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1997 Supreme(MP) 74

R.S. Garg, J.
Dharampal Ramnarayan Agrawal
vs
State Of M.P. And Anr.
Decided On : 13 February, 1997

The requirement of recording reasons for rejection of an application for renewal of a license under section 15(3) of the Indian Arms Act, 1959 is mandatory and is a part of the principles of natural justice.

Headnote:

INDIAN ARMS ACT, 1959 - SECTION 15(3) - RENEWAL OF LICENCE - REASONS FOR REJECTION - MANDATORY - PRINCIPLES OF NATURAL JUSTICE - AUDI ALTERAM PARTEM - APPLICABILITY.

Fact of the Case:

Petitioner's application for renewal of his revolver license was rejected by the District Magistrate without recording any reasons. The petitioner challenged the order before the appellate authority and the State Government, but his appeals were dismissed. He then filed a petition in the High Court.

Finding of the Court:

The High Court held that the order passed by the District Magistrate was patently illegal as it did not disclose the reasons for rejection of the renewal application. The court also held that the principles of natural justice, including audi alteram partem, were applicable to the matter and that the petitioner should have been given an opportunity to meet the allegations against him before the decision was made.

Issues: 1. Whether the District Magistrate's order rejecting the petitioner's application for renewal of his revolver license was legal. 2. Whether the principles of natural justice, including audi alteram partem, were applicable to the matter.

Ratio Decidendi: 1. Section 15(3) of the Indian Arms Act, 1959 mandates that unless the licensing authority for reasons to be recorded in writing otherwise decides, the license shall be renewable. 2. The requirement of recording reasons is a statutory requirement and is a part of the principles of natural justice. 3. The principles of natural justice apply in quasi judicial and administrative actions and, thus 'rule of reason' is a part of principles of natural justice. 4. A statutory authority is required to observe this rule in the absence of a provision in the statute in that behalf.

Final Decision: The High Court quashed the orders passed by the authorities and directed the licensing authority to reconsider the matter afresh in accordance with law and the observations made by the court.

ORDER

R.S. Garg, J.

1. The brief facts leading to the petition are that the petitioner was holding a revolver, licence bearing No. 456/VIII/P/1983 for a period of one year. The licence was renewable for the same period after its expiry in accordance with section 15(3) of the Indian Arms Act. The petitioner filed an application for renewal of the licence on 16-6-1984. As alleged by the petitioner, without hearing the petitioner the District Magistrate contrary to the provisions of section 15(3) of the act by order dated 13-8-1984 rejected the application without recording reasons for rejection. The said order was impugned in an appeal filed under section 18 of the Indian Arms Act. The said appeal proved futile, therefore, the petitioner filed a representation to the State Government, but as the same was rejected, petitioner has filed this petition.

2. Shri Prashant Mishra, learned counsel for the petitioner contends that a perusal of the order passed by the competent authority i.e. the District Magistrate would show that the order passed by it, is ex facie, illegal and is contrary to the provisions of section 15(3) of the Act. He also submits that the authorities on which the reliance was placed by the appellate authority are no more good law in view of the pronouncement of the judgment of the Supreme Court and larger bench of this Court. He submits that where the statute provides that the reasons have to be recorded then it is mandatory for the authority to record the reasons. He also submits that the development of the law clearly establishes that a person is entitled to be heard and is also entitled to know about the material which is required to be used against him.

3. On the other hand, Shri Khaskalam, learned Deputy Advocate General appearing for the respondents, submits that the division bench judgment, reported in 1960 MPLJ 100, Moti Miyan Azim Miyan v. Commissioner Indore Division clearly settles the controversy at rest and if following that judgment the appellate authority and/or the State Government have confirmed the order passed by the Licensing Authority, this Court would not be justified in interfering with the order.

4. Section 15 of the Arms Act, 1959 reads as under:-

Duration and renewal of licence. - (1) A licence under section 3 shall, unless revoked, continue in force for a period of three years from the date on which it is granted:

Provided that such a licence may be granted for a shorter period if the person by whom the licence is required so desires or if the licensing authority for reasons to be recorded in writing considers in any case that the licence should be granted for a shorter period.

(2) A licence under any other provision of Chapter II, shall, unless revoked earlier, continue in force for such period from the date on which it is granted as the licensing authority may in each case determine.

(3) Every licence shall, unless the licensing authority for reasons to be recorded in writing otherwise decides in any case, be renewable for the same period for which the licence was originally granted and shall be so renewable from time to time and the provisions of sections 13 and 14 shall apply to the renewal of a licence as they apply to the grant thereof."

Sub-section (3) of section 15 mandates that unless the licensing authority for the reasons to be recorded in writing otherwise decides, the licence shall be renewable. It cannot be disputed that the requirement of recording the reasons is a statutory requirement.

5. In the matter of Samaru Banjare v. State of M. P., 1985 MPLJ 361 = 1985 JLJ 460, the full bench of this Court has considered the meaning of the phrase 'reasons to be recorded'. The full bench has clearly held that requirement of giving reasons in the light of the language has to be considered in two aspects - (1) the statutory requirement, that is the language of the rule itself, and, (2) as a part of the principles of natural justice. As regard the language of the rule for "reasons to be recorded"



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