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2022 Supreme(J&K) 511

JAMMU AND KASHMIR HIGH COURT BENCH AT SRINAGAR
Ali Mohammad Magrey, Moksha Khajuria Kazmi, JJ.
Parveez Ahmad Baba – Appellant
Versus
Union Territory of Jammu And Kashmir & Ors. – Respondents
LPA no. 197 of 2022
Decided On : 03-11-2022

Advocates appeared:
Mr M.A. Qayoom, Advocate with Mr Mian Tuffail, Advocate, for the Appellant; Mr D.C. Raina, Advocate General with Mr. Sheikh Mushtaq, AAG, for R-1 to 4, Mr Jahangir Iqbal Ganai, Sr. Adv with Mr Wasil Rasool and Ms. Ruqaiya Siddique, Advocates for R-5, for the Respondent

The competent authority has the power to grant or renew licenses in case of disputes over the premises and should consider individual claims in light of the relevant provisions of the law.

Headnote:

Food Safety and Standard Act - License Issue - [Food Safety and Standard Act, 2006, Section 27] - The court discussed the issuance and transfer of licenses under the Food Safety and Standard Act, 2006, and highlighted the authority's power to grant or renew licenses in case of disputes over the premises. The court emphasized that the competent authority should consider individual claims in light of the relevant provisions of the law and decide within a specified period, without being influenced by previous court observations.

Fact of the Case:

The appellant challenged the cancellation of his Goods and Sales Tax registration, issuance of a license under the Food Safety and Standard Act, and a communication transferring the license to another party. The appellant claimed to be the sole proprietor of the business and sought relief to quash the impugned actions and restore the licenses in his favor.

Finding of the Court:

The court held that the competent authority has the power to grant or renew licenses in case of disputes over the premises. It emphasized that the authority should consider individual claims in light of the relevant provisions of the law and decide within a specified period, without being influenced by previous court observations. The court set aside the previous judgment and allowed both parties to approach the concerned authority for issuance/renewal of licenses.

Issues: Dispute over the issuance and transfer of licenses, cancellation of Goods and Sales Tax registration, and interference in the running of the restaurant.

Ratio Decidendi: The competent authority has the power to grant or renew licenses in case of disputes over the premises. The authority should consider individual claims in light of the relevant provisions of the law and decide within a specified period, without being influenced by previous court observations.

Final Decision: The court set aside the previous judgment and allowed both parties to approach the concerned authority for issuance/renewal of licenses. The competent authority was directed to consider individual claims and decide within a specified period, without being influenced by previous court observations.

JUDGMENT

Moksha, J. - By this Letters Patent Appeal, for short LPA, the appellant questions the judgment/final order passed by the Writ Court in writ petition, WP(C) no. 1997/2021, for short impugned judgment, whereby the writ petition filed by the appellant, assailing the License dated 15th May, 2019 issued by the Designated Officer/State Licensing Authority under the Food Safety and Standard Act, 2006, hereinafter for short as Act, in respect of Samci Restaurant, Residency Road, Srinagar; communication bearing No. FDA/FSSA/SGR/313-316 dated 2nd December, 2020, issued by respondent no. 4 intimating the appellant that the license dated 15th May, 2019, is issued to the premises Samci Restaurant and not to respondent no. 5 and that it would be appropriate and in the interest of both the parties that the name of the appellant is also inserted in the application form as incharge operation and person responsible for complying the conditions of the license; and order dated 16th April, 2021, issued by respondent no. 2, whereby GST registration in favour of the petitioner has been cancelled w.e.f. 16th April, 2021 and a fresh registration has been issued in favour of respondent no. 5, on the grounds taken in the memo of appeal.

BRIEF FACTS

2. A writ petition had been preferred by the appellant against i) the cancellation of his Goods and Sales Tax, for short GST, registration; ii) issuance of License dated 15th May, 2019, issued by the Designated Officer/State Licensing Authority under the Act, in respect of Samci Restaurant, Residency Road, Srinagar; and iii) the communication bearing No. FDA/FSSA/SGR/313-316 dated 2nd December, 2020, issued by respondent no. 4, intimating the appellant that the license dated 15th May, 2019, is issued to the premises Samci Restaurant and not to respondent no. 5 inter alia on the grounds that the appellant is the sole proprietor of the above referred business concern 'Samci Restaurant, Residency Road, Srinagar' running such business under valid licenses which have been issued in this behalf by the concerned authorities from time to time in favour of the appellant.

3. While carrying on the said business, the appellant came to know that license to run the above said business has been issued in favour of respondent no. 5 in terms of License Number: 11019430000178 dated 15th May, 2019, by the Designated Officer, State Licensing Authority under FSSA, 2006. Subsequent thereto, vide communication bearing No. FDA/FSSA/SGR/313-316 dated 02/12/2020 issued by the Assistant Commissioner, Food, Safety, Department of Drug and Food Control Organisation, J&K, District Srinagar, Bemina, the application, filed by the appellant seeking cancellation of the license supra, has been disposed of. The concluding paragraph of the order is taken note of herein, thus:

'That the licence has been issued to premises of Samci Restaurant and not to non-applicant as is evident from copy of licence. Therefore, it is appropriate and in the interest of both the parties that name of applicant Mr. Parvaiz Majid Baba S/o Ab Majid Baba R/o Ganzkhud Srinagar is also inserted in the application form as person incharge of operation and responsible complying the conditions of licence. This is the best solution to dispose of the application as both applicant and nonapplicant are real brothers.'

4. Thereafter, the registration granted under GST in favour of the appellant came to be cancelled by the State Taxes Officer, Circle F-Kashmir vide his order dated 20th March, 2021, providing that the effective date of cancellation of registration shall be 16th April, 2021.

5. Aggrieved of the above referred three actions of the respondents the appellant filed a writ petition, WP (C) no. 1997/2021, seeking the following reliefs:

'I) By issuance of a Writ of Certiorari or any other writ, order or direction, the operation of the impugned licence dated 15.05.2019 of the State Licencing Authority under Food Safety and Standards Act, 2006, whereunder, the licence grant

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