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2024 Supreme(Online)(AP) 18415
HIGH COURT OF ANDHRA PRADESH
B.S. BHANUMATHI, J
Sri Puttaparthi Nalapa Reddy – Appellant
Versus
The State of Andhra Pradesh – Respondent
WP 28830/2024
K SRINIVAS, GP FOR CIVIL SUPPLIES
Suspension of fair price shop authorization was illegal due to lack of inquiry and violation of natural justice principles.
Headnote:(A) Constitution of India - Article 226 - Writ petition for mandamus - Suspension of fair price shop authorization deemed illegal due to lack of proper inquiry and violation of natural justice principles - The petitioner, a fair price shop dealer, challenged the suspension based on unsubstantiated charges and procedural irregularities. (Paras 1, 3, 7, 8)
(B) Natural Justice - The principles of natural justice require that a party must be given a fair opportunity to present their case before any adverse action is taken against them. (Paras 4, 8)
Facts of the case:
The petitioner, a fair price shop dealer, was suspended based on charges of failing to display required information and maintain proper accounts, which were contested by the petitioner as unsubstantiated and not properly investigated.
Findings of Court:
The court found that the suspension order lacked merit due to failure to adhere to procedural fairness and the absence of a proper inquiry.
Issues: The main issues were whether the charges against the petitioner were substantiated and whether the suspension was conducted in accordance with principles of natural justice.
Ratio Decidendi: The court ruled that the suspension order was invalid as it was based on charges not properly substantiated and failed to consider the petitioner's explanations, thus violating the principles of natural justice.
Result: Writ petition allowed; suspension order set aside.
ORDER:
This Writ Petition under Article 226 of Constitution of India is filed for the following relief:
“…to may be pleased to issue a writ of mandamus or any other appropriate writ order or direction declaring the action of the 2nd respondent in suspending the authorization of the petitioner fair price shop No.1250015 situated at Kondapuram Village, Bukkapatnam Mandal Anantapur Now Sri Satya Sai District vide Rc.No.D/347/2024 dated 18.11 2024 is illegal, arbitrary and violation of principles of natural justice and consequently set aside the same and pass such other order…”
2. The case of the petitioner is briefly as follows:
The petitioner is dealer of fair price shop No.1250015 having been appointed in the year 2019 and has been supplying the commodities since then. The authorization of the petitioner got renewed up to 31.03.2026. The petitioner supplied stocks to the card holders for the month of August 2024. Due to change in the political scenario, the local political leaders are trying to grab the petitioner’s dealership and the respondent Nos.2 and 3 trying to allot the same to the third parties of their choice. The petitioner filed W.P.No.23758 of 2024. This Court passed an order on 21.10.2024 as follows:
“Since the appropriate authority can consider the material before it and take proper decision, meanwhile, without suspending/cancelling the authorization of the petitioner’s dealership, supply of essential commodities should not be stopped. As such, the writ petition is disposed of directing the respondent authorities to allow the petitioner to supply the essential commodities, subject to compliance of legal formalities. This order does not disentitle the respondent authorities from taking any disciplinary action as per law. There shall be no order as to costs.”
Thereafter the show cause notice dated 28.10.2024 was issued to the petitioner with the following charges 1 to 4:-
Charge No.1: That the fair price shop dealer of fair price shop No.1250015 did not display the following information on a notice board at a prominent place in the shop on daily basis and contravened the Clause 12(n) of the A.P.S.T.P.D.S (Control) Order, 2018:
1) List of cardholders under priority category, AAY category and any other category under different schemes of the Governemnt.
2) Entitlement of scheduled commodities.
3) Scale of issue.
4) Retain issue prices.
5) Timings of opening and closing of the fair price shop.
6) Stock of scheduled commodities received during the month.
7) On day opening and closing stock of scheduled commodities.
8) The details of authority with phone number for redress of grievances/lodging complaints with respect to quality and quantity of scheduled commodities under the TPDS.
9) Display of samples of food grains being supplied through fair price shop/authorization number and reference and validity (the sigh boards shall be exhibited in Telugu/English language).
Charge No.2: That the fair price shop dealer of fair price No.1250015 failed to submit invariably the electronic accounts from the electronic point of sale device of the actual distribution of scheduled commodities and balance stocks at the end of the month to the officers authorized and a copy to the local bodies and vigilance committees; and hence contravened the clause 12(o) of the A.P.T.P.D.S (Control) Order, 2018.
Charge No.3: That the fair price shop dealer of fair price No.1250015 failed to make available stock register by filing electronically generated slips from EPOS; and contravened the Clause 12(p)(1) of APSTPDS (Control) Order, 2018.
Charge No.4: That the fair price shop dealer of fair price No1250015 failed to maintain true and correct accounts in contravention of Clause 12(p)(3) of the A.P.S.T.P.D.S.(Control) Order, 2018.
3. The petitioner submitted an explanation for the above said charges as follows:-
Explanation for Charge No.1:- The petitioner did not violate any of the conditions stated in the charge No.1. The petitioner displayed the information on a notic
