Case Note & Summary
The petitioners, three firms engaged in flower, fruit, and vegetable trading in Tumakuru, filed a writ petition under Article 226 of the Constitution of India before the Karnataka High Court. They challenged two orders: one dated 03.01.2020 issued by the Director of Agricultural Marketing (first respondent) cancelling their licenses, and another dated 22.01.2020 issued by the Agricultural Produce Market Committee (second respondent) cancelling their licenses. The petitioners contended that both orders were passed without any show cause notice or opportunity of hearing, in gross violation of the principles of natural justice and the mandatory requirements of Section 127 of the Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966. The respondents did not file any statement of objections. The court, after hearing the counsel for the petitioners and the respondents, noted that the impugned orders were indeed passed without any prior notice or hearing. The court observed that Section 127 of the Act requires that before cancelling a license, the authority must issue a show cause notice and provide an opportunity of hearing to the licensee. Since this was not done, the orders were unsustainable in law. The court quashed both impugned orders but granted liberty to the respondents to initiate fresh proceedings in accordance with law, after issuing proper show cause notices and affording a reasonable opportunity of hearing to the petitioners. The writ petition was allowed accordingly.
Headnote
A) Administrative Law - Natural Justice - Cancellation of License - Section 127 of Karnataka Agricultural Produce Marketing (Regulation and Development) Act, 1966 - Petitioners challenged orders dated 03.01.2020 and 22.01.2020 cancelling their licenses under the APMC Act without any show cause notice or opportunity of hearing - Court held that the impugned orders are in violation of principles of natural justice and Section 127 of the Act, which mandates a show cause notice and hearing before cancellation - Orders quashed with liberty to respondents to initiate fresh proceedings after giving due notice and hearing (Paras 1-4).
Issue of Consideration
Whether the cancellation of petitioners' licenses by the Director of Agricultural Marketing without issuing a show cause notice and affording an opportunity of hearing is valid in law.
Final Decision
The writ petition is allowed. The impugned orders dated 03.01.2020 and 22.01.2020 are quashed. Liberty is reserved to the respondents to initiate fresh proceedings in accordance with law after issuing show cause notice and affording reasonable opportunity of hearing to the petitioners.
Law Points
- Natural justice
- audi alteram partem
- show cause notice
- opportunity of hearing
- cancellation of license
- Section 127 of Karnataka Agricultural Produce Marketing (Regulation and Development) Act
- 1966
