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2010 Supreme(All) 1180

[2010(3) ADJ 659 (FB)]
ALLAHABAD HIGH COURT
(Full Bench)
BEFORE : S.K. SINGH, ASHOK BHUSHAN AND R.A. SINGH, JJ.
PURAN SINGH ....Petitioners
Versus
STATE OF U.P. AND OTHERS ...Respondents
(Civil Misc. Writ Petition No. 31482, 39519 of 2009, decided on 5th April, 2010)

Advocates:
Counsel :
Arvind Kumar Singh II for the Petitioner; Gajendra Pratap, Sr. Adovcate, S.D. Dubey appeared to assist Court; M.C. Chaturvedi, C.S.C. assisted by Dr. Y.K. Srivastava for the State.

Headnote:(A) Essential Commodities Act, 1955—Section 3—Fair price shop—Suspension of agreement—Opportunity of hearing—Necessity of—Question whether before suspension of fair price agreement licence, an opportunity of hearing is mandatory to be given to fair price shop agent in violation of which suspension order is liable to be set aside—And whether Division Bench judgments in Pramod Kumar [2006(10) ADJ 610] and Harpal [2008(3) ADJ 36 (DB)] lay down the correct law that opportunity is must; or whether the Division Bench in Gopi’s case [2007(6) ADJ 231 (DB)] lays down correct law—On difference of opinion by two D.B. judgments, aforesaid question referred to Court for consideration by a Larger Bench—Court held that (i) Before suspension of fair price agreement it is not mandatory to give an opportunity of hearing, and thus, on plea of its violation, order of suspension is not liable to be set aside; (ii) Division Bench judgments in Pramod Kumar and Harpal holding that opportunity is must does not lay down correct law; (iii) Division Bench judgment in the case of Gopi lays down correct law that grant of opportunity is not necessary. [U.P. Scheduled Commodities Distribution Order, 2004—Clauses 4, 25 and 28]. [Para 11, 12 and 50]

       (B) Fair price shop—Suspension—Of agreement—Opportunity of hearing—Necessity of—In G.O. dated 29.7.2007, there is no contemplation of any notice and opportunity before suspending fair price shop, rather there is a clear stipulation that authority can pass order of suspension at the time of surprise inspection and otherwise also if complaint of serious irregularity is received—Opportunity will be required only before order of cancellation—This is also clearly provided in Distribution Order, 2004, provisions of which has an overriding effect on G.O. dated 29.7.2004—In terms of Distribution Order of 2004 parties are to sign draft/agreement with a clear stipulation of power of authority to pass the order of suspension. [Para 49]

       

JUDGMENT

By the Court.—Heard Sri Arvind Kumar Singh II, learned Advocate who appeared in support of the writ petition, Sri Gajendra Pratap, learned Senior Advocate who appeared to assist the Court and similarly Sri S.D. Dubey, learned Advocate.

2. Sri M.C. Chaturvedi, learned Chief Standing Counsel assisted by Dr. Y.K. Srivastava, appeared and argued from the State side.

3. This Full Bench has been constituted to resolve a issue, in view of the conflicting opinion in certain cases by Division Benches of our Court.

4. The point happens to be very small but it has an effect on the powers of the authority exercising the powers which will be just noticed and that has a wide range of effect on the rights of a claimant/beneficiary challenging the exercise on one hand and the public at large on the other hand.

5. Instead of taking time in noticing the facts and the details in the context in which question arose, to understand the controversy so involved we are to hurriedly notice, needed details in short.

6. To ensure the proper distribution of essential commodities which are bare need of the public they are to be distributed through the public distribution system for which Essential Commodities Act, 1955 (hereinafter referred to as the Act of 1955) was enacted. Certain powers so exercised by the Central Government were permitted to be exercised by the State Government. Pursuant to the powers conferred by the Public Distribution System (Control) Order, 2001 the State Government for maintaining the supplies of the food grains and other essential commodities and to secure equitable distribution and availability at fair price vide notification dated 20.12.2004 notified U.P. Scheduled Commodities Distribution Order, 2004. This distribution order was notified by the State Government in exercise of the powers conferred under Section 3 of the Act of 1955 read with provisions contained in Public Distribution System (Control) Order, 2001. Apart from the U. P. Scheduled Commodities Distribution Order, 2004 (hereinafter referred to as the Distribution Order of 2004) which is w.e.f. 30.12.2004 the State Government issued a Government Order dated 29.7.2004 (annexure No. 1 to the writ petition) (hereinafter referred to as Government Order, 2004 on the subject of monitoring/regulating various kind of procedures.

7. Petitioner claims to be the allottee of the fair price shop, which was suspended by the order of the Sub Divisional Officer/Licensing Authority dated 20.6.2009, pending proceedings of cancellation of the license. It is this exercise of the licensing authority which is under challenge.

8. When the matter was first heard, precise ground so taken and argued is that fair price shop agreement/license of the petitioner could not have been suspended without giving any opportunity to him. As no opportunity was given it being in violation of principles of natural justice is liable to be set aside on this ground alone. A further submission was made that the Government Order dated 29.7.2004 (annexure No. 1 to the writ petition) provides the procedure of suspension/cancellation and thus that having not been taken care, the impugned order of suspension is to be set aside.

9. In support of the submission that for lack of opportunity the impugned exercise is to be quashed, decision given by the Bench of this Court in the case of Pramod Kumar v. State of U.P. and others, 2006(10) ADJ 610 (DB) and Harpal v. State of U.P. and another, 2008(3) ADJ 36 (DB) were referred.

10. Learned Chief Standing Counsel opposed the aforesaid and submitted that no opportunity is required to be given at this stage. He placed reliance on the decision given by the Division Bench of this Court in the case of Gopi v. State, 2007(6) ADJ 231 (DB) and Kallu Khan v. State, 2008 (6) ADJ 453.

11. As the Division Bench hearing the present matter found difference of opinion in the judgment noted above, by order dated 14.7.2009 referred following questions for consideration by a Larger B










































































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