Bombay High Court Dismisses Petition Challenging Cancellation of Fair Price Shop Authorization. Authorization Cancelled for Non-Compliance with Government Policy and Failure to Operate Shop.

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

The petitioner, Smt. Kamalbai w/o Sahebrao Shelke, was authorized to run fair price shop No. 79 in Village Vasai, Tq. Sillod, after the previous licensee, respondent No. 4, was suspended due to black marketing of kerosene. The petitioner operated the shop but faced allegations of malpractices, leading to suspension of her licence on 22-12-2010. Meanwhile, respondent No. 4, after acquittal in criminal trial, applied for restoration of his licence. The petitioner challenged the cancellation of her authorization. The court examined the facts and found that the petitioner failed to produce required documents and did not operate the shop for over a year, violating conditions. The court held that the cancellation was valid and the petitioner was given adequate opportunity to be heard. The writ petition was dismissed.

Headnote

A) Essential Commodities Act - Fair Price Shop Authorization - Cancellation - Non-Compliance with Conditions - The petitioner's authorization was cancelled for failing to produce documents and not operating the shop for over a year - The court held that the cancellation was justified as the petitioner did not comply with the conditions of authorization and the government policy - The court also noted that the petitioner was given sufficient opportunity to be heard (Paras 1-10).

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Issue of Consideration

Whether the cancellation of the petitioner's authorization to run a fair price shop was valid and whether the petitioner was given adequate opportunity of hearing.

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Final Decision

The writ petition is dismissed. The cancellation of the petitioner's authorization is upheld.

Law Points

  • Government policy on fair price shops
  • authorization cancellation
  • non-compliance with conditions
  • opportunity of hearing
  • natural justice
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Case Details

2014 LawText (BOM) (04) 10

WRIT PETITION NO. 3856 OF 2011

2014-04-08

RAVINDRA V. GHUGE, J.

Mr. J.V. Deshpande, & Mr. B.N. Magar, Advocates for petitioner; Mr. V.H. Dighe, A.G.P. for respondent Nos. 1 to 3; Mr. V.D. Sonwane, Advocate for respondent No. 4

Smt. Kamalbai w/o Sahebrao Shelke

The State of Maharashtra through Ministry for Food, Civil Supply & Consumer Protection, Mantralaya, Mumbai; Dy. Commissioner (Supply), Aurangabad; The District Supply Officer, Aurangabad; Bajirao S/o Rangnath Wagh

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Nature of Litigation

Writ petition challenging cancellation of authorization to run a fair price shop.

Remedy Sought

Petitioner sought to quash the order cancelling her authorization and to restore her licence.

Filing Reason

Petitioner's authorization was cancelled by the authorities for alleged non-compliance with conditions and failure to operate the shop.

Previous Decisions

The petitioner's licence was suspended on 22-12-2010. Respondent No. 4's licence was suspended earlier and he was acquitted in criminal trial.

Issues

Whether the cancellation of the petitioner's authorization was valid. Whether the petitioner was given adequate opportunity of hearing before cancellation.

Submissions/Arguments

Petitioner argued that she was not given proper opportunity to be heard and that the cancellation was arbitrary. Respondents contended that the petitioner failed to produce required documents and did not operate the shop for over a year, justifying cancellation.

Ratio Decidendi

The court held that the petitioner's authorization was rightly cancelled as she failed to comply with the conditions of authorization and the government policy, and she was given sufficient opportunity to be heard.

Judgment Excerpts

Heard the learned Advocates for the respective sides at length. The petitioner submits that prior to 2004 or before proclamation of this shop, it was run by respondent No. 4. The petitioner, therefore, operated the fair price shop No. 79 at Village Vasai, Tq. Sillod.

Procedural History

Rule was issued on 26-08-2011. The petition was heard and decided on 08-04-2014.

Acts & Sections

  • Essential Commodities Act, 1955: 3, 7
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High Court Bombay High Court Dismisses Petition Challenging Cancellation of Fair Price Shop Authorization. Authorization Cancelled for Non-Compliance with Government Policy and Failure to Operate Shop.