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2025 Supreme(Ori) 1053

IN THE HIGH COURT OF ORISSA, CUTTACK
SANJAY KUMAR MISHRA, J.
Sk. Riasatulla – Petitioner
Versus
State of Odisha & others - Opp. Parties
W.P.(C) No.18247 of 2024
Decided On : 28-02-2025

Advocates Appeared:
For the Petitioner: Mr. L. Dash, Adv.
For the Opp. Parties : Mr. S.K. Parhi, Addl. Standing Counsel.

License suspension without adequate notice or opportunity to be heard violates natural justice principles and renders such orders illegal.

Headnote:(A) Public Distribution System Control Order, 2016 - Clause 17 - Writ petition challenging suspension of PDS license - Petitioner suspended without hearing or adequate notice based on unsupplied documents - Denial of natural justice - Suspension order deemed illegal and set aside; remitted for fresh proceedings. (Paras 25, 26, 24)

(B) Natural Justice - Right to be heard - The principles of natural justice require that a licensee must be provided with an opportunity to respond before punitive actions, and any failure in this regard renders the order void. (Paras 11, 12, 21)

(C) Administrative Discretion - The Licensing Authority must apply its mind diligently and follow due procedures in taking action against licensees, to safeguard against arbitrary decisions. (Paras 25, 23)

Facts of the case:
The Petitioner, a PDS retailer for 30 years without complaints, faced allegations of minor irregularities and received a suspension order without hearing or access to investigation reports. He alleged political motivations behind the suspension, claiming that he was denied necessary documents to respond to the allegations.

Findings of Court:
The Court found that the Petitioner was not provided due process and the order of suspension lacked justification, thus ruling it illegal and reinstating his license pending proper procedure.

Issues: The primary issues included whether the Petitioner was given an opportunity to present his case and whether the proper investigative procedures were followed before the suspension.

Ratio Decidendi: The Court held that the lack of opportunity to be heard and reliance on undisclosed documents constituted a violation of the principle of natural justice, rendering the suspension order illegal.

Result: Writ Petition allowed; orders of suspension set aside and remitted back for fresh hearing.

Table of Content
1. petitioner's background and challenge to suspension. (Para 1 , 2)
2. allegations of political motivation and procedural violations. (Para 3 , 4)
3. opposition's defense and procedural detail. (Para 5 , 6)
4. petitioner's rebuttal and need for documents. (Para 7 , 8)
5. counsel's arguments on lack of fair procedure. (Para 11 , 12 , 13)
6. opposition's emphasis on procedural adherence. (Para 14 , 15)
7. court's overview of evidence and submissions. (Para 16 , 17)
8. importance of joint representations and failure to provide documents. (Para 18 , 19)
9. court's interpretation of the control order and procedural requirements. (Para 21 , 22 , 23)
10. court's ruling on the legality of suspension orders. (Para 24 , 25)
11. court's decision to set aside suspension order. (Para 26)
12. conclusion and direction for rehearing. (Para 27 , 28)

JUDGMENT :

S.K.Mishra, J.

This writ petition has been preferred by the Petitioner, who is a P.D.S. Retailer, challenging the order of suspension dated 22.02.2023 passed by the Sub- Collector & Licensing Authority, Sadar, Cuttack (Opposite Party No.3) so also the Order dated 19.06.2024 passed in P.D.S (Appeal) No.11 of 2023, vide which the Collector, Cuttack (Opposite Party No.2), being the Appellate Authority, refused to revoke the order of Suspension dated 22.02.2023.

2. The factual matrix of the case, as stated in the Writ Petition, is that the Petitioner is functioning as PDS Retailer at Batapur under Nandol Gram Panchayat in Salipur, Block, Cuttack for about last 30 years without any complaint. The PDS license of the Petitioner was valid till 31.03.2023. However, on 28.12.2022, the Petitioner received a show cause notice from Opposite Party No.3 alleging some minor irregularities against the Petitioner, asking him to file reply within seven days. On 30.12.2022, the Petitioner filed an application before the Opposite Party No.3 seeking for time to file reply along with a medical certificate. Thereafter, though the Petitioner approached the Opposite Party No.3 to supply him the documents relating to allegations levelled against him, no document was supplied to the Petitioner to file his show cause. Further, on 22.02.2023 (wrongly typed as 02.02.2023) the order of suspension was passed against the Petitioner without affording any opportunity of hearing to him. Being aggrieved, the Petitioner preferred an Appeal challenging the said order dated 22.02.2023 before the Opposite Party No.2 in P.D.S (Appeal) No.11 of 2023. The said order was also upheld by the Opposite Party No.2 vide order dated 19.06.2024. Hence, this Writ Petition.

3. This writ petition has been preferred mainly on the grounds that the Opposite Party No.3 passed the order of suspension relying on some documents, which were not supplied to the Petitioner so also without disclosing about the report submitted by the Marketing Inspector, Salipur as well as the report of the Block Development Officer, Salipur regarding allegations of irregularities committed by the Petitioner. It is the case of the Petitioner that, after passing of the suspension order, an application was filed by the consumers of the Petitioner unanimously before the Opposite Party No.3 on 13.02.2023 stating about the innocence of the Petitioner so also the allegations levelled against him to be baseless.

4. It is further case of the Petitioner that, the allegations levelled against him, are made on political consideration to oust him from PDS channel. Further, neither any document was supplied to the Petitioner along with show cause notice nor on demand made by the Petitioner to rebut the allegations. Moreover, the Order of suspension was passed by the Opposite Party No.3 without following due procedure so also without giving opportunity of hearing to the Petitioner.

5. Further, the Opposite Party No.2 also passed the impugned order dated 19.06.2014 relying on the unsupplied documents so also without assigning any reason regarding such non-supply of documents to the Peti

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