IN THE HIGH COURT OF ALLAHABAD
Prakash Padia, J.
Yogendra Prasad – Petitioner
Versus
State of U.P. and Others – Respondents
Writ C No. 31056 of 2022
Decided On : 30-11-2022
UP Essential Commodities (Regulation at Sale and Distribution) Rules 2013 – Rule 13 (1) – Cancellation of his fair price shop licence – Special leave to Appeal – Cancellation of license – Quashing of order – By means of present writ petition, petitioner is seeking for quashing of order passed by respondent No-2, Deputy Commissioner (Food) Basti Region, Basti in case under Rule 13 (1) of UP Essential Commodities (Regulation at Sale and Distribution) Rules 2013, allowing appeal filed by respondent No. 5. prayer has been made by petitioner for mandamus directing respondents not to interefere in peaceful functioning of petitioner as Fair Price Shop Dealer in Gram Panchayat, Block Pauli, District – Held, Court is opinion that even if a subsequent allottee does not have a independent rights, he/she still has a right to be heard and to make submissions defending the order of cancellation – Court is of opinion that order passed by appellate authority namely Deputy Commissioner (Food) Basti Region, Basti was passed without hearing to petitioner is liable to be set aside and hereby set aside – In facts and circumstances of case, present petition is disposed of finally permitting petitioner to file an impleadment application along-with his objections before appellate authority within a period of three weeks from today – If it is so, appellate authority is directed to pass a fresh order strictly in accordance with law within a period of three months thereafter – Writ petition is allowed.
JUDGMENT :
1. Heard, learned counsels for the parties and perused the material on records.
2. By means of present writ petition, petitioner is seeking for quashing of the order dated 26-09-2022 passed by the respondent No-2, Deputy Commissioner (Food) Basti Region, Basti in case No. 285 of 2022 under Rule 13 (1) of UP Essential Commodities (Regulation at Sale and Distribution) Rules 2013, allowing the appeal filed by respondent No. 5. Further prayer has been made by petitioner for mandamus directing the respondents not to interefere in peaceful functioning of the petitioner as Fair Price Shop Dealer in Gram Panchayat Bhotaha, Block Pauli, Tehsil Dhankata District Sant Kabir Nagar.
3. Learned counsel for the petitioner submits that after cancellation of fair price shop licence of respondent No. 5, by the respondent No.3- Sub Divisional Magistrate, Tehsil Dhankata District Sant Kabir Nagar on 9-6-1022, the due process as prescribed under the Guidelines and Government Orders issued in this regard, was followed and the proposal for selection of petitioner as fair price shop dealer at village in question has been recommended by the Block Development Officer before the respondent no.3. By order dated 6-8-2022 passed by the respondent No -3, the licence of fair price shop at village in question was granted in favour of the petitioner and at present the petitioner is functioning as fair price shop dealer without any complaint whatsoever.
4. Learned counsel for petitioner further submits that by the impugned order dated 26-9-2022, respondent no.2 has wholly illegally and in arbitrary manner, allowed the appeal filed by the respondent no.5 against the cancellation of his fair price shop licence. He further submits that before passing the order dated 26-9-2022, no opportunity of hearing has been given to the petitioner inspite of fact that petitioner was selected as fair price shop dealer after the due process. Counsel for the petitioner further submitted that the petitioner being a duly selected fair price shop dealer is the necessary party before the respondent No-2 in appellate proceedings, but without considering the same impugard order has been passed without hearing the petitioner. The counsel for the petitioner further submits that without impleading the petitioner as party before the appellate court, the decision in favour of respondent no.5 is wholly illegal and arbitrary.
5. Lastly it was contended by the counsel for petitioner that the impugned order dated 26-9-2022 was passed by violating the principles of natural justice. The respondent no.5 was very well aware regarding the allotment of fair price shop in favour of petitioner, during the pendency of the appeal, but the same has not been disclosed.
6. In support of his submissions, learned counsel for the petitioner has placed reliance on the judgements passed by the Supreme Court in the cases of Ram kumar Vs. State of U.P. & others reported in 2022 (11) ADJ 229 (S.C.), decided on 28-9-2022; Pawan Choubey Vs. State of U.P. & others in Civil Appeal No 3668 of 2022 decided on 6-5-2022 and Sumitra Devi Vs State of UP & others in Special leave to Appeal (C) Nos. 37283-37284 of 2012 decided on 8-10-2014, and submitted that the subsequent allottee is the necessary party in the proceedings, as the orders passed in favour of original allottee adversly affects the interest of subsequent allottee.
7. Per contra, the learned counsel for respondents No.5 and learned Standing Counsel Submits that after restoration of fair price shop license in favour of respondents No.5 by the respondent No. 2, the petitioner being a subsequent allottee have no right to avail any remedy against the appellate order dated 26-9-2022 passed by the respondent no.2. Counsel for the respondent no. 5 further Submits that the petitioner being a subsequent allottee is not a necessary party and the respondent no.2 have not committed error while passing the order dated 26-9-2022.
8. In support of his submission learned coun
A subsequent allottee of a Fair Price Shop does not automatically gain the status of a necessary party in appeals concerning the cancellation of previous allotments unless they actively seek to be im....
Subsequent allottees of fair price shops must be heard in appellate proceedings; failure to do so violates their rights and is contrary to established legal principles.
(1) Impleadment of necessary party in suit – If a necessary party is not impleaded, suit itself is liable to be dismissed.(2) Non-disclosure of relevant and material documents with a view to obtain u....
The subsequent allottee has the right to be heard and make submissions defending the cancellation order, even if they do not have an independent right.
Point of law: Only aggrieved person, who has participated in the process of allotment of fair price shop can file appeal.
The subsequent allottee has the right to hold the shop only if the original licensee's license is cancelled. Procedural compliance and consideration of documentary evidence over oral statements are c....
A fair price shop license cannot be cancelled without affording a reasonable opportunity to the licensee to defend against the allegations in accordance with the principles of natural justice.
The cancellation of a fair-price-shop license is invalid if the authority that conducted the inquiry also decides the merits of the case, violating procedural requirements.
Even subsequent allottees have the right to be heard and make submissions defending the order of cancellation.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.