Created by Fuzzy Cloud

Patna High Court

Shyam Bihari RamversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The show‑cause notice was invalid for not complying with Order 27(ii), and consequently the licence cancellation order was set aside.

Summary

Shyam Bihari Ram challenged the cancellation of his fair‑price shop licence issued by the Sub‑Divisional Officer under the Bihar Targeted Public Distribution System (Control) Order, 2016. He argued that the show‑cause notice did not attach the enquiry report nor state a proposal for cancellation, violating Order 27(ii) and the principles of natural justice. The respondents contended that the petition was not maintainable because a revision before the Commissioner was an alternative remedy. The High Court examined prior judgments (CWJC No.253/2014 and CWJC No.21202/2021) which held that omission of the enquiry report and proposal renders a notice invalid. The Court held that the SDO’s notice was defective, set aside the cancellation order, and remanded the matter for issuance of a fresh, compliant show‑cause notice. The petition was allowed with directions for the authority to follow the procedural requirements within eight weeks.

Issues considered

  • Did the show‑cause notice issued by the Sub‑Divisional Officer comply with Order 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016 requiring inclusion of the enquiry report and a proposal for licence cancellation?
  • Was the cancellation of the petitioner’s PDS dealership licence violative of the principles of natural justice?
  • Is the writ petition maintainable, or does the petitioner have an alternative and efficacious remedy of filing a revision before the Commissioner?

Subjects

  • license cancellation
  • fair price shop
  • public distribution system
  • natural justice
  • show‑cause notice
  • Bihar
  • writ petition
  • administrative law

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.18256 of 2025
                 ======================================================
                 Shyam Bihari Ram S/o Nandkeshwar Ram, resident of Village- Tiara Khurd,
                 P.S. Chutiya, 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. U.S.S. Singh, GP 19.
                 ======================================================
                 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. 148, 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
                                             committing illegality and irregularity in
Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                           2/7




                                      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.

                      6. Learned counsel has further stated that petitioner
Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                           3/7




          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

          Commissioner. Learned counsel has therefore prayed this
Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                           4/7




          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.
                                                 Though it was strenuously
                                      argued by Mr. Pandey that in absence of
Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                           5/7




                                      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.
Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                           6/7




                      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. 148 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
           Patna High Court CWJC No.18256 of 2025(2) dt.27-01-2026
                                                      7/7




                     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.



                                                             (A. Abhishek Reddy, J)
shakir/-

U


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.