Bombay High Court Quashes Minister's Order Restoring Fair Price Shop Licence in Essential Commodities Act Case — Minister Exceeded Revisional Powers by Ignoring Established Irregularities. The court held that the revisional authority cannot substitute its own opinion without finding error in the subordinate order, and the cancellation of licence for black marketing under Sections 7 and 8 of the Essential Commodities Act, 1955 was justified.

High Court: Bombay High Court Bench: AURANGABAD 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 two quintals of wheat, one quintal of sugar, and some palm oil, which were being sold in the black market. The investigation revealed that these grains were from the shop of Respondent No.5 and were sold in the black market by making false records of distribution in the fair price shop. A crime was registered under Sections 7 and 8 of the Essential Commodities Act, 1955, and a show cause notice was issued to Respondent No.5. After an inquiry, the District Supply Officer cancelled the licence on 17th April 1997. This cancellation was challenged before the Deputy Commissioner, Nashik Division, but the revision was dismissed. The Commissioner Supply later set aside the order of the District Supply Officer, but the Minister, in a further revision, set aside the Commissioner's order and restored the licence. The petitioner argued that the Minister exceeded his revisional powers by substituting his own opinion without finding any error in the Commissioner's order. The court agreed, noting that the Minister's order was based on the acquittal of Respondent No.5 in the criminal case, but the court pointed out that the acquittal was due to lack of evidence and did not absolve him of the irregularity in the licence matter. The court held that the Minister acted beyond his jurisdiction and quashed the Minister's order, restoring the order of the Commissioner Supply.

Headnote

A) Essential Commodities Act - Licence Cancellation - Revisional Powers - Essential Commodities Act, 1955, Sections 7 and 8; Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993 - The Minister, while exercising revisional powers, set aside the order of the Commissioner Supply which had upheld the cancellation of the fair price shop licence. The court held that the Minister exceeded his revisional jurisdiction by substituting his own opinion without finding any error in the order of the Commissioner. The cancellation was based on a serious irregularity of black marketing of food grains, and the Minister's order was quashed. (Paras 2-5)

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Issue of Consideration

Whether the Honourable Minister for Food, Civil Supply and Consumer Protection Department acted within the scope of revisional powers under the Essential Commodities Act, 1955 and the Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993, while setting aside the order of the Commissioner Supply 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 set aside the licence of Respondent No.5.

Law Points

  • Revisional authority cannot substitute its own opinion without finding error in the subordinate order
  • Essential Commodities Act
  • 1955
  • Sections 7 and 8
  • Licence cancellation for black marketing
  • Scope of revisional jurisdiction
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Case Details

2019 LawText (BOM) (03) 14

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, Maharashtra, which set aside the order of the Commissioner Supply, Nashik Division, Nashik, and restored the fair price shop licence of Respondent No.5.

Remedy Sought

The petitioner sought quashing of the Minister's order and restoration of the cancellation of the licence of Respondent No.5.

Filing Reason

The petitioner challenged the Minister's order on the ground that the Minister exceeded his revisional powers by substituting his own opinion without finding any error in the order of the Commissioner Supply.

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 Commissioner Supply set aside the District Supply Officer's order. The Minister set aside the Commissioner's order and restored the licence.

Issues

Whether the Honourable Minister for Food, Civil Supply and Consumer Protection Department acted within the scope of revisional powers under the Essential Commodities Act, 1955 and the Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993, while setting aside the order of the Commissioner Supply which had upheld the cancellation of the fair price shop licence of Respondent No.5.

Submissions/Arguments

The petitioner argued that the Minister exceeded his revisional powers by substituting his own opinion without finding any error in the order of the Commissioner Supply. The respondent argued that the Minister's order was justified as the criminal case ended in acquittal and the irregularities were not proved.

Ratio Decidendi

The revisional authority cannot substitute its own opinion without finding any error in the order of the subordinate authority. The Minister's order was based on the acquittal in the criminal case, but the acquittal did not absolve the licensee of the irregularity in the licence matter. The cancellation of the licence was justified based on the serious irregularity 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. The circumstance that there was no explanation with Respondent No.5 with regard to aforesaid irregularity was considered at that time.

Procedural History

In 1997, an incident of irregularity was noticed against Respondent No.5. A crime was registered under Sections 7 and 8 of the Essential Commodities Act, 1955. Show cause notice was issued, and the District Supply Officer cancelled the licence on 17th April 1997. The revision before the Deputy Commissioner, Nashik Division, was dismissed. The Commissioner Supply set aside the District Supply Officer's order. The Minister 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: Sections 7, 8
  • Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993:
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