Case Note & Summary
The petitioner, Dinesh Bansilal Agrawal, was a licensee of a fair price shop under the Essential Commodities Act, 1955. The Minister of Food, Civil Supplies and Consumer Protection, Government of Maharashtra, passed an order on 30.07.2009 cancelling the petitioner's license without any prior notice or hearing. The petitioner challenged this order by filing two writ petitions. The court noted that the Minister relied on a report but did not disclose it to the petitioner or afford any opportunity to rebut it. The court held that the order was in gross violation of the principles of natural justice, specifically the rule of audi alteram partem. The court quashed the impugned order and directed the respondents to consider the matter afresh after giving the petitioner a reasonable opportunity of hearing. The court also directed that the interim order granted earlier would continue until the fresh decision was taken.
Headnote
A) Administrative Law - Natural Justice - Audi Alteram Partem - Cancellation of License - Essential Commodities Act, 1955, Section 3 - The Minister cancelled the petitioner's fair price shop license without any notice or hearing, relying on a report that was not disclosed to the petitioner. The court held that such an order violates the principles of natural justice and is liable to be set aside. (Paras 1-10) B) Essential Commodities - Fair Price Shop - License Cancellation - Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993 - The impugned order dated 30.07.2009 passed by the Minister was quashed as it was passed without following the procedure prescribed under the relevant order and without giving the petitioner an opportunity to be heard. (Paras 1-10)
Issue of Consideration
Whether the order passed by the Minister cancelling the petitioner's fair price shop license without affording an opportunity of hearing is sustainable in law.
Final Decision
The court allowed the petitions, quashed the impugned order dated 30.07.2009, and directed the respondents to consider the matter afresh after giving the petitioner a reasonable opportunity of hearing. The interim order granted earlier was directed to continue until the fresh decision was taken.
Law Points
- Natural justice
- audi alteram partem
- cancellation of license without hearing
- Essential Commodities Act
- 1955
- Maharashtra Essential Commodities (Licensing
- Control and Declaration) Order
- 1993




