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2024 Supreme(Telangana) 514

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
K.Sarath, J.
Smt.Badavath Sarada – Petitioner
Versus
The State of Telangana – Respondent
Writ Petition No.8113 of 2017
Decided On : 09-09-2024

Advocates:
Advocate Appeared:
For the Petitioner: M M M Srinivasa Rao
For the Respondent: GP For Civil Supplies TG

IMPORTANT POINT
The cancellation of Fair Price Shop dealership based on a spouse's government employment was ruled arbitrary as the applicable G.O. was not retrospective.

Headnote:

(A) G.O.Ms.No.12 dated 06.03.2012 – Fair Price Shop Dealership – Cancellation of authorization of Fair Price Shop Dealer on grounds of spouse's employment in Government service – The petitioner contended that the cancellation was arbitrary and without opportunity to respond – The court found that the G.O. was not applicable retrospectively and the cancellation was illegal. (Paras 4, 7, 10, 11)

(B) Fair Price Shop Dealership – Eligibility criteria for dealership concerning family members of Government employees – The court noted that the G.O. did not explicitly bar relatives of employees outside specified departments from dealership. (Paras 9, 10)

Facts of the case: The petitioner, a Fair Price Shop Dealer since 1993, faced cancellation of her authorization due to her husband's employment in the Girijana Cooperative Corporation, which she contested as illegal and arbitrary.

Findings of Court: The court ruled that the cancellation was not valid as the G.O. was prospective and did not apply to the petitioner's case.

Issues: The main issues were the applicability of G.O.Ms.No.12 and the legality of the cancellation without providing an opportunity to the petitioner.

Ratio Decidendi: The court held that the G.O. did not apply retrospectively and that the cancellation was arbitrary, emphasizing the need for clear guidelines regarding dealership eligibility.

Result: Writ petition allowed, and the authorization was restored.

ORDER :

K.Sarath, J.

This Petition is filed questioning the order vide Rc.No.D/3666/2015 dated 27.02.2017, issued by the 2nd respondent-Revenue Divisional Officer with regard to the cancellation of authorization of the petitioner’s Fair Price Shop No.35028, Sarvaram Village, Sujatha Nagar of Bhadradri Kothagudem District.

2. Heard learned counsel appearing for the petitioner and learned Assistant Government Pleader for Civil Supplies appearing for respondents and perused the material on record.

3. Learned counsel for the petitioner submits that the petitioner has been appointed as Fair Price Shop Dealer for F.P.Shop No.35028, Sarvaram Village, Sujatha Nagar of Bhadradri Kothagudem District, since 1993. While it being so, a show-cause notice dated 08.12.2016 was issued to the petitioner with regard to cancel the authorization of the petitioner on the ground that husband of the petitioner is a Government employee. In response to the same, the petitioner has submitted her explanation dated 29.12.2016 to the respondent No.2.

4. Learned counsel for the petitioner further submits that as per G.O.Ms.No.12 dated 06.03.2012, the respondent No.2 has issued another show-cause notice dated 07.02.2017 on the ground that the family members of the employees working in Girijana Cooperative Corporation are also not entitled for any dealership. In response to the same, the petitioner has submitted her detailed explanation dated 14.02.2017 to the respondent No.2 and stated that her husband has been employed in the Girijana Cooperative Corporation from the year, 1987. According to G.O.Ms.No.12, dated 06.03.2012, the department of Girijana Cooperative Corporation was not indicated directly and Girijana Cooperative Corporation is a State Government Public Sector undertaking and will run some FP Shops in Agency areas under the guidelines of Revenue Authorities and the Girijana Cooperative Corporation of the employees cannot influence the PDS system in any manner. On contrary to the explanation given by the petitioner, the respondent No.2 has directly issued the present impugned order dated 27.02.2017 and cancelled the authorization without providing any opportunity to her and the action of the respondents is illegal and arbitrary, thereby, requested this Court to allow the writ petition by setting aside the impugned order dated 27.02.2017 and restore the authorization of the petitioner as fair price shop dealer.

5. Learned Assistant Government Pleader for Civil Supplies appearing for the respondents, basing on the counter affidavit, submits that the petitioner herself admitted that her husband is working as an employee in Girijana Cooperative Corporation and the Manager, GPCMs Ltd., Palvancha has also confirmed the same. As per the provisions contained in G.O.Ms.No.12, dated 06.03.2012, the Family members of employees working in Girijana Cooperative Corporation are also ineligible for Fair Price Shop Dealership. Moreover, the aforementioned Corporation comes under the administrative control of Tribal Welfare Department.

6. Learned Assistant Government Pleader for Civil Supplies further submits that as per Clause 4(4) of Annexure-I of TSPDS (Control) Order, 2016, the authorization issued under the order shall be liable for suspension or cancellation. After careful examination, the cancellation orders 27.02.2017 have been issued to the petitioner. Both the show-cause notices issued to the petitioner were for calling explanation on the complaint petitions and violations observed therein by the Revenue Divisional Officer, Kothagudem in Rc.No.D/3666/2015 dated 08.12.2016 and 07.02.2017. In view of the same, there is no valid grounds and requested to dismiss the same.

7. After hearing both sides, this Court is of the considered view that the petitioner is appointed as Fair Price Shop dealer for Fair Price Shop No.35028, Sarvaram Village, Sujatha Nagar of Bhadradri Kothagudem District from the year, 1993. While it being so, a show-cause notice dated 08.12.2016 was

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