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2021 Supreme(Ori) 241

IN THE HIGH COURT OF ORISSA, CUTTACK
Sanju Panda, S. Muralidhar, JJ.
Pradyumna Kumar Mohapatra - Appellant
Versus
State Of Orissa & Ors. - Respondents
Writ Petition (Civil) No. 32947 of 2020
Decided On : 12-01-2021

Advocates Appeared:
Biraja Prasanna Das, Advocate, D. Mohanty, Advocate, P.K. Rath, Advocate

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 disqualify them from holding a license.

Headnote:

Licenses - Cancellation - Odisha Excise Act, 2008 - Section 47(4)

Fact of the Case:

The petitioner, an Excise Permit (EP) holder of IMFL 'Off' Shops, challenged the cancellation of licenses by the Collector, Cuttack. The petitioner alleged harassment and surprise raids, leading to the cancellation of licenses for the remaining period of 2020-21. The petitioner filed writ petitions seeking relief.

Finding of the Court:

The court found that the cancellation of licenses lacked proper reasoning and violated the principles of natural justice. The court quashed the impugned order and directed the authorities to follow due process in any future cancellation proceedings.

Issues: Violation of principles of natural justice, lack of proper reasoning in the cancellation order, legality of settling licenses through lottery, and eligibility criteria for holding a license.

Ratio Decidendi: The court emphasized that the cancellation order must contain reasons for cancellation and cannot be supplemented by subsequent explanations. It also clarified that mere institution of a criminal case against a person does not automatically disqualify them from holding a license.

Final Decision: The writ petition was allowed, and the impugned order cancelling the licenses was quashed. The court also directed the authorities to return any collected money and allowed them to initiate a fresh process for cancellation, strictly following the provisions of the Odisha Excise Act and Rules.

JUDGMENT

S. Muralidhar, C.J. - The challenge in this writ petition is to an order dated 23rd November, 2020 passed by the Collector, Cuttack cancelling the licenses granted in favour of the Petitioner in respect of (1) IMFL 'Off' Shop, Badambadi, (2) IMFL 'Off' Shop, Gandarpur, (3) IMFL 'Off' Shop, Subhadrapur, (4) IMFL 'Off' Shop, Jaripada and (5) IMFL 'Off' Shop, Samserpur in the district of Cuttack for the remaining period of 2020-21.

2. The background facts are that the petitioner is an Excise Permit (EP) holder of aforementioned IMFL 'Off' Shops in five locations. It is stated that all licenses were valid till 31st March, 2021. The Petitioner alleges that on account of his approaching the Superintendent of Police (Vigilance), Cuttack a vigilance case came to be instituted against the Head-Clerk in the office of the Superintendent of Excise, Cuttack, which led to the Petitioner being harassed by conducting surprise raids on three of his IMFL 'Off' Shops on 9th August, 2019. It is stated that from a letter dated 10th August, 2019 from the Superintendent of Excise, Cuttack it transpired that during the said raid one half bottle of some noxious liquid was recovered/seized from the sale counter of Badambadi IMFL 'Off' Shop.

3. On 16th September, 2019, the District Excise Office, Cuttack issued the Petitioner a show cause notice under Section 47(4) of the Odisha Excise Act, 2008 (for short 'OE Act') in respect of Badambadi IMFL 'Off' Shop calling upon the Petitioner to submit his reply within seven days. On 21st September 2019, the Petitioner wrote a letter to the Superintendent of Excise, Cuttack, seeking, inter alia, that a copy of the result/report of the Chemical Analysis of the seized liquid. On 25th September 2019, the Petitioner wrote to the Collector, Cuttack seeking a fresh enquiry into the matter. When there was no response received, the Petitioner filed W.P.(C) No. 19335 of 2019, which came to be disposed of on 15th October, 2019 by a Division Bench of this Court by the following order:

    "Heard the petitioner in person.

    By way of this writ petition, the petitioner has challenged the order dated 10.08.2019 under Annexure-2. Further, the petitioner has a made a prayer to quash the impugned order and direct the Collector, Cuttack to allow the petitioner to open his Badambadi IMFL OFF Shop at Cuttack.

    During the course of hearing, it is stated by the petitioner that the Collector, Cuttack may be directed to consider and dispose of his representation dated 25.09.2019 at Annexure-6 within a stipulated period.

    Considering the limited nature of prayer made by the petitioner and without expressing any opinion on the merits of the case, we direct opposite party no.3- Collector, Cuttack to consider and dispose of the representation dated 25.09.2019 under Annexure-6 made by the petitioner, in accordance with law, within a period of four weeks from the date of receipt of copy of this order, if such representation is still pending for consideration.

    With the aforesaid observation and direction, the writ petition stands disposed of.

    I.A(s) connected to the writ petition, if any, is/are disposed of accordingly.

    Urgent certified copy of this order be granted as per the Rules."

4. Thereafter, on 4th November, 2019, the Collector, Cuttack issued a communication to the Petitioner requiring him to appear before him on 6th November, 2019. Again another notice was issued on 25th November, 2019 requiring him to appear on 27th November, 2019.

5. It appears that on 28th November, 2019, the Collector, Cuttack appointed the Sub-Collector, Sadar, Cuttack as Inquiring Officer to enquire into the matter and submit a report. After conducing an inquiry, a report was submitted by the Sub-Collector on 7th December, 2019 to the Collector. The Petitioner states that the said report was prepared behind his back, since he had not participated in the enquiry. Thereafter on 14th December 2019, the Collector, in view of the finding of the Sub-Collector in his inquiry re

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