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Patna High Court

Jai Ram PrasadversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The cancellation order is invalid as it failed to comply with Rule 27(ii) and the principles of natural justice; the order is set aside and the matter remanded for a fresh, compliant show‑cause notice.

Summary

The petitioner, Jai Ram Prasad, challenged the cancellation of his Public Distribution System (PDS) license by the Sub‑Divisional Officer, who issued a show‑cause notice without attaching the enquiry report and without stating a proposal to cancel the license, allegedly violating natural justice and Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016. The petitioner argued that the notice was defective and that the appellate authority had dismissed his appeal mechanically, relying on earlier judgments of this Court (CWJC No.253/2014 and CWJC No.21202/2021) which held that such procedural lapses render the cancellation 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 furnishing the enquiry report and expressly proposing cancellation in the notice, and found the impugned order to be in breach of those requirements and of the principles of natural justice. Consequently, the Court set aside the order dated 16‑09‑2025 and remanded the matter to the Sub‑Divisional Officer to issue a fresh, compliant show‑cause notice with the enquiry report and a reasonable time for the petitioner to reply.

Issues considered

  • Whether the cancellation of a PDS license without attaching the enquiry report and without expressly proposing 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 writ petition is maintainable despite the existence of an alternative remedy of filing a revision before the Commissioner.

Subjects

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

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.18323 of 2025
                 ======================================================
                 Jai Ram Prasad, Son of Late Karu Prasad, Chairman, Vyapar Mandal,
                 Sirdalla-cum-Public Distribution Shop Licensee Sirdalla, Resident of Village-
                 Babninagwan, Sirdalla, Block and Police Station-Sirdalla, 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, Sirdalla, District-Nawadah.
                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :       Mr.Arun Kumar, Adv.
                 For the Respondent/s   :       Mr. Ramadhar Singh, Government Pleader (25)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

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

                                   2. The present writ petition has been filed for the

                   following relief(s):-

                                    “(i) For issuance of a writ in the nature of
                                    certiorari setting aside the impugned order
                                    bearing Memo No. 297 dated 16.09.2025 issued
                                    under the signature of Respondent No. 3
                                    whereby without enclosing the enquiry report
                                    alongwith show cause notice the P.D.S. License
                                    of petitioner has been cancelled relying upon
                                    enquiry report in gross violation of Principal of
                                    Natural Justice as also contrary to Division
                                    Bench judgement passed by this Hon'ble Court
                                    as well as different judicial pronouncement of
                                    this Hon'ble Court.
Patna High Court CWJC No.18323 of 2025(2) dt.27-01-2026
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                             (ii) For direction upon the Respondent no. 3 to
                            reinstate the P.D.S. License of the petitioner and
                            allowed to lift the food grains attached to the
                            P.D.S. Shop of the petitioner?
                             (iii) Any other order/orders for granting any
                            other relief/reliefs for which the petitioner is
                            found entitled to in the facts and circumstances
                            of the case.”


                           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.18323 of 2025(2) dt.27-01-2026
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          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.18323 of 2025(2) dt.27-01-2026
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          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 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
Patna High Court CWJC No.18323 of 2025(2) dt.27-01-2026
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                                  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.

                      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 passed by the Sub-Divisional Officer is set aside.

          The matter is remanded back to the Sub-divisional Officer
             Patna High Court CWJC No.18323 of 2025(2) dt.27-01-2026
                                                        6/6




                       (Respondent No. 3) 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

                       communicated to the petitioner.

                                   16. With the above directions, this Writ Petition is

                       allowed to the extent indicated above.


                                                                       (A. Abhishek Reddy , J)
Bhardwaj/-

U


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