Created by Fuzzy Cloud

Patna High Court

Dilip PaswanversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The orders dated 10‑Nov‑2017 and 31‑Mar‑2023 are set aside and the matter remanded for issuance of a fresh show‑cause notice and a reasoned order.

Summary

The petitioner, a PDS dealer licensed since 1990, challenged the cancellation of his licence by the Sub‑Divisional Officer (SDO) on 10‑Nov‑2017, alleging that no show‑cause notice was served after a third inspection on 15‑Oct‑2017 and that the order was issued on the instructions of the District Magistrate without a reasoned decision. The petitioner also appealed the appellate order of 31‑Mar‑2023 dismissing his statutory appeal, seeking certiorari and mandamus to enforce the Bihar Targetted Public Distribution System (Control) Order, 2016. The State argued that the writ petition was maintainable despite the availability of a statutory revision remedy and that the cancellation was lawful as the petitioner failed to respond to earlier notices. The Court held that the SDO should have passed a reasoned order on merits and that the cancellation without a proper show‑cause notice violated natural justice, rendering both the 2017 and 2023 orders ultra vires. Consequently, the orders were set aside and the matter remanded to the SDO to issue a fresh show‑cause notice, afford a minimum ten‑day hearing, and pass a reasoned order within twelve weeks.

Issues considered

  • The cancellation of the PDS licence without a show‑cause notice violates principles of natural justice.
  • Whether the Sub‑Divisional Officer acted ultra vires by following the District Magistrate’s instructions without a reasoned order.
  • The maintainability of the writ petition in view of the availability of a statutory revision remedy.

Subjects

  • PDS licence
  • show cause notice
  • natural justice
  • certiorari
  • mandamus
  • administrative law
  • Bihar Targetted Public Distribution System (Control) Order, 2016

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.13766 of 2023
                  ======================================================
                  Dilip Paswan, Son of Shyam Lal Paswan, Resident of Village- Manpur, P.S. -
                  Fatehpur, District - Gaya.

                                                                            ... ... Petitioner/s
                                                    Versus
            1.    The State of Bihar through The Principal Secretary, Department of Food and
                  Public Distribution, Government of Bihar, Patna.
            2.    The Principal Secretary, Department of Food and Public Distribution, ,
                  Government of Bihar, Patna.
            3.    The Commissioner, Magadh Division, Gaya.
            4.    The District Magistrate, Gaya.
            5.    The Additional Collector cum Additional District Magistrate, Gaya.
            6.    The Sub Divisional Officer, Sadar, Gaya.
            7.    The Block Development Officer, Amas, Gaya.
            8.    The Block Development Officer, Tankuppa, Gaya.
            9.    The The Block Development Officer, Fatehpur, Gaya.

                                                            ... ... Respondent/s
                  ======================================================
                  Appearance :
                  For the Petitioner/s   :      Ms.Sushmita Mishra, Adv.
                  For the Respondent/s   :      Mr.S. Raza Ahmad ( AAG 5 )
                  ======================================================
                  CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                        ORAL ORDER

11   09-02-2026                  Heard learned counsel for the parties.

                                  2. The present writ petition has been filed for the

                    following relief(s):-

                                     “(i) For the issuance of a Rule in the nature of
                                     writ of certiorari for quashing the order dated
                                     31-03-2023 passed by Respondent No.5, The
                                     Additional Collector cum Additional District
                                     Magistrate, Gaya whereby and whereunder the
                                     P.D.S. Appeal No. 01/18 preferred by the
                                     petitioner against the order dated 10-11-2017
                                     passed by Respondent No.6, The Sub Divisional
                                     Officer, Sadar, Gaya, whereby whereunder the
Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                           2/7




                            P.D.S. Licence bearing 01/90 has been
                            cancelled has been dismissed and the order
                            dated 10-11-2017 passed by Respondent No. 6
                            has been affirmed.
                            (ii) For the issuance of a Rule in the nature of
                            writ of certiorari for quashing the order dated
                            10-11-2017 passed by Respondent No.6, The
                            Sub Divisional Officer, Sadar, Gaya, whereby
                            and whereunder the P.D.S. Licence bearing
                            01/90 has been cancelled without issuance of
                            any show cause notice for proposed cancellation
                            of his license on the basis of an inspection
                            conducted on 15-10-2017 and further, it has
                            been passed on the direction of the District
                            Magistrate, Gaya who himself is the Appellate
                            authority.
                            (iii) For the issuance of a Rule in the nature of
                            writ of Mandamus to follow the provisions of
                            Bihar Targetted Public Distribution System
                            (Control) Order, 2016 (In short- Control Order,
                            2016) in a just and proper manner.”

