Created by Fuzzy Cloud

Patna High Court

Jagadeesh Paswan @ Jagdish PaswanversusThe State of Bihar

Decided
Disposal
ALLOWED

Holding

The cancellation order is set aside and the petitioner’s PDS licence is to be restored.

Summary

Jagadeesh Paswan, a Scheduled Caste dealer of a Fair Price Shop under the Public Distribution System, was inspected and served two show‑cause notices alleging misconduct. He replied to both notices, but the Sub‑Divisional Officer cancelled his licence on 13‑09‑2022, adding a fresh ground without giving him an opportunity to be heard and without recording any reasons. The petitioner contended that the order violated principles of natural justice and the requirement of a reasoned decision, and cited a 1994 Government of Bihar memo that discouraged cancellation of licences belonging to SC/ST dealers. The State argued that the petitioner had a statutory remedy of appeal before the District Magistrate and that the order was well‑reasoned. The Court, relying on Supreme Court jurisprudence that quasi‑judicial decisions must be reasoned, held that the cancellation was invalid, set aside the impugned order and directed restoration of the licence, while warning that future irregularities could be dealt with according to law.

Issues considered

  • Whether the Sub‑Divisional Officer's cancellation order, which added a new ground without hearing, violates the principles of natural justice and the requirement of a reasoned order.
  • Whether the petitioner is required to first avail the statutory appeal before the District Magistrate, affecting the maintainability of the writ petition.
  • Whether the 1994 Government of Bihar memo prohibiting cancellation of licences of SC/ST dealers is applicable to the present case.

Subjects

  • Public Distribution System
  • Fair Price Shop
  • Natural Justice
  • Reasoned Order
  • Administrative Law
  • SC/ST Reservation
  • Writ Petition

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                              Civil Writ Jurisdiction Case No.20542 of 2025
                 ======================================================
                 Jagadeesh Paswan @ Jagdish Paswan S/o Madhur Paswan, Resident of Ward
                 No. 11, Khabdah, P.O.-Kannali, P.S.-Narpatganj, District-Araria.

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

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :      Mr. Alok Ranjan, Advocate.
                 For the Respondent/s    :      Ms. Anuradha Singh, SC 21.
                 ======================================================
                 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) ..….for quashing the order
                                              dated 13.09.2022 issued and passed by
                                              the Sub-divisional Officer, Forbesganj,
                                              whereby and whereunder the learned
                                              Sub-Divisional Officer Forbesganj has
                                              cancelled the Fair Price Shop of the
                                              petitioner under Public Distribution
                                              System bearing License No. 74N/2016,
                                              without considering the sow-cause reply
                                              of the petitioner by a cryptic,
                                              unreasoned, unexplained order.
                                                        (ii) Further for direction to the
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           2/8




                                respondents to restore the license and
                                supply to the Fair Price Shop of the
                                petitioner under Public Distribution
                                System bearing License No. 74N/2016.”
                      3. Learned counsel appearing on behalf of the

          petitioner submits that the petitioner is a PDS dealer belonging

          to the Scheduled Caste. That the authority has inspected the

          shop of the petitioner on 08.03.2022 and, thereafter, the SDO

          has issued the show-cause notice dated 29.04.2022 (Annexure

          P/1). As per the show-cause notice three allegations were made

          against the petitioner and the petitioner submitted his

          explanation on 26.05.2022 (Annexure P/2). Thereafter, the

          authority did not take any action for a period of almost three

          months and issued another show-cause notice dated 27.07.2022

          (Annexure P/3) adding two more grounds to the earlier ones.

