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2025 Supreme(Online)(Mad) 10517

IN THE HIGH COURT OF JUDICATURE AT MADRAS
B. Pugalendhi, J
S. Senthil Kumar – Appellant
Versus
Controller of Legal Metrology – Respondent
W.P.(MD)No.7888 of 2024



Advocates:
For the Appellants/Petitioners: Mr.K.R.Laxman
For the Respondents: Mr.C.Venkatesh Kumar

A licensing authority under the Legal Metrology Act may cancel a licence following a criminal conviction for trade-related offences, provided the holder has been granted a reasonable opportunity to respond to a show-cause notice, as personal hearing is not mandatory in every administrative procedure.

Headnote:(A) Legal Metrology Act, 2009 - S. 27, 32, 33, 44, 45 - Cancellation of Licence - Petitioner convicted for possession of illegal/counterfeit weights and seals - Principles of natural justice - Opportunity of personal hearing not mandatory in every case - Compliance with show cause notice and written representation fulfills requirement. (Paras 1, 19, 20)

(B) Writ Jurisdiction - Discretionary relief - Petitioner found guilty of manufacturing/possession of counterfeit weights - Cancellation of licence by respondent authority based on conviction upheld. (Paras 18, 20)

Facts of the case:
During a surprise inspection, officials recovered illegal stamped weights, non-stamped weights, non-standardized weights, and counterfeit seals from a godown controlled by the petitioner. The petitioner was convicted by the Additional Chief Judicial Magistrate for offences under the Legal Metrology Act. Following conviction, his licence was cancelled by the Controller of Legal Metrology.

Findings of Court:
The Court held that the petitioner was given sufficient opportunity to respond to the show cause notice. The conviction in a criminal court serves as sufficient grounds for licence cancellation under the relevant rules and the appellate suspension of sentence does not prevent the licensing authority from proceeding with regulatory action.

Issues: Whether the order of licence cancellation violated principles of natural justice and whether the respondent authority failed to act with due diligence.

Ratio Decidendi: A personal hearing is not an absolute requirement for the principles of natural justice to be satisfied in administrative proceedings, provided a show-cause notice is issued and a response is considered. Furthermore, conviction in criminal proceedings regarding the possession of counterfeit weights provides legitimate grounds for the cancellation of a trade licence.

Result: Writ petition dismissed; directions issued to the Government to probe bureaucratic inaction.

Table of Content
1. summary of facts leading to licence cancellation. (Para 1 , 2)
2. arguments regarding principles of natural justice and regulatory power. (Para 3 , 4 , 5)
3. court's reasoning on the validity of cancellation process and evidence. (Para 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
4. court's directives to the government and conclusion. (Para 21 , 22 , 23)

O R D E R

1.The petitioner, a licensed seller of weights and measurements is running a shop, in the name and style of ''M/s. Mathi and Co'' at Door No.6, Mamundi Vathiyar Lane, Madurai. On 14.03.2019, a surprise inspection was conducted by the Deputy Inspector of Labour, Sub Inspector of Police, Child Line Member along with the Madurai Child Safety Wing Officers in the premises of the petitioner, in order to ascertain whether any child labourers were employed. They found that the above premises was found locked outside, however they have heard some hammer sound from inside the premises. When they knocked the door of the premises, the persons, who were inside have not opened the door and thereafter, through enquiry with the neighbours, they identified that the godown has been used by this petitioner. The petitioner was called to the spot and on his instructions, the godown door was opened, wherein, one Sathishkumar and Balamurugan were found inside. The Officials have also found some weights were kept in gunny bags and boxes. Therefore, they have informed the same to the Assistant Commissioner of Labour (Enforcement) and on his directions, the Labour Assistant Inspectors of Division 2,3,5,6,7,8, and 9 were deputed to assist the inspection. The officers have seized the following materials from the above premises.

i. Illegal stamped weights 340 Nos.

ii. Non stamped weights 1415 Nos.

iii.Non standardized weights 92 Nos.

iv. Counterfeit seals 64 Nos.

All those materials were recovered under receipt Nos.1019664, 1019665 and 1019666, in the presence of the petitioner. He has admitted the same and also signed in those receipts. Based on the recovery, a show cause notice was issued to this petitioner by the respondent on 22.04.2019, vide letter No.129 of 2019. The petitioner has also replied to the show cause notice on 10.05.2019. Not satisfied with this explanation, his licence was suspended and a criminal prosecution was also laid. A private complaint was registered as against this petitioner before the Additional Chief Judicial Magistrate, Madurai in STC No.5604 of 2019, for the offence under Sections 44(1) (2) (3), 33, 27, 32 & 45 of Legal Metrology Act, 2009. The learned Additional Chief Judicial Magistrate, Madurai, by his Judgment, dated 10.04.2023 found the petitioner guilty and convicted, sentenced him and imposed six months rigorous imprisonment along with a fine of Rs.35,000/-. As against the conviction in STC No.5604 of 2019, the petitioner has preferred a criminal appeal in Crl.A.No.37 of 2023 before the Principal Sessions Court, Madurai and the same has been entertained by the first Appellate Court. The sentence imposed by the trial Court alone was suspended in Crl.MP No.2726 of 2023 in Crl.A.No.37 of 2023, vide order dated 25.04.2023.

2. Pursuant to the conviction imposed by the learned Additional Chief Judicial Magistrate, Madurai in STC No.5604 of 2019, dated 10.04.2023, a show cause notice was issued to this petitioner on 22.05.2023, calling upon his explanation for cancelling the licence. The petitioner has offered his explanation to the show cause notice on 10.07.2023 and similar explanations were offered by one Meena and Meenambikai, the partners of M/s. Mathi & Co on 30.06.2023. This petitioner and other partners have taken a uniform stand that the godown, from which, the illegal non stamped weights and counterfeit seals were recovered is not belonging to them and it belongs to M/s. Madurai Cotton Merchants Oil Cake Association and they have leased out the premises to some other persons. This business is the only source of their in

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