HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
Ashok Kumar Gaur, J.
Lempus Kyari Fair Price Shop – Appellant
Versus
Additional Food Commissioner & Ors. – Respondents
S.B. Civil Writ Petition No. 11215 of 2019
Decided On : 15-03-2022
Authorization - Fair Price Shop - The court upheld the cancellation of the petitioner's authorization for fair price shop due to non-compliance with license conditions and serious illegalities committed by the petitioner.
Fact of the Case:
The petitioner's authorization for running a fair price shop was cancelled due to non-compliance with license conditions and serious illegalities committed by the petitioner.
Finding of the Court:
The court found that the petitioner was not complying with the conditions of the license and had committed serious illegalities, leading to the cancellation of the authorization by the District Supply Officer, Appellate Authority, and Revisional Authority.
Issues: Non-compliance with license conditions, serious illegalities committed by the petitioner, cancellation of authorization, lack of personal hearing, and alleged irregularities in the orders passed by the Authorities.
Ratio Decidendi: The court upheld the cancellation of the authorization based on the petitioner's non-compliance with license conditions and serious illegalities committed, as found by the District Supply Officer, Appellate Authority, and Revisional Authority.
Final Decision: The writ petition was dismissed, and the court found no error in the orders passed by the Authorities.
ORDER
1. This writ petition has been filed by the petitioner challenging the orders dated 10.05.2018, 12.11.2018 & 12.06.2019 passed by the District Supply Officer II, Udaipur, District Collector, Udaipur and Additional Food Commissioner, Jaipur respectively.
2. Learned counsel for the petitioner submitted that the petitioner has authorisation for running fair price shop and the petitioner has been distributing essential commodities through POS machine and as such, the petitioner has complied with the directions issued by the Authorities from time to time for distributing the essential commodities.
3. Learned counsel submitted that a Special Team was constituted to inspect fair price shops in different parts of the Rajasthan and as such, shop of the petitioner came to be inspected on 21.07.2017 and inspection report on the spot was prepared and according to the said report, 85 Kg. of wheat was found short.
4. Learned counsel submits that the said report also shows the satisfaction of the consumers and there was no complaint as such. Learned counsel submitted that an ex-parte enquiry report for necessary action was submitted and thereafter cyclostyled order was passed, suspending the authorization of the petitioner and a show cause notice was issued on 24.07.2017.
5. Learned counsel submitted that the show cause notice issued to the petitioner, was in respect of 87.16 quintal of wheat found in excess quantity, wrong transaction of 1944.5 litre of Kerosene Oil and 21.445 quintal of sugar, which was not part of the inspection report.
6. Learned counsel submitted that the petitioner filed his reply to the notice and denied the allegations levelled against him in the notice.
7. Learned counsel submitted that the DSO vide impugned order dated 10.05.2018 cancelled the Authorization of the petitioner shop and Licensing Authority found that the petitioner had violated condition Nos.6, 11, 17 & 18 of the License and as such, same was also an offence under Section 3/7 of the Essential Commodities Act, 1955.
8. Learned counsel submitted that the petitioner had filed an appeal and the Appellate Authority without considering the grounds of appeal, dismissed the appeal vide order dated 12.11.2018.
9. Learned counsel submitted that the petitioner preferred the Revision Petition and the Revisional Authority had also dismissed the revision petition vide order dated 12.06.2019.
10. Learned counsel for the petitioner submitted that all the Authorities have passed the order without there being any material available on record, on the ground that the petitioner had violated the conditions of the license.
11. Learned counsel submitted that the impugned order of cancelling the authorization was passed without giving personal hearing to the petitioner.
12. Learned counsel submitted that the alleged enquiry report dated 24.07.2017 had nowhere mentioned certain allegations, which were made basis of cancelling the authorization.
13. Learned counsel submitted that the Authorities even did not afford opportunity of cross-examination. Learned counsel submitted that all the Authorities have passed the order without due application of mind and cryptic order has been passed.
14. Learned counsel submits that once there was variance in the inspection report dated 21.07.2017 and enquiry report dated 24.07.2017, then only on the basis of assumptions and presumptions, the order could not have been passed.
15. Learned counsel submitted that on the same subject- matter, criminal case has been registered and the same is yet to attain finality and as such, action of the respondents is vitiated in the eyes of law.
16. I have heard the submissions made by learned counsel for the petitioner and perused the material available on record.
17. This Court finds that the District Supply Officer has taken into account the reply filed by the petitioner. The District Supply Officer has clearly recorded a finding that the petitioner was not complying with the conditions of license and there was ser
Non-compliance with license conditions and serious illegalities can lead to the cancellation of authorization for fair price shop.
Cancellation of authorization for shortage of rice within permissible limit and without opportunity to explain is illegal and arbitrary.
The cancellation of a fair price shop dealer's authorization without conducting a proper enquiry is illegal and arbitrary, and violates the principles of natural justice and the provisions of the APS....
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....
The cancellation of a fair price shop dealer's authorization must adhere to natural justice and inquiry procedures, ensuring a fair hearing and proper assessment of justifications.
The court upheld the cancellation of the petitioner’s fair price shop license due to violations of the Essential Commodities Act, confirming the necessity of a reasonable opportunity to be heard.
Point of Law : Proceedings for cancellation on a charge of short distribution or short measurement is a stigmatic order that visits a fair price shop dealer with adverse civil consequences. It impact....
Authorities must follow the procedure prescribed for conducting disciplinary proceedings against fair price shop dealers, including providing a personal hearing, supplying the dealer with the reports....
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.
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