                           3. Learned counsel appearing on behalf of the

          petitioner submits that the petitioner is the PDS dealer who has

          been granted the license in the year 1990 and he has been

          functioning without complaint from any beneficiaries attached

          to his shop. Learned counsel submits that on earlier occasion,

          the respondents have inspected the shop of the petitioner on

          05.05.2027 and 08.06.2017, thereafter, the Sub-Divisional

          Officer has issued show cause notices to the petitioner vide

          Letter No. 150/Aa dated 06.05.2017 and Letter No. 563/Aa

          dated 11.06.2017 respectively (Annexure A and B of the
Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                           3/7




          supplementary counter affidavit). Learned counsel submits that

          after issuance of the above two show cause notices the authority

          did not take any action and it was presumed that they have

          dropped the proceedings. Thereafter the authority again

          inspected the shop of the petitioner on 15.10.2017, however no

          show cause notice was issued to the petitioner after the 3 rd

          inspection dated 15.10.2017 and straightaway the impugned

          order of cancellation was passed on 10.11.2017 vide Memo No.

          740/Go(Aa) (Annexure P/2). Learned counsel submits that the

          authority after a fresh inspection without serving any show

          cause notice or granting an opportunity to the petitioner to file

          his reply, the license of the petitioner has been cancelled at the

          behest of the District Magistrate. Learned counsel has drawn the

          attention of the Court to the relevant paragraph of the impugned

          order passed by the Sub-Divisional Officer wherein the

          authority has stated that the order of cancellation is passed as

          per the instructions of the District Magistrate and taking into

          consideration the earlier show cause notices issued to the

          petitioner. Learned counsel submits that after the cancellation of

          the license by the Sub-Divisional Officer the petitioner had

          preferred statutory appeal before the District Magistrate but the

          same was also dismissed vide order dated 31.03.2023
Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                           4/7




          (Annexure P/1). Learned counsel therefore submits that the

          impugned order passed by the Sub-Divisional Officer is illegal,

          bad, arbitrary and contrary to the principles of natural Justice

          and equity and therefore prayed this Hon’ble Court to set aside

          the impugned orders passed by the Sub-Divisional Officer as

          well as the appellate authority and remand the matter back to the

          original authority for issuing fresh show cause notice to the

          petitioner duly enclosing the copy of the enquiry report pursuant

          to the inspection done on 15.10.2017, the statements of any

          beneficiaries, grant an opportunity to the petitioner to file his

          explanation and thereafter pass a reasoned order.

                      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 present writ petition is devoid of merits and this

          Court under Article 226 of the Constitution of India has to

          dismiss the present writ petition filed by the petitioner solely on

          the ground that the petitioner is having an alternative and

          effective remedy of filing a statutory revision. Further learned

          counsel submits that the earlier notices issued to the petitioner

          remained unsubstantiated as the petitioner did not file any

          explanation to the said show cause notices. That the authority
Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                           5/7




          duly taking into note of the fact that the petitioner did not file

          his explanation to the earlier two show cause notices, has passed

          the impugned order of cancellation. Further it is stated that the

          order passed by the Sub-Divisional officer does not suffer from

          any infirmity and the same is in accordance with law. Even the

          appeal filed by the petitioner was dismissed by the appellate

          authority. Learned counsel has therefore prayed this Hon’ble

          Court to dismiss the present writ petition.

                      5. A perusal of the impugned order passed by the Sub-

          Divisional Officer dated 10.11.2017 reveals that the authority

          while passing the impugned order has taken into consideration

          the fact that the petitioner did not file his explanation to the

          earlier two show cause notices issued in the month of May and

          June, 2017 and further stated that he is passing the orders on the

          instructions of the District Magistrate. Further it is to be noted

          that after the 3rd inspection done on 15.10.2017, neither any

          show cause notice was served on the petitioner nor the copy of

          the enquiry report was furnished to the petitioner. This Court is

          of the opinion that the original authority ought to have passed

          the orders on merits irrespective of the fact as to whether the

          petitioner has filed his explanation to the show cause notice or

          not. The authority ought to have passed the orders on merits by
Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                           6/7




          passing a reasoned order and not acted at the behest of the

          District Magistrate. On this ground alone the impugned orders

          are liable to be set aside.

                      6. Having regard to the above, the impugned order

          dated 10.11.2017 passed by the Sub-Divisional Officer as well

          as the order dated 31.03.2023 passed by the Appellate Authority

          are both set aside. The matter is remanded back to the Sub-

          divisional Officer (Respondent No. 6) for issuing a fresh show-

          cause notice to the petitioner duly enclosing the copy of the

          enquiry report/s pursuant to the inspection done on 15.10.2017

          and also the statements of beneficiaries if any. The authority

          shall grant sufficient opportunity to the petitioner to file his

          explanation preferably minimum period of 10 days. After

          receipt of the explanation from the petitioner, the authority is

          directed to pass a reasoned order giving reasons either for

          accepting the explanation or rejecting the same. In case the

          petitioner does not file his explanation even after receipt of the

          show cause notice, even there also the authority is obligated to

          pass a reasoned order.

                      7. It is needless to mention that before passing any

          orders, the petitioner shall be given an opportunity of hearing.

          The authority shall endeavor to complete the entire exercise as
             Patna High Court CWJC No.13766 of 2023(11) dt.09-02-2026
                                                        7/7




                       expeditiously as possible preferably within a period of 12 weeks

                       from the date of receipt of a copy of this order. Any order passed

                       shall be communicated to the petitioner.

                                   8. With the above directions, the present writ petition

                       stands disposed of.



                                                                   (A. Abhishek Reddy , J)
Bhardwaj/-

U


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.