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Patna High Court

Nutan KumariversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court held that the show‑cause notices were procedurally defective and therefore the orders of suspension and cancellation of the PDS licence were set aside, with the matter remanded for a fresh notice in compliance with Rule 27(ii).

Summary

The petitioner, Nutan Kumari, challenged the suspension and cancellation of her PDS licence on the ground that the show‑cause notices issued by the Sub‑Divisional Officer did not attach the enquiry report nor mention a proposal for cancellation, violating Rule 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016. The High Court examined whether the procedural requirements of natural justice were complied with and whether the petitioner had an alternative remedy of filing a revision. Relying on its earlier judgments, the Court held that the notices were invalid for lacking the required annexures and clear proposal, and that the appellate authority had acted mechanically. Consequently, the orders dated 28‑02‑2025, 09‑11‑2022 and 08‑02‑2023 were set aside and the matter remanded for issuance of a fresh, compliant show‑cause notice. The petition was allowed in part, directing the authorities to follow the procedural safeguards and afford the petitioner a reasonable opportunity to be heard.

Issues considered

  • Whether the show‑cause notice issued under the Bihar Targeted Public Distribution System (Control) Order, 2016 complied with the mandatory requirement of attaching the enquiry report and stating a proposal for cancellation under Rule 27(ii).
  • Whether the petitioner is barred from filing the writ petition because a revision before the Commissioner is an alternative and efficacious remedy.
  • Whether the appellate authority’s dismissal of the appeal was a mechanical exercise violating principles of natural justice.

Subjects

  • PDS licence
  • show‑cause notice
  • natural justice
  • Bihar Targeted Public Distribution System
  • cancellation of licence
  • certiorari
  • administrative law
  • revision remedy

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.18328 of 2025
                 ======================================================
                 Nutan Kumari, Wife of Shiv Shankar Suman @ Guddu Sharma, Resident of
                 Gopalpur Tola, Balia Basa, Ward No.- 6, P.S.- Udakishunganj, District-
                 Madhepura.

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

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s       :      Mr.Shrish Anurag, Adv.
                                                   Mr. Prashant Sinha, Adv.
                 For the Respondent/s       :      Mr.Addl. Advocate General 04
                 ======================================================
                 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 writ in the nature of
                                         certiorari for quashing of the order dated 28-
                                         02-2025 passed by the District Magistrate,
                                         Madhepura in PDS License Appeal Case No.
                                         05/2023 whereby the appeal preferred by the
                                         petitioner against the order of suspension and
                                         subsequent cancellation of the PDS License No.
                                         77/2018 of the petitioner has been rejected.
                                         (ii) For issuance of writ in the nature of
                                         certiorari for quashing of the order contained in
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                            memo no. 616 dated 08-02-2023 issued by the
                            Subdivisional Officer, Udakishunganj whereby
                            the PDS license No. 77/2018 of the petitioner
                            has been cancelled.
                             (iii) For issuance of writ in the nature of
                            certiorari for quashing of memo no. 3847 dated
                            09-11-2022 issued by the Subdivisional Officer,
                            Udakishunganj whereby the PDS License No.
                            77/2018 of the petitioner has been suspended.
                             (iv)   For      necessary    direction   upon   the
                            respondent authorities to restore the PDS
                            license No. 77/2018 of the petitioner, as the
                            allegation against the petitioner is relating to
                            missing foodgrains in 1373 bags, which the
                            petitioner is ready to return to the authority and
                            despite such offer being made by the petitioner
                            before the District Magistrate, the appeal of the
                            petitioner has been rejected.
                             (v) For any other direction, which your
                            Lordships may deem fit and proper 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
Patna High Court CWJC No.18328 of 2025(2) dt.27-01-2026
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          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.

                      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
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          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 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
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                                  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 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
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                                  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

          28.02.2025 passed by the appellate authority and the orders

          dated 09.11.2022 and 08.02.2023 passed by the Sub-Divisional

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

          divisional Officer (Respondent No. 4) 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
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                       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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