The court affirmed that a licensee does not possess a fundamental right to operate a fair price shop and that the inquiry process regarding license cancellation is summary in nature, aligning with principles of natural justice.

JUDGMENT :

Jaspreet Singh, J.

1. The present dispute emanated in the year 2007 and it has a checkered background.

2. The petitioner was accorded a license on 19.11.2005 for distribution of essential commodities through a fair price shop in village Panchayat Dilawarpur, Tahsil Mohammadi, District Kheri.

3. On 15.10.2007, the Sub Divisional Magistrate Mohammadi Kheri noticing certain discrepancies regarding the distribution of essential commodities suspended the license of the petitioner and required him to show cause within a week as to why further proceedings may not be taken against the petitioner.

4. As per the suspension order cum show cause notice, it was alleged that the petitioner had lifted the requisite quota of the food and essential commodities for the month of October 2007 on 26.09.2007. However, it was alleged that the appointed supervising officer on 07.10.2007 submitted his report and informed that he had visited the fair price shop of the petitioner where he was not available nor there was the necessary stocks of the grains and essential commodities for distribution.

5. Acting upon the said report, the matter was enquired through the distribution inspector Mohammadi who submitted his report dated 11.10.2007 and confirmed that the petitioner did not have the necessary stocks for distribution of the grains and the essential commodities for the month of October 2007. It also reported that the petitioner was required to produce the necessary documents which could not be presented. Statements of certain beneficiaries which included persons having B.P.L. Cards (below poverty line) and 13 Antyodoya Card holders whose cards did not indicate any endorsement regarding distribution of the grain and essential commodities or its receiving. Certain cards holders gave their statements that they had received the essential commodities but even their ration cards did not have the necessary endorsement and there were certain other card holders who stated that they have not received the grains and the essential commodities.

6. The Sub Divisional Magistrate, Kheri taking note of the fact that in pursuance of the show cause cum suspension notice dated 15.10.2007 the petitioner did not respond nor submitted any evidence or explanation hence by means of order dated 17.11.2007 it cancelled the license of the petitioner.

7. An important event occurred when the Sub Divisional Magistrate, Mohammadi Kheri on 22.01.2008 made a fresh allotment in favour of Smt. Anwari (who after intervention of the Apex Court was impleaded as private respondent no.4 in the instant petition.)

8. In the meantime, the petitioner being aggrieved against the order dated 17.11.2007 had preferred an appeal before the Commissioner, Lucknow Division in terms of Section 28(3) of the Uttar Pradesh Schedule Essential Commodities Distribution Order 2004. This appeal came to be allowed on 16.12.2013 holding that the order dated 17.11.2007 was ex parte and had been passed without affording reasonable opportunity to the petitioner. It further directed that the petitioner would submit his reply within one month and thereafter the Sub Divisional Magistrate concerned shall decide the matter afresh.

9. In furtherance of the aforesaid remand order, the petitioner furnished his reply, however, the Sub Divisional Magistrate, Mohammadi once again considering the reply did not find any reason to doffer from the earlier decision and for the reason as mentioned in the order dated 17.02.2014, he cancelled the license of the petitioner including the agreement entered between the petitioner and the State and also forfeited the security.

10. Once again the petitioner being aggrieved against the order dated 17.02.2014 preferred an appeal. While this appeal was admitted by the Additional Commission