IN THE HIGH COURT OF ALLAHABAD
SAUMITRA DAYAL SINGH, J.
Uma Shekhar Pathak - Petitioner
Versus
State of U.P. and Others - Respondents
Writ C. No. 35323 Of 2012
Decided On : 05-04-2022
fair price shop license - Cancellation of License - Uttar Pradesh Scheduled Commodities Distribution Order, 2004 - [Uttar Pradesh Scheduled Commodities Distribution Order, 2004] - The court quashed the orders dated 01.02.2007, 05.04.2010, and 12.04.2012, and restored the fair price shop license of the petitioner, citing deficiencies in the show cause notice and lack of specific violations proved against the petitioner.
Fact of the Case:
The petitioner challenged the order cancelling their fair price shop license and the suspension notice. The court found deficiencies in the show cause notice and lack of specific violations proved against the petitioner.
Finding of the Court:
The court quashed the orders dated 01.02.2007, 05.04.2010, and 12.04.2012, and restored the fair price shop license of the petitioner.
Issues: Cancellation of fair price shop license, deficiencies in the show cause notice, lack of specific violations proved against the petitioner.
Ratio Decidendi: The show cause notice and the orders were found to be deficient due to vague and incomplete descriptions of charges, and no specific violations were proved against the petitioner.
Final Decision: The court allowed the writ petition, quashed the orders, and restored the fair price shop license of the petitioner.
JUDGMENT :
1. Heard Sri S.S.P. Gupta, learned counsel for the petitioner and learned Standing Counsel for the State.
2. List has been revised. Matter is very old. No counsel for the contesting respondent has appeared. The illness slip sent by learned counsel for the subsequent allottee is being ignored as it is the settled law that the subsequent allottee is not an aggrieved person in the context of proceedings against the original fair price licensee/agent.
3. By means of the present petition, challenge has been raised to the order dated 12.04.2012 passed by the appellate authority confirming the order dated 05.04.2010 passed by the licensing authority cancelling the petitioner's fair price shop license and the suspension notice dated 01.02.2007.
4. Insofar as the suspension notice dated 01.02.2007 is concerned, no challenge may be entertained in the present proceedings as that suspension was made subject matter of challenge in Writ Petition No.7306 of 2007. The writ petition was entertained and the below quoted interim order was passed therein :
5. However, it is a fact that the aforesaid writ petition was dismissed vide order dated 18.01.2010 which reads as below :
Heard Sri Ramanand Pandey, learned Standing Counsel appearing for the State respondents, and Sri V.K. Chandel, learned Counsel appearing for the respondent no. 4.
Learned Counsel appearing for the State and the contesting respondent both have contended before this Court that under paragraph-28 of the Uttar Pradesh Scheduled Commodities Distribution Order, 2004 there is a provision of appeal. The petitioner filed the writ petition and obtained an interim order from this Court and simultaneously an appeal had been filed, which was subsequent withdrawn. According to us, since there is a clear provision of appeal, there is neither any question of continuing with the matter with interim order or withdrawing the appeal. If the petitioner is entitled to have any order, he can proceed with the appeal, if so advised, to have hearing on merits as early as possible. Hence, the writ petition is dismissed, however, without imposing any cost. Interim order, if any, stands vacated."
6. A recall application filed to recall the aforesaid order was also dismissed, as infructuous on 12.05.2014, in view of the facts noted in the order dated 12.05.2014. It reads as below :
The application is dismissed as infructuous."
7. In view of the above, no challenge may arise to the suspension order dated 01.02.2007. No leave was granted to the petitioner to challenge that suspension order by means of the fresh writ petition.
8. Insofar as the order dated 05.04.2010 and the further appeal order dated 12.04.2012 are concerned, it is seen while giving effect to the interim order dated 15.02.2007 passed in Writ Petition No.7306 of 2007, the fair price shop license of the petitioner had been restored. It was however again suspended on 16 June 2007. Against that, the petitioner filed an appeal. It came to be allowed vide order dated 31.10.2007.
9. Upon dismissal of the petitioner's writ petition no.7306 of 2007, a fresh chargesheet was issued to the petitioner dated 18.03.2010. Bare perusal of the same reveals that the following charges were levelled :
2. Antyoday yojana ke carddharko ko 35 kilo khadhyan 120/- rupai mai dia jata hai.
3. BPL carddharko ke khadyan nahi dia jata hai.
4. Chini ka vitran nahi kia jata hai."
10. Submission of learned counsel for the petitioner is that the said chargesheet is wholly vague and incapable of any reply, inasmuch as, besides making vague allegations, no
Deficiencies in the show cause notice and lack of specific violations proved against the petitioner led to the quashing of the orders and restoration of the fair price shop license.
Suspension of fair price shop license was arbitrary as it violated prescribed procedures, warranting judicial intervention despite alternative remedies.
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 licence without granting a personal hearing violates the principle of natural justice under Article 14 of the Constitution.
Fair price shop licenses cannot be cancelled without conducting a proper inquiry and adhering to principles of natural justice, including providing a show cause notice and opportunity to respond.
The existence of an alternative statutory remedy precludes the court from intervening under Article 226 of the Constitution.
Cancellation of fair price shop agreement should be based on evidence and material on record, not on presumptions and conjectures.
Quasi-judicial authorities must provide adequate reasons for rejecting replies or explanations and conduct proper enquiries and stock verifications before taking drastic actions.
The court upheld the cancellation of the petitioner’s fair price shop license due to violations of the Essential Commodities Act, confirming the necessity of a reasonable opportunity to be heard.
The main legal point established in the judgment is the requirement for a full and proper inquiry before the cancellation of a license, adherence to rules of natural justice, and the importance of gi....
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