Case Note & Summary
The petitioner, Sri Manjunath, was a fair price shop dealer authorized under the Essential Commodities Act, 1955. His authorization was cancelled by the Deputy Commissioner (Food), Mysuru District (first respondent) vide order dated 23.11.2016. The petitioner appealed to the Commissioner for Food & Civil Supplies (fourth respondent), who dismissed the appeal on 24.05.2018. The petitioner then filed a writ petition under Article 226 of the Constitution of India before the High Court of Karnataka, seeking to quash both orders and for restoration of his authorization. The primary legal issue was whether the cancellation of authorization without issuing a show cause notice or providing an opportunity of hearing violated principles of natural justice. The petitioner argued that no notice was given before the cancellation, and the appellate authority did not consider this violation. The respondents did not seriously contest the lack of notice. The court held that the cancellation without notice was a gross violation of natural justice, rendering the orders unsustainable. Consequently, the court quashed both the impugned orders and directed the respondents to restore the petitioner's authorization and allow him to continue as a fair price shop dealer. The court also directed that the matter be considered afresh after giving the petitioner an opportunity of hearing, if any further action is contemplated.
Headnote
A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of Authorization - The petitioner's authorization as a fair price shop dealer was cancelled by the Deputy Commissioner without any show cause notice or opportunity of hearing, which is a clear violation of principles of natural justice. The appellate authority also failed to consider this aspect. Held that the orders are unsustainable and liable to be quashed. (Paras 1-5) B) Essential Commodities Act, 1955 - Fair Price Shop - Authorization - Cancellation - The impugned orders dated 23.11.2016 and 24.05.2018 cancelling the petitioner's authorization were set aside as they were passed in gross violation of natural justice. The respondents were directed to restore the authorization and allow the petitioner to continue as a fair price shop dealer. (Paras 5-6)
Issue of Consideration
Whether the cancellation of the petitioner's authorization as a fair price shop dealer without issuing a show cause notice or providing an opportunity of hearing is sustainable in law.
Final Decision
The writ petition is allowed. The impugned orders dated 23.11.2016 and 24.05.2018 are quashed. The respondents are directed to restore the authorization in favour of the petitioner and allow him to continue as a fair price shop dealer. If any further action is contemplated, the same shall be done after giving an opportunity of hearing to the petitioner.
Law Points
- Natural justice
- audi alteram partem
- right to be heard
- cancellation of authorization without notice
- violation of principles of natural justice
- writ of certiorari
- writ of mandamus
