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2024 Supreme(Ori) 145

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Ansupriya Satapathy - Petitioner
Versus
State of Odisha and others – Respondent
W.P.(C) No.10634 of 2023
Decided on : 10-09-2024

Advocates Appeared:
For the Petitioner:Mr. N.K. Mishra, Sr. Advocate
For the Respondent: Mr. P.K. Rout, AGA

The cancellation of a Letter of Authorization under the Fertilizer Control Order requires substantiated evidence, and disregarding laboratory test results violates procedural fairness and relevant legal provisions.

Headnote:(A) Fertilizer (Inorganic, Organic or Mixed) Control Order, 1985 - Clauses 19(a), 19(c), 31, and 32 - Cancellation of Letter of Authorization (LoA) for alleged adulteration of fertilizers - The Petitioner challenged the legality of the cancellation and its confirmation by the Appellate Authority based on claimed violations of the Control Order - The Petitioner’s firm had produced test results confirming conformity to standards as per FCO specifications, undermining the grounds for cancellation - The Notified Authority acted contrary to the Control Order, leading to an arbitrary and unjust cancellation. (Paras 10, 21-23)

(B) Natural justice - Requirements of personal hearing - The authorities were directed to provide the Petitioner an opportunity for a personal hearing in any further action following the directions of the court. (Para 23)

Facts of the case:
The Petitioner’s firm, engaged in organic fertilizer manufacturing, faced cancellation of its LoA on suspicions of non-conformance with the Control Order based on unspecified allegations. Following a raid and sample collection, the suspension led to a challenging appeal, affirmed by the Appellate Authority, despite evidence from laboratory reports demonstrating compliance.

Findings of Court:
The court reversed the cancellation orders, stating the Notified Authority's actions lacked justification in light of the test results available prior to the appeal, emphasizing adherence to the control order's requirements.

Issues: The main issues included whether the Notified Authority lawfully cancelled the LoA and if the Appellate Authority's order was legally justified, considering the laboratory test findings.

Ratio Decidendi: The court established that cancellation of the LoA necessitated substantive grounds backed by evidence, particularly laboratory results, which were disregarded, affirming procedural fairness.

Result: Writ Petition allowed. Orders of cancellation quashed; LoA to be restored.

Table of Content
1. cancellation of authorization being contested. (Para 1 , 2 , 3)
2. grounds for challenging the cancellation order. (Para 4 , 5 , 6)
3. allegations against the petitioner deemed unsupported. (Para 7 , 9)
4. court's procedural analysis of the case. (Para 10 , 11 , 12)
5. legal basis for cancellation under control order. (Para 17 , 18)
6. court’s orders to restore authorization. (Para 22 , 23 , 24 , 25)

JUDGMENT :

S.K. Mishra, J.

1. The Writ Petition has been preferred for quashing of the order of cancellation dated 29.09.2022(Annexure-8) of the Letter of Authorization, shortly, ‘LoA’, of Petitioner’s Firm so also proceedings of the Appeal dated 09.12.2022 (Annexure-10), vide which the said cancellation order dated 29.09.2022 was confirmed by Appellate Authority (O.P.3), with further prayer to restore the LoA of the Petitioner firm.

2. The factual matrix of the case is that the Petitioner firm namely, M/s. Glare Chemicals India, is a proprietorship situated at Biragobindapur, Sakhigopal, Puri. The said firm, being an authorized licensee/ dealer, is engaged in the process of manufacturing organic fertilizers in its own unit and supplies the same as a State Dealer of organic fertilizers since last sixteen years. The Petitioner’s unit has also been duly issued with Memorandum of Acknowledgement, shortly, “MOA”, by the Department of Agriculture and Farmers’ Empowerment, Odisha (O.P.1) as per provisions under Fertilizer (Inorganic, Organic or Mixed) Control Order, 1985, shortly, “Control Order, 1985”, having valid ISO Certificate vide Annexure 1 & 2. The Petitioner’s firm has been producing and supplying Bio and Organic Fertilizers to the Government Departments under valid process for about one and half decades without any complaint from any quarter till date and except supplying to the Govt. departments through tender process, the Petitioner firm does not make any retail sale of the fertilizers.

On 11.09.2022, the Assistant Agriculture Officer, acting as Fertilizer Inspector, along with Tahsildar, Satyabadi and Police, came to the unit of the Petitioner and collected two samples each of Vermi Compost and raw materials for Vermi Compost and one sample of Bio Fertilizer for testing purpose, which was the left-over stock from the previous year’s supply orders of Bio fertilizer, kept in the premises for disposal and not for supply. Thereafter, the entire premises, consisting of the factory, laboratory, godown, workers’ quarters and two trucks used for transportation, being inside the premises, was sealed.

3. The action of sealing the premises was challenged in W.P. (C) No.24100 of 2022, which was disposed of by quashing the order of sealing of the unit, such action of the authority being arbitrary and in contravention of the Control Order, 1985 so also directing for opening of the seal. Further, an F.I.R against the Petitioner was also lodged by the B.A.O, which was challenged in CRLMC No.4082 of 2022 and interim stay of the GR Case has been granted by this Court.

On 15.09.2022, the Notified Authority-Cum-Joint Director of Agriculture (O.P.2) issued an order suspending the LoA of the Petitioner firm and communicated the same through e-mail due to alleged attempt by the Petitioner to contravene clause 19(a)/19(c) of the Control Order, 1985. On 27.09.2022, a letter was issued to the Petitioner through e-mail for personal hearing, in terms of Clause 31 of the Control Order, 1985. Though the Petitioner appeared and filed his written statement regarding suspension of his LoA without any basis or test report of the samples, the Opposite Party No.2 cancelled the LoA of the Petitioner’s Firm vide order dated 29.09.2022, which was challenged by the Petitioner by preferring an appeal under clause 32 of the Control Order, 1985 before the Addl. Director of Agriculture (Extension)-Cum-Appellate Authority (O.P.3).

The said Appeal was disposed of by the Opposite Party No.3 vide order dated 09.12.2022 upholding the order of cancellation of LoA dat

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