High Court of Karnataka Quashes Cancellation of Fair Price Shop Authorization in PDS Dispute — Violation of Natural Justice. Notification cancelling petitioner's authorization under Karnataka Essential Commodities Act PDS (Control) Order, 2016 set aside for being arbitrary and violative of Article 14.

High Court: Karnataka High Court Bench: KALABURAGI In Favour of Accused

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2026-05-18 12:34:21

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Case Note & Summary

The petitioner, Mahathma Gandhiji Grama Hitha Mandali, a society represented by its Chairman Gundappa Gouda, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging Notification No. AHARA/FPS.5:CR 173/2021-22 dated 29.09.2022 issued by the 3rd respondent (Deputy Director for Food and Civil Supply, Vijayapura District). The notification cancelled the petitioner's authorization to run a fair price shop under the Karnataka Essential Commodities Act PDS (Control) Order, 2016. The petitioner contended that the notification was arbitrary and violative of Article 14 as it was issued without any prior notice or opportunity of hearing. The respondents, including the State of Karnataka and the Deputy Commissioner, were represented by the Additional Government Advocate, while the 4th respondent (Shree Amba Bhavani Mahila Swa Sahaya Sangh) was represented by counsel. The court, after hearing the parties, found that the impugned notification was indeed issued without affording any opportunity of hearing to the petitioner, which is a fundamental requirement of natural justice. The court held that any administrative action that adversely affects a person's rights must comply with the principles of natural justice, and failure to do so renders the action arbitrary and violative of Article 14. Consequently, the court quashed the notification and directed the respondents to restore the petitioner's authorization. The court also ordered that the matter be reconsidered after giving the petitioner a reasonable opportunity of being heard.

Headnote

A) Constitutional Law - Right to Equality - Article 14 - Arbitrariness - Cancellation of fair price shop authorization without affording opportunity of hearing is arbitrary and violative of Article 14 - Held that any administrative action affecting rights must comply with principles of natural justice (Paras 1-3).

Issue of Consideration

Whether the impugned notification dated 29.09.2022 cancelling the petitioner's authorization under the Karnataka Essential Commodities Act PDS (Control) Order, 2016 is arbitrary and violative of Article 14 of the Constitution of India.

Final Decision

The court allowed the writ petition, quashed the impugned notification dated 29.09.2022, and directed the respondents to restore the petitioner's authorization. The matter was remitted for reconsideration after affording the petitioner a reasonable opportunity of being heard.

Law Points

Natural justice
Right to be heard
Arbitrariness
Article 14
Essential Commodities Act
PDS (Control) Order
2016

Case Details

2024 LawText (KAR) (08) 55

WP No. 202758 of 2022 (GM-PDS)

2024-08-14

Suraj Govindaraj

Sri. Nagaraja N. Naidu (for petitioner), Sri. Shivakumar R. Tengli (AGA for R1-R3), Sri. Sanganabasava B. Patil (for R4)

Mahathma Gandhiji Grama Hitha Mandali

The State of Karnataka, The Deputy Commissioner, The Deputy Director for Food and Civil Supply, Shree Amba Bhavani Mahila Swa Sahaya Sangh

Nature of Litigation

Writ petition challenging cancellation of fair price shop authorization.

Remedy Sought

Declaration that the impugned notification is arbitrary and violative of Article 14, and quashing of the notification.

Filing Reason

The petitioner's authorization to run a fair price shop was cancelled without any prior notice or opportunity of hearing.

Issues

Whether the impugned notification cancelling the petitioner's authorization is arbitrary and violative of Article 14.

Submissions/Arguments

Petitioner argued that the notification was issued without any opportunity of hearing, violating principles of natural justice. Respondents argued in support of the notification.

Ratio Decidendi

Any administrative action that adversely affects a person's rights must comply with the principles of natural justice. Failure to provide an opportunity of hearing renders the action arbitrary and violative of Article 14 of the Constitution of India.

Judgment Excerpts

Petitioner is before this Court seeking for the following reliefs: i. Declare that Notification No.AHARA/FPS.5.CR 173/2021-22 dated 29.09.2022 issued by the 3rd respondent under Karnataka Essential Commodities Act PDS (Control) Order, 2016 is arbitrary, violative of Art. 14 of the Constitution of India and hence, ultravires the Constitution of India; Quash the Notification No. AHARA/FPS.5.CR173/2021-22 dated 29.09.2022 at Annexure-B.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging the notification dated 29.09.2022. The petition came up for preliminary hearing in 'B' group and was disposed of on 14.08.2024.