Case Note & Summary
The petitioner, Baburao Dnyandevrao Pawar, filed a writ petition challenging the order of the Additional Commissioner, Aurangabad, dated 20.11.1991, which set aside the cancellation of the fair price shop licence of respondent No.5, Narayan Panditrao Bhale, and the subsequent allotment of the shop to the petitioner. The background facts reveal that respondent No.5 was originally running the fair price shop in village Lingsa, but complaints from card holders led to an enquiry by the Tahsildar, who found that respondent No.5 had not distributed commodities and failed to maintain records. The Assistant Collector (respondent No.2) initially directed respondent No.5 to deposit an amount and warned him to improve. However, respondent No.5 again indulged in similar activities, leading to a second enquiry, which again found mismanagement and false explanations. Consequently, the Assistant Collector cancelled respondent No.5's licence on 5.8.1991. Thereafter, the Sub-Divisional Officer (respondent No.3) issued a public proclamation and invited applications for allotment of the fair price shop. The petitioner applied and was interviewed by the Assistant Collector, who allotted the shop to the petitioner. Respondent No.5 then filed a revision before the Additional Commissioner, who set aside both the cancellation of the licence and the allotment to the petitioner, without issuing notice to the petitioner or affording him an opportunity of hearing. The petitioner contended that the Additional Commissioner's order was passed in violation of principles of natural justice and that the revision was not maintainable on merits. The court analyzed the facts and found that the Additional Commissioner had not considered the merits of the case and had reversed concurrent findings of fact without justification. The court held that the order was unsustainable as it was passed without hearing the petitioner, who was a necessary party. The court allowed the writ petition, quashed the Additional Commissioner's order, and restored the orders of the Assistant Collector and Sub-Divisional Officer.
Headnote
A) Administrative Law - Natural Justice - Opportunity of Hearing - The Additional Commissioner set aside the cancellation of licence and allotment of fair price shop without hearing the petitioner, who was a necessary party. Held that the order passed in revision without affording opportunity of hearing to the petitioner is in violation of principles of natural justice and cannot be sustained (Paras 5-6). B) Public Distribution System - Cancellation of Licence - Concurrent Findings of Fact - The Assistant Collector cancelled the licence of respondent No.5 after two enquiries revealing mismanagement and false explanations. The Sub-Divisional Officer allotted the shop to the petitioner after public proclamation. The Additional Commissioner reversed these concurrent findings without adequate justification. Held that the revisional authority ought not to have interfered with the concurrent findings of fact based on material on record (Paras 3-5). C) Civil Procedure - Revision - Maintainability - The Additional Commissioner exercised revisional jurisdiction under the Maharashtra Essential Commodities (Public Distribution System) Order, 1977. The order was passed without considering the merits of the case and without hearing the petitioner. Held that the revision was not maintainable on merits and the order is liable to be set aside (Paras 5-6).
Issue of Consideration
Whether the Additional Commissioner erred in setting aside the cancellation of the fair price shop licence of respondent No.5 and the allotment of the shop to the petitioner, without affording the petitioner an opportunity of hearing, and whether the revision was maintainable on merits.
Final Decision
The writ petition is allowed. The impugned judgment and order dated 20.11.1991 passed by the Additional Commissioner, Aurangabad in Case No. 91/SB/DESK-3/CSE/REV/CR-95 is quashed and set aside. The orders passed by the Assistant Collector, Jalna dated 5.8.1991 and the Sub-Divisional Officer, Jalna are restored.
Law Points
- Natural justice
- show cause notice
- opportunity of hearing
- revision jurisdiction
- concurrent findings of fact
- public distribution system
- cancellation of licence
- allotment of fair price shop




