Case Note & Summary
The judgment concerns three writ petitions filed by fair price shop license holders and kerosene dealers challenging the cancellation of their licenses by the authorities under the Essential Commodities Act, 1955. The petitioners, Sanjay Surwase, Subhash Pawar, and six others, were issued show cause notices and their licenses were cancelled without granting them a personal hearing. The petitioners argued that the cancellation orders were passed in violation of principles of natural justice and Section 6 of the Essential Commodities Act, 1955, which requires an opportunity of hearing before cancellation. The respondents, including the State of Maharashtra and the Collector, Latur, contended that the petitioners were given show cause notices and an opportunity to submit explanations, but the court found that no personal hearing was afforded. The court examined the provisions of Section 6 of the Essential Commodities Act, 1955, and held that the requirement of hearing is mandatory. The court set aside the cancellation orders and remanded the matters to the Collector, Latur, for fresh consideration after giving the petitioners a reasonable opportunity of hearing. The court also directed that the petitioners be allowed to continue their business pending fresh orders, subject to compliance with other conditions.
Headnote
A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of License - Essential Commodities Act, 1955, Section 6 - The court held that cancellation of a fair price shop license without giving the licensee an opportunity of hearing violates principles of natural justice and the statutory requirement under Section 6 of the Essential Commodities Act, 1955. The impugned orders were set aside and the matter remanded for fresh consideration after hearing the petitioners. (Paras 1-10) B) Essential Commodities Act, 1955 - Section 6 - Licensing - Fair Price Shop - The court interpreted Section 6 of the Essential Commodities Act, 1955, which mandates that no order of cancellation of a license shall be made without giving the licensee an opportunity of being heard. The court found that the respondents had not complied with this requirement. (Paras 5-8)
Issue of Consideration
Whether the cancellation of fair price shop licenses without affording an opportunity of hearing to the licensees is valid in law.
Final Decision
The court allowed the writ petitions, set aside the impugned cancellation orders, and remanded the matters to the Collector, Latur, for fresh consideration after giving the petitioners a reasonable opportunity of hearing. The petitioners were permitted to continue their business pending fresh orders.
Law Points
- Natural justice
- audi alteram partem
- cancellation of license without hearing
- Essential Commodities Act
- 1955 Section 6
- Maharashtra Essential Commodities (Licensing
- Control and Declaration) Order
- 1993
