Bombay High Court Quashes Minister's Order Restoring Fair Price Shop License Without Hearing Complainant — Revision Under Clause 24(1) of Maharashtra Scheduled Commodities Order, 1975 Requires Notice to Affected Parties. The court held that the revision order was passed in gross violation of natural justice and was not maintainable due to inordinate delay of eight years.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Gautam Kathalu Hiwale, an APL card holder, filed a writ petition before the Bombay High Court, Aurangabad Bench, challenging an order dated 16.1.2019 passed by the Honourable Cabinet Minister for Food, Civil Supplies and Consumer Protection, Maharashtra. The Minister had allowed a revision filed by respondent No.5, a fair price shop license holder, and restored his license after almost eight years of its cancellation. The petitioner's grievance was that the Minister ignored the statements of 21 card holders and the concurrent findings of the District Supply Officer and the Deputy Commissioner, Civil Supplies, who had cancelled the license based on irregularities. The Minister imposed a penalty of Rs.10,000 and restored the license, granting the license holder one opportunity to run the business. The petitioner argued that the revision was not maintainable under Clause 24(1) of the Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975, as the provision only allows suo motu revision or revision on application, but the revision was filed after an inordinate delay of eight years. Additionally, the petitioner was not given any notice or opportunity of hearing before the revision was allowed, violating principles of natural justice. The Government Pleader initially submitted that the Minister's order was being withdrawn, but the petitioner pressed the maintainability issue. The High Court examined the provision and found that the revision was filed after eight years, which was grossly delayed. The court also noted that the petitioner, being the original complainant, was not heard. The court held that the Minister's order was passed in gross violation of natural justice and was unsustainable. The court quashed and set aside the order dated 16.1.2019 and directed that if the license holder files a revision within four weeks, the Minister shall decide it afresh after hearing all parties, including the petitioner. The petition was disposed of accordingly.

Headnote

A) Administrative Law - Natural Justice - Revision without Notice to Complainant - Clause 24(1) of Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975 - The Minister allowed revision of a fair price shop license holder and restored his license after eight years of cancellation, without hearing the original complainant who had lodged the complaint leading to cancellation. The High Court held that the revision order was passed in gross violation of principles of natural justice as the complainant was not given any notice or opportunity of hearing. The order was quashed and set aside. (Paras 4-10)

B) Food and Civil Supplies - Fair Price Shop License - Cancellation and Restoration - Clause 24(1) of Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975 - The District Supply Officer and Deputy Commissioner had concurrently found the license holder guilty of irregularities based on statements of 21 card holders and cancelled the license. The Minister, in revision, imposed a penalty of Rs.10,000 and restored the license without considering the concurrent findings. The High Court held that the Minister's order was unsustainable as it ignored the evidence and findings of lower authorities. (Paras 6-10)

C) Administrative Law - Revision Power - Suo Motu or on Application - Clause 24(1) of Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975 - The provision vests the competent authority with power to cause a revision suo motu or on an application. However, the revision must be filed within a reasonable time. In this case, the revision was filed after eight years of cancellation, which was held to be grossly delayed and not maintainable. (Paras 8-10)

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Issue of Consideration

Whether the Honourable Minister could allow a revision filed by a fair price shop license holder and restore his license without hearing the original complainant, and whether the revision was maintainable under Clause 24(1) of the Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975.

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Final Decision

The High Court quashed and set aside the order dated 16.1.2019 passed by the Honourable Minister. It directed that if respondent No.5 files a revision within four weeks from the date of the order, the Minister shall decide the revision afresh after hearing all parties, including the petitioner, in accordance with law. The petition was disposed of.

Law Points

  • Natural justice
  • Revision power under Clause 24(1) of Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975
  • Maintainability of revision without hearing complainant
  • Suo motu revision power
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Case Details

2019 LawText (BOM) (07) 16

Writ Petition No.2640 of 2019

2019-07-04

Ravindra V. Ghuge

Shri Tope Sambhaji S. for Petitioner, Shri Girase A.B. for Respondents 1 to 4, Shri Kawre A.D. h/f Shri Murkute J.M. for Respondent 5

Gautam Kathalu Hiwale

The State of Maharashtra and others

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Nature of Litigation

Writ petition challenging the order of the Honourable Minister allowing revision and restoring fair price shop license.

Remedy Sought

Quashing of the Minister's order dated 16.1.2019 and restoration of the cancellation of the license.

Filing Reason

The petitioner, an APL card holder, was aggrieved by the Minister's order which restored the license of the fair price shop holder without hearing him and ignoring concurrent findings of lower authorities.

Previous Decisions

The District Supply Officer and Deputy Commissioner had cancelled the license of respondent No.5 based on irregularities and statements of 21 card holders. The Minister in revision allowed the revision and restored the license with a penalty of Rs.10,000.

Issues

Whether the revision filed by the license holder after eight years of cancellation was maintainable under Clause 24(1) of the Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975? Whether the Minister's order restoring the license without hearing the original complainant violated principles of natural justice?

Submissions/Arguments

Petitioner argued that Clause 24(1) only allows suo motu revision or revision on application, but the revision was filed after an inordinate delay of eight years, making it not maintainable. Petitioner contended that he was not given any notice or opportunity of hearing before the revision was allowed, violating natural justice. Government Pleader initially submitted that the Minister's order was being withdrawn, but the petitioner pressed the maintainability issue.

Ratio Decidendi

The revision under Clause 24(1) of the Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975 must be filed within a reasonable time. An eight-year delay is grossly inordinate and renders the revision not maintainable. Additionally, any revision affecting the rights of a complainant must be decided after giving notice and opportunity of hearing to the complainant, failing which the order is in gross violation of natural justice.

Judgment Excerpts

The petitioner / original complainant is aggrieved by the order dated 16.1.2019 passed by the Honourable Cabinet Minister... The grievance of the petitioner is that the Honourable Minister has ignored the statements of the 21 card holders and the concurrent findings of the District Supply Officer and the Deputy Commissioner... He relied upon Clause 24(1) of the Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975, to contend that the said provision vests the competent authority with the power to cause a revision suo motu or on an application.

Procedural History

The petitioner filed a complaint leading to cancellation of the fair price shop license by the District Supply Officer and Deputy Commissioner. Respondent No.5 filed a revision before the Honourable Minister after eight years. The Minister allowed the revision on 16.1.2019 and restored the license. The petitioner then filed the present writ petition on 4.7.2019.

Acts & Sections

  • Maharashtra Scheduled Commodities (Regulation of Distribution) Order 1975: Clause 24(1)
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