is that it was done for safety of the goods and the concerned public were also properly notified in a Notice Board which was displayed in the residence. A contention has also been made with regard to non-furnishing of a report which appears to have been done after a field enquiry. Learned counsel for the petitioner accordingly submits that the impugned action be interfered with and the Fair Price Shop license be directed to be restored to the petitioner.

5. Per contra, Shri Bokalial, learned State Counsel, by referring to the affidavit-in-opposition filed on 22.07.2014 has submitted that impugned action has been taken by following the due process of law and by giving all adequate opportunities to the petitioner and therefore there is no procedural irregularity in passing the orders.

6. Coming to the merits of this case, it is the submission of the learned State Counsel that the allegations are grave in nature which concerns distribution of essential commodities to the public in general especially to the marginalized section. It is further contended that none of the allegations are as such denied by the petitioner and the explanation sought to have been given for such allegation are not acceptable in law. By referring to the impugned order dated 27.09.2011 as well as appellate order dated 20.11.2013, it is submitted that apart from the contention advanced, there are other allegations which concerns the distribution of 2 quintals of Rice.

7. The rival contentions advanced by learned counsel for the parties have been duly considered.

8. From the materials on record, more particularly the impugned orders, it is apparent that the action was taken after giving adequate opportunity to the petitioner. In fact, the cancellation order dated 27.09.2011 specifically mentions that the petitioner was heard in person and his reply to the show-cause notice was also duly considered. In that view of the matter, the aspect of adherence to the principles of natural justice appears to have done.

9. Coming to the merits of the allegations and the explanation given, this Court is reminded of the self imposed restriction upon a Writ Court which is required to examine only the lawfulness of the decision making process and not the soundness of the decision. One may gainfully refer to the decision of the Hon’ble Supreme Court in the case of Jagdish Mandal v. State of Orissa reported in (2007) 14 SCC 517 wherein the following has been laid down in the context of the powers of judicial review.

“22. Judicial review of administrative action is intended to prevent arbitrariness, irrationality, unreasonableness, bias and mala fides. Its purpose is to check whether choice or decision is made “lawf

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