The licensing authority's power to suspend a licence under Clause 28 can be invoked based on preliminary findings, independent of concurrent legal proceedings under the Essential Commodities Act.

1The proceedings dated 9th October, 2000 on the file of the Joint Collector, Rangareddy District suspending the licence of the petitioner in purported exercise of the power under Clasue 28 of A.P. Petroleum Products (Licensing and Regulation of Supplies) Order, 1980 (for short the Petroleum Products Order') is impugned in this writ petition.

2. Before adverting to the question as to whether the impugned order suffers from any legal infirmities, it may be necessary to notice a few relevant facts :

3. The petitioner has been appointed as Kerosene Wholesale Dealer by the Indian Oil Corporation Limited by proceedings dated 27-9-1986 and there is no dispute whatsoever that the same is still subsisting. The petitioner as is required applied for and obtained the licence for purchase - sale - storage for sale of Kerosene under the Petroleum Products Order from the Licensing Authority. The petitioner on procuring the Kerosene from the Indian Oil Corporation is required to supply the same to retail dealers nominated by the State Government and also to allotted Fair Price shops. The petitioner firm has to supply Kerosene oil to the nominated retail dealers and the Fair Price Shop dealers situated in Maheswaram, Kandukuru and Saroornagar Mandals of Rangareddy District. It is alleged that in the month of September, 2000 the petitioner supplied Kerosene oil more than the allotment made by the Collector (Civil Supplies) and also without bills. It is alleged that the petitioner failed to maintain proper accounts. During the verification of sales bill book, certain defects were noticed and we are not, for the present concerned with the details of those alleged irregularities. It is also the case of the respondents that during physical verification, it was found that there is variation in the book balance with ground stock. It is the case of the respondents that the petitioner on his own accord distributed the kerosene oil without any order from the competent authority. The petitioner made an attempt to divert the kerosene into black market.

4. The Joint Collector, on examination of the report submitted, issued orders suspending the licence of the petitioner in purported exercise of the power under Clause 28 of the Petroleum Products Order. The petitioner is served with the show cause notice dated 30-1-2001 containing the following charges.
Charge No. 1: That the SKO wholesale dealer has distributed PDS kerosene oil to the NR dealers Nos. 105, 346, 885, 256 and 502 more than allotted made in proceedings No. A3/411/99 dated 30-9-2000 for the month of October, 2000 in violation of licensing Clause 3 read with Clause 24 of A.P.P.P. (LandRs) Order, 1980 and also conditions of license. Charge No. 2 : The wholesale kerosene oil dealers shall distribute kerosene oil to the NR dealers on allotment by issuing correct receipt duly indicating the date of transactions, the quantity sold, the price per liter and total amount charged and shall keep a duplicate receipt for inspection on demand by the licensing authority as per the licensing conditions 9 of APPP (LandRS) Order, 1980. But you being a responsible dealer has distributed kerosene oil without allotment and also without issuing the correct bills.

5. The Joint Collector accordingly directed the petitioner to submit his written statement to the charges within seven days from the date of receipt of the notice. The petitioner was required to be present in person along with the evidence, if any, in support of his case on 17-2-2000. The petitioner did not submit any explanation, but submitted an application requesting the Joint Collector to grant two weeks time to submit reply. In the