Cancellation of a Fair Price Shop authorization, being a major punishment, requires a basic enquiry and strict adherence to the principles of natural justice, including the consideration of the dealer's explanation and following prescribed guidelines for preliminary reports.

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ order or direction, more particularly one in the nature of writ of Mandamus, declaring the action of the 2nd respondent in cancelling the authorization in Rc.No.K3/2543/ 2019 dated 27.02.2020 of the petitioner Fair Price shop No.1285124 of Santhi Nagar, Ananthapuramu Town and Mandal, Ananthapuramu District basing on the 6A report submitted by the 3rd respondent as illegal, arbitrary and unjust and consequently set aside the same

IA NO: 1 OF 2020

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the proceedings in Rc.No.K3/2543/ 2019 dated 27.02.2020 issued by the 2nd respondent by permitting the petitioner to supply the Essential Commodities to the cardholders from the petitioner's Fair Price Shop No.1285124 of Santhi Nagar, Ananthapuramu Town and Mandal, Ananthapuramu District, pending disposal of the above writ petition

The Court made the following:

ORDER:-

1. Impugning the proceedings of the Joint Collector and Additional District Magistrate, Anantapuramu vide Rc.No.K3/2543/2019 dated 27.02.2020, thereby cancelling the petitioner’s Fair Price Shop authorization vide Shop No.1285124 of Anantapuramu Town and Mandal, the present writ petition is filed.

2. Heard Sri K.Srinivas, learned counsel for the petitioner assisted by Ms.Priya, learned counsel, Sri Vineeth Appasani, learned Assistant Government Pleader for Civil Supplies.

3. In elaboration to what has been stated in the affidavit, learned counsel for the petitioner, contended that the petitioner was appointed as a Fair Price Shop dealer vide Shop No.1285124 of Shanthi Nagar, Anantapur Town and Mandal, Anantapur District, for distribution of essential commodities to the cardholders and, ever since, to the utmost satisfaction of the cardholders, the petitioner has been supplying essential commodities. While so, a show cause notice was issued in Rc.No.K3/2543/2019, dated 01.10.2019 on the ground that variations in the stock were noticed upon inspection made by the Civil Supplies Deputy Tahsildar on 27.08.2019. To the said show cause notice, the petitioner submitted his explanation through counsel on 26.02.2020 denying the allegations and, inter-alia, requested the authorities to examine the inspecting authority who visited the shop.

4. However, the Joint Collector-the 2nd respondent herein passed impugned orders cancelling petitioner’s authorization without taking the explanation into consideration and without examining the inspecting authorities. The Joint Collector, while cancelling the authorization of the petitioner, based his decision on the statements of the inspecting authority and the report of the Tahsildar, without supplying the same along with show cause notice. Further, the explanation submitted by the petitioner was not at all taken into consideration and the same has been stated so by the Joint collector in his order. The Joint collector having noticed the request of the petitioner to examine the inspecting authorities, did not do so. Basing his decision solely on the statement of the inspecting authority and the Tahsildar’s report is unsustainable. Cancellation of authorization is nothing but a major punishment. In the said circumstances, basic enquiry has to be conducted by the authorities by examining the petitioner, witnesses, if any, and the officials, bu