High Court of Karnataka Allows Writ Petition Challenging Arbitrary Rejection of Shop Allotment in APMC Yard. Endorsement Quashed for Violation of Natural Justice, Fresh Consideration Ordered.

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

The petitioner, Mohammed Shah Nawaz, proprietor of Shah Nawaz and Brothers, has been carrying on business as a licencee in the vegetable market at Kalaburagi since 2008 under a licence granted by the 4th respondent, the Agricultural Produce Marketing Committee (APMC). The 4th respondent constructed shops to better regulate the yard and facilitate wholesale business in fruits and vegetables. The petitioner applied for allotment of a shop, but the 5th respondent, the Secretary of the APMC, issued an endorsement dated 21.10.2014 rejecting the application. The petitioner challenged this endorsement by way of a writ petition under Articles 226 and 227 of the Constitution of India, seeking its quashing and a direction to cancel the allotment in favour of the 6th respondent. The court noted that the impugned endorsement merely stated that the application was rejected based on a resolution of the 4th respondent, without disclosing any reasons or affording the petitioner an opportunity of hearing. The court held that the action of the respondents was arbitrary and violative of the principles of natural justice. Consequently, the court quashed the endorsement and directed the respondents to consider the petitioner's application afresh, after giving him a reasonable opportunity of hearing, and to pass a speaking order within eight weeks. The writ petition was allowed in part.

Headnote

A) Administrative Law - Natural Justice - Audi Alteram Partem - Rejection of Application Without Hearing - The petitioner's application for allotment of a shop was rejected by the 5th respondent without affording any opportunity of hearing. Held that the impugned endorsement is arbitrary and violative of principles of natural justice. (Paras 3-4)

B) Agricultural Marketing - Shop Allotment - Arbitrary Exercise of Power - The 5th respondent's endorsement rejecting the petitioner's application was based on a resolution of the 4th respondent, but no reasons were disclosed and no hearing was given. Held that such action is unsustainable in law. (Paras 3-4)

C) Writ Jurisdiction - Articles 226 and 227 of the Constitution of India - Quashing of Endorsement - The High Court, in exercise of its writ jurisdiction, quashed the impugned endorsement and directed the respondents to consider the petitioner's application afresh after affording an opportunity of hearing. (Para 4)

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Issue of Consideration

Whether the endorsement dated 21.10.2014 rejecting the petitioner's application for allotment of a shop in the APMC yard is arbitrary and violative of principles of natural justice.

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Final Decision

The writ petition is allowed in part. The impugned endorsement dated 21.10.2014 is quashed. The respondents are directed to consider the petitioner's application afresh after affording him a reasonable opportunity of hearing and to pass a speaking order within eight weeks from the date of receipt of a copy of the order.

Law Points

  • Natural Justice
  • Audi Alteram Partem
  • Arbitrariness
  • Writ Jurisdiction
  • Agricultural Produce Marketing Committee
  • Shop Allotment
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Case Details

2019 LawText (KAR) (03) 90

Writ Petition No.200467/2015 (APMC)

2019-03-01

G. Narendar

Sri. Srivatsava, Senior Counsel appearing for Sri.V.K.Naik, Adv. for petitioner; Sri. R.V.Nadagouda, AGA appearing for Sri. Shivaputra Udbalkar, HCGP for R1 to R3; Sri. Mallikarjun Basareddy, Adv. for R4 and R5; Sri. Deepak V. Barad, Adv. for R6

Mohammed Shah Nawaz

State of Karnataka, Department of Cooperative; The Director, Agricultural Marketing; The Deputy Commissioner, Gulbarga; Agricultural Produce Marketing Committee, Gulbarga (by its Chairman); Agricultural Produce Marketing Committee, Gulbarga (by its Secretary); Haji Altaf and Company

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Nature of Litigation

Writ petition challenging an endorsement rejecting the petitioner's application for allotment of a shop in the APMC yard.

Remedy Sought

Quashing of the endorsement dated 21.10.2014 and direction to cancel the allotment in favour of the 6th respondent.

Filing Reason

The petitioner's application for allotment of a shop was rejected without any reasons and without affording an opportunity of hearing.

Issues

Whether the impugned endorsement is arbitrary and violative of principles of natural justice? Whether the petitioner is entitled to a fresh consideration of his application?

Submissions/Arguments

The petitioner argued that the endorsement was passed without any reasons and without affording an opportunity of hearing, thus violating natural justice. The respondents contended that the rejection was based on a resolution of the 4th respondent.

Ratio Decidendi

An administrative order rejecting an application without disclosing reasons and without affording an opportunity of hearing is arbitrary and violative of principles of natural justice. Such an order is liable to be quashed, and the matter must be remitted for fresh consideration.

Judgment Excerpts

The impugned endorsement merely states that the application is rejected based on the resolution of the 4th respondent. No reasons are forthcoming and the petitioner has not been afforded any opportunity of hearing. The action of the respondents is arbitrary and violative of the principles of natural justice. The impugned endorsement is quashed. The respondents are directed to consider the petitioner's application afresh after affording him a reasonable opportunity of hearing and to pass a speaking order within eight weeks.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the endorsement dated 21.10.2014. The petition was heard and reserved on 10.08.2017, and the order was pronounced on 01.03.2019.

Acts & Sections

  • Constitution of India: Articles 226, 227
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High Court High Court of Karnataka Allows Writ Petition Challenging Arbitrary Rejection of Shop Allotment in APMC Yard. Endorsement Quashed for Violation of Natural Justice, Fresh Consideration Ordered.
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