          The petitioner has given his reply to the 2 nd show-cause notice

          on 01.09.2022 (Anneuxre P/4), thereafter, the authority has

          passed the impugend order dated 13.09.2022. Learned counsel

          submits that the authority while passing the impugned order has

          added one more ground for cancelling the PDS dealership of the

          petitioner without giving him an opportunity of filing of his

          explanation to the newly added allegations. Further, learned

          counsel has submitted that the authority has not taken into

          consideration the letter dated 26.11.1994 issued by the
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           3/8




          Government of Bihar (Annexure P/7) where the Government of

          Bihar has taken a decision not to cancel the license of the PDS

          dealership belongs to the SC/ST Category. Learned counsel

          submits that the even on merits, the authority has not taken the

          replies filed by the petitioner into consideration and has simply

          stated that the explanation filed by the petitioner is not

          satisfactory. Learned counsel, therefore, prays this Hon’ble

          Court to set aside the impugned order dated 13.09.2022 and

          restore the PDS license of the petitioner.

                      4. Per contra, the learned counsel appearing on behalf

          of the Respondent-State has vehemently opposed the very

          maintainability of the present writ petition. Learned counsel has

          stated that the petitioner is having a statutory remedy of filing

          an appeal against the impugned order of cancellation before the

          District Magistrate and the petitioner may be directed to avail

          the same. Further, the learned counsel has stated that the

          authority duly taking into account the serious allegations made

          against the petitioner has taken a decision to cancel the PDS

          license of the petitioner and the said order is well reasoned order

          which does not require any interference by the this Hon’ble

          Court. Learned counsel has, therefore, prayed this Hon’ble

          Court to dismiss the present writ petition.
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           4/8




                      5. Admittedly as seen from the record, the shop of the

          petitioner was inspected on 08.03.2022 and a show-cause notice

          was issued to the petitioner making three allegations. Thereafter,

          another show-cause notice is issued to the petitioner where two

          more allegations have been added. The petitioner has given

          suitable replies to both the said show-cause notices, however, it

          is to be noted that the authority while passing the order has

          added one more ground. In the counter affidavit filed by the

          Respondent-State, the same has not been denied. As seen from

          the I.O., the petitioner has not been given any opportunity to

          rebut the fresh allegation made against the petitioner. Further,

          the authority while passing the impugned order of cancellation

          has stated that the replies filed by the petitioner are not

          satisfactory. The authority has not passed a reasoned order

          giving the reasons either for accepting or rejecting the

          explanations submitted by the petitioner. This Court as well as

          the Hon’ble Supreme Court in a catena of judgments has

          depreciated the practice of the quasi-judicial officers or judicial

          officers not giving the reasons while passing the order and not

          taking into consideration explanation submitted.

                      6. The Hon’ble Supreme Court in the case of Kranti

          Associates Private Ltd. and Another vs. Masood Ahmed Khan
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           5/8




          and Others reported in (2010) 9 SCC 496, Para-47 has held as

          under:-

                                               “47. Summarizing the above
                                     discussion, this Court holds:
                                               (a) In India the judicial trend
                                     has always been to record reasons, even
                                     in administrative decisions, if such
                                     decisions affect anyone prejudicially.
                                                 (b) A quasi-judicial authority
                                     must record reasons in support of its
                                     conclusions.
                                               (c) Insistence on recording of
                                     reasons is meant to serve the wider
                                     principle of justice that justice must not
                                     only be done it must also appear to be
                                     done as well.
                                               (d) Recording of reasons also
                                     operates as a valid restraint on any
                                     possible arbitrary exercise of judicial and
                                     quasi-judicial or even administrative
                                     power.
                                               (e) Reasons reassure that
                                     discretion has been exercised by the
                                     decision-maker on relevant grounds and
                                     by        disregarding          extraneous
                                     considerations.
                                               (f) Reasons have virtually
                                     become as indispensable a component of
                                     a decision-making process as observing
                                     principles of natural justice by judicial,
                                     quasi-judicial and even by administrative
                                     bodies.
                                               (g) Reasons facilitate the
                                     process of judicial review by superior
                                     courts.
                                               (h) The ongoing judicial trend
                                     in all countries committed to rule of law
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           6/8




