Bombay High Court Allows Writ Petition Challenging Minister's Order Restoring Fair Price Shop Licence in Essential Commodities Act Case — Minister's Order Set Aside as Without Jurisdiction.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Sau. Meena Devidas Lahire, filed a writ petition challenging the order of the Honourable Minister for Food, Civil Supply and Consumer Protection Department, Maharashtra, which set aside the order of the Commissioner Supply, Nashik Division, Nashik. The Commissioner had upheld the cancellation of the fair price shop licence of Respondent No.5, Rajendra Vishwanath Bagul. The background of the case involves an incident in 1997 where a transport vehicle was intercepted carrying a huge quantity of food grains, including wheat, sugar, and palm oil, which were being sold in the black market. The goods were traced to the shop of Respondent No.5, and a criminal case under Sections 7 and 8 of the Essential Commodities Act, 1955 was registered against him. Consequently, the District Supply Officer cancelled his licence on 17th April 1997. Respondent No.5 challenged this cancellation before the Deputy Commissioner, Nashik Division, but the revision was dismissed. However, the Honourable Minister later set aside the Commissioner's order, restoring the licence. The petitioner, who was a rival applicant for the same shop, challenged the Minister's order. The court examined the submissions and record, noting that the Minister's order was without jurisdiction as the revision before the Commissioner was the final remedy under the relevant control order. The court also observed that the incident of black marketing was proved by the seizure and the criminal case. The court allowed the petition, quashed the Minister's order, and restored the order of the Commissioner upholding the cancellation of the licence.

Headnote

A) Essential Commodities Act - Fair Price Shop Licence - Cancellation - The court considered whether the Minister could interfere with the order of the Commissioner in revision. The court held that the Minister's order was without jurisdiction as the revision before the Commissioner was the final remedy under the relevant control order. (Paras 2-4)

B) Essential Commodities Act - Black Marketing - Evidence - The court noted that the incident of black marketing of food grains was proved by the seizure of a transport vehicle and the registration of a criminal case under Sections 7 and 8 of the Essential Commodities Act, 1955. The court held that the cancellation of the licence was justified. (Paras 3-4)

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Issue of Consideration

Whether the Honourable Minister for Food, Civil Supply and Consumer Protection Department had the jurisdiction to set aside the order of the Commissioner Supply, Nashik Division, Nashik, which had upheld the cancellation of the fair price shop licence of Respondent No.5.

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Final Decision

The court allowed the writ petition, quashed the order of the Honourable Minister for Food, Civil Supply and Consumer Protection Department, and restored the order of the Commissioner Supply, Nashik Division, Nashik, which had upheld the cancellation of the fair price shop licence of Respondent No.5.

Law Points

  • Essential Commodities Act
  • 1955
  • Sections 7 and 8
  • Fair Price Shop Licence
  • Cancellation of Licence
  • Revision
  • Minister's Power
  • Judicial Review
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Case Details

2019 LawText (BOM) (01) 168

WRIT PETITION NO. 1457 OF 2014

2019-02-13

T. V. NALAWADE, J.

Mr. V. B. Jadhav, h/f Mr. A. V. Hon, Advocate for Petitioner; Mr. M. M. Nerlikar, APP for Respondent Nos.1 to 4; Mr. S. T. Shelke, h/f Mr. P. V. Balkhande, Advocate for Respondent No.5

Sau. Meena Devidas Lahire

The State of Maharashtra, The Collector, Ahmednagar, The District Supply Officer, Ahmednagar, The Tahsildar, Kopargaon, Rajendra Vishwanath Bagul

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Nature of Litigation

Writ petition challenging the order of the Honourable Minister for Food, Civil Supply and Consumer Protection Department setting aside the order of the Commissioner Supply, Nashik Division, Nashik, which had upheld the cancellation of the fair price shop licence of Respondent No.5.

Remedy Sought

The petitioner sought to quash the Minister's order and restore the order of the Commissioner upholding the cancellation of the licence.

Filing Reason

The petitioner, a rival applicant for the same fair price shop, challenged the Minister's order as being without jurisdiction and contrary to the evidence of black marketing.

Previous Decisions

The District Supply Officer cancelled the licence of Respondent No.5 on 17th April 1997. The Deputy Commissioner, Nashik Division, dismissed the revision against that cancellation. The Honourable Minister later set aside the Commissioner's order and restored the licence.

Issues

Whether the Honourable Minister had jurisdiction to set aside the order of the Commissioner in revision. Whether the cancellation of the fair price shop licence of Respondent No.5 was justified on the basis of the incident of black marketing.

Submissions/Arguments

The petitioner argued that the Minister's order was without jurisdiction as the revision before the Commissioner was the final remedy under the relevant control order. The petitioner also argued that the incident of black marketing was proved by the seizure of the transport vehicle and the registration of a criminal case under the Essential Commodities Act.

Ratio Decidendi

The Minister's order setting aside the Commissioner's order was without jurisdiction because the revision before the Commissioner was the final remedy under the relevant control order. The cancellation of the licence was justified based on the proved incident of black marketing.

Judgment Excerpts

The petition is filed to challenge the order made by the Honourable Minister for Food, Civil Supply and Consumer Protection Department, Maharashtra by which the Honourable Minister set aside the order of Commissioner Supply, Nashik Division, Nashik, which was against Respondent No.5, Rajendra Bagul. The Commissioner had set aside the order of District Supply Officer by which licence was granted to Respondent No.5 in respect of fair price shop.

Procedural History

In 1997, an incident of black marketing was detected, leading to the registration of Crime No.7 of 1997 under Sections 7 and 8 of the Essential Commodities Act, 1955 against Respondent No.5. The District Supply Officer cancelled his licence on 17th April 1997. Respondent No.5 filed a revision before the Deputy Commissioner, Nashik Division, which was dismissed. Subsequently, the Honourable Minister for Food, Civil Supply and Consumer Protection Department set aside the Commissioner's order and restored the licence. The petitioner filed the present writ petition challenging the Minister's order.

Acts & Sections

  • Essential Commodities Act, 1955: 7, 8
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High Court Bombay High Court Allows Writ Petition Challenging Minister's Order Restoring Fair Price Shop Licence in Essential Commodities Act Case — Minister's Order Set Aside as Without Jurisdiction.
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