Case Note & Summary
The petitioners, Vithal Mallu Chintalwar and Kusumbai/Rajabai Gangaram Mundamwar, were holders of FL3 licenses under the Maharashtra Excise Act, 2002, operating their vends at village Shahapur, Degloor, Nanded. In September 2016, the Collector of Nanded passed orders suspending their licenses under Section 53 of the Act without issuing any show cause notice or affording them an opportunity of hearing. The petitioners challenged these suspension orders by way of a writ petition before the Bombay High Court, Aurangabad Bench. The core legal issue was whether the suspension of a license without a prior hearing violates the principles of natural justice. The petitioners argued that the suspension was arbitrary and illegal as no opportunity was given to them to explain their position. The respondents, represented by the State, did not contest the matter on merits. The court, after hearing both sides, observed that the power under Section 53 is a drastic power that can be exercised only after following the principles of natural justice. The court held that even if the statute does not explicitly require a hearing, the same must be implied, especially when the suspension is punitive in nature. The court set aside the suspension orders and directed the respondents to restore the licenses. The court also clarified that the respondents are at liberty to proceed against the petitioners in accordance with law after giving them a proper hearing. The judgment was delivered by Justice S.B. Shukre on 8 March 2017.
Headnote
A) Excise Law - Suspension of License - Natural Justice - Section 53, Maharashtra Excise Act, 2002 - Petitioners' FL3 licenses were suspended by the Collector without any prior notice or hearing - Court held that suspension without hearing violates principles of natural justice and set aside the suspension orders - Held that even if the statute does not expressly provide for a hearing, the requirement of natural justice must be read in, especially when the order is punitive and not merely preventive (Paras 4-6).
Issue of Consideration
Whether the suspension of FL3 license under Section 53 of the Maharashtra Excise Act, 2002 without affording an opportunity of hearing to the licensees is valid in law.
Final Decision
The court allowed the writ petition, set aside the suspension orders, and directed restoration of the licenses. The respondents were at liberty to proceed after giving hearing.
Law Points
- Natural justice
- audi alteram partem
- suspension of license without hearing
- Section 53 of Maharashtra Excise Act
- 2002
