Case Note & Summary
The petitioners, four Mahila Bachat Gats (women's savings groups) authorized to run fair price shops in Taluka Shrirampur, District Ahmednagar, challenged the cancellation of their authorization by the District Supply Officer. The cancellation was based on a report from the Tahsildar alleging that on 18 April 2013, a vehicle loaded with 42 gunny bags of rice stamped with Indian Food Corporation was found stranded near the house of one Sudhakar Adagale, and that one Ambadas Parkhe, allegedly a salesman of the petitioners, was arrested in connection with the offence. Show-cause notices were issued to the petitioners on 14 May 2013 under the Maharashtra Scheduled Commodities (Regulation of Distribution) Regulation, 1975. The petitioners contended that the notices did not specify the grounds for cancellation and that no opportunity of hearing was granted before the cancellation order was passed. The court held that the show-cause notices were vague and did not comply with the requirements of natural justice. The cancellation orders were quashed and set aside, and the matter was remitted back to the District Supply Officer to issue fresh show-cause notices with proper grounds and to grant a hearing to the petitioners before passing any order. The court directed that the petitioners be allowed to continue operating their fair price shops until fresh orders are passed.
Headnote
A) Administrative Law - Natural Justice - Opportunity of Hearing - Show-Cause Notice - The cancellation of authorization of fair price shops without granting an opportunity of hearing and without specifying the grounds in the show-cause notice is violative of principles of natural justice and cannot be sustained. (Paras 1-3) B) Essential Commodities - Fair Price Shop - Authorization Cancellation - Maharashtra Scheduled Commodities (Regulation of Distribution) Regulation, 1975 - The show-cause notice issued under the Regulation must clearly state the grounds for proposed cancellation; failure to do so renders the subsequent cancellation order illegal. (Paras 2-3)
Issue of Consideration
Whether the cancellation of authorization of fair price shops of the petitioners without granting them an opportunity of hearing and without specifying grounds in the show-cause notice is sustainable in law.
Final Decision
The court quashed and set aside the cancellation orders and remitted the matter back to the District Supply Officer to issue fresh show-cause notices with proper grounds and to grant a hearing to the petitioners before passing any order. The petitioners were allowed to continue operating their fair price shops until fresh orders are passed.
Law Points
- Natural justice
- opportunity of hearing
- show-cause notice must specify grounds
- cancellation of authorization without hearing is illegal
