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Patna High Court

Ram Bali RamversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The SDO's show‑cause notice was invalid because it did not attach the enquiry report nor state the proposal for cancellation as required by Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016, and therefore the cancellation order must be set aside and a fresh notice issued.

Summary

The petitioner, a fair‑price shop licensee, challenged the cancellation of his license by the Sub‑Divisional Officer (SDO) who issued a show‑cause notice without attaching the enquiry report and without stating a proposal for cancellation, contrary to Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016. The petitioner argued that the notice violated natural justice and that the appellate authority had dismissed his appeal mechanically. The respondents contended that the writ petition was not maintainable because a revision before the Commissioner was an alternative remedy. The High Court, relying on its earlier judgments, held that the SDO’s notice was invalid, set aside the cancellation order, and remanded the matter for issuance of a fresh, compliant show‑cause notice with the enquiry report. The court directed that the petitioner be given a reasonable opportunity to be heard and that the entire process be completed within eight weeks.

Issues considered

  • Whether the failure to attach the enquiry report and to mention the proposal for cancellation in the show‑cause notice violates Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016 and the principles of natural justice.
  • Whether the petitioner has an alternative and efficacious remedy of filing a revision before the Commissioner, rendering the writ petition non‑maintainable.
  • Whether the cancellation order can be quashed and the licence restored on the ground of procedural irregularities.

Subjects

  • license cancellation
  • fair price shop
  • public distribution system
  • natural justice
  • show‑cause notice
  • Bihar
  • writ petition
  • quashing order
  • procedural fairness

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.18205 of 2025
                 ======================================================
                 Ram Bali Ram S/o Mahangu Ram, resident of Village- Baltua, P.S.- Nauhatta,
                 District- Rohtas.

                                                                            ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Principal Secretary, Department of Food and
                 Consumer Protection, Govt. of Bihar, Patna.
           2.    The District Magistrate, Rohtas at Sasaram.
           3.    The Sub Divisional Officer, Dihri, District- Rohtas at Sasaram.
           4.    The District Supply Officer, Rohtas at Sasaram.
           5.    The Block Supply Officer, Nauhatta Block, District- Rohtas at Sasaram.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :      Mr. Ajay Kumar Sinha, Advocate.
                 For the Respondent/s    :      Mr. Government Pleader (18) with
                                                Mr. Viveka Nand Singh, AC to GP 18.
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                    ORAL ORDER

2   27-01-2026                    Heard learned counsel for the parties.

                                 2. The present Writ Petition has been filed for the

                   following reliefs:-

                                                       “(i) To issue an appropriate
                                             order/s, direction/s including a writ
                                             preferably in the nature of Certiorari for
                                             quash the order as contained in Memo
                                             No. 149, dated 22.02.2025 issued by the
                                             learned SDO, Dihri, District-Rohtas at
                                             Sasaram (Hereinafter referred to as
                                             Licensing Authority under the Bihar
                                             Targeted Public Distribution System
                                             (Control) Order, 2016) whereby and
                                             whereunder he has cancel the fair price
                                             shop license of the petitioner for
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                                      committing illegality and irregularity in
                                      distribution of food grains amongst to the
                                      consumers and directed to Block Supply
                                      Officer, Nauhatta, Rohtas to tagged the
                                      consumers of petitioner with the nearest
                                      fair price shop dealer.
                                                 (ii) To direct the respondent
                                      NO. 3, the SDO, Dihri, Rohtas to restore
                                      the PDS dealership license of the
                                      petitioner henceforth with taking into the
                                      consideration that the same is only
                                      means of earning livelihood.”

                      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.
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                      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.

                      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
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          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 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.
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                                                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 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.
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                      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

          22.02.2025 in Memo No. 149 passed by the Sub-Divisional

          Officer, Dihri, Rohtas at Sasaram is set aside. The matter is

          remanded back to the Sub-Divisional Officer for issuing a fresh

          show-cause notice to the petitioner 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
           Patna High Court CWJC No.18205 of 2025(2) dt.27-01-2026
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                     communicated to the petitioner.

                                 16. With the above directions, this Writ Petition stands

                     allowed to the extent indicated.



                                                             (A. Abhishek Reddy, J)
shakir/-

U


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