Case Note & Summary
The petitioner, Kalyan Dhondiba Lende, a card holder of a fair price shop run by respondent No.5 (Machindra Deorao Lende) in village Hirapur, filed complaints alleging that respondent No.5 was selling food grains at higher rates, giving less quantity, and selling kerosene in black market. The District Supply Officer, Aurangabad, conducted a personal inspection and found irregularities, including improper maintenance of records. A show cause notice was issued, and after considering the reply, the District Supply Officer cancelled the licence on 14.12.2004. Respondent No.5 filed a revision before the Minister for Food, Civil Supply and Consumer Protection, who on 23.04.2012 set aside the cancellation order and restored the licence. The petitioner challenged this revision order in the High Court. The court examined the scope of revisional powers and found that the Minister's order was cryptic, did not apply mind to the material on record, and failed to consider the findings of the District Supply Officer. Additionally, the petitioner, who was the complainant and an affected party, was not given an opportunity of hearing before the revision order was passed, violating principles of natural justice. The High Court allowed the writ petition, quashed the Minister's order, and restored the cancellation of the licence. The court directed the authorities to take steps to allot the fair price shop to a suitable person in accordance with law.
Headnote
A) Essential Commodities Act - Fair Price Shop Licence - Cancellation - Revisional Powers - The Minister, while exercising revisional jurisdiction under the Maharashtra Essential Commodities (Licensing, Control and Stock Declaration) Order, 1977, must apply his mind to the material on record and cannot set aside a well-reasoned cancellation order without proper justification. The impugned order was set aside as it was cryptic and did not consider the findings of the District Supply Officer regarding irregularities such as selling at higher rates, black marketing, and improper maintenance of records. (Paras 1-10) B) Natural Justice - Principles of Natural Justice - Hearing - The revisional authority must afford an opportunity of hearing to the complainant or affected parties before setting aside an order of cancellation of licence. In this case, the petitioner, who was the complainant and a card holder, was not heard before the Minister passed the revision order, violating principles of natural justice. (Paras 5-10) C) Essential Commodities Act - Fair Price Shop - Irregularities - Selling at Higher Rates - Black Marketing - The District Supply Officer had conducted a personal inspection and found that the licensee was selling food grains at higher rates, giving less quantity, and selling kerosene in black market. These findings were sufficient to cancel the licence under the relevant provisions. The Minister's order reversing the cancellation without addressing these findings was unsustainable. (Paras 3-10)
Issue of Consideration
Whether the Minister for Food, Civil Supply and Consumer Protection acted within the scope of revisional powers under the Maharashtra Essential Commodities (Licensing, Control and Stock Declaration) Order, 1977 while setting aside the cancellation of a fair price shop licence, and whether the impugned order suffered from non-application of mind and violation of principles of natural justice.
Final Decision
The High Court allowed the writ petition, quashed the order dated 23.04.2012 passed by the Minister for Food, Civil Supply and Consumer Protection, and restored the order of cancellation of licence dated 14.12.2004 passed by the District Supply Officer, Aurangabad. The court directed the respondent authorities to take steps to allot the fair price shop to a suitable person in accordance with law.
Law Points
- Natural justice
- Revision powers
- Fair price shop licence
- Cancellation of licence
- Supply of essential commodities
