Laxmi Sakhi Mandal Balhra, represented by its Secretary Asha Verma vs State of Jharkhand

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2025 Supreme(Jhk) 579

IN THE HIGH COURT OF JHARKHAND AT RANCHI
DEEPAK ROSHAN, J.
Laxmi Sakhi Mandal Balhra, represented by its Secretary Asha Verma - Appellant
Vs.
The State of Jharkhand - Respondent
W.P.(C) No. 5477 of 2022 with W.P.(C) No. 3256, 5426, 5428, 5429, 5473, 5474, 5476, 5478, 5490, 5514, 6001, 5626 of 2022
Decided On : 08-04-2025

Important Points

Licenses canceled without due process violate the principles of natural justice, and rules cannot change mid-selection process.

Subject

Administrative Law - Public Distribution System

Act Referred

JHARKHAND TARGETED PUBLIC DISTRIBUTION SYSTEM CONTROL ORDER: R.2(xiii)
CONSTITUTION OF INDIA: Art.14

Headnote

(A) Jharkhand Targeted Public Distribution System (Control) Order, 2017 and 2019 - Quashing of cancellation orders - Writ petitions were filed against cancellation of licenses issued for running PDS shops, citing non-adherence to rule-based procedures as per Control Order - Respondents failed to adhere to the prescribed legal standards for cancellation, leading to discrimination violating Article 14. (Paras 1-12)

(B)Administrative Discretion - The process for licensing must follow the rule as established during the advertisement period, and post facto changes cannot apply retroactively - A double standard in addressing similar petitions implies discrimination against the petitioners. (Paras 10 and 11)

Facts of the case:
The petitioners were granted PDS licenses following an advertisement dated 23.06.2018, but their licenses were canceled in 2022, citing application of the more recent Jharkhand Targeted Public Distribution System (Control) Order, 2019, despite their selection being under the previous order. (Paras 3-6)

Findings of Court:
The court quashed the cancellation orders, directing the respondents to allow the petitioners to continue with their licenses as the cancellations were arbitrary and void of due process. (Paras 11-13)

Issues: Main issues included whether the cancellation was justified under the 2019 Order and whether it violated the principles of natural justice and equality. (Paras 10 and 11)

Ratio Decidendi: The court emphasized that rules governing selection must remain constant from advertisement to appointment; the implementation of a subsequent Order cannot derail previously established rights without valid grounds. (Paras 9-10)

Result: All writ petitions allowed, and the impugned orders quashed.

Advocates:
Advocate Appeared:
For the Appellant :Mr. Mahesh Tewari, Advocate Mr. Suraj Prakash, Advocate Mr. Shyam Sundar Prasad Prajapati, Advocate
For the Respondents: Mr. Kunal Chandra Suman, A.C to G.P-II, Mr. Neil Abhijit Toppo, A.C to G.A.-V, Ms. Sunita Kumari, Mr. Mukul Kr. Singh, A.C to G.P.-III, Mr. Sachin Kumar, AAG-II, Mr. Aman Shekhar, A.C to G.A.-I, Mr. Anuj Burman, A.C to G.A-IV, Mr. Aman Shekhar, A.C to G.A.-I, Mr. Saurabh Sagar, A.C to S.C.-III

JUDGMENT :

DEEPAK ROSHAN, J.

Heard learned counsel for the parties.

2. Since the issue involved in all these writ applications are common; as such, all were heard together with consent of the parties and being disposed of by this common order. For brevity, the prayer made in the respective writ applications are extracted hereinbelow: -

W.P.(S) No. 6001 of 2022

(a) For issuance of appropriate writ(s)/ order(s)/, direction(s) quashing the orders as contained in Misc. Case No. 55/2022 dated 21.09.2022, Misc. Case Nos. 52/2022, 43/2022, 74/2022, 54/2022, 34/2022 all dated 22.09.2022, Misc. Case No. 61/2022 dated 21.09.2022, Misc. Case Nos. 40/2022, 73/2022, 86/2022, 41/2022, 66/2022, 84/2022, 76/2022, 83/2022 all dated 22.09.2022, Misc. Case No. 59/2022 dated 21.09.2022, Misc. Case Nos. 65/2022 dated 22.09.2022, which form the table at para 16 of this writ petition (Annexure - 8 series) whereby the licences issued to the petitioners for running the PDS Shops have been cancelled.

(b) For issuance of further appropriate writ(s)/order(s)/, direction(s) directing the respondents-authorities to allow the petitioners to continue with the PDS licences which were granted to them as contained in Annexure - 1 series.

(c) Any other relief or reliefs as Your Lordships may deem fit and proper for which the petitioners are very much entitled under the facts and circumstances of the case and in the interest of justice.

W.P.(S) No. 5477 of 2022

(a) For issuance of appropriate writ/writs order/orders, direction/directions for setting aside / quashing the order no.983 dated 01.04.2022 (Annx-6) as well as memo no. 2388 (Petitioner no. 1), memo no. 2401 (Petitioner no. -2) memo no. 2395 (Petitioner no. -3), dated 24.09.2022 (Annx-9) issued under the signature of Under Secretary, Department of Food, Public Distribution and Consumer Affairs, Government of Jharkhand, and The District Supply Officer, Giridih, (Resp. no 5 whereby and where-under, the respondents without adherence to the procedures/rules prescribed under the concerned control order, direction has been made to the District Supply Officer, Giridih to ensure cancellation of the TDPS Licenses of the petitioner.

AND

For restraining the respondents from taking an arbitrary/unwarranted action against the petitioners pursuant to the show cause notice (served to same to the petitioners) whereby and whereunder the petitioners was ought to provide an explanation within stipulated periods respectively, failing which, steps shall be taken for cancellation of their respective licenses.

AND

Further direction upon the Respondents to comply the mandate as provided in the Control order 2017, as till date petitioners has provided with EPOS machines and also receive the allotment order for distribution in-spite of being granted the PDS License, which in deed portrays the Respondents towards effective supply of the essential commodities.

W.P.(C) 5490 of 2022

For issuance of appropriate writ/writs order/orders, direction/directions for setting aside / quashing the order no.983 dated 01.04.2022 (Annx-6) as well as memo no. 2320 (Petitioner no. 1), memo no. 2325 (Petitioner no. 2) memo no. 2310 (Petitioner no -3), dated 22.09.2022 (Annx-9) issued under the signature of Under Secretary, Department of Food, Public Distribution and Consumer Affairs, Government of Jharkhand, and The District Supply Officer, Giridih, (Resp. no 5 whereby and where-under the respondents without adherence to the procedures/rules prescribed under the concerned control order, direction has been made to the District Supply Officer, Giridih to ensure cancellation of the TDPS Licenses of the petitioners.

AND

For restraining the respondents from taking an arbitrary/unwarranted action against the petitioners pursuant to the show cause notice (served to same to the petitioners) Annx-7 whereby and whereunder the petitioners was ought to provide an explanation within stipulated periods respectively, failing which, steps shall be taken for cancellation of their res