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Patna High Court

Naresh DasversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

Mere institution of an FIR does not constitute a valid ground for cancellation of a PDS licence; the order dated 02‑01‑2025 is quashed.

Summary

Naresh Das, a fair‑price shop licensee, challenged the cancellation of his PDS dealership licence by the Sub‑Divisional Officer, Sherghati, on the ground that a First Information Report had been lodged against him. The petitioner sought a writ of certiorari to quash the order dated 02‑01‑2025 and to have his licence restored as his means of livelihood. The Court examined the Bihar Targeted Public Distribution System (Control) Order, 2001 and Rule 7 of G.S.R. No. 1 (20‑02‑2007), holding that the mere institution of an FIR does not constitute a valid ground for licence cancellation. Relying on the precedent set in Umesh Ram v. State of Bihar (AIR 2014 Patna 113), the Court quashed the impugned order and directed immediate restoration of supplies, while reserving the right to act if the petitioner is later convicted. Consequently, the writ petition was allowed in the reliefs sought.

Issues considered

  • Whether the mere institution of a First Information Report is a sufficient ground for cancellation of a PDS dealership licence under the Bihar Targeted Public Distribution System (Control) Order, 2016/2001.
  • Whether the order dated 02‑01‑2025 issued by the S.D.O. Sherghati is legally valid.

Subjects

  • PDS licence
  • Cancellation
  • First Information Report
  • Quashing order
  • Public Distribution System
  • Administrative law
  • Writ of certiorari
  • Livelihood

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.15242 of 2025
                 ======================================================
                 Naresh Das S/o Late Ram Das, Resident of Village- Goitha, P.S. and Anchal-
                 Bankey Bazar, District- Gaya.

                                                                            ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Principal Secretary, Department of Food and
                 Civil Supplies, Bihar, Patna.
           2.    The District Magistrate, Gaya.
           3.    The District Supply Officer, Gaya.
           4.    The Sub Divisional Officer, Sherghati, Gaya.
           5.    The Block Supply Officer, Bankey Bazar, Gaya.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :         Mr. Sudhir Kumar Sinha, Adv.
                 For the Respondent/s   :         Mr. Government Advocate (2)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

3   28-01-2026                  Heard learned counsel for the parties.

                               2. The present Writ Petition has been filled for the

                   following reliefs:-

                                                       “(i) To issue an appropriate order/s,
                                            direction/s including a writ preferably in the
                                            nature of CERTIORARI for quashing of the
                                            order dated 02-01-2025 as contained in Memo
                                            No. 01 Aa, Sherghati, dated 02-01-2025 issued
                                            by   the   learned    S.D.O.    Sherghati,   Gaya
                                            (Hereinafter referred to as Licensing Authority
                                            under the Bihar Targeted Public Distribution
                                            System (Control) order 2016) whereby and
                                            where under he has cancel the fair price shop
                                            license of the petitioner for committing illegality
                                            and irregularity in distribution of food grains
Patna High Court CWJC No.15242 of 2025(3) dt.28-01-2026
                                           2/3




                                  amongst to the consumers.
                                              (ii) To direct the respondent NO. 04
                                  the S.D.O., Sherghati, Gaya to restore the P.D.S.
                                  dealership license of the petitioner henceforth
                                  with taking into the consideration that the same
                                  is only means of earning livelihood.”



                      3. Learned counsel for the petitioner submits that the

          solitary ground given in the show cause notice for cancelling the

          PDS licence of the petitioner was that an First Information

          Report (F.I.R.) bearing Roshanganj (Bankebazar) P.S. Case No.

          26 of 2024 had been instituted against the petitioner. Similarly,

          the impugned order has been passed on the sole ground of

          institution of the aforesaid FIR against the petitioner.

                      4. Learned counsel for the respondents appears and

          has been heard.

                      5. Having heard the parties and on consideration of

          the materials on record, this Court finds merit in the writ

          petition. A perusal of the PDS. (Control) Order, 2001 read with

          Rule 7 of the notification in G.S.R. No. 1 dated 20.02.2007

          makes it clear that mere institution of a First Information Report

          would not constitute a valid ground for cancellation of the PDS

          licence. This view finds support from the decision of this Court

          in Umesh Ram vs. The State of Bihar and others, AIR 2014
             Patna High Court CWJC No.15242 of 2025(3) dt.28-01-2026
                                                        3/3




                       Patna 113 as well.

                                   6. In view of the above, the impugned order dated

                       02.01.2025 (Annexure-5) is hereby quashed and set aside.

                                   7. Needless to say, supplies to the petitioner shall be

                       restored without delay.

                                   8. It is made clear that, in case, the petitioner is

                       subsequently convicted in the criminal case instituted against

                       him, thereafter, the authorities are free to take necessary action

                       in accordance with law.

                                   9. With the above directions, the Writ Petition stands

                       allowed to the extent indicated.



                                              (A. Abhishek Reddy , J)
Gauravkr/-

U


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