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2024 Supreme(All) 2074

ALLAHABAD HIGH COURT
CHANDRA KUMAR RAI, J.
Sita Ram - Petitioner
Versus
State of U.P. and Others - Respondents
Civil Misc. Writ Petition No. 11319 of 2024
Decided On : 29-08-2024

Advocates Appeared:
For the Petitioner: Indu Shekhar Tripathi.
For the Respondents: Abhay Kumar Pandey, Krishna Mohan Mishra and Addl. C.S.C.

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.

Headnote:(A) The Essential Commodities Act, 1955 - Section 3/7 - Uttar Pradesh Essential Commodities (Regulation of Sale and Distribution Control) Order, 2016 - Cancellation of fair-price-shop license - The petitioner’s license was cancelled based on an inspection that did not consider the full context of the storage of essential commodities - The appellate authority remanded the matter for fresh consideration, but the same officer issued a new cancellation order, violating the Government Order dated 5.8.2019 and the provisions of the Control Order - The court found that the authority lacked jurisdiction to decide the matter after conducting the initial inquiry. (Paras 2, 9, 13, 20)

(B) Jurisdiction - The court emphasized that an authority that conducted an inquiry cannot also decide the merits of the case, as per the Government Order and Control Order provisions. (Paras 12, 20)

(C) Alternative Remedy - The court held that the existence of an alternative remedy does not bar the writ petition when the order is without jurisdiction or violates principles of natural justice. (Paras 16, 18)

Facts of the case:
The petitioner’s fair-price-shop license was cancelled following an inspection that did not account for all relevant circumstances, leading to a series of appeals and remands.

Findings of Court:
The court set aside the cancellation order, restoring the petitioner’s license and directing the authorities to resume supply of essential commodities.

Issues: The main issues included the jurisdiction of the District Supply Officer to cancel the license after conducting the inquiry and the proper compliance with the remand order.

Ratio Decidendi: The court ruled that the cancellation order was invalid due to non-compliance with the Government Order and Control Order provisions, emphasizing the need for a different authority to examine the case.

Result: Writ petition allowed; license restored.

JUDGMENT :

(Chandra Kumar Rai, J.)

Heard Sri Indu Shekhar Tripathi learned counsel for the petitioner, Sri Abhay Kumar Pandey, learned counsel holding brief of Sri S.N. Yadav learned counsel for respondent No. 5 and Sri Krishna Mohan Mishra, learned Additional Chief Standing Counsel for the state.

2. Brief facts of the case are that petitioner was granted licence for fair-price-shop on 23.2.2018 for gram panchayat-Kurhi Kheriya, Block-Khairgarh, Tehsil - Shikohabad, District-Firozabad. On 23.11.2022, District Supply Officer inspected the fair-price-shop of the petitioner in the absence of the petitioner. At the time of inspection, petitioner's wife and petitioner's daughter were present. On the basis of the inspection dated 23.11.2022, District Supply Officer, Firozabad lodged a First Information Report dated 2.12.2012 against the petitioner under Section 3/7 of The Essential Commodities Act, 1955, accordingly, suspended the fair-price-shop license of the petitioner vide order dated 3.12.2022 and attached the petitioner's shop with adjacent fair-price-shop holder of Sri Kusum Pal. Petitioner submitted his reply/explanation dated 23.1.2023 before District Supply Officer, stating that all food-grains were stored in the adjacent room in the same premises which was not inspected by the District Supply Officer. District Supply Officer vide order dated 16.3.2023 cancelled the petitioner's fair-price-shop licence. Petitioner Challenged the cancellation order dated 16.3.2023 by way of appeal under Section 13 (1) of Uttar Pradesh Essential Commodities (Regulation of Sale and Distribution Control) Order, 2016 which was allowed vide order dated 27.9.2023 and remitted the matter back before the authority for fresh decision in the light of Government Order dated 5.8.2019. In pursuance of the remand order dated 27.9.2023, fresh cancellation order dated 13.12.2023 has been passed by respondent No. 3/District Supply Officer on the basis of the report dated 30.11.2023, submitted by City Magistrate. Hence this Writ Petition for following relief:

    (I) Issue a writ order or direction in the nature of certiorari quashing the order dated 23.12.2023 passed by respondent No. 3 as contained Annexure No-1 to the writ petition.

    (II) Issue a writ order or direction in the nature of mandamus commanding and directing to the respondent No. 3 to restore the fair price shop of petitioner and ensure the distribution of the food grains supply from month to month.

3. This Court vide order dated 15.4.2024 entertained the matter and passed the following order dated 15.4.2024 :

    ''1. Petitioner has directly assailed the order dated 13.12.2023 passed by District Supply Officer cancelling his license for fair-price-shop, without availing the alternative remedy to file appeal under Rule 13(1) of Uttar Pradesh Essential Commodities (Regulation of Sale and Distribution Control) Order, 2016.

    2. Point of law involved in the instant writ petition lies in a narrow compass as to whether authority, who has enquired the matter and submitted the report can decide the merits of the case as well intending to examine the misappropriation or anomaly, if any, in distribution of essential commodities. It is submitted that as per Government Order dated 5.8.2019, same authority is not authorized to examine the embezzlement allegedly committed by the fair price shop licensee after confronting with him, who has initially enquired the matter and submitted the inquiry report. It is next submitted that learned appellate Court, vide order dated 27.9.2023, has remanded the matter with an unequivocal direction to consider the case of the petitioner by some other district level authority except the District Supply Officer, who has initially submitted the report, in compliance of provisions as enunciated under Government Order dated 5.8.2019. However, despite the direction issued by learned Additional Commissioner, vide its order dated 27.9.2023, the same District Supply Officer, in defiance of the order

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