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Patna High Court

Shivnath Prasad Rajak @ Shiv Nath Rajak @ Shiv Nath BalthaversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The court held that the show‑cause notice was invalid for failing to mention the proposal for cancellation and for not attaching the enquiry report, thereby violating natural justice and Order 27(ii), and consequently set aside the cancellation orders.

Summary

Shivnath Prasad Rajak, a Fair Price shop licensee, challenged the cancellation of his license issued by the Sub‑Divisional Officer on 19‑May‑2022. He appealed the cancellation, but the appeal was dismissed by the District Magistrate and the subsequent revision was rejected by the Commissioner. The petitioner contended that the show‑cause notice was defective because it neither mentioned a proposal for cancellation nor attached the enquiry report, violating Order 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016 and the principles of natural justice. The respondents argued that the writ petition was not maintainable as a revision remedy was available. The High Court held that the procedural defects rendered the cancellation orders illegal and set them aside, directing the Sub‑Divisional Officer to issue a fresh, compliant show‑cause notice with the enquiry report. The matter was remanded for fresh proceedings within a stipulated time frame.

Issues considered

  • Whether the show‑cause notice issued under Order 27(ii) of the Bihar Targeted Public Distribution System (Control) Order, 2016 is valid without a stated proposal for cancellation and without attaching the enquiry report.
  • Whether the petitioner has an alternative and efficacious remedy of filing a revision, rendering the writ petition non‑maintainable.

Subjects

  • license cancellation
  • fair price shop
  • show‑cause notice
  • natural justice
  • Bihar Targeted Public Distribution System
  • Rule 27(ii)
  • writ petition
  • certiorari
  • mandamus

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.19365 of 2025
                 ======================================================
                 Shivnath Prasad Rajak @ Shiv Nath Rajak @ Shiv Nath Baitha Son of Ram
                 Prasad Baitha, Resident of Muhalla - Salempur, P.S. - Town, District - Saran.

                                                                        ... ... Petitioner/s
                                                   Versus
           1.    The State of Bihar through the Principal Secretary, Food and Consumer
                 Protection Department, Old Secretariat, Patna.
           2.    The Commissioner, Saran Division, Chapra.
           3.    The District Magistrate, Saran, Chapra.
           4.    The Sub-Divisional Officer, Sadar, Chapra, District-Saran.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :         Mr. Rajeev Kumar Labh
                 For the Respondent/s   :         Mr. Pankaj Kumar, Standing Counsel (12)
                                        :         Mr. Pramod Kumar Yadav, AC to SC12
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

3   02-02-2026                     Head learned counsel for the parties.

                                   2. The present writ petition has been filed for the

                   following relief(s):-

                                             “A. Certiorari for quashing and setting aside the order
                                            passed by the Sub-Divisional Officer, Sadar, Chapra
                                            vide Memo No. 833 dated 19/5/2022 whereby and
                                            whereunder license of the petitioner's Fair Price shop
                                            bearing No. 97/2016 has been cancelled with
                                            immediate effect contained in Annexure - P/1 and
                                            quashing and setting aside the order dated 13/2/2023
                                            passed by the learned District Magistrate, Saran,
                                            Chapra in Supply Appeal Case No. 20/2022 contained
                                            in Annexure - P/4 whereby and whereunder appeal filed
                                            by the petitioner against the cancellation order has
                                            been rejected and quashing and setting aside the order
                                            dated 2/4/2025 passed by the learned Commissioner,
                                            Saran Division, Chapra in Supply Revision Case No.
                                            144/2023 contained in Annexure - P/5 whereby and
                                            whereunder revision filed by the petitioner against the
                                            appellate order has been rejected.
                                             B. A mandamus commanding the Respondents to
                                            restore the petitioner's license as before and to make
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                                  allotment for the petitioner's shop.
                                   C. Any other relief or reliefs for which petitioner may
                                  be found entitled in the fact and circumstances of the
                                  present case may be granted to him.”


                           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.

                      7. Learned counsel for the petitioner has also relied on
Patna High Court CWJC No.19365 of 2025(3) dt.02-02-2026
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          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 maintenance
                                  of notice board or maintenance of the stocks
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                                  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 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
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                                  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

          02.04.2025 passed by the Divisional Commissioner, Saran

          Division, Chapra, order dated 13.02.2023 passed by the

          appellate authority and the order dated 19.05.2022 passed by the

          Sub-Divisional Officer, Sadar, Chapra 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
          Patna High Court CWJC No.19365 of 2025(3) dt.02-02-2026
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                    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)
Ayush/-

U


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