Case Note & Summary
The petitioner, Yelladakere Prathamika Krushi Pattina Sahakara Sangha (R), a cooperative society registered under the Co-operative Societies Act, represented by its Chief Executive Officer, D. Ninganna, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru. The petitioner sought to quash the impugned notification bearing No. FS D/HO NYA BE AN. C R/305/2024-25 dated 01.09.2025 issued by the 3rd respondent, the Joint Director, Department of Food, Civil Supplies and Consumer Affairs, Chitradurga. The notification cancelled the petitioner's authorization to run a fair price shop. The petitioner contended that the cancellation was arbitrary, illegal, unjust, and unconstitutional as it was passed without issuing any show-cause notice or providing an opportunity of hearing, thereby violating the principles of natural justice. The respondents, represented by the learned AGA, accepted notice. The court, after hearing the petitioner's counsel and the AGA, examined the matter at the preliminary hearing stage. The court found that the impugned notification was indeed issued without any prior notice or hearing, which is a fundamental breach of the principles of natural justice. The court held that such an order cannot be sustained in law and is liable to be quashed. Consequently, the court allowed the writ petition, quashed the impugned notification, and directed the respondents to restore the petitioner's authorization and permit the petitioner to continue running the fair price shop. The court also granted liberty to the respondents to initiate fresh proceedings in accordance with law, if so advised, after providing a show-cause notice and an opportunity of hearing to the petitioner.
Headnote
A) Constitutional Law - Principles of Natural Justice - Audi Alteram Partem - Right to be heard - Cancellation of license without show-cause notice or hearing is arbitrary and illegal - The petitioner's fair price shop authorization was cancelled by the Joint Director without any prior notice or opportunity of hearing, which is a clear violation of the principles of natural justice - Held that such an order cannot be sustained and is liable to be quashed (Paras 1-3).
Issue of Consideration
Whether the impugned notification cancelling the petitioner's fair price shop authorization without issuing a show-cause notice or providing an opportunity of hearing is arbitrary, illegal, and violative of principles of natural justice.
Final Decision
The writ petition is allowed. The impugned notification bearing No. FS D/HO NYA BE AN. C R/305/2024-25 dated 01.09.2025 issued by the 3rd respondent is quashed. The respondents are directed to restore the petitioner's authorization and permit the petitioner to continue running the fair price shop. Liberty is reserved to the respondents to initiate fresh proceedings in accordance with law, if so advised, after providing a show-cause notice and an opportunity of hearing to the petitioner.
Law Points
- Principles of natural justice
- audi alteram partem
- right to be heard
- cancellation of license without notice
- writ jurisdiction under Articles 226 and 227
