The main legal point established in the judgment is that the licensee of a fair price shop is required to strictly adhere to the terms and conditions of the license and the provisions of the Control Order, 2016. The judgment also emphasized that the licensee does not have a fundamental right to the fair price shop license and that the authorities have the discretion to cancel the license if the licensee fails to comply with the terms and conditions.

JUDGMENT :

1. The present writ petition has been filed seeking quashing of the order dated 29.7.2019 passed by the Joint Commissioner (Food), Lucknow Division, Lucknow in Appeal No.01512 of 2019, which was preferred by the petitioner against the order dated 27.5.2019 passed by the District Supply Officer, Lakhimpur Kheri cancelling the license of the fair price shop of the petitioner situated in Nagar Panchayat, Dhauraha. District Lakhimpur Kheri. The order dated 27.5.2019 is also impugned in the present writ petition.

2. The petitioner was given the license to run the fair price shop relating to Nagar Panchayat, Dhauraha. The petitioner was required to distribute the scheduled commodities and Kerosene Oil to the card holders (Antyodaya and Patra Grahasti Yojana) regularly at the rate prescribed by the State Government.

3. On 6.4.2019, upon receiving information, local police caught seven bags of wheat being carried away in Nagar Panchayat, Dhauraha for black marketing. Sub-Divisional Magistrate, Dhauraha got the inquiry conducted by the Regional Supply Inspector, who made inspection on the same day in presence of Sri Ram Narayan, local resident, Sri Anil Kumar Pandey, Sub-Inspector, Police Station Dhauraha, Sri Krishna Dutt, another local resident and Sri Suraj Gupta, son of the petitioner.

4. During the inquiry, certain discrepancies were found in the distribution of essential committees in stock register and the details recorded in E-Pos machine for distribution of the food grains. Upon comparing, the details of the food grains received by the petitioner and distributed to the card holders, shortage of 3.27 Quintals of wheat and excess of 1.27 Quintals of rice was found. Statements of 38 Antyodaya and Patra Grahasti Yojana card holders were recorded, who alleged irregularities in distribution of the essential commodities by the petitioner from the fair price shop. An FIR dated 9.4.2019 came to be registered against the petitioner under Section 3/7 of Essential Commodities Act being FIR No.0204 of 2019 after taking approval of the District Magistrate, Lakhimpur Kheri.

5. Petitioner filed Writ Petition No.10652 (MB) of 2019 before this Court challenging the FIR No.0204 of 2019 against him. The said writ petition was disposed of vide order dated 16.4.2019 granting protection to the petitioner in light of the judgment of the Supreme Court in the case of Arnesh Kumar Vs. State of Bihar, (2014) 8 SCC 273.

6. On 19.4.2019, suspension order dated 15.4.2019 suspending the license of the fair price shop of the petitioner passed by the District Supply Officer, Lakhimpur Kheri was served upon the petitioner. The petitioner was issued show cause notice requiring him to submit his explanation within one week along with records relating to the distribution of the essential commodities from the fair price shop. On 30.4.2019 petitioner submitted his explanation to the show cause notice before the District Supply Officer, Lakhimpur Kheri along with relevant records and requested for revocation of the suspension order dated 15.4.2019. He also requested for distribution of the essential commodities and Kerosene Oil to the petitioner's fair price shop.

7. Thereafter, the petitioner filed Writ Petition No.14195 (MS) of 2019 assailing the suspension order dated 15.4.2019. During the pendency of the said writ petition, the District Supply Officer, Lakhimpur Kheri cancelled the license of the fair price shop of the petitioner vide order dated 27.5.2019. The aforesaid writ petition was also dismissed vide order dated 28.5.2019 granting liberty to the petitioner to assail the order dated 27.5.2019 before the appropriate authority.

8. The petitioner, thereafter, filed Writ Petition No.16885 (MS) of 2019 impugning the order dated 27.5.2019. However, the said writ petition was disposed of vide order dated 4.6.2019 with liberty to the petitioner to prefer a statutory appeal under Clause 13(3) of the U.P. Essential Commodities (Regulation of Sale and Distribution