Case Note & Summary
The petitioners, Bapu Jagalu Dhormare and Dhananjay Nagurao Gule, were card holders of a fair price shop run by respondent No.4, Namdeo Mahadeo Mali, in village Mendha, Osmanabad. They complained that respondent No.4 was selling food grains at higher rates, giving less quantity, and selling in black market. The Tahsildar conducted an enquiry and found irregularities, including excess quota, frequent closure, and higher rates. An offence under Sections 3 and 7 of the Essential Commodities Act was registered. The District Supply Officer issued a show cause notice, and after considering the reply, cancelled the licence on 12.8.2010. Respondent No.4 filed a revision before the Minister for Food, Civil Supply and Consumer Protection, who by order dated 13.10.2011 set aside the cancellation and restored the licence. The petitioners challenged this order in the High Court. The court held that the Minister's order was passed without proper application of mind and without considering the material on record, including the inspection report and the fact that an offence was registered. The court set aside the Minister's order and restored the cancellation of the licence.
Headnote
A) Essential Commodities Act - Licence Cancellation - Revision - The Minister, while exercising revisional powers under the Essential Commodities Act, must apply his mind to the material on record and cannot substitute his own opinion without valid reasons. The impugned order dated 13.10.2011 passed by the Minister was set aside as it failed to consider the inspection report and the findings of the District Supply Officer. (Paras 1-10) B) Natural Justice - Fair Price Shop - Card Holders' Rights - Card holders have a right to be heard in proceedings affecting their entitlement to essential commodities. The petitioners, as card holders, had locus standi to challenge the Minister's order restoring the licence. (Paras 2-5) C) Essential Commodities Act, 1955 - Sections 3 and 7 - Offences - Selling food grains at higher rates and in black market constitutes an offence under Sections 3 and 7 of the Essential Commodities Act. The registration of an offence against respondent No.4 was a relevant factor for cancellation of licence. (Para 3)
Issue of Consideration
Whether the Minister for Food, Civil Supply and Consumer Protection, in exercise of revisional powers, was justified in setting aside the cancellation of the fair price shop licence of respondent No.4 without properly considering the material on record and the findings of the subordinate authorities.
Final Decision
The High Court allowed the writ petition, set aside the Minister's order dated 13.10.2011, and restored the order of the District Supply Officer dated 12.8.2010 cancelling the licence of respondent No.4.
Law Points
- Natural justice
- Revisionary powers
- Essential Commodities Act
- Fair price shop licence cancellation
- Minister's order
- Judicial review
