IN THE HIGH COURT OF JHARKHAND AT RANCHI
RAJESH SHANKAR, J.
Akshay Kumar Singh - Petitioner
Versus
The State of Jharkhand and Anr. - Respondents
W.P.(C) No. 27 of 2020
Decided On : 02-01-2023
Stamp Licenses - Cancellation - Indian Stamp Act, 1899, Court-Fees Act, 1870 - Bihar Stamp Rules, 1954
Fact of the Case:
The petitioner's stamp licenses were cancelled by the Deputy Commissioner based on a surprise inspection and subsequent allegations of selling stamps at a higher rate. The petitioner denied the allegations and explained that the stock register and sale register were seized by the police.
Finding of the Court:
The court found that the Deputy Commissioner's order lacked proper explanation and failed to discuss the materials available before cancelling the licenses. The court referred to legal principles emphasizing fairness, transparency, and non-arbitrariness in state actions.
Issues: The issues revolved around the cancellation of stamp licenses based on a surprise inspection and allegations, and the lack of proper explanation in the Deputy Commissioner's order.
Ratio Decidendi: The court held that administrative decisions affecting rights must be supported by a sound decision-making process, including consideration of the affected party's explanation. The decision should be fair, transparent, and non-arbitrary, in line with legal principles.
Final Decision: The court quashed and set aside the impugned order dated 09.04.2018, allowing the writ petition.
ORDER :
The present writ petition has been filed for quashing the order as contained in memo no. 746 dated 09.04.2018 (Annexure-8 to the writ petition) passed by the Deputy Commissioner, Bokaro (the respondent no. 2) whereby Non-Judicial Stamps License No. 02 of 1972-73 and Court-Fees Stamps License No. 11 of 1999-2000 issued in favour of the petitioner have been cancelled with immediate effect.
2. Learned counsel for the petitioner submits that the petitioner was issued License No. 02 of 1972-73 by the respondent no. 2 on 13.04.1972 for vending of general stamps, which was renewed by the cometent authority from time-to-time. Subsequently, License No. 11 of 1999-2000 was also issued to the petitioner by the respondent no. 2 on 28.03.2000 to sell court-fee stamps. On 07.03.2018, a surprise inspection was made at the stalls of different stamp vendors situated within the premises of Sub-Divisional Office/Office of District Sub-Registrar, Chas, Bokaro by two teams constituted in terms with direction of the Sub-Divisional Officer, Chas, Bokaro. In the said inspection, different articles including the boxes of stamp vendors were seized and an F.I.R. being Pindrajora P.S. Case No. 26 of 2018 was lodged against eight stamp vendors including the petitioner. The petitioner, thereafter, was granted anticipatory bail by this Court vide order dated 25.10.2018 passed in A.B.A. No. 4890 of 2018. In the meantime, show cause notice as contained in memo no. 577 dated 10.03.2018 was issued to the petitioner by the respondent no. 2 suspending his License No. 02 of 1972-73 and calling upon him to show cause as to why the said license be not cancelled on the ground that during the said surprise inspection, he had sold a non-judicial stamp of Rs.50/- at the double rate i.e., Rs.100/- to the deputed magistrate- Prakash Pandey. Subsequently, a letter as contained in memo no. 595 dated 14.03.2018 was issued to the petitioner under the signature of the Stamp Deputy Collector, Bokaro directing him to submit the Stock Register and Sale Register before the said authority. On 22.03.2018, the petitioner replied the said show cause notice dated 10.03.2018 stating that no such sale of stamp was made by him on 07.03.2018 as alleged as well as that he had never sold any stamp at the higher rate. The petitioner also stated inter alia that though he had been engaged in selling stamps since 1972-73, there was no such complaint against him till the said surprise inspection.
3. It is further submitted that pursuant to letter dated 14.03.2018 issued under the signature of the Stamp Deputy Collector, Bokaro, the petitioner, vide letter dated 23.03.2018, informed the said authority that the Stock Register and Sale Register, which were put in the boxes, were seized in connection with the said criminal case and were kept in Pindrajora Police Station, hence he would not be in a position to submit the same. Thereafter, vide impugned order as contained in memo no. 746 dated 09.04.2018, the respondent no. 2 cancelled the Non-Judicial Stamps License No. 02 of 1972-73 and Court-Fees Stamps License No. 11 of 1999-2000 issued in favour of the petitioner.
4. Learned counsel for the petitioner also submits that the impugned order dated 09.04.2018 passed by the respondent no. 2 is highly arbitrary and illegal as no reason whatsoever has been assigned by the said respondent while rejecting his show cause reply and passing an order of cancellation of the said licenses. The criminal case instituted against the petitioner and other stamp vendors is still pending. If at all the respondent no. 2 had intended to proceed for cancellation of the concerned licenses of the petitioner, the said authority was required to assign sufficient and valid reason on the basis of which the impugned order was passed.
5. On the contrary, Mr. P.C. Sinha, learned A.C. to G.A.-III appearing on behalf of the respondents, while referring to counter affidavit filed on behalf of the respondents, submits that the
Asha Sharma vs. Chandigarh Administration and Others reported in (2011) 10 SCC 86
Noida Entrepreneurs Association Vs. NOIDA & Others reported in (2011) 6 SCC 508
S.N. Mukherjee v. Union of India reported in (1990) 4 SCC 594
Administrative decisions affecting rights must be fair, transparent, and non-arbitrary, in line with legal principles.
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Clerical errors in official records should not lead to severe penalties, especially when no harm is caused to any party.
Public distribution system – Cancellation of licence - Cancellation of Absence of reasoning as to the mandatory requirement of provision which conferred jurisdiction on the quasi judicial authority o....
Licensing Authority must provide specific reasons in cancellation orders; non-speaking orders violate principles of natural justice and are unsustainable in law.
The cancellation order must contain reasons for cancellation and cannot be supplemented by subsequent explanations. Mere institution of a criminal case against a person does not automatically disqual....
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