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2025 Supreme(Gau) 2206

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Mamon Karmokar, D/o. Late Surendra Karmokar And Anr. – Petitioners
Versus
The State Of Assam, Represented By The Secretary, To The Govt. Of Assam, Food And Civil Supplies Department And Ors. – Respondents
WP(C) 6900 of 2023  
Decided On : 03-11-2025

Advocates Appeared:
For the Petitioners: Mr. B. J. Ghosh, Adv., Mr. T. Sk, Adv.
For the Respondents: Mr. S. R. Baruah, Government Adv.

Quashing of the cancellation order as it violated natural justice by lacking reasons, requiring reasoned decisions in quasi-judicial actions.

Headnote:(A) Food Security Act, 2013 - Principles of natural justice - Order of suspension of licenses - The Petitioners were found to have violated multiple clauses of the Food Security Order of 1982, leading to the suspension of their licenses and the issuance of Show Cause Notices. However, the court found the cancellation order lacking in reasoning and therefore arbitrary, requiring it to be quashed. (Paras 11 and 12)

(B) Natural Justice - Requirements - The court emphasized that an authority exercising quasi-judicial functions must provide reasons for its decisions to uphold the principles of natural justice, thus ensuring fairness in administrative actions. (Paras 8 and 11)

Facts of the case:
Petitioners were accused of significant infractions regarding the handling of rice intended for distribution under the National Food Security Act. Allegations included failure to distribute the entire quantity of rice within the specified time and discrepancies in stock records.

Findings of Court:
The impugned order canceling the licenses was set aside due to lack of assigned reasons, violating natural justice principles. Show Cause proceedings were reinstated for both Petitioners to ensure due process.

Issues: The primary issue was whether the cancellation of the licenses was arbitrary and if the Show Cause Notices could implicitly support the impugned order despite it lacking reasons.

Ratio Decidendi: The court held that decisions impacting civil rights must be reasoned; vague orders violate administrative fairness and the principles of natural justice, necessitating a quashing of the impugned order while allowing for further inquiry based on established procedures.

Result: The order dated 06.11.2023 is set aside; the suspension of licenses remains until further action is taken within 30 days.

Table of Content
1. allegations against petitioners for license violations. (Para 3 , 4 , 5 , 6 , 7)
2. arguments on natural justice principles raised. (Para 8 , 9)
3. court found the order vague and lacking reasons. (Para 10 , 11)
4. court quashed order and reinstated proceedings. (Para 12)
5. court addressed the counsel's advice impacting petitioners. (Para 13)

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Mr. B. J. Ghosh, the learned counsel appearing on behalf of the Petitioners and Mr. S. R. Baruah, the learned Government Advocate appearing on behalf of all the Respondents.

2. Both the Petitioners have assailed the order dated 06.11.2023 in the instant writ petition.

3. The materials on record show that the Superintendent, FCS & CA, Lakhipur, Cachar had submitted a report to the Superintendent, Food Civil Supplies and CA, Lakhipur wherein it was alleged that the Petitioner No.1 had committed the following violations:

(a) Lifted NFSA rice for the month of June, 2023 on 04.05.2023 but did not distribute the entire quantity till 08.06.2023 after a gap of more than 30 days;

(b) More than 7 Quintals of rice found shortage in available stock compared with the sale Register;

(c) The Petitioner No.1 did not display stock and price board of the F.P. Shop;

(d) The Petitioner No.1 did not maintain stock register of allotted articles;

(e) The Petitioner No.1 did not hang the beneficiary list in the Fair Price Shop;

(f) Monthly Performances Report not submitted by the Petitioner No.1; and

(g) The available stock of rice did not tally with the sale register.

4. In view of the said allegations contained in the report, it was prima facie found that the Petitioner No.1 contravened Clauses 10, 14, 18, 20 and 21 of the Order of 1982 and, accordingly, the Superintendent, Food Civil Supplies and Consumer Affairs, Lakhipur i.e. the Respondent No. 5 had suspended the license of the Petitioner No. 1 vide an order dated 15.06.2023 and further issued Show Cause Notice upon the Petitioner No. 1, as to why, the license should not be cancelled.

5. The record further reveals that in respect to the Petitioner No.2, the report so submitted alleged that the Petitioner No.2 had committed the various infractions which are:

(a) Received allotted quantity of rice for the month of June, 2023 on 05.06.2023 and did not distribute to the consumers till 08.06.2023, whereas other dealers lifted rice in the first week of May, 2023;

(b) The Petitioner No.2 did not hang the beneficiary list in the FP Shop; and

(c) The Monthly Performances Report was not submitted by the Petitioner No.2.

6. It was therefore prima facie opined that the Petitioner No. 2 contravened Clauses 10, 14, 20 and 21 of the Order of 1982 as well as also violated Clauses 4, 5 and 8(1) of the Terms and Conditions of the Dealing License issued under the Order of 1982. It was under such circumstances, the Petitioner No.2 was also suspended vide an order dated 15.06.2023 and Petitioner No.2 was also issued Show Cause Notice, as to why, the license should not be cancelled.

7. The record reveals that the Petitioners thereupon submitted their respective replies and sought for withdrawal of the suspension. It is also seen from the records that both the Petitioners filed a writ petition being WP(C) No.6410/2023 challenging the continued suspension of the licenses of the Petitioners. The said writ petition was however withdrawn taking into account that the Respondent No.4 had issued the impugned order dated 06.11.2023. It is under such circumstances, the present writ petition has been filed assailing the order dated 06.11.2023.

8. Mr. B. J. Ghosh, the learned counsel appearing on behalf of the Petitioners submitted that the principles of natural justice are facets under Articles 14 and 21 of the Constitution. The principles of natural justice not only includes issuance of notice, but also mandates that when an Authority takes any action resulting in civil consequences, there is a requirement of passing orders containing reasons. It has also

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