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Patna High Court

Subash Singh @ Subhash SinghversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

Mere institution of an FIR does not constitute a valid ground for suspension of a PDS licence under the Bihar Targeted PDS (Control) Order.

Summary

The petitioner, Subash Singh, challenged the suspension and cancellation of his Public Distribution System (PDS) license on the ground that the authorities acted solely on the basis of an FIR filed under Section 7 of the Essential Commodities Act, without any enquiry report, violating natural justice. The petitioner sought to set aside orders dated 08.10.2025/17.10.2025 (Divisional Commissioner), 06.08.2024 (Collector‑cum‑District Magistrate) and 17.08.2021 (Sub‑Divisional Officer‑cum‑Licensing Authority) that relied on Clause 28 of the Bihar Targeted PDS (Control) Order. The High Court examined the PDS (Control) Order, 2001 and Rule 7 of G.S.R. No. 1 dated 20.02.2007, holding that mere institution of an FIR does not constitute a valid ground for suspension of a PDS licence. The Court relied on the precedent set in Umesh Ram v. State of Bihar (AIR 2014 Patna 113). Consequently, all the impugned orders were set aside and the petitioner’s supply was ordered to be restored, with a proviso that future action may be taken if the petitioner is convicted or violates any other condition of the PDS order.

Issues considered

  • Whether the mere institution of an FIR under the Essential Commodities Act is a sufficient ground for suspension or cancellation of a PDS licence under Clause 28 of the Bihar Targeted PDS (Control) Order, 2001.
  • Whether the authorities complied with the principles of natural justice by failing to provide an enquiry report before suspending the licence.

Legislation cited

Subjects

  • Public Distribution System
  • PDS licence suspension
  • Essential Commodities Act
  • Natural justice
  • Administrative law
  • Bihar Targeted PDS (Control) Order
  • FIR
  • Show cause notice

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.2212 of 2026
                 ======================================================
                 Subash Singh @ Subhash Singh, Son of Late Ganga Singh @ Ganesh Singh
                 Resident of Village- Tali Bishunpura, P.S.- Nautan, District- Siwan, Bihar.

                                                                        ... ... Petitioner/s
                                                 Versus
           1.    The State of Bihar through the Principal Secretary, Food and Consumer
                 Protection Department, Government of Bihar, Patna.
           2.    The Court of Divisional Commissioner, Saran Division, Chapra.
           3.    The Collector-cum- District Magistrate, Siwan.
           4.    The Sub Divisional Officer, Siwan Sadar.
           5.    The Block Supply Officer, Nautan Block, Siwan.
           6.    The Officer- In- Charge, Nautan Police Station, Siwan.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s    :        Mr. Kumar Rajdeep, Advocate.
                 For the Respondent/s    :        Mr. Government Pleader (11)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                    ORAL ORDER

3   16-06-2026                   Heard the learned counsel for the parties.

                                 2. The present Writ Petition has been filed for the

                   following reliefs:-

                                                       “That the present application is
                                             being filed on behalf of the petitioner for
                                             setting      aside         order       dated
                                             08.10.2025/17.10.2025 passed by the
                                             Learned Divisional Commissioner, Saran
                                             Division, Chapra and the order dated
                                             06.08.2024 passed by the Learned Collector-
                                             cum-District Magistrate, Siwan and the order
                                             dated 17.08.2021 passed by the Learned
                                             S.D.O.-cum-Licensing Authority,       Siwan
                                             whereby and whereunder exercising powers
                                             under Clause 28 of the Bihar Target
Patna High Court CWJC No.2212 of 2026(3) dt.16-06-2026
                                            2/4




                                 (Control) Order, the Public Distribution
                                 License of the Petitioner bearing License No.
                                 27/2016 has been suspended vide order dated
                                 23.09.2020 on the ground of institution of
                                 F.I.R. being Nautan P.S. Case no. 147/2020
                                 under Section 7 of the E.C. Act and
                                 subsequently exercising power under Clause
                                 28 of the Bihar Target (Control) Order vide
                                 order dated 17.08.2021 cancelled the PDS
                                 license of the petitioner which is totally on
                                 non-est and erroneous grounds completely in
                                 a mechanical manner without even supply of
                                 the enquiry report to the petitioner which is
                                 the complete violation of Principle of Natural
                                 Justice..”
                      3. Learned counsel for the petitioner submits that

          the solitary ground given in the show cause notice dated

          08.10.2020 vide Memo No.1173 for cancellation of the PDS

          licence of the petitioner was that a First Information Report

          (F.I.R.) bearing Nautan P.S. Case No. 147 of 2020 had been

          instituted against the petitioner. Similarly, the impugned

          order has been passed on the sole ground of institution of

          the aforesaid FIR against the petitioner.

                      4. Learned counsel for the respondents appears

          and has been heard.

                      5. Having heard the parties and on consideration

          of the materials on record, this Court finds merit in the writ

          petition. A perusal of the PDS (Control) Order, 2001 read
Patna High Court CWJC No.2212 of 2026(3) dt.16-06-2026
                                            3/4




          with Rule 7 of the notification in G.S.R. No. 1 dated

          20.02.2007 makes it clear that mere institution of a First

          Information Report would not constitute a valid ground for

          suspension of the PDS licence. This view finds support

          from the decision of this Court in Umesh Ram vs. The State

          of Bihar and others, AIR 2014 Patna 113 as well.

                      6. In view of the above, the impugned order dated

          08.10.2025/17.10.2025               passed     by   the   Divisional

          Commissioner, Saran Division, Chapra, the order dated

          06.08.2024         passed        by      the   Collector-cum-District

          Magistrate, Siwan and the order dated 17.08.2021 passed by

          the Sub-Divisional Officer-cum-Licensing Authority, Siwan

          are all set aside.

                      7. Needless to say, supplies to the petitioner shall

          be restored without delay.

                      8. It is made clear that, in case, the petitioner is

          subsequently convicted in the criminal case instituted

          against him, the authorities are free to take necessary action

          in accordance with law.

                      9. However, this order will not preclude the

          authorities from taking action if it is found that the
           Patna High Court CWJC No.2212 of 2026(3) dt.16-06-2026
                                                       4/4




                     petitioner has violated any other condition of the provisions

                     of the Bihar Targeted Public Distribution System (Control)

                     order strictly in accordance with law.

                                 10. With the above directions, the Writ Petition

                     stands allowed to the extent indicated.



                                                         (A. Abhishek Reddy, J)
shakir/-

U


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