High Court of Karnataka Quashes Government Order Cancelling Fair Price Shop Authorization — Violation of Natural Justice and Lack of Speaking Order. Secretary's order set aside for non-application of mind and failure to consider relevant material.

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

The petitioner, S. Balakrishna Reddy, claimed to be the adopted son of B.V. Varada Reddy, who was running a Fair Price Shop (FPS) at Boyanahalli Village and died on 29.01.1998. The petitioner applied on 12.06.1998 to the Deputy Commissioner, Kolar District, for transfer of the FPS authorization to his name on the ground of adoption. The Deputy Commissioner issued a notification dated 31.08.1998 inviting applications for grant of authorization, to which the 4th respondent, S. Srinivasaiah, applied. The petitioner appealed to the Commissioner for Food, Civil Supplies and Consumer Affairs, who by order dated 20.03.1998 allowed the appeal and set aside the notification. The petitioner then filed W.P.No.34856/2000 seeking direction to the Deputy Commissioner to dispose of his application. The writ petition was disposed of on 10.11.2000 directing the Deputy Commissioner to consider the petitioner's application. The Deputy Commissioner, by order dated 30.12.2000, rejected the petitioner's application. The petitioner filed an appeal before the Commissioner, who by order dated 28.02.2001 allowed the appeal and directed the Deputy Commissioner to grant authorization in favour of the petitioner. The 4th respondent challenged this order before the Secretary, Food & Civil Supplies, who by order dated 10.10.2011 set aside the Commissioner's order and remitted the matter for fresh consideration. The petitioner challenged the Secretary's order in the present writ petition. The court found that the Secretary's order was passed without affording an opportunity of hearing to the petitioner and without assigning any reasons, thus violating principles of natural justice and the requirement of a speaking order. The court quashed the order dated 10.10.2011 and directed the Secretary to reconsider the matter afresh after affording an opportunity of hearing to all parties and passing a reasoned order within three months.

Headnote

A) Administrative Law - Natural Justice - Speaking Order - Cancellation of Authorization - The order dated 10.10.2011 passed by the Secretary, Food & Civil Supplies, cancelling the petitioner's authorization to run a Fair Price Shop was set aside as it was passed without affording an opportunity of hearing to the petitioner and without assigning any reasons, violating principles of natural justice and the requirement of a speaking order. (Paras 6-8)

B) Essential Commodities Act - Fair Price Shop Authorization - Transfer on Adoption - The petitioner claimed to be the adopted son of the deceased FPS holder and sought transfer of authorization. The Deputy Commissioner's notification inviting fresh applications was set aside by the Commissioner. The Secretary's subsequent order cancelling the authorization was quashed for non-application of mind. (Paras 2-5)

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Issue of Consideration

Whether the order passed by the 1st respondent cancelling the authorization of the petitioner to run the Fair Price Shop is sustainable in law, having been passed without affording opportunity of hearing and without assigning reasons.

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Final Decision

The writ petition is allowed. The order dated 10.10.2011 passed by the 1st respondent is quashed. The matter is remitted to the 1st respondent for fresh consideration, after affording an opportunity of hearing to all parties, and to pass a reasoned order within three months from the date of receipt of a copy of this order.

Law Points

  • Natural Justice
  • Speaking Order
  • Non-application of Mind
  • Fair Price Shop Authorization
  • Karnataka Essential Commodities (Public Distribution System) Control Order
  • 1992
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Case Details

2013 LawText (KAR) (11) 8

Writ Petition No.43909/2011 (GM-EC)

2013-11-11

A.N. Venugopala Gowda

Sri H.C. Shivaramu for petitioner; Smt. B.P. Rupa, HCGP for R1 to R3 & R5; Sri R.P. Somashekaraiah for C/R4

S. Balakrishna Reddy

The Hon'ble Secretary for Food & Civil Supplies, Government of Karnataka, The Commissioner & Director of Food & Civil Supplies, The Deputy Commissioner (Food), Kolar District, S. Srinivasaiah, Tahasildar, Bangarpet Taluk

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the Secretary, Food & Civil Supplies, cancelling the petitioner's authorization to run a Fair Price Shop.

Remedy Sought

Quashing of the order dated 10.10.2011 passed by the 1st respondent (Secretary) and restoration of the Commissioner's order granting authorization.

Filing Reason

The Secretary's order was passed without affording an opportunity of hearing to the petitioner and without assigning any reasons, violating principles of natural justice.

Previous Decisions

The Deputy Commissioner rejected the petitioner's application on 30.12.2000; the Commissioner allowed the appeal on 28.02.2001 and directed grant of authorization; the Secretary set aside the Commissioner's order on 10.10.2011.

Issues

Whether the Secretary's order dated 10.10.2011 is sustainable without affording opportunity of hearing and without assigning reasons. Whether the Secretary's order suffers from non-application of mind.

Submissions/Arguments

Petitioner argued that the Secretary's order was passed without notice and without hearing him, and no reasons were assigned. Respondents argued that the order was passed after considering the material on record.

Ratio Decidendi

An order cancelling an authorization must be a speaking order and must be passed after affording an opportunity of hearing to the affected party. Failure to do so renders the order unsustainable in law.

Judgment Excerpts

The order impugned is not a speaking order and no reasons have been assigned for setting aside the order passed by the Commissioner. The impugned order has been passed without affording an opportunity of hearing to the petitioner. The order impugned is liable to be quashed and the matter remitted for fresh consideration.

Procedural History

Petitioner applied for transfer of FPS authorization on 12.06.1998. Deputy Commissioner issued notification on 31.08.1998 inviting applications. Petitioner appealed to Commissioner who set aside notification on 20.03.1998. Petitioner filed W.P.No.34856/2000 which was disposed on 10.11.2000 directing Deputy Commissioner to consider application. Deputy Commissioner rejected application on 30.12.2000. Petitioner appealed to Commissioner who allowed appeal on 28.02.2001. 4th respondent challenged before Secretary who set aside Commissioner's order on 10.10.2011. Petitioner filed present writ petition on 14.11.2011.

Acts & Sections

  • Constitution of India: Articles 226, 227
  • Karnataka Essential Commodities (Public Distribution System) Control Order, 1992:
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