                                     and constitutional governance is in
                                     favour of reasoned decisions based on
                                     relevant facts. This is virtually the
                                     lifeblood of judicial decision-making
                                     justifying the principle that reason is the
                                     soul of justice.
                                                (i) Judicial or even quasi-
                                     judicial opinions these days can be as
                                     different as the judges and authorities
                                     who deliver them. All these decisions
                                     serve one common purpose which is to
                                     demonstrate by reason that the relevant
                                     factors have been objectively considered.
                                     This is important for sustaining the
                                     litigants’ faith in the justice delivery
                                     system.
                                                (j) Insistence on reason is a
                                     requirement       for     both      judicial
                                     accountability and transparency.
                                                (k) If a judge or a quasi-
                                     judicial authority is not candid enough
                                     about his/her decision-making process
                                     then it is impossible to know whether the
                                     person deciding is faithful to the doctrine
                                     of precedent or to principles of
                                     incrementalism.
                                                (l) Reasons in support of
                                     decisions must be cogent, clear and
                                     succinct. A pretense of reasons or
                                     “rubber-stamp reasons” is not to be
                                     equated with a valid decision-making
                                     process.
                                                (m) It cannot be doubted that
                                     transparency is the sine qua non of
                                     restraint on abuse of judicial powers.
                                     Transparency in decision-making not only
                                     makes the judges and decision-makers
                                     less prone to errors but also makes them
                                     subject to broader scrutiny. (See David
Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                           7/8




                                  Shapiro in Defence of Judicial Candor
                                  [(1987) 100 Harvard Law Review 731-
                                  37] .)
                                             (n) Since the requirement to
                                  record reasons emanates from the broad
                                  doctrine of fairness in decision making,
                                  the said requirement is now virtually a
                                  component of human rights and was
                                  considered      part     of    Strasbourg
                                  Jurisprudence. See Ruiz Torija v. Spain
                                  [(1994) 19 EHRR 553] EHRR, at 562
                                  para 29 and Anya v. University of Oxford
                                  [2001 EWCA Civ 405 (CA)], wherein the
                                  Court referred to Article 6 of the
                                  European Convention of Human Rights
                                  which requires, “adequate and intelligent
                                  reasons must be given for judicial
                                  decisions”.
                                             (o) In all common law
                                  jurisdictions judgments play a vital role
                                  in setting up precedents for the future.
                                  Therefore, for development of law,
                                  requirement of giving reasons for the
                                  decision is of the essence and is virtually
                                  a part of “due process.”
                      7. Further, it is to be noted that the Government of

          Bihar has issued a memo dated 26.11.1994 (Annexure P/7)

          which reads as under:-

                                                  **funs”kkuqlkj mijksDr ftysokj
                                 fopkjksijkUr ljdkj }kjk ;g fu.kZ; gS fd
                                 vuqlwfpr tkfr ,oa tu tkfr ds tu forj.k
                                 iz.kkyh foØsrkvksa dks ykbZlsal jn~n fdlh Hkh
                                 ifjfLFkfr esa ugha dh tk; cfYd muds xyfr;ksa dks
                                 fujLr dj fn”kk funsZ”k nsaA**
                      8. Having regard to the above mentioned facts and

          circumstances, this Court has no other option but to allow the
           Patna High Court CWJC No.20542 of 2025(2) dt.27-01-2026
                                                      8/8




                     CWJC and set aside the impugned order dated 13.09.2022

                     passed by the Sub-Divisional Officer, Forbesganj and the same

                     is accordingly set aside and the authority is directed to restore

                     the PDS license of the petitioner. The petitioner is hereby

                     warned that, in case, any irregularites are found in the running

                     of the PDS shop or any complaints are made against the

                     petitioner with regard to the distribution of the PDS grains, then

                     the authorities are free to take necessary action strictly in

                     accordance with law.

                                 9. With the above directions, the present 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.