Case Note & Summary
The petitioner, Vijay Changole, challenged the order of the Minister, Food and Civil Supplies Department, dated 04.03.2015, which set aside the cancellation of the fair price shop authorization of respondent No.4, Moreshwar Changole, and imposed a fine of Rs.10,000 with a remand for fresh enquiry. The background is that the District Supply Officer, Amravati, by order dated 24.09.2013, cancelled the fair price authorization of respondent No.4 on the ground of illegalities, specifically the failure to maintain accounts of food grain sales from 01.05.2013 to the end of July 2013. A show cause notice was issued on 05.09.2013, and respondent No.4 replied on 24.09.2013, initially claiming that accounts were maintained, but later admitting that due to an accident fracturing his right hand, he could not maintain accounts. The Deputy Commissioner (Supply) upheld the cancellation on 17.10.2014. In revision, the Minister set aside both orders and imposed a fine of Rs.10,000, remanding the matter for fresh enquiry. The High Court found that the Minister's order was unreasonable and perverse. The court noted that respondent No.4 admitted to not maintaining accounts, and his explanation that he could not maintain accounts due to an accident was not credible because he was able to sell the food grains during the same period. The court held that the Minister ought to have considered the gravity of the violation and the fact that the respondent No.4 had admitted the charge. The High Court quashed the Minister's order and restored the orders of the District Supply Officer and the Deputy Commissioner, thereby upholding the cancellation of the fair price shop authorization.
Headnote
A) Essential Commodities Act - Fair Price Shop Authorization - Cancellation for Non-Maintenance of Accounts - The District Supply Officer cancelled the authorization of respondent No.4 for failure to maintain accounts of food grain sales from May to July 2013. The Deputy Commissioner upheld the cancellation. The Minister in revision set aside the cancellation and imposed a fine of Rs.10,000, remanding for fresh enquiry. The High Court held that the Minister's order was unreasonable and perverse, as the respondent No.4 admitted to not maintaining accounts due to an accident, but the explanation was not credible since he could sell the grains. The cancellation was restored. (Paras 2-4)
Issue of Consideration
Whether the Minister in revision was justified in setting aside the cancellation of fair price shop authorization and imposing a fine of Rs.10,000 instead, given the admitted non-maintenance of accounts.
Final Decision
The High Court allowed the writ petition, quashed the Minister's order dated 04.03.2015, and restored the orders of the District Supply Officer dated 24.09.2013 and the Deputy Commissioner dated 17.10.2014, thereby upholding the cancellation of the fair price shop authorization.
Law Points
- Natural justice
- Reasonable opportunity of hearing
- Proportionality of punishment
- Maintenance of accounts under Essential Commodities Act
