The cancellation order must be based on valid grounds and must adhere to principles of natural justice.

N.N. Tiwari, J.

1. In this writ petition, the petitioner has prayed for quashing the Order, contained in letter No. 640/06-495 dated 10.7.2007 (Annexure-4), whereby the letter of authority issued in favour of the petitioner vide letter of authority No. 3 of 1991 dated 14.5.1991 has been cancelled.

2. It has been submitted that the petitioner was given licence/letter of authority for establishing and authorizing testing station in terms of the Central Motor Vehicle Rules, 1989 (hereinafter referred to as the "Rules). After due consideration of the relevant aspects, letter of authority was issued in favour of the petitioner vide letter of authority No. 3 of 1991 dated 14.5.1991 for five years. It was further renewed up to 27.11.2008. It has been stated that one Motor Vehicle Inspector visited the office premises of the petitioner and submitted a report. Thereafter, a show cause notice was sent to the petitioner by letter dated 16.6.2006 asking to show cause as to why the licence/authority of testing center be not cancelled on the ground that on inspection of the premises of Kachahri Road Centre, Ranchi in Luxmi Market, only 10' x 10' office room was found, without any testing machine and implement. There was violation of the terms of licence and the provisions of the rules.

3. The petitioner submitted his show cause reply stating, inter alia, that the required testing machines and implements are kept in the testing station at Ratu Road, Ranch!, whereas the small premises at Luxmi Market is only an office as has also been mentioned in the letter of authority/licence. It has been further submitted that no provision of rules has been violated by the petitioner and the petitioner properly runs the testing station with all required infrastructure at Ratu Road, Ranchi, near Jaiswal Petrol Pump. The vehicles are tested there and all other legal formalities are completed. It has been further submitted that there has been no complaint against the petitioner since 1990. The impugned order dated 10.7.2007 cancelling the petitioner's authority/licence has been passed on the ground that on inspection in the premises of the petitioner's office at Luxmi Market, Ranchi, necessary implements and testing machines were not found, which were required for testing the fitness of the vehicles. Other irregularities and illegality were also found, which are violation of the rules.

4. Mr. Anil Kr. Sinha, learned senior counsel appearing on behalf of the petitioner submitted that the impugned order is wholly illegal and arbitrary in as much as the same is also violative of principles of natural justice. It has been submitted that in the letter of authority/licence, location and address of the testing station is clearly mentioned as Ratu Road, Ranchi, but the Inspector inspected the petitioner's office at Luxmi Market, Ranchi. In the licence, the addresses of the testing station and that of the office are distinctly mentioned and as such, there was no occasion for inspecting the said premises for that purpose. All the necessary infrastructure, implements and machines are kept at Ratu Road Testing Station and naturally the same cannot be found in a small office in Luxmi Market at Kachahri Road, Ranchi. The inspection of the petitioner's office and making such complaint and the report itself is mala fide. There was no justification for holding violation of the provisions of rules on the basis of said inspection. The petitioner in the show cause reply has clearly mentioned the said fact, but the same was also not considered and the impugned order cancelling the letter of authority/licence has been mechanically passed by the concerned authority. Learned Counsel further submitted that even the order of cancellation is wholly without jurisdiction, as the officer, who has passed the order, has got no authority.

5. Mr. R.N. Sahay, learned Sr. S.C. II appearing on behalf of the State-respondent, on the other hand, submitted that though the notice was issued, at the