Patna High Court
Shambhu PrasadversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
Mere institution of an FIR does not constitute a valid ground for cancellation of a PDS licence, and therefore the cancellation order and the appellate order are quashed.
Summary
Shambhu Prasad challenged the cancellation of his Public Distribution System (PDS) licence by the Sub‑Divisional Officer, which was based solely on the filing of an FIR against him. He filed a writ petition seeking quashing of the cancellation order dated 02‑12‑2022 and the appellate order dismissing his appeal. The Court examined the PDS (Control) Order, 2001 and Rule 7 of G.S.R. No. 1 dated 20‑02‑2007, holding that the mere institution of an FIR is not a sufficient ground for licence cancellation. Relying on the precedent set in Umesh Ram v. State of Bihar (AIR 2014 Patna 113), the Court quashed both the cancellation order and the appellate order, directing that supplies be restored to the petitioner. It further clarified that if the petitioner is later convicted, appropriate action may be taken then.
Issues considered
- Whether the mere institution of a First Information Report constitutes a valid ground for cancellation of a PDS licence under the PDS (Control) Order, 2001 and related notification.
- Whether the appellate order dismissing the petitioner's E.C. appeal is maintainable in view of the above.
Subjects
- PDS licence
- cancellation
- FIR
- certiorari
- public distribution system
- administrative law
- quashing order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16342 of 2024
======================================================
Shambhu Prasad, Son of Late Sitaram Saw, Resident of Mohalla- Paschimi
Jay Prakash Nagar. P.S.-Jakkanpur, District-Patna.
... ... Petitioner/s
Versus
1. The State of Bihar through the Secretary, Food and Civil Supply
Department, Govt. of Bihar, Patna.
2. The District Magistrate, Patna.
3. The Sub Divisional Officer, Patna Sadar, Patna.
4. The Supply Inspector, Ward No. 17, Supply Division Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Manoj Kumar Pandey, Adv.
For the Respondent/s : Mr.Standing Counsel (12)
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
7 28-01-2026 Heard learned counsel for the parties.
2. The present Writ Petition has been filled for the
following reliefs:-
“I. In the nature of certiorari for quashing
the order dated 02.12.2022 vide Memo No.
1083 passed by the learned Sub Divisional
Officer, Patna Sadar, Patna whereby and
where under the PDS license of the petitioner
has been cancelled with immediate effect
only on the basis of FIR i.e. Jakkanpur P.S
Case No. 389/2022 dated 27.07.2022 has
been registered against the petitioner by the
Supply Inspector, Supply, Patna as well as
quashing the order dated 10.01.2024
whereby and where under the learned
District Magistrate, Patna has dismissed the
E.C Appeal No. 4/2023-24 filed on behalf of
the appellant against the order passed by the
Patna High Court CWJC No.16342 of 2024(7) dt.28-01-2026
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learned Sub Divisional Officer, Patna Sadar,
Patna and affirmed the order.
II. For any other relief/reliefs for which the
petitioner may be deemed entitled to.”
3. Learned counsel for the petitioner submits that the
solitary ground given in the order dated 02.12.2022 vide Memo
No. 1083 for cancelling the PDS licence of the petitioner was
that an First Information Report (F.I.R.) bearing Jakkanpur P.S.
Case No. 389 of 2022 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 113 as well.
6. In view of the above, the impugned order dated
02.12.2022 (Annexure-P/5) is hereby quashed and consequently
Patna High Court CWJC No.16342 of 2024(7) dt.28-01-2026
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the appellate order dated 10.01.2024 (Annexure-P/6) is also 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)
Bhardwaj/-
U
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