High Court of Karnataka Allows Writ Petitions in Fair Price Shop Authorization Dispute — Sets Aside Orders for Violation of Natural Justice. Appointment of Fair Price Shop Dealer Quashed as Selection Was Made Without Considering All Eligible Candidates and Without Proper Notice.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The case involves two writ petitions filed by T. Ramesh and M.T. Rangappa concerning the authorization of a fair price shop dealership in Hosakote village, Molakalmur Taluk, Chitradurga District. The dispute arose when the Deputy Commissioner, Chitradurga, by order dated 8/11.11.2013, appointed M.T. Rangappa as the dealer of the fair price shop. T. Ramesh, who was also an applicant, challenged this order before the Commissioner for Food and Civil Supplies, who dismissed his appeal by order dated 04.01.2014. Both T. Ramesh and M.T. Rangappa filed writ petitions: T. Ramesh sought to quash both the Deputy Commissioner's order and the Commissioner's appellate order, while M.T. Rangappa sought to quash the Commissioner's order only insofar as it directed the Head Quarters Assistant to conduct a fresh selection. The court noted that the selection process was flawed as the Deputy Commissioner had not considered all eligible candidates and had not given an opportunity of hearing to the petitioner T. Ramesh. The Commissioner's appellate order also suffered from the same defects. The court held that the impugned orders were passed in violation of principles of natural justice and without proper application of mind. Consequently, the court allowed both writ petitions, quashed the orders dated 8/11.11.2013 and 04.01.2014, and directed the Deputy Commissioner to reconsider the matter afresh after affording an opportunity of hearing to all concerned parties.

Headnote

A) Administrative Law - Natural Justice - Right to be Heard - Selection for Fair Price Shop Dealership - The petitioner challenged the appointment of the 5th respondent as a fair price shop dealer on the ground that he was not given an opportunity of hearing and that the selection was made without considering all eligible candidates. The court held that the impugned orders were passed in violation of principles of natural justice and set them aside, directing fresh consideration. (Paras 1-10)

B) Food and Civil Supplies - Fair Price Shop - Authorization - Selection Process - The court found that the Deputy Commissioner's order dated 8/11.11.2013 and the Commissioner's appellate order dated 04.01.2014 were passed without affording an opportunity to the petitioner and without proper application of mind. The court quashed both orders and remanded the matter for fresh consideration. (Paras 5-10)

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Issue of Consideration

Whether the impugned orders appointing the 5th respondent as a fair price shop dealer were passed in violation of principles of natural justice and without considering all eligible candidates.

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Final Decision

Both writ petitions are allowed. The impugned order dated 8/11.11.2013 passed by the Deputy Commissioner, Chitradurga and the order dated 04.01.2014 passed by the Commissioner for Food and Civil Supplies are quashed. The Deputy Commissioner is directed to reconsider the matter afresh after affording an opportunity of hearing to all concerned parties.

Law Points

  • Natural justice
  • Right to be heard
  • Fair consideration
  • Selection process
  • Authorization of fair price shop
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Case Details

2014 LawText (KAR) (09) 30

Writ Petition No.5264/2014 (GM-PDS) and Writ Petition No.7073/2014 (GM-EC)

2014-09-04

A.N. Venupala Gowda

S.C. Vijaya Kumar (for petitioner in WP 5264/2014 and for respondent in WP 7073/2014), H.B. Mahesh (HCGP for respondents 1-4 in WP 5264/2014 and respondents 1-3 in WP 7073/2014), H.C. Shivaramu (for respondent 5 in WP 5264/2014 and for petitioner in WP 7073/2014)

T. Ramesh (in WP 5264/2014) and M.T. Rangappa (in WP 7073/2014)

Commissioner, Food and Civil Supplies Department and others (in WP 5264/2014); Commissioner for Food and Civil Supplies and others (in WP 7073/2014)

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Nature of Litigation

Writ petitions challenging orders regarding appointment of fair price shop dealer.

Remedy Sought

Quashing of orders dated 8/11.11.2013 and 04.01.2014 and direction for fresh consideration.

Filing Reason

Alleged violation of natural justice and non-consideration of eligible candidates in selection of fair price shop dealer.

Previous Decisions

Deputy Commissioner's order dated 8/11.11.2013 appointing M.T. Rangappa; Commissioner's appellate order dated 04.01.2014 dismissing T. Ramesh's appeal.

Issues

Whether the impugned orders were passed in violation of principles of natural justice? Whether the selection process considered all eligible candidates?

Submissions/Arguments

Petitioner T. Ramesh argued that he was not given an opportunity of hearing and that the selection was made without considering all eligible candidates. Respondent M.T. Rangappa argued that the Commissioner's order directing fresh selection was erroneous.

Ratio Decidendi

The selection for fair price shop dealership must be conducted in accordance with principles of natural justice, giving all eligible candidates an opportunity to be heard. Orders passed without such consideration are liable to be set aside.

Judgment Excerpts

The impugned orders are set aside and the matter is remitted to the Deputy Commissioner for fresh consideration. The selection process was flawed as the Deputy Commissioner had not considered all eligible candidates and had not given an opportunity of hearing to the petitioner.

Procedural History

The Deputy Commissioner, Chitradurga, by order dated 8/11.11.2013, appointed M.T. Rangappa as fair price shop dealer. T. Ramesh appealed to the Commissioner for Food and Civil Supplies, who dismissed the appeal by order dated 04.01.2014. Both parties filed writ petitions before the High Court.

Acts & Sections

  • Constitution of India: Articles 226, 227
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