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Patna High Court

Shambhu PrasadversusThe State of Bihar

Decided
Disposal
DISPOSED

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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