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2024 Supreme(All) 2296

IN THE HIGH COURT OF ALLAHABAD
CHANDRA KUMAR RAI, J.
Arvind Kumar Pandey - Petitioner
Versus
State Of U.P. And Others - Respondents
Writ C. No. 10249 Of 2019
Decided On : 21-10-2024

Advocates Appeared:
For the Petitioner: Kamla Kant Mishra, Varun Mishra.
For the Respondents: C.S.C., Lallan Verma, Rakesh Kumar Verma, Ramesh Chandra Upadhyay.

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.

Headnote:(A) Control Order, 2004 - Fair Price Shop License - The petitioner’s license was suspended and subsequently cancelled due to alleged irregularities in distribution of essential commodities. The petitioner challenged the cancellation, claiming lack of proper inquiry and violation of natural justice principles. (Paras 2, 5, 14)

(B) Natural Justice - The court emphasized that a proper inquiry must be conducted, including providing a show cause notice and an opportunity for the licensee to respond before cancellation. (Paras 13, 14)

Facts of the case:
The petitioner was granted a license to run a fair price shop, which was suspended and later cancelled following complaints and inquiries regarding distribution irregularities. The petitioner contended that the cancellation was arbitrary and lacked due process.

Findings of Court:
The court found that the cancellation order was based on proper inquiry and consideration of the petitioner’s submissions, thus upholding the decision of the licensing authority.

Issues: The main issues were whether the cancellation of the fair price shop license was justified and if proper procedures were followed in the inquiry.

Ratio Decidendi: The court ruled that the inquiry conducted was sufficient and adhered to the principles of natural justice, affirming that the cancellation was justified based on the findings of irregularities.

Result: Writ petition dismissed.

JUDGMENT :

(Chandra Kumar Rai, J.)

1. Heard Mr. Kamla Kant Mishra, learned counsel for the petitioner, Mr. Surya Bhan Singh, learned Standing Counsel for the State-respondents, Mr. Rameshwar Prasad Shukla for respondent no.5 and Mr. Rishi Kant Rai for proposed respondent no.6-Smt. Garima Pandey.

2. Brief facts of the case are that petitioner was granted license to run the fair price shop in Village-Rampur, Block-Rewati, Tehsil-Bairia, District-Ballia. Smt.Gunja Pandey-Gram Pradhan filed a complaint against the petitioner before the District Magistrate in respect of running the fair price shop by the petitioner, accordingly, an inquiry was conducted by District Supply Officer, Rewati, Ballia and vide order dated 27.05.2017 the fair price shop license of the petitioner was suspended. In pursuance of suspension order an explanation was called from the petitioner accordingly, reply was submitted by the petitioner on 22.6.2017 along with affidavit of card holders, statements, proof of distribution of essential commodities to the card holders and registration etc. Respondent No.4/ District Supply Officer, Ballia, vide order dated 25.07.2017, cancelled the fair price shop license of the petitioner. Petitioner challenged the cancellation order dated 25.07.2017 through writ petition no.37139 of 2017 before this Court which was disposed of vide order dated 19.08.2017 with direction to file an appeal before the appellate authority. In pursuance of the order of this court dated 19.08.2017, petitioner filed an appeal before Respondent No. 2/ Divisional Commissioner. Petitioner filed another writ petition No. 62661 of 2017 before this court for mandamus to decide the pending appeal within stipulated period which was disposed of vide order dated 22.12.2017 directing the appellate authority to decide the appeal within two months and as an interim measure, it was also directed that if, third party right is created the same shall be subject to the decision of the appeal. Respondent No.2/Divisional Commissioner vide order dated 14.03.2018 allowed the petitioner's appeal in part and directed the licensing authority to decide the appeal afresh within two months after affording opportunity to the petitioner as well as to maintain status quo. In pursuance of the appellate order dated 14.03.2018, petitioner filed an application on 05.04.2018 before the District Supply Officer along with affidavit of card holders. On 7.06.2018, a complaint was made by the petitioner before the District Magistrate for an inquiry in the matter. The Gram Pradhan took a statement of card holders and ex-party inquiry was done. Respondent No.4/ District Supply Officer again cancelled the fair price shop license of the petitioner vide order dated 2.06.2018. Petitioner filed an appeal before Commissioner against order dated 2.06.2018 which was registered as Appeal No. 01294 of 2018 before Respondent No. 2. Petitioner challenged the order dated 2.06.2018 before this court by way of writ petition No.39089-2018 which was decided vide order dated 29.11.2019 with direction to decide the petitioner's appeal in accordance with law. The aforementioned appeal filed by the petitioner has been dismissed by Respondent No. 2 vide order dated 18.2.2019, hence this writ petition for the following relief:

    "(A) Issue a writ, order or direction in the nature of Certiorari to quash the impugned order dated 18-02- -2019 passed by the Divisional Commissioner, Azamgarh Division, Azamgarh and order dated 02-06- -2018 passed by the District Supply Officer, Ballia (Annexure no.12 & 8 to the writ petition).

    (B) Issue a writ, order or direction in the nature of mandamus directing the respondents to conduct a regular enquiry after giving opportunity of hearing to the petitioner in view of full bench judgment and order passed in Pooran Singh's case and Govt. Order dated 29-07-2004 and Order, 2016.

    (C) Issue a writ, order or direction in the nature of mandamus directing the respondents to resume the supply o

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