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Patna High Court

Prakash Lal Das @ Prahalad Lal DasversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The orders cancelling the petitioner’s PDS licences dated 25‑09‑2018, 28‑10‑2021 and 18‑04‑2023 are set aside as they were passed without furnishing the enquiry report and thereby violated natural justice.

Summary

The petitioner, Prakash Lal Das, challenged three orders that cancelled his PDS licences – one dated 25‑09‑2018 by the Sub‑Divisional Officer, another dated 28‑10‑2021 by the Collector‑Cum‑Appellate Authority, and a third dated 18‑04‑2023 by the Divisional Commissioner. He argued that the show‑cause notices were issued without attaching the enquiry report, violating the principles of natural justice and depriving him of a fair hearing. The court relied on its earlier judgment (CWJC No.253 of 2014) which held that non‑supply of the enquiry report renders a cancellation order indefensible. Finding that the authorities had not furnished the enquiry report or the complainants’ statements, the court quashed all three orders. The matter was remanded to the Sub‑Divisional Officer to provide the enquiry report, the complainants’ statements, and to give the petitioner a reasonable opportunity to be heard before any further action. The court directed that the subsequent proceedings be completed within eight weeks.

Issues considered

  • Whether the cancellation of the petitioner’s PDS licences without furnishing the enquiry report violates the principles of natural justice.
  • Whether the show‑cause notices issued without the enquiry report are valid.
  • Whether the authorities erred in dismissing the petitioner’s appeal without considering the merit and evidence.
  • Whether the orders of the Sub‑Divisional Officer, Collector‑Cum‑Appellate Authority and Divisional Commissioner can be set aside.

Subjects

  • natural justice
  • show‑cause notice
  • PDS licence cancellation
  • procedural fairness
  • writ petition
  • Supply Department

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.14117 of 2023
                 ======================================================
                 Prakash Lal Das @ Prahalad Lal Das, son of Sri Rashik Lal Sah, resident of
                 Village Amba, P.S. - Shahkund, Block Shahkund, District - Bhagalpur.

                                                                            ... ... Petitioner/s
                                                  Versus
           1.    The State of Bihar through Principal Secretary, Food and Consumer and
                 Protection Department Govt. of Bihar Old Secretariate, Patna - 5.
           2.    The Divisional Commissioner Bhagalpur Division, At Bhagalpur.
           3.    The Collector, Bhagalpur at Bhagalpur.
           4.    Sub Divisional Officer, Sadar Bhagalpur.
           5.    Block Supply Officer, Block, Shahkund District Bhagalpur.
           6.    The District Supply Officer Bhagalpur.
           7.    Block Supply Officer, Goradih, Prakhand.

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

6   10-03-2026                     Heard learned counsel for the parties.

                                   2. The present writ petition has been filed for the

                   following relief(s):-

                                        “(A) For quashing and setting aside the order
                                    dated 25-09-2018 (Annexure-9) passed by the
                                    Sub       Divisional    Officer,   Bhagalpur      Sadar
                                    (respondent No. 4) illegally cancelling the
                                    P.D.S. licence No. 01/92 (Old) and 27/2016
                                    (New) on the basis of a callous enquiry report
                                    dated 27-10-2015 and in contravention of the
                                    direction of the Collector Appellate Authority
                                    Bhagalpur given to him in P.D.S. Appeal No.
Patna High Court CWJC No.14117 of 2023(6) dt.10-03-2026
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                            180/20116-17 on 20-04-2018
                             (B) For Quashing the order dated 2021 28-10-
                            (Anenxure-11) passed by the Collector-Cum-
                            Appellate       Authority     Bhagalpur     illegally,
                            (respondent No. 3), the appeal dismissing
                            petition of the petitioner in P.D.S. appeal
                            petition of the petitioner in P.D.S. appeal case
                            No. 372/2018-19 without going in to the merit
                            and valid evidence produced by the appellant.
                             (C) For quashing and setting aside the order
                            dated 18-04-2023 (Anenxure-12) passed by the
                            Divisional            Commissioner,       Bhagalpur,
                            (respondent No. 2) illegally rejecting the
                            revision petition of the petitioner in supply
                            revision No. 6 /2022-23 (Prakash Lal Das Vrs
                            The State of Bihar And others) without
                            examining the legal issue involved and even
                            after submission of sufficient and valid evidence
                            produced by the petitioner before him. Hence,
                            all the above orders are fit to be set aside with
                            cost.
                             (D) For issuance of a writ any appropriate writ
                            application or order/direction commanding the
                            respondent authority his to restore the licence
                            and permit him to run the shop as usual.
                             (E) To issue any other order/ direction for
                            which the petitioner is entitled for.”


                           3. Learned counsel appearing on behalf of the

          petitioner has stated that the Sub-Divisional Officer while
Patna High Court CWJC No.14117 of 2023(6) dt.10-03-2026
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          issuing the show cause notice to the petitioner has not enclosed

          the enquiry report.

                      4. Further learned counsel has relied on the judgment

          of this Hon’ble Court in CWJC No.253 of 2014 dated

          11.03.2015 wherein this Hon’ble Court has held that the non-

          supply of the enquiry report along with the show-cause is bad

          and against the principle of natural justice and equity.

                      5. Learned counsel has stated that in view of the

          above mentioned provisions of law and judgment relied by the

          petitioner, the impugned order may be set aside and matter

          remanded back to the authorities concerned for furnishing a

          copy of the enquiry report and any other material that they seek

          to rely on and give an opportunity of filing his explanation and

          thereafter take necessary action.

                      6. Per contra, the learned counsel appearing on behalf

          of the respondents has vehemently opposed the very

          maintainability of the writ petition. Learned counsel has

          therefore prayed this Hon’ble Court to dismiss the present writ

          petition.

                      7. This Court in CWJC No.253 of 2014 dated

          11.03.2015 held as under:

                                  "In my opinion, irregularities in maintenance
                                  of notice board or maintenance of the stocks
Patna High Court CWJC No.14117 of 2023(6) dt.10-03-2026
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                                  within the premises of the petitioner are too
                                  trivial and cannot form a basis for
                                  cancellation of licence. No doubt there were
                                  other serious charges against the petitioner
                                  regarding non-issuance of cash-memo to the
                                  consumers, distribution of lesser amount of
                                  kerosene oil and non-distribution of food-
                                  grains but surprisingly even while making
                                  such allegations, the names of such
                                  consumers who are dissatisfied by such
                                  action of the petitioner are conspicuously
                                  missing. The allegations are sweeping in
                                  nature without reference to any specific
                                  consumer.

                                            In my opinion the non-supply of
                                  the enquiry report conducted by the District
                                  Level Committee which is the foundation for
                                  issuance of show cause notice placed at
                                  Annexure-1 as well as non-supply of names
                                  of such of the consumers who had
                                  complained against the petitioner as
                                  regarding the irregularities in distribution of
                                  the food-grains or the kerosene oil has
                                  prejudiced the petitioner to file his
                                  purposeful reply and in absence thereof, the
                                  order impugned in my opinion, are based on
                                  no materials.

                                            Though it was strenuously argued
                                  by Mr. Pandey that in absence of any
                                  response by the petitioner the allegations
                                  would be deemed to have been admitted but
                                  in my opinion even if the show cause reply
                                  was missing, the orders passed by the
                                  statutory    authorities     having      civil
                                  consequences and resulting in cancellation
                                  should reflect application of mind.
                                  Unfortunately it is grossly missing inasmuch
                                  as neither the order of the Licensing
                                  Authority nor the order of the appellate
                                  authority deal with the materials which
                                  formed the basis to drive home the charges.
                                  The orders impugned are indefensible and
Patna High Court CWJC No.14117 of 2023(6) dt.10-03-2026
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                                  cannot be upheld."

                      8. A perusal of the show-cause notice issued to the

          petitioner does not reveal that the copy of the enquiry report was

          enclosed along with the show-cause notice.

                      9. Having regard to the above facts and circumstances

          and the law laid down by this Hon’ble Court, the present CWJC

          is allowed. The impugned orders dated 18.04.2023, 28.10.2021

          and 25.09.2018 passed by the Divisional Commissioner, the

          District Magistrate and the Sub-Divisional Officer, respectively,

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

          Officer (Respondent No. 4) for furnishing a copy of the enquiry

          report as well as the statement made by any of the complainants

          and any other material relied on the petitioner and call for his

          explanation by giving reasonable time.

                      10. On such show-cause notice being served, the

          petitioner shall file his explanation within the stipulated time.

          On receipt of the explanation submitted by the petitioner the

          authority concerned shall pass a reasoned order strictly in

          accordance with law duly taking into consideration the

          explanation submitted by the petitioner.

                      11. It is needless to mention that before passing any

          order, the petitioner shall be given an opportunity of hearing.
             Patna High Court CWJC No.14117 of 2023(6) dt.10-03-2026
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                       The entire exercise shall be completed as expeditiously as

                       possible preferably within a period of eight weeks from the date

                       of receipt of a copy of this order. Any order passed shall be

                       communicated to the petitioner.

                                   12. With the above directions, this Writ Petition is

                       allowed to the extent indicated above.



                                                               (A. Abhishek Reddy , J)
Bhardwaj/-

U


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