High Court of Karnataka Quashes Cancellation of Fair Price Shop License for Violation of Natural Justice — License Cancelled Without Show Cause Notice Under Karnataka Essential Commodities Public Distribution System (Control) Order 2016

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, Sri Manjunath B., was a licensee running a fair price shop under the Karnataka Essential Commodities Public Distribution System (Control) Order 2016. The 3rd respondent, the Additional Director of the Department of Food, Civil Supplies and Consumer Affairs, passed an order dated 20.09.2022 cancelling the petitioner's license. The petitioner challenged this order by way of a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka. The primary ground of challenge was that the impugned order was passed without issuing any show cause notice to the petitioner, thereby violating the principles of natural justice. The court heard the petitioner's counsel, Sri H.P. Gangesh Gowda, and the respondents' counsel, Sri M. Vinod Kumar (AGA) and Sri R.B. Mruthyunjaya (for respondent No.5). The court found that the order was indeed passed without any show cause notice and without affording an opportunity of hearing. Consequently, the court quashed the impugned order and directed the respondents to restore the supply of ration to the petitioner's fair price shop. The court also granted liberty to the respondents to initiate fresh proceedings in accordance with law, if so advised.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Karnataka Essential Commodities Public Distribution System (Control) Order 2016 - Cancellation of license without show cause notice is violative of principles of natural justice - The court held that the order cancelling the license was passed without affording any opportunity of hearing to the petitioner, rendering it unsustainable (Paras 1-5).

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Issue of Consideration

Whether the cancellation of the petitioner's fair price shop license without issuance of a show cause notice is sustainable in law.

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Final Decision

The writ petition is allowed. The impugned order dated 20.09.2022 passed by the 3rd respondent is quashed. The respondents are directed to restore the supply of ration to the petitioner's fair price shop. Liberty is reserved to the respondents to initiate fresh proceedings in accordance with law, if so advised.

Law Points

  • Natural justice
  • audi alteram partem
  • show cause notice
  • cancellation of license
  • fair price shop
  • essential commodities
  • public distribution system
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Case Details

2022 LawText (KAR) (11) 34

Writ Petition No.19575 of 2022 (GM - PDS)

2022-11-30

M. Nagaprasanna

Sri H.P. Gangesh Gowda, Sri M. Vinod Kumar, Sri R.B. Mruthyunjaya

Sri Manjunath B.

The Principal Secretary, Department of Revenue (Food), The Commissioner, Department of Food, Civil Supplies and Consumer Affairs, The Additional Director, Department of Food, Civil Supplies and Consumer Affairs, The Deputy Director, Department of Food, Civil Supplies and Consumer Affairs, West Range, M/s Rajajinagar Sastha's Women's Association

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Nature of Litigation

Writ petition challenging cancellation of fair price shop license

Remedy Sought

Quashing of order dated 20.09.2022 cancelling license and direction to restore supply of ration

Filing Reason

License cancelled without show cause notice, violating principles of natural justice

Issues

Whether cancellation of license without show cause notice is valid

Submissions/Arguments

Petitioner argued that no show cause notice was issued before cancellation, violating natural justice. Respondents did not contest the lack of notice.

Ratio Decidendi

An order cancelling a license without issuance of a show cause notice is violative of the principles of natural justice and cannot be sustained.

Judgment Excerpts

The petitioner is before this Court calling in question order dated 20th September 2022 passed by the 3rd respondent cancelling the license issued to the petitioner for a fair price shop under the Karnataka Essential Commodities Public Distribution System (Control) Order 2016. The order impugned is passed without any show cause notice to the petitioner and without affording any opportunity of hearing. The impugned order is quashed. The respondents are directed to restore the supply of ration to the petitioner's fair price shop.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the order dated 20.09.2022 cancelling his fair price shop license. The petition was heard and reserved for orders on 18.11.2022, and pronounced on 30.11.2022.

Acts & Sections

  • Karnataka Essential Commodities Public Distribution System (Control) Order 2016:
  • Constitution of India: Articles 226, 227
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High Court High Court of Karnataka Quashes Cancellation of Fair Price Shop License for Violation of Natural Justice — License Cancelled Without Show Cause Notice Under Karnataka Essential Commodities Public Distribution System (Control) Order 2016
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