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Patna High Court

Ajay KumarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

Mere institution of an FIR does not constitute a valid ground for cancellation of a PDS licence under the applicable control order.

Summary

Ajay Kumar, holder of a PDS licence, challenged the suspension of his licence dated 08.11.2022 and its subsequent confirmation by the Collector, arguing that the sole ground – the institution of an FIR – was not a valid basis under the Bihar Target Public Distribution Scheme (Control) Order, 2016. The petitioner also sought quashing of the cancellation memo and restoration of his supplies, noting that he had been acquitted of the criminal charges on 05.08.2025. The High Court examined the PDS (Control) Order, 2001 and Rule 7 of G.S.R. No.1 (2007), holding that an FIR alone does not justify licence cancellation. Relying on the precedent set in Umesh Ram v. State of Bihar (AIR 2014 Patna 113), the Court quashed the suspension order and set aside the appellate order, directing immediate restoration of supplies. The Court further clarified that if the petitioner is later convicted, appropriate action may be taken then.

Issues considered

  • Whether the mere institution of a First Information Report constitutes a valid ground for suspension or cancellation of a PDS licence under the Bihar Target Public Distribution Scheme (Control) Order, 2016.
  • Whether the appellate order confirming the suspension of the licence is legally sustainable.

Legislation cited

Subjects

  • PDS licence
  • Suspension
  • First Information Report
  • Public Distribution System
  • Writ petition
  • Quashing order
  • Mandamus
  • Acquittal
  • Bihar

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.3903 of 2026
                 ======================================================
                 Ajay Kumar Son of Nawal Kishor Singh, resident of Village- Bhadai, Block-
                 Aurai, P.S. - Hathauri, District- Muzaffarpur.

                                                                                   ... ... Petitioner/s

                                                  Versus
           1.    The State of Bihar through the Principal Secretary, Department of Food
                 Supplies and Consumer Protection, Govt. of Bihar, Patna.
           2.    The District Magistrate-cum-Collector, Muzaffarpur.
           3.    The Sub. Divisional Officer, Muzaffarpur (East), Muzaffarpur.
           4.    The Block Supply Officer, Aurai, District- Muzaffarpur.

                                                                                 ... ... Respondent/s

                 ======================================================
                 Appearance :
                 For the Petitioner/s   :           Mr. Ajay Kumar Sinha, Adv.
                 For the Respondent/s   :           Mr. Standing Counsel (13)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                       ORAL ORDER

4   24-06-2026                  Heard learned counsel for the parties.

                               2. The present Writ Petition has been filled for the

                   following reliefs:-

                                                         “i).   For     quashing       the     order
                                            contained in 1493/Aa. dated 08.11.2022 passed
                                            by the Sub. Divisional Officer, Muzaffarpur East
                                            by which the licence of the petitioner bearing
                                            Licence No. 23-06-25-06/2019 was suspended
                                            with immediate effect vide order contained in
                                            memo no. 741 dated 23.06.2022 and further
                                            asking the petitioner to submit the show cause
                                            within 15 days, as to why his licence should not
                                            be cancelled under the provision of Bihar Target
                                            Public Distribution Scheme (Control) Order
                                            2016.
Patna High Court CWJC No.3903 of 2026(4) dt.24-06-2026
                                            2/4




                                               ii).    To quash the          order   dated
                                  23.02.2024 passed in Case No. 01/Supply
                                  Appeal/2023          by   the     Collector-cum-District
                                  Magistrate, Muzaffarpur, confirming the order
                                  of the S.D.O., Muzaffarpur (East) holding that
                                  the suspension of the licence of the petitioner on
                                  account of judicial custody and asking of show
                                  cause, needs no interference.
                                               Further, the petitioner prays for relief
                                  for issuance of writ order or direction,
                                  particularly in the writ of Mandamus, directing
                                  and commanding the respondent authorities to
                                  restore the P.D.S. Licence on the ground that the
                                  petitioner      is    acquitted     vide   order   dated
                                  05.08.2025 passed in Hathauri P.S. Case No.
                                  153/22 by the learned trial court of S.D.J.M.
                                  (East), Muzaffarpur.
                                               (iii) To quash the memo no. 1677
                                  dated 19.12.2022 passed by the learned S.D.O.,
                                  Eash Muzaffarpur by which the P.D.S. License
                                  of the petitioner has been cancelled.”



                      3. Learned counsel for the petitioner submits that the

          solitary ground given in the show cause notice for cancelling the

          PDS licence of the petitioner was that an First Information

          Report (F.I.R.) bearing Hathauri P.S. Case No. 153 of 2022 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.
Patna High Court CWJC No.3903 of 2026(4) dt.24-06-2026
                                            3/4




                      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 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 cancellation 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 order of suspension dated

          08.11.2022 is hereby quashed and consequently the appellate

          order dated 23.02.2024 is also set aside.

                      7. Further it is to be noted that the petitioner has been

          acquitted of all the charges in the criminal case filed against him

          pursuant to the FIR bearing Hathauri P.S. Case No. 153 of 2022.

                      8. Needless to say, supplies to the petitioner shall be

          restored without delay.

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

          subsequently convicted in the criminal case instituted against

          him, thereafter, the authorities are free to take necessary action
             Patna High Court CWJC No.3903 of 2026(4) dt.24-06-2026
                                                         4/4




                       in accordance with law.

                                   10. With the above directions, the Writ Petition stands

                       allowed to the extent indicated.



                                               (A. Abhishek Reddy , J)
Gauravkr/-

U


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