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2026 Supreme(Gau) 971

THE GAUHATI HIGH COURT (THE HIGH COURT OF ASSAM, NAGALAND, MIZORAM & ARUNACHAL PRADESH)
Manish Choudhury, J.
Biju Dey - Petitioner
Versus
The State of Assam, represented by Secretary to the Government of Assam, Food, Civil Supplies and Consumer Affairs Department - Respondents
Writ petition [c] NO. 277/2026
Decided On : 27-03-2026

Advocates Appeared:
For the Petitioner:Mr. R. Phukan, Advocate
For the Respondent:Ms. U. Das, Additional Senior Government Advocate

A suspension of a license under statutory orders must comply with time limitations. If a show-cause notice for cancellation is not issued within the mandated ninety-day period, the suspension order automatically loses its legal force, rendering its continuation invalid.

Headnote:(A) Essential Commodities Act, 1955 - Section 7 - Public Distribution System (Control) Order, 2001 - Clause 6(4)(i) - Public Distribution of Articles Order, 1982 - Clause 15 - Fair Price Shop licence - Suspension - Prolonged suspension without initiation of cancellation proceedings - Mandatory timeline of 90 days - Automatic lapsing of suspension order. (Paras 11, 12, 13)

(B) Administrative Law - Natural justice - Suspension of licence - A licence cannot be kept under perpetual suspension without following due process - Failure to issue show cause notice within statutory period invalidates the prolonged suspension. (Paras 14, 15)

Facts of the case:
The petitioner's licence for operating a fair price shop was suspended following allegations of irregularities in the distribution of essential commodities. Despite the suspension, no formal proceedings for cancellation were initiated to allow the licensee to respond. The suspension continued for over four years without further action from the authorities.

Findings of Court:
The authority failed to initiate a show-cause proceeding within the ninety-day window as prescribed by the governing order. Consequently, the suspension order became penal in nature, lacked legal justification after the statutory period, and effectively spent its force.

Issues: Whether a licence suspension can continue beyond the statutory ninety-day limit without a corresponding show-cause proceeding for cancellation.

Ratio Decidendi: Under the governing rules, a suspension cannot exceed ninety days without an opportunity being afforded to the licensee to state their case. If no show-cause notice is issued within this limit, the suspension order automatically expires.

Result: Petition allowed; the suspension order is no longer in force, and the authorities are directed to permit the operation of the shop.

Table of Content
1. factual history and sequence of license suspension. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. interpretative limit on suspension period under apda order. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. operative order directing restoration of license. (Para 16)

JUDGMENT :

Manish Choudhury, J.

Heard Mr. R. Phukan, learned counsel for the petitioner and Ms. U. Das, learned Additional Senior Government Advocate for all the respondents.

2. The petitioner was granted a retailer licence bearing no. NSG 411 [R]/2012 on 15.10.2012 under the provisions of the Assam Public Distribution of Articles Order, 1982, framed under Section 3 of Essential Commodities Act, 1955. On the basis of the said licence, the petitioner was running a Fair Price Shop [FPS] at Village – Garubandha no. 2, Police Station – Kachua, Nagaon under the aegis of M/s Jarabari Samabai Sammittee Limited distributing Public Distribution System [PDS] articles to the ration card holders/beneficiaries, tagged to the Fair Price Shop [FPS] of the petitioner.

3. Pursuant to a complaint received from one Sharmila Das alleging that the petitioner had lifted 41.95 quintals of rice on 22.01.2022 from the godown of M/s Jarabari Samabai Sammittee Limited and the same was sold in the open market by depriving the beneficiaries tagged with the Fair Price Shop [FPS] of the petitioner, [i] an Inspector, Food, Civil Supplies & Consumer Affairs, Nagaon; and [ii] the Secretary, M/s Jarabari Samabai Sammittee Limited, Kakoti Gaon made a visit to the Fair Price Shop [FPS] of the petitioner for an inspection. During the inspection, the petitioner was asked to produce the Books of Accounts relating to lifting and distribution of controlled commodities including the licence, etc.

4. After the inspection carried out in the Fair Price Shop [FPS] of the petitioner on 28.01.2022, a Seizure List dated 28.01.2022 and a Zimmanama of even date were prepared by the Seizing & Area Officer and the same was placed before the respondent no. 4. Finding violation of Clause nos. 14 & 18 of the APDA Order and various terms and conditions of the licence issued to the petitioner, the respondent no. 4 has placed the licence of the petitioner under suspension vide an Order dated 19.02.2022 exercising power under Clause 15 of the APDA Order. By the order, the ration card holders/beneficiaries tagged with the Fair Price Shop [FPS] of the petitioner were tagged with the nearest Fair Price Shop [FPS] in the greater interest of the beneficiaries.

5. Close on the heels of the Suspension Order, a Show Cause Notice was served upon to the petitioner alleging violation of Clause no. 6 [4][i] of the Public Distribution System [Control] Order 2001 by the respondent no. 4 on 25.05.2022 asking the petitioner to show cause as to why the case should not be sent to the learned Chief Judicial Magistrate, Nagaon for trial. In the Show-Cause Notice, it was mentioned that the petitioner had allegedly violated the provisions of Clause no. 6 [4][i] of the Public Distribution System [Control] Order 2001. In the Show Cause Notice, though various provisions from the APDA Order were mentioned, the action proposed was not cancellation of the licence of the petitioner issued under the APDA Order, 1982. The Reply from the petitioner was asked for on the proposed action of sending the case to the Court of learned Chief Judicial Magistrate, Nagaon. In response to the Show Cause Notice, the petitioner submitted a Reply immediately thereafter.

6. But, despite submission of the Reply and finding the allegations made in the complaint to be prima facie correct, an Offence Report was prepared for alleged violations of Clause nos. 14 & 18 of the APDA Order and Term and Condition nos. 3 [a][b], 4, 6 & 8 of the Licence, read with Clause 6 [4][1] of the Public Distribution System [Control] Order, 2001 by the Seizing & Area Officer. Thereafter, the Offence Report was submitted before the Court of learned Chief Judicial Magistrate to initiate the proceedin

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