Patna High Court
Ramaiya RamversusThe State of Bihar
- Decided
- Disposal
- ALLOWED
- Bench
- A ABHISHEK REDDY
Holding
The cancellation orders were set aside and the petitioner’s PDS licence was ordered to be restored, subject to the final result of the pending criminal case.
Summary
The petitioner, a PDS dealer, challenged the cancellation of his licence on the grounds that the authorities acted without observing natural justice and without waiting for the outcome of a pending criminal case alleging forgery of payment slips. The State argued that the cancellation was in accordance with the Bihar Targeted Public Distribution System (Control) Order, 2016 and that the petition was not maintainable. The Court noted that the allegations of forgery were still sub judice and that administrative cancellation on that basis was impermissible, especially since similar dealers had been granted relief in comparable circumstances. It also held that the petitioner's long delay did not bar relief, as the cancellation itself dated back to 2013 and the petitioner had already suffered. Consequently, the Court set aside all the impugned orders and directed the authorities to restore the PDS licence within four weeks, subject to the final outcome of the criminal case.
Issues considered
- Whether the cancellation of the PDS licence violated the principles of natural justice.
- Whether a pending criminal proceeding on forgery can justify administrative cancellation of the licence.
- Whether the doctrine of laches or limitation bars the writ petition.
- Whether the authorities are bound to follow precedent where similarly situated dealers were granted relief.
- Whether the cancellation was authorized under the Bihar Targeted Public Distribution System (Control) Order, 2016.
Subjects
- PDS licence
- natural justice
- forgery allegation
- laches
- administrative law
- Bihar TPDS Control Order
- writ of certiorari
- license restoration
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.12279 of 2025
======================================================
Ramaiya Ram, Son of Late Banshi Ram (P.D.S. Dealer), Resident of Village-
Dubauli, P.S.- Panapur, District- Saran.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Food and Consumer
Protection Department, Government of Bihar, Patna.
2. The Divisional Commissioner, Saran Division, Chapra.
3. The District Magistrate, Saran.
4. The Sub Divisional Officer, Marhowrah.
5. The Block Supply Officer, Panapur, Saran.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. N. K. Agrawal, Senior Advocate with
Mr. Kumar Rajdeep, Advocate.
For the Respondent/s : Mr. Anuradha Singh, SC 21.
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
6 16-02-2026 Heard the learned counsel for the parties.
2. The present Writ Petition has been filed for the
following reliefs:-
“For issuance of a writ in the
nature of Certiorari for quashing the
order dated 22.11.2024/10.01.2025
passed in Supply Revision No. 181/2023
by the Divisional Commissioner, Saran
Division, Chapra, which was filed
against the order of the District
Magistrate, Saran, Chapra dismissing
the appeal by order dated 29.05.2023
Supply Appeal No. 11/2021 filed after
order dated 02.12.2013 of Sub-Divisional
Officer, Marhowrah, Saran by which
Patna High Court CWJC No.12279 of 2025(6) dt.16-02-2026
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PDS license No. 41/2007 of the petitioner
was cancelled are liable to be set-aside
as same have been passed in violation of
the principles of Natural Justice, in as
much as the impugned orders have been
passed without considering the facts and
circumstances of the case.”
3. Learned counsel appearing on behalf of the
petitioner submits that the authorities vide order dated
17.12.2013/02.12.2013 (Annexre-P/1) has cancelled the license
of the petitioner solely on the ground that the petitioner did not
deposit the requisite amount for the months of April, 2013 to
June, 2013 and that the petitioner has forged the NEFT/Pay-in-
Slips and submitted the same to the authority and attempted to
lift the food-grains. Further, it was alleged that the petitioner did
not deposit any amount till June, 2013, and the same been
contrary to the provisions of the Act, the licence of the petitioner
has been cancelled. Learned counsel for the petitioner submits
that the allegation of forgery/fraud against the petitioner is yet to
be proved and a criminal case in respect of the very same
allegation is pending adjudication by the competent Criminal
Court. Learned counsel submits that the petitioner has not lifted
any food-grains during the above said period, therefore, it
cannot be said that the petitioner has tried to cheat the
authorities by submitting forged NEFT/Pay-in-Slips. Learned
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counsel submits that the NEFT/Pay-in-Slips were submitted by
his business rivals who were bent upon seeing that the licence of
the petitioner is cancelled. Further, it is submitted that the
respondent-authorities have themselves granted relief to the
other similarly situated persons and allowed them to operate the
PDS Shop vide order dated 20.12.2019 passed by the
Commissioner, Saran Division, Chapra and the order dated
17.10.2023 passed by the District Magistrate, Saran, Divisin,
Ghapra (Annexure P/4 series). Learned counsel submits that the
petitioner has already suffered enough since the last more than
thirteen years and prayed this Hon’ble Court to allow the
present writ petition and direct the respondent-authorities to
restore the PDS licence of the petitioner.
