Bombay High Court Quashes Minister's Order Cancelling Fair Price Shop License Without Hearing — Violation of Natural Justice Under Essential Commodities Act, 1955. License Cancellation Set Aside for Non-Compliance with Audi Alteram Partem Principle.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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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)

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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.

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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
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Case Details

2014 LawText (BOM) (02) 155

Writ Petition No. 3868 of 2009 and Writ Petition No. 3869 of 2009

2014-02-04

B.P. Dharmadhikari, Z.A. Haq

A.M. Gordey, Senior Advocate with Mrs. R.D. Raskar for petitioner; Mrs. B.H. Dangre, Additional GP for respondents 1 to 6; Shri R.R. Srivasata for respondent 7

Dinesh s/o Bansilal Agrawal

The State of Maharashtra through the Principal Secretary, Department of Food, Civil Supplies and Consumer Protection, and others

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Nature of Litigation

Writ petition challenging cancellation of fair price shop license

Remedy Sought

Quashing of order dated 30.07.2009 passed by the Minister cancelling the petitioner's license

Filing Reason

The petitioner's license was cancelled without any notice or opportunity of hearing

Previous Decisions

Interim order dated 10.12.2009 staying the operation of the impugned order

Issues

Whether the impugned order cancelling the petitioner's license without hearing is violative of natural justice?

Submissions/Arguments

Petitioner argued that the order was passed without any notice or opportunity of hearing, relying on a report not disclosed to him. Respondents argued that the order was passed in public interest and based on a report.

Ratio Decidendi

An order cancelling a license without affording an opportunity of hearing violates the principles of natural justice and is unsustainable in law.

Judgment Excerpts

This Court on that date by reasoned order stayed the operation and effect of impugned order dated 30.07.2009 passed by Respondent No. 2 – Hon'ble Minister. The impugned order is quashed and set aside.

Procedural History

The petitioner filed two writ petitions challenging the Minister's order dated 30.07.2009 cancelling his fair price shop license. On 10.12.2009, the court granted an interim stay of the order. The petitions were admitted for final hearing and the judgment was reserved on 18.01.2014 and pronounced on 04.02.2014.

Acts & Sections

  • Essential Commodities Act, 1955: Section 3
  • Maharashtra Essential Commodities (Licensing, Control and Declaration) Order, 1993:
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