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Patna High Court

Ram Prasad YadavversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The cancellation order is set aside as it violated Rule 27(ii) and the principles of natural justice, and the matter is remanded for issuance of a fresh, compliant show‑cause notice.

Summary

The petitioner, Ram Prasad Yadav, challenged the cancellation of his PDS licence by the Sub‑Divisional Officer‑cum‑Licensing Authority, arguing that the show‑cause notice was issued without attaching the enquiry report and without stating a proposal for cancellation, thereby violating natural justice and Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016. The petitioner relied on earlier Patna High Court judgments that such procedural defects render a cancellation order invalid. The respondents contended that the writ petition was not maintainable because a revision before the Commissioner was an alternative remedy. The Court examined the statutory requirement of Rule 27(ii) and the precedents, finding that the show‑cause notice was defective and the cancellation order was therefore ultra vires. Consequently, the Court set aside the impugned order dated 16‑09‑2025 and remanded the matter to the licensing authority to issue a fresh, compliant show‑cause notice with the enquiry report, allowing the petitioner a reasonable opportunity to be heard. The writ petition was allowed in part.

Issues considered

  • The show‑cause notice issued for cancellation of the PDS licence complied with Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016?
  • Was the failure to attach the enquiry report and to mention a proposal for cancellation a violation of natural justice?
  • Is the writ petition maintainable despite the availability of a revision remedy before the Commissioner?

Subjects

  • natural justice
  • show cause notice
  • licence cancellation
  • PDS
  • Bihar
  • Rule 27(ii)
  • administrative law
  • certiorari
  • due process

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.16879 of 2025
                 ======================================================
                 Ram Prasad Yadav, Son of Late Eto Prasad Yadav, Resident of Village-
                 Dhondhara, Police Station and Block-Meskaur, District- Nawadah.
                                                                           ... ... Petitioner/s
                                                   Versus
           1.     The State of Bihar through the Principal Secretary, Department of Food,
                  Supply and Consumer Affairs, Government of Bihar, Patna.
           2.    The District Magistrate, Nawadah.
           3.    The Sub Divisional Officer-cum-Licensing Authority, Rajauli, District-
                 Nawadah.
           4.    The Block Supply Officer, Meskaur, District- Nawadah.
                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :      Mr. Arun Kumar, Advocate.
                 For the Respondent/s    :      Mr. Standing Counsel (26) with
                                                Mr. Divit Vinod, AC to SC 26.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                    ORAL ORDER

2   21-01-2026                   Heard learned counsel for the parties.

                                 2. The present Writ Petition has been filed for the

                   following reliefs:-

                                                        “(i) For issuance of a writ in the
                                              nature of certiorari setting aside the
                                              impugned order bearing Memo No. 295
                                              dated 16.09.2025 issued under the
                                              signature of Respondent No. 3 who is
                                              Licensing     Authority    whereby      and
                                              whereunder without enclosing the enquiry
                                              report along with show cause notice or
                                              without serving the same to the petitioner
                                              relying upon said Enquiry report, the PDS
                                              Licence of the petitioner has been
                                              cancelled in gross violation of principle of
                                              Natural Justice as also contrary to several
                                              judicial pronouncement of this Hon’ble
                                              Court.
Patna High Court CWJC No.16879 of 2025(2) dt.21-01-2026
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                                           (ii) For further direction upon
                                the Respondents concerned to reinstate the
                                PDS License of petitioner and allow him to
                                lift the food grains and other articles
                                attached to the PDS shop of the
                                petitioner.”
                      3. Learned counsel appearing on behalf of the

          petitioner has stated that the Sub-Divisional Officer while

          issuing the show cause notice to the petitioner has not enclosed

          the enquiry report and there is no proposal for cancellation of

          the license in the show-cause notice.

                      4. Learned counsel has stated that non-mentioning of

          the proposal for cancelling his license is contrary to the

          provisions of order 27(ii) of the Bihar Targeted Public

          Distribution System (Control) Order, 2016 (hereinafter referred

          to as ‘the Order, 2016’).

                      5. 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.

                      6. Learned counsel has further stated that petitioner

          has taken the above ground in the appeal, but the appellate

          authority has not dealt with the above ground and dismissed the

          appeal in a mechanical manner.
Patna High Court CWJC No.16879 of 2025(2) dt.21-01-2026
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                      7. Learned counsel for the petitioner has also relied on

          the judgment of the Full Court passed in CWJC No.21202 of

          2021 and analogous cases dated 26.09.2023 to buttress his

          contention that non-mentioning of the proposed action in the

          show-cause notice is bad in law and contrary to Rule 27(ii) of

          the Control Order, 2016.

                      8. Learned counsel has stated in view of the above

          mentioned provisions of law and judgments relied by the

          petitioner, the impugned order may be set aside and matter

          remanded back to the authorities concerned for issuing a fresh

          show-cause notice in terms of order 27(ii) of the Control Order.

          2016 and also furnish a copy of the enquiry report along with

          the said show-cause notice and thereafter take necessary action.

                      9. Per contra, the learned counsel appearing on behalf

          of the respondents has vehemently opposed the very

          maintainability of the writ petition and stated that the present

          writ petition is not maintainable as the petitioner has an

          alternative and efficacious remedy of filing a revision before the

          Commissioner. Learned counsel has therefore prayed this

          Hon'ble Court to dismiss the present writ petition.

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

          11.03.2015 held as under:-

                                                   “In my opinion, irregularities in
Patna High Court CWJC No.16879 of 2025(2) dt.21-01-2026
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                                      maintenance of notice board or
                                      maintenance of the stocks 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
Patna High Court CWJC No.16879 of 2025(2) dt.21-01-2026
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                                      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 cannot be upheld.”

                      11. Further this Hon'ble Court in CWJC No. 21202 of

          2021 and analogous cases has held as under:-

                                              “19. Accordingly, we answer the
                                  reference as under:-
                                              It is mandatory for a licensing
                                  authority issuing a notice under order
                                  27(ii) to a license to mention that there is a
                                  proposal for cancellation of his license,
                                  failing which such notice cannot be treated
                                  to be a valid notice of giving sufficient
                                  opportunity to the licensee to state his case
                                  under order 27(ii) of the BTPDS Control
                                  Order.”
                      12. 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 and that there is no

          proposal of the action sought to be taken against the petitioner.

                      13.    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 order dated

          16.09.2025 in Memo No. 295 passed by the Sub-Divisional

          Officer-cum-Licensing Authority, Rajauli, District-Nawadah is

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

          Officer for issuing a fresh show-cause notice to the petitioner
           Patna High Court CWJC No.16879 of 2025(2) dt.21-01-2026
                                                      6/6




                     strictly in compliance with the provisions of Rule 27(ii) of the

                     Control Order, 2016 and also furnish a copy of the enquiry

                     report along with the Show Cause Notice to the petitioner and

                     call for his explanation by giving reasonable time.

                                 14. 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 orders strictly in

                     accordance with law duly taking into consideration the

                     explanation submitted by the petitioner.

                                 15. It is needless to mention that before passing any

                     orders, the petitioner shall be given an opportunity of hearing

                     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.

                                 16. With the above directions, this Writ Petition stands

                     allowed to the extent indicated above.



                                                             (A. Abhishek Reddy, J)
shakir/-

U


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