4. Per contra, the learned counsel appearing on behalf
of the Respondent-State has vehemently opposed the very
maintainability of the present writ petition. Learned counsel
submits that the orders passed by the Divisional Commissioner,
the District Magistrate and also the Sub-Divisional Officer in
revision, appeal and primary proceedings respectively are in
consonance with the provisions of the Bihar Targeted Public
Distribution System (Control) Order, 2016 and the same does
not require any interference by this Hon’ble Court. Learned
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counsel therefore, prays this Hon’ble Court to dismiss the
present writ petition.
5. Admittedly, in the present case, there is an
allegation against the petitioner that he has not deposited the
necessary amounts for lifting the food-grains for the months of
April, 2013 till June, 2013 and that the petitioner with a
malicious intention has prepared forged NEFT/Pay-in-Slips in
order to lift the food-grains from April, 2013 to June, 2013.
However, it is to be noted that the petitioner has not lifted the
food-grains during the said period and in so far as the
allegations of submitting forged NEFT/Pay-in-Slips are
concerned, the same are subject matter of the criminal case
pending before the competent Criminal Court. Unless and until
the competent Criminal Court convicts the petitioner and comes
to the conclusion that the petitioner has submitted the forged
documents, the authority cannot cancel the PDS license of the
petitioner on that ground. Further, it is to be noted that the
Divisional Commissioner under similar circumstances vide
order dated 20.12.2019 in Supply Revision No. 97/2018 has set
aside the order of cancellation and directed for restoration of the
license of the PDS Dealer therein. Subsequently, the District
Collector, Saran Division, Chapra vide order dated 17.10.2023
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in Supply Appeal No. 10/2020 has also passed similar orders.
There is no reason as to why the petitioner should be
discriminated against when similarly situated persons have been
granted relief and are allwed to operate the PDS Shops. Further,
the appellate authority ought to have passed the orders on merits
instead of dismissing the same on the ground of latches. The
authority ought to had gone into the merits of the case and
decided the same on the documents available instead of
dismissing the case of the petitioner solely on the ground
limitation. Further, it is to be noted that the license of the
petitioner has been cancelled in the year 2013 and more than 13
years have elapsed. This Court is of the opinion that the
petitioner has already suffered enough for the minor laches
committed by him of non-depositing the amount within the
stipulated period i.e. for the month of April, 2013 till June,
2013.
6. Having regard to the same, the present writ petition
is allowed. The impugned order dated 02.12.2013/17.12.2013
passed by the Sub-Divisional Officer, Marhowrah, Saran, the
order dated 29.05.2023 passed by the District Magistrate, Saran,
Chapra and the order dated 22.11.2024/10.01.2025 passed by
the Divisional Commissioner, Saran Division, Chapra are all set
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aside. The authorities are directed to restore the PDS license of
the petitioner as expeditiously as possible preferably within a
period of 4 weeks from the date of the receipt of the copy of this
order. Any observations made in the present order shall be taken
into consideration by the Criminal Court while passing orders in
the pending criminal case and the order shall be passed on
merits in accordance with law. The restoration of the PDS
licence shall be subject to the final result of the criminal case
pending against the petitioner herein.
7. With the above directions, the present writ petition
stands allowed to the extent indicated.
(A. Abhishek Reddy, J)
shakir/-
U
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