Bombay High Court Quashes Cancellation of Stall Licence Under APMC Act — Violation of Natural Justice. Joint Director's Order Set Aside for Lack of Notice and Hearing Before Cancellation of Licence Under Section 52B of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, Ravindra Arvind Bande, filed two writ petitions under Article 227 of the Constitution of India challenging a common order dated 14 January 2022 passed by the Joint Director (Marketing), Maharashtra State, Pune. The impugned order cancelled the petitioner's licence in respect of Stall No.124 situated at Chhatrapati Shivaji Maharaj Market Yard, Gultekdi, Pune, and directed the Market Committee to issue a licence in favour of respondent Nos.1 and 2 (Smt. Vijaya Manohar Bande and Sou. Swati Vijay Kale) for the same stall. The petitioner contended that the order was passed without any notice or opportunity of hearing, in gross violation of principles of natural justice. The facts reveal that the stall was originally licensed to the petitioner's father, Manohar Bande, who died in 2015. Thereafter, the petitioner applied for and was granted a licence in his name by the Market Committee. Respondent Nos.1 and 2, who are the petitioner's mother and sister, claimed that they were entitled to the licence as legal heirs and filed an appeal before the Joint Director under Section 52B of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. The Joint Director, without issuing any notice to the petitioner, allowed the appeal, cancelled the petitioner's licence, and directed the Market Committee to issue a licence to the respondents. The High Court examined the provisions of Section 52B and found that it only provides for appeals against orders of the Market Committee, not for original cancellation of licences. The court held that the Joint Director acted without jurisdiction and in violation of natural justice. The court also noted that the petitioner had been in possession and running the stall for several years, and the respondents had not challenged the grant of licence to the petitioner earlier. The High Court allowed the petitions, quashed the impugned order, and restored the licence of the petitioner. The court directed that the Market Committee shall continue the licence in favour of the petitioner, and any rights of the respondents may be agitated in appropriate proceedings.

Headnote

A) Administrative Law - Principles of Natural Justice - Audi Alteram Partem - Cancellation of Licence - The Joint Director cancelled the petitioner's licence under Section 52B of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 without issuing any notice or granting a hearing to the petitioner. The High Court held that such cancellation without affording an opportunity of hearing is violative of principles of natural justice and cannot be sustained. (Paras 10-15)

B) Agricultural Marketing - Licence Cancellation - Section 52B of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 - The Joint Director's order cancelling the petitioner's licence and directing issuance of licence to respondent Nos.1 and 2 was set aside as the Joint Director lacked jurisdiction to entertain the appeal under Section 52B, which only provides for appeals against orders of the Market Committee, not for original cancellation of licences. (Paras 16-20)

C) Agricultural Marketing - Licence - Transfer of Licence - The dispute pertained to a stall licence originally granted to the petitioner's father, which was transferred to the petitioner after his father's death. The respondents claimed rights as legal heirs but the court found no provision for automatic transfer of licence under the Act. The cancellation of the petitioner's licence without hearing was held illegal. (Paras 4-9)

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Issue of Consideration

Whether the Joint Director (Marketing) could cancel the licence of the petitioner without affording an opportunity of hearing, and whether the order cancelling the licence and issuing a fresh licence to the respondents was sustainable in law.

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Final Decision

The High Court allowed both writ petitions, quashed the impugned order dated 14 January 2022 passed by the Joint Director (Marketing), and restored the licence of the petitioner in respect of Stall No.124. The court directed that the Market Committee shall continue the licence in favour of the petitioner, and any rights of the respondents may be agitated in appropriate proceedings.

Law Points

  • Principles of natural justice
  • audi alteram partem
  • cancellation of licence without notice
  • Section 52B of Maharashtra Agricultural Produce Marketing (Development and Regulation) Act
  • 1963
  • jurisdiction of Joint Director
  • maintainability of appeal under Section 52B
  • requirement of prior hearing before cancellation of licence
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Case Details

2023 LawText (BOM) (03) 97

Writ Petition No. 1141 of 2022 with Interim Application No. 2687 of 2022 and Writ Petition No. 1120 of 2022 with Interim Application No. 2686 of 2022

2023-03-24

N. J. Jamadar

Mr. Anil Anturkar, Senior Advocate, i/b Mr. Prathamesh Bhargude, for the Petitioner; Mr. S. C. Wakankar, for Respondent Nos.1 and 2 in WP/1141/2022; Mr. Ashish Gaikwad, for Respondent Nos.1 and 2 in WP/1120/2022; Mr. C. D. Mali, AGP for the State/Respondent Nos.3, 5 and 6; Mr. Pratap Patil, for Respondent No.4

Ravindra Arvind Bande

Smt. Vijaya Manohar Bande, Sou. Swati Vijay Kale, Director Marketing State of Maharashtra, Administrator Agricultural Produce Market Committee Pune, Joint Director of Agricultural Marketing State of Maharashtra Pune, State of Maharashtra

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Nature of Litigation

Writ petitions under Article 227 of the Constitution of India challenging an order of the Joint Director (Marketing) cancelling the petitioner's licence and directing issuance of licence to the respondents.

Remedy Sought

Quashing of the impugned order dated 14 January 2022 passed by the Joint Director (Marketing) and restoration of the petitioner's licence.

Filing Reason

The petitioner's licence for Stall No.124 was cancelled by the Joint Director without any notice or opportunity of hearing, and a fresh licence was directed to be issued to respondent Nos.1 and 2.

Previous Decisions

The Market Committee had granted a licence to the petitioner after the death of his father. The Joint Director, on appeal by respondent Nos.1 and 2, cancelled the petitioner's licence and directed issuance of licence to the respondents.

Issues

Whether the Joint Director could cancel the petitioner's licence without affording an opportunity of hearing? Whether the Joint Director had jurisdiction under Section 52B of the Act to pass the impugned order?

Submissions/Arguments

The petitioner argued that the impugned order was passed in gross violation of principles of natural justice as no notice or hearing was given before cancellation of the licence. The petitioner further argued that the Joint Director lacked jurisdiction under Section 52B to cancel the licence, as the provision only provides for appeals against orders of the Market Committee. The respondents contended that the petitioner was not the rightful licensee and that the licence should have been granted to them as legal heirs of the original licensee.

Ratio Decidendi

The cancellation of a licence without affording an opportunity of hearing is violative of principles of natural justice. The Joint Director under Section 52B of the Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963 has no jurisdiction to cancel a licence originally granted by the Market Committee; the provision only provides for appeals against orders of the Market Committee. Any order passed without jurisdiction and in violation of natural justice is a nullity.

Judgment Excerpts

The impugned order was passed without any notice or opportunity of hearing to the petitioner, which is in gross violation of principles of natural justice. Section 52B of the Act does not confer jurisdiction on the Joint Director to cancel a licence; it only provides for appeals against orders of the Market Committee.

Procedural History

The petitioner's father was the original licensee of Stall No.124. After his death in 2015, the petitioner applied for and was granted a licence by the Market Committee. Respondent Nos.1 and 2, claiming as legal heirs, filed an appeal before the Joint Director under Section 52B of the Act. The Joint Director, without notice to the petitioner, allowed the appeal on 14 January 2022, cancelling the petitioner's licence and directing issuance of licence to the respondents. The petitioner filed two writ petitions challenging this order, which were heard together and disposed of by this judgment.

Acts & Sections

  • Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963: Section 52B
  • Code of Civil Procedure, 1908: Order XXVII, Rule 4
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