Bombay High Court Quashes Minister's Order Restoring Fair Price Shop Licence in Revision — Minister Exceeded Revisional Jurisdiction by Reappreciating Evidence Without Finding Error in Original Order. Card Holders' Complaints of Overcharging and Black Marketing Led to Licence Cancellation; Minister's Reversal Set Aside for Lack of Jurisdiction and Violation of Natural Justice.

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

The petitioners, Nagorao Parshuram Sugave and Kisan Apparao Sugave, were card holders of a fair price shop run by respondent No.6, Maloji Ramji Yammalwad, in village Ghungrala, District Nanded. They complained that respondent No.6 was selling food grains at higher rates, giving less quantity, and selling in black market. The Tahsildar conducted an enquiry and submitted a report on 1.7.2009, based on which the District Supply Officer suspended and later cancelled the authorization of the fair price shop on 1.12.2009. Respondent No.6 filed a revision before the Deputy Commissioner (Supply), who confirmed the cancellation. Aggrieved, respondent No.6 filed a further revision before the Minister for Food, Civil Supply and Consumer Protection, who on 6.6.2012 set aside the cancellation and restored the licence. The petitioners challenged this order by way of a writ petition. The main legal issues were whether the Minister exceeded his revisional jurisdiction by reappreciating evidence and whether the petitioners, being the complainants, were entitled to be heard before the Minister passed the order. The court held that the revisional authority cannot reappreciate evidence like an appellate court and can only interfere if the order suffers from patent illegality or perversity. The Minister's order did not point out any such error. Additionally, the Minister passed the order without hearing the petitioners, violating principles of natural justice. The court quashed the Minister's order and restored the order of the Deputy Commissioner confirming the cancellation. The petition was allowed with no order as to costs.

Headnote

A) Administrative Law - Revisional Jurisdiction - Scope of Revision - Essential Commodities Act, 1955 - The revisional authority cannot reappreciate evidence and substitute its own findings unless the original order suffers from patent illegality, perversity, or lack of jurisdiction. The Minister's order setting aside the cancellation of the fair price shop licence was quashed as it exceeded revisional jurisdiction. (Paras 7-9)

B) Natural Justice - Right to be Heard - Cancellation of Licence - Essential Commodities Act, 1955 - The complainants (card holders) who had initiated the complaint leading to cancellation of the licence were necessary parties in the revision proceedings. The Minister's order was set aside for violating principles of natural justice as the petitioners were not heard. (Para 8)

C) Food and Civil Supplies - Fair Price Shop - Cancellation of Licence - Essential Commodities Act, 1955 - The District Supply Officer cancelled the licence based on a report by the Tahsildar finding irregularities. The Deputy Commissioner confirmed the cancellation. The Minister in revision set aside the cancellation without finding any error in the concurrent findings. The High Court restored the cancellation order. (Paras 2-9)

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Issue of Consideration

Whether the Minister for Food, Civil Supply and Consumer Protection, while exercising revisional jurisdiction, could set aside the order of the Deputy Commissioner (Supply) confirming the cancellation of a fair price shop licence, without finding any error of law or perversity in the said order, and without hearing the complainants who were the card holders.

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Final Decision

The writ petition is allowed. The impugned order dated 06.06.2012 passed by the Minister for Food, Civil Supply and Consumer Protection is quashed and set aside. The order passed by the Deputy Commissioner (Supply) confirming the cancellation of the fair price shop licence is restored. Rule made absolute. No order as to costs.

Law Points

  • Revisional authority cannot reappreciate evidence
  • Revisional jurisdiction limited to correcting patent illegality or perversity
  • Natural justice requires hearing affected parties before setting aside order
  • Scope of revision under Essential Commodities Act
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Case Details

2013 LawText (BOM) (03) 12

Writ Petition No. 4691 of 2012

2013-03-05

S. S. Shinde

A.N. Nagargoje for petitioners, K.J. Ghute Patil for respondent Nos. 1 to 5, M.A. Kulkarni for respondent No.6

Nagorao Parshuram Sugave and Kisan Apparao Sugave

State of Maharashtra and others

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Nature of Litigation

Writ petition challenging the order of the Minister for Food, Civil Supply and Consumer Protection setting aside the cancellation of a fair price shop licence.

Remedy Sought

The petitioners, who were card holders of the fair price shop, sought quashing of the Minister's order dated 06.06.2012 and restoration of the cancellation of the licence.

Filing Reason

The Minister set aside the cancellation of the fair price shop licence without hearing the petitioners and without finding any error in the concurrent findings of the District Supply Officer and Deputy Commissioner.

Previous Decisions

The District Supply Officer cancelled the licence on 1.12.2009. The Deputy Commissioner (Supply) confirmed the cancellation in revision. The Minister set aside the cancellation on 6.6.2012.

Issues

Whether the Minister exceeded his revisional jurisdiction by reappreciating evidence and setting aside the cancellation of the fair price shop licence. Whether the order of the Minister was passed in violation of principles of natural justice as the petitioners were not heard.

Submissions/Arguments

Petitioners argued that the Minister acted beyond his revisional jurisdiction by reappreciating evidence and that the order was passed without hearing them. Respondent No.6 argued that the Minister had the power to revise the order and that the petitioners had no locus standi.

Ratio Decidendi

The revisional authority under the Essential Commodities Act cannot reappreciate evidence like an appellate court. It can only interfere if the order suffers from patent illegality, perversity, or lack of jurisdiction. Additionally, the complainants who initiated the proceedings are necessary parties and must be heard before the revisional authority passes an order adverse to them.

Judgment Excerpts

The revisional authority cannot reappreciate the evidence like an appellate court and can only interfere if the order suffers from patent illegality or perversity. The impugned order is also violative of principles of natural justice as the petitioners were not heard before passing the order.

Procedural History

The District Supply Officer cancelled the fair price shop licence on 1.12.2009. Respondent No.6 filed a revision before the Deputy Commissioner (Supply), who confirmed the cancellation. Respondent No.6 then filed a further revision before the Minister, who on 6.6.2012 set aside the cancellation. The petitioners filed the present writ petition challenging the Minister's order.

Acts & Sections

  • Essential Commodities Act, 1955:
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