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2024 Supreme(Ori) 107

IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJAY KUMAR MISHRA, J.
Ganeswar Sahoo - Petitioner
Versus
State of Odisha & others - Opposite Parties
W.P.(C) No.2154 of 2024
Decided on : 16-07-2024

Advocates Appeared:
For the Petitioner:Mr S. Misahra, Advocate
For the Respondent:Mr. P.K. Rout, Addl. Government Advocate

The Licensing Authority must adhere to procedural safeguards and substantiate any withdrawal of distribution rights, which cannot be done without following due process under the Control Order.

Headnote:(A) Odisha Public Distribution System (Control) Order, 2016 - Clause 17 - Writ Petition for entitlement to distribute P.D.S. commodities as a selected retailer - Petitioner claimed wrongful withdrawal of beneficiary list by Sub-Collector - The authority failed to prove any valid basis for denying the distribution rights after formal selection of the retailer. (Paras 2, 11, 12)

(B) Licensing Authority's powers and procedural safeguards - The Licensing Authority must provide a reasonable opportunity to the dealer before suspending their license, and without initiation of proceedings, the license cannot be arbitrarily withdrawn. (Paras 10, 11)

Facts of the case:
The Petitioner was provisionally selected as the P.D.S. retailer in November 2023 but faced inaction from the authority regarding distribution. The state claimed withdrawal of beneficiary list was due to complaints against the Petitioner, which the court found unsubstantiated.

Findings of Court:
The State failed to justify the withdrawal of beneficiaries, as there was no evidence of misconduct or suspension and no procedural compliance with the Control Order 2016. The Selection was upheld as valid.

Issues: The legality of the withdrawal of the beneficiary list post-selection and the obligation of the Licensing Authority towards the selected retailer.

Ratio Decidendi: The court concluded the denial of distribution rights was unjustified and contrary to procedural mandates, emphasizing the need for adherence to the Control Order provisions in managing P.D.S. retailers.

Result: The Writ Petition was disposed of with directions to act on the Petitioner’s selection.

Table of Content
1. appointment of p.d.s. retailer. (Para 1 , 2)
2. arguments by state regarding consumer complaints. (Para 3 , 4 , 5 , 6 , 7 , 8)
3. court's analysis on due procedure. (Para 9 , 10 , 11 , 12)
4. judgment and directives issued. (Para 13 , 14)

JUDGMENT :

SANJAY KUMAR MISHRA, J.

1. The Petitioner, who has been appointed as the P.D.S. retailer to distribute the P.D.S. commodities in Bandalo Gram Panchayat, has preferred the Writ Petition seeking a direction from the Court to the Sub-Collector, Jajpur (Opposite Party No.2) to allow him to supply P.D.S. commodities to the beneficiaries/consumers of Bandalo Gram Panchayat with a further prayer to direct the authority concerned to dispose of his representation, as at Annexure-6, as expeditiously as possible, which is pending before the Opposite Party No.2.

2. The factual matrix of the case, as pleaded in the Writ Petition, is that the Petitioner along with others were selected as P.D.S. retailers. Vide general notice dated 07.06.2022, objections were invited from general public to be submitted between 08.06.2022 to 18.06.2022. Since no complaint was received pursuant to the said notice dated 07.06.2022, the Sub-Collector, Jajpur, vide order dated 16.11.2023, communicated to the Petitioner that he has been provisionally selected for appointment as P.D.S. retailer in Bandalo Retail Centre under Bandalo Gram Panchayat of Korei Block, pursuant to notice dated 16.12.2021 and 07.06.2022 and the decision of the three members committee meeting held on 14.11.2023. Pursuant to the said communication, the Sub-Collector & Licensing Authority, Jajpur (Opposite Party No.2) directed the Petitioner to deposit the required amount towards license fee, security and undertaking vide Office Order dated 18.11.2023 and the Petitioner was allowed to carry out the P.D.S. business in Korei Block area, in the scheduled place. Thereafter, the Petitioner deposited the required fees in shape of bankers cheque dated 20.11.2023 and the authority concerned was pleased to issue FPS code in favour of the Petitioner vide Code No.1308P161 which was duly approved by the Food Supply & Consumer Welfare Department (Opposite Party No.1). Thereafter, the authority concerned gave a list of 544 ration card holders to the Petitioner to supply P.D.S. commodities to the said beneficiaries. However, no further action was taken pursuant to issuing the list of beneficiaries in favour of the Petitioner. Being remediless, the Petitioner gave a representation to the Sub-Collector, Jajpur (Opposite Party No.2) ventilating his grievance and ultimately preferred the present Writ Petition for inaction of the authority concerned to act on the said representation.

3. The State has filed Counter Affidavit opposing to the allegation made in the Writ Petition. Paragraphs No.5 to 8 of the said Counter, being relevant, are extracted below:

“5. That, in reply to the averments made in Para-1 of the writ petition; it is humbly submitted that, after receipt of the representation of 132 nos consumers of Bandalo G.P., the Sub-Collector, jajpur as the Licensing Authority has withdrawan the consumers list from the petitioner though BDO, Korei and again tagged the said list with an old retailer Nathuram Das of Bandalo G.P. for smooth distribution of PDS commodities. Hence, the allegation made by the petitioner that the Sub-Collector, OP No.2 has illegally and arbitrarily withdrawn the consumers list from the petitioner is not true. Copy of the representation dated 10.12.2023 is annexed herewith as AnnexureA/4.

6. That, in reply to the averments made in Paras-3 to 7 of the writ petition, it is humbly submitted that, the Annexures-1 to 4 series filed by the petitioner in this writ petition are matter of documents and records. The same has been issued only as per provision under order 17(4) of O.P.D.S. (Control) 2016 which states that the Licensing Authority has power to suspend the license of a dealer without giving any prior notice to him, if the Autho

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