Case Note & Summary
The appellant, Girijamata Magasvargiya Mahila Audyogik Sahakari Sanstha Limited, a cooperative society, was granted a fair price shop license under the Essential Commodities Act, 1955. The District Supply Officer, Ahmednagar, cancelled the license without issuing any show cause notice or affording an opportunity of hearing to the appellant. The appellant challenged the cancellation by filing Writ Petition No. 155 of 2006 before the Bombay High Court, which was dismissed. Aggrieved, the appellant filed the present Letters Patent Appeal. The core legal issue was whether the cancellation of the license without following principles of natural justice was sustainable. The appellant argued that the cancellation order was passed in gross violation of natural justice as no show cause notice was served and no hearing was given. The respondents contended that the cancellation was justified. The court, after hearing both sides, found that the cancellation order was indeed passed without any show cause notice and without hearing the appellant, which is a clear violation of principles of natural justice. The court set aside the order of the learned Single Judge and the cancellation order, and directed the respondents to restore the license to the appellant pending a fresh decision. The respondents were directed to decide the matter afresh after giving an opportunity of hearing to the appellant, within a period of three months from the date of the judgment. The appeal was allowed with no order as to costs.
Headnote
A) Administrative Law - Principles of Natural Justice - Show Cause Notice - Essential Commodities Act, 1955 - The cancellation of a fair price shop license without serving a show cause notice and without affording an opportunity of hearing violates principles of natural justice. The court held that the order of cancellation was passed in gross violation of natural justice and set aside the same, remanding the matter for fresh consideration after giving due opportunity to the appellant. (Paras 1-5) B) Essential Commodities Act - Fair Price Shop License - Cancellation - Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993 - The appellant, a cooperative society, was granted a fair price shop license. The license was cancelled by the District Supply Officer without issuing a show cause notice or hearing the appellant. The court held that such cancellation is illegal and directed restoration of the license pending fresh decision. (Paras 2-5)
Issue of Consideration
Whether the cancellation of the appellant's fair price shop license without serving a show cause notice and without affording an opportunity of hearing was valid in law.
Final Decision
The appeal is allowed. The order of the learned Single Judge and the order of cancellation of the fair price shop license are set aside. The respondents are directed to restore the license to the appellant pending a fresh decision. The respondents shall decide the matter afresh after giving an opportunity of hearing to the appellant, within a period of three months from the date of the judgment. No order as to costs.
Law Points
- Principles of natural justice
- Show cause notice
- Opportunity of hearing
- Fair price shop license
- Essential Commodities Act
- 1955
- Maharashtra Essential Commodities (Licensing
- Control and Declaration) Order
- 1993
