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2025 Supreme(All) 3233

IN THE HIGH COURT OF ALLAHABAD
VIPIN CHANDRA DIXIT, SHEKHAR B. SARAF, JJ.
Gyanendra Kumar – Appellant
Versus
Union of India and Others – Respondents 
Writ (C) No. 28993 of 2024
Decided On : 10-02-2025

Advocates Appeared:
For the Appellant : Saurabh Srivastava
For the Respondent: Komal Mehrotra

Procedural timelines in regulatory matters are mandatory; delays without justification invalidate actions taken under such guidelines.

Headnote:(A) Constitution of India - Article 226 - Marketing Discipline Guidelines, 2012 - Writ petition challenging show cause notice for discrepancies found in inspection - Notice issued after an inordinate delay of over two months from test results, contrary to mandatory requirement of Clause 8.5.6 - Delayed issuance lacks proper explanation and cannot be sustained - Show cause notice quashed; authorities permitted to conduct fresh inspection. (Paras 3-6)

(B) Legal principles - Mandatory nature of procedural guidelines - Inconsistency with previous case law due to different wording of relevant clauses. (Para 5)

Facts of the case:
The petitioner contested a show cause notice issued after inspection findings, claiming it violated the guideline's timeline for issuing such notices. The notice was sent more than two months after the test results were received, leading to the challenge.

Findings of Court:
The court found the delay in issuing the notice to be excessive and lacking justification, quashing the notice and allowing fresh action by the authorities.

Issues: Whether the delayed issuance of the show cause notice contravened mandatory guidelines, warranting its quashing.

Ratio Decidendi: The court ruled that procedural guidelines regarding notice issuance are mandatory, and significant delays without explanation undermine their validity, differentiating from prior cases due to differing clause language.

Result: Writ petition allowed, show cause notice quashed.

Table of Content
1. delay in issuance of show cause notice (Para 2 , 3)
2. mandatory nature of notice issuance clause (Para 4 , 5)
3. quashing of delayed notice and fresh inspection granted (Para 6 , 7)
JUDGMENT :
VIPIN CHANDRA DIXIT, J.

1. Heard learned counsel for the parties and perused the record.

2. This writ petition under Article 226 of the Constitution of India has been filed whereby the petitioner is aggrieved by the order of show cause notice dated 08.09.2023, wherein the petitioner has been show caused with regard to alleged discrepancy found in the joint inspection.

3. In the present case, the factual matrix is that the inspection by the respondent authorities was carried out on 04.03.2023 and the samples' test came out on 23.06.2023. The respondent authorities sat over the sample tests for the period of two and half month and then issued a show cause notice on 08.09.2023. The relevant Clause 8.5.6 of Marketing Discipline Guidelines, 2012 reads as follows:-

"8.5.6 in respect of all cases of irregularities, a show cause notice, within 30 days from the date of inspection will be issued to the dealer indicating all the irregularities. However, in case samples of MS/HSD were drawn during inspection then the show cause notice will be issued within 30 days of test results. The show cause notice should be issued along with all reports and other documents, etc. which forms the basis of the notice."

4. From the perusal of the said clause, it is patently clear that show cause notice is required to be issued within 30 days from the date of inspection and if the samples are taken during the inspection, this show cause notice is required to be issued 30 days from the date of test results but in the present case, show cause notice has been issued after more than 2 months from the date of receipt of test results. No proper explanation has been provided by the respondent authorities to indicate the reasons of such delay.

5. Upon further reading of aforesaid clause, we are of the view that this clause is mandatory in nature. Even if some flexibility is provided for the two months delay cannot be accepted. The judgment relied upon by the respondents being Indian Oil Corporation Ltd. and Ors. vs. R.M. Service Centre and Ors. (2019) 19 SCC 662 is factually different and would not apply in the present case as in the Hon'ble Supreme Court judgment, the clause referred used the word "preferably" but in the present case, the words are different and there does not appear to be any ambiguity with regard to the time provided for issue of show cause notice in the said clause.

6. In light of the same, the present show cause notice cannot be sustained on the ground that the same has been issued with an inordinate delay. Accordingly, the show cause notice is quashed and set aside and the respondent authorities are granted liberty to carry out fresh inspection and draw samples and act in accordance with law.

7. With the above direction, the writ petition is disposed